Not-So-Secret Formula to Build a Million-Dollar Real Estate Business

by adminkwblog Many real estate professionals dream of building a million-dollar business. However, to hit that $1 million annual revenue mark, you need to have a solid sales system and abide by some basic good practices. So, let’s get back to basics, shