Property Management Referral Program

Agent Property Management Referral Fee Program

Often agents will represent a buyer on a Purchase that then becomes a landlord. Sometimes the agent will even taje the lease listing. But who will manage the property for the ongoing landlord and tenant lease? Most real estate brokers forbid their agents from actying as the propeprty manager. This is because it is high liability, E&O insurance may not cover it, and there is extra accounting oversight needed to do the job properly.

Solimar Property Management Will Pay Agents a Referral Fee

Real estate agents can now be compensated for property management leads without the headache of actually managing the property. Solimar Property Management will pay agents 20% of the first year of management fees!

How Can I Get Paid On My Property Management Referrals?

You can register your property management clients here: Client Referral Page

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Real Estate Commission Paid Faster

Which 100% Commission Real Estate Company Pays the Fastest?

At Balboa Real Estate, if your file is complete at closing or you use our in-house transaction coordinator then you can be paid directly from escrow at closing. Otherwise, escrow sends a commission check or wire to the office. In the many years that I have managed Balboa, I know that agents like to be paid as soon as possible. If we get agents their commission fast, then they appreciate it. Maybe some don’t notice when it comes fast. However, every agent notices when it comes slow.

Many companies send checks slowly as a matter of convenience. For example, it’s easier to go online and have your bank issue the check for the brokerage. It saves the headache of printing a check, signing, stamping and mailing. The drawback is it can take days, often over a week. This does not make agents happy. In contrast, when we receive a check it’s a hot potato that needs to be accounted for and then issued to the agent as fast as possible. Cutting checks is our top priorty for our interal operations.

Have you ever had someone tell you they were putting a check in the mail and then it still takes days to arrive? This is the type of situation when someone walks out to the office park mailbox, after mail has been picked up for the day, then takes credit for mailing it that day. Meanwhile the check sits in there until the next pickup. At Balboa Real Estate we calculate the pickup and delivery times. This often means making trips to the local post office because the office mail has been picked up and we want the mail to go out that same day. In urgent scenarios, we make trips to the post office so that we can get a commission check out by the noon pickup. Despite having nearly 200 agents on the team, we operate at the same capacity as a small shop with a few agents – considerate and speedy service for agents.

To find our more about our 100% commission real estate program, please CLICK HERE 

https://youtu.be/b7-nFreG670

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#1 Common Mistake with the Referral Fee Agreement

Avoid the top mistake agents make on a referral fee agreement.

It all begins as to how the referral fee agreement is structured. The form stipulates the fee to be paid to the referring broker is based off of the gross commission earned. Now, this verbiage is important and necessary because it protects the referring broker. Imagine if the agent that received the referral had a terrible broker split or some sort of debt that would take a big bite out of the gross commission. Well, the referring broker should be subject to the arbitrary fees incurred by the recipient agent. Therefore, the referral fee should be calculated based off the gross commission. All this works well and fine until an exception comes up. An example would be a problem in the transaction where the recipient agent has to contribute a portion of their commission to save the deal. Another example would be if the referred client turns on the agent and tells them they want a rebate or else they will go to some discount outlet like Redfin. Well, an agent will usually chip in commission if it saves the transaction. Especially, if that agent has invested time working with that client.

Let’s imagine a made up scenario to show how it all goes wrong.

The referral fee agreement stipulates the recipient broker has to pay 25% of the commission to the referring broker.

The recipient agent has a 70/30 commission split with her broker.

The recipient agent has to agree to chip in $3000 to save the deal. So she assumes the 25% referral fee will be based on the $7,000 commission reamining after she credits her client. This is a reasonable mistake. After all, her 30% broker fee will be calculated off the $7,000 not the original $10,000 gross commission. Only at the end does she find out that her broker is obligated to pay $2500 to the referral broker off the top. So, the new gross commission left for her is $4500. Then she has to pay the broker fee of 30% ($1350), which leaves her with $3,150. Naturally this agent will be unhappy because they did the majorty of the work for 31% of the gross commission. To prevent this one of two things should happen:

  1. The Referral fee agreement should stipulate that any credits or rebates to the buyer must be deducted from the gross commission in which the fee is calculated.
  2. The referring agent is contacted and made aware of the need to credit commission to the save the deal and then add the verbage from line 1 or recalculates as flat fee amount to be paid as the referral fee.

If you are interested in the 100% commission model and working with a broker that has the foresight to protect you from scenarios like this then please CLICK HERE for more information.

 

 

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Can Agents be Paid Directly from Escrow?

We are often asked if real estate agents can be paid directly from escrow.

The close of a real estate transaction often marks the culmination of months of work to earn a commission. Naturally, agents want to be paid that commission as fast as possible. Any reputable company has requirements to be met before the agent is paid. Namely, that all required documents are in the file. At Balboa Real Estate, we want agents to be paid as soon as possible. Our corporate office is in San Diego Cuunty, but we have agents all over the state of California.  Therefore, it will save agents a couple days if agents are to be paid directly from escrow. If an agent has a complete file with all required paperwork on or before closing, then we will send dibsursement instructions for escrow to pay the agent their portion of the commission directly.

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Experience 100 Percent Commission with Balboa Real Estate

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Join the Balboa Real Estate team and be apart of the best 100 percent commission model in the industry

Join the Balboa Real Estate team and be apart of the best 100 percent commission model in the industry

The 100 percent commission plan has been around in the real estate industry for a long time. Many real estate agencies in California have advertised that their firms offer 100 percent commissions but when you get down to the details, there are many hidden costs that are involved and makes the 100 percent commission plan dwindle down to the broker taking half of the commission and leaving the agent with less than they deserve.

Many firms require that agents pay a startup fee upon joining. After those fees, there are monthly/quartly fees depending on the plan that you choose to go with. There might be key charge so that you may use the office. Many firms advertising 100 percent commission will charge their agents a fee for each transaction to use a transaction coordinator. One firm charges over $100 for a document storage fee. Another requires you to use a TC on your transactions and pay for those services. Since there are so many fees involved with joining a 100 percent commission firm, you would think there are many benefits that would make the monthly payments worth it. Many California Real Estate agencies offering 100 percent commission plans offer seminars, free printing, training and what not, but these benefits are not widely used by agents.

Agents would get more from a real 100 percent commission plan by joining Balboa Real Estate than the few dollars that they would gain from the free printing allowances from any other real estate firm in California offering 100 percent commission.

Join Balboa Real Estate and receive the best commission model in the industry. Our transaction fees start as low as $99. There are no monthly or quarterly fees. No sign-up fees. E&O insurance at no cost to agents. Use of our office and client meeting rooms without a key fee. No junk fees.

Balboa Real Estate is not only a real estate agency but we are a team that’s redefining the 100 percent commission model. You will be among seasoned veterans who have decades of experience in real estate and expansive knowledge on marketing that will help you in growing your business.

 

Connect with us on Facebook!

 

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Is 100 Percent Commission Really 100%?

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100 commission real estate100 percent comission, but is it really? Avoid additional and hidden fees with Balboa Real Estate.

Real Estate firms have adopted to the trend of offering agents 100 percent commission but through research of competing agencies in California there seems to be few that truly stand by their 100 percent commission tagline.

100 percent commission serves as a motivational strategy to keep agents and brokers engaged because this ideally works to ensures that the agents get the most out of their hard work. However, many of the leading firms in California have other fees that agents, new and seasoned, should be aware of. There is usually a start-up fee, a key charge for using the office, plans requiring monthly or quarterly fees and payments for E&O. Many firms will charge you unneccesary fees going towards benefits that are rarely used by agents. Don’t be fooled by firms stating 100 percent commission. The list of additional fees seems never ending and not even near the 100 percent commission mark once everything is calculated.

At Balboa Real Estate we won’t ask you to pay for services you don’t need or services that should be provided without additional costs. We believe that you should keep all of the commission that you earn and we are a firm that wants to make sure our agents are taken care of. There is a reason why Balboa Real Estate is one of the few true firms that stick as close to the essence of 100 percent commission as possible. Balboa Real Estate wants you to keep as much of the commission at possible and avoid charging our agents all the hidden fees that many other real estate firms charge. Our 100 percent commission plan is as simple, easy and the best in the industry!

Contact us to join and get the 100 percent commission you work hard to earn!

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100% Commission Real Estate in Southern California

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Balboa Real Estate is Bringing 100% Commission Real Estate to the Inland Empire.

Balboa Real Estate is headquartered in Orange County, but quickly expanded south to San Diego and north to the San Fernando Valley.

Naturally, as we expand we join the local associations or realtors.  Below is a list of associations of realtors of which Balboa Real Estate is a member.

100% commission real estate in Orange County | Orange County Association of Realtors (OCAR)

100% commission real estate in the San Fernando Valley | Southland Regional Association of Realtors (SRAR)

100% commission real estate in Ventura County | Ventura County Coastal Association of Realtors (VCCAR)

100% commission real estate in San Diego County | San Diego Association of Realtors (SDAR)

100% Commission real estate in the East Valley Riverside County | East Valley Association of Realtors (EVAOR)

100% Commission real estate in the Inland Valley Riverside County | Inland Valley Association of Realtors (IVAR)

We offer the best 100% commission plan in the industry: CLICK HERE for more information

 

 

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Methods of Compensating Real Estate Agents – Commissions and Splits

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This article gives a great  overview of real estate commission plans. More evidence that our commission plan is undoubtedly the best in the industry.

You can read the article below or click here for the original, enjoy:

The Broker/Agent Traditional Commission Split Model:

The vast majority of real estate agents are compensated by a broker via sharing the gross commission amount that the broker collects. Here’s an example:
1. Gross commission amount of a transaction = $12,000.
2. Broker/Agent split of 50% broker/50% agent = $6000 to the agent.
3. The percentage split is an amount agreed to by the broker and the agent and usually reflects the amount of services and support the broker provides. It can also reflect the volume of business the agent brings in.

The 100% Commission Model:

In this compensation model, the agent gets the entire commission. This model can pay 100% to the agent because the agent is paying a “desk fee” or monthly office fee. This can be a significant amount/month, but experienced producers prefer it because their costs are capped while their income is not.
Example from above would be $12,000 to agent, but office fee could be $1000/month or more.
New agents generally are not interested in this model because of the fixed cost they must pay monthly.As of 2013, this model has almost disappeared, with even REMAX taking on new agents with less than a 100% commission.

Referral Fees from One Brokerage to Another and Agent Split:

Referrals come “off the top” before commission is split. The referral is a negotiated percentage paid to another company for sending a client, either as a seller or a buyer. Here’s an example of a typical buyer referral:
1. Brokerage A refers a buyer to Brokerage B in another state.
2. Using the $12,000 gross commission from above, and an agreed referral fee of 25% would give Co. A $3000, and Co. B agent and broker would split the remaining $9000.

Percentage Paid to Franchise for Business:

Some of the major franchises charge a percentage fee “off the top” of each commission to their franchisees. This fee would come off the top of whatever amount the Broker receives before splitting with the agent. Using a 7% franchise fee as an example:
1. $12,000 gross commission from deal would pay franchise $840, while broker and agent would split the remaining $11,160.
2. On the referral deal from above, the franchise percentage would come off of the $9000. Agent and broker split $8370.

Other Compensation Models:

With differing models appearing regularly for how brokerages charge their listing and buyer clients, there are many other ways an agent might be compensated….even by a salary.
For a new agent, the split negotiated with the broker should be carefully considered based on the services and anticipated prospect leads that will be received. Sometimes a 45% agent share can be better than a 60% share with little business coming from the broker.
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100% Commission Real Estate in the 1980’s?

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This is quite hilarious, apparently 100 percent commission real estate is a relatively old concept.

This article, dated September 16, 1985, talk about the 100% commission trend in Florida

It’s surprising to see he charged $400 a month plus a transaction fee. Even in 2013 dollars that is way pricier than what current going rates are. 

You can find the original here or just read below:

Brokerage Trend: 100% Commissions Wall Street Company Switches To New Concept

September 16, 1985|By Jack Snyder of The Sentinel Staff

If real estate broker Jim Weinberg is right, the 100 percent real estate commission concept is going to be the coming thing in the residential real estate sales industry.

Weinberg has just converted his Wall Street Company residential brokerage from the conventional commission split structure to the 100 percent commission approach.

That means sales associates working out of Weinberg’s offices will get all of the commission they make on a sale. Previously, the associate got anywhere from 50 percent to 75 percent of the commission,depending on how much business the sales agent was producing.

In return for getting the entire commission, sales associates will now pay a $400 per month desk rental fee plus a small transaction fee on each sale. The associate also pays personal expenses such as long distance telephone calls, car expense and advertising. Associates in conventional brokerages pay a certain amount of their personal expenses now — car expense, for example.

Weinberg provides receptionist-secretarial help, access to the Realtor board computer, plat books, a full-time noncompetitive sales manager, training and a relocation system.

”It’s a win-win situation for both the broker and the agent,” Weinberg said.

The 100 percent commission concept surfaced several years ago, but has grown slowly in this market. A couple of years ago there was just one office — 100 Percent Realty — in the Orlando area utilizing the concept.

But the REMAX 100 percent franchise system moved into the area about a year ago and ”has done quite well,” Weinberg said.

Under the old commission system, for every 20 sales agents a broker had, four might be top producers, four might be so-so and the rest might be coming and going, he said.

Weinberg said all four Wall Street Company offices — Lake Mary, Maitland, Altamonte Springs and Winter Park — will be converted to the new system.

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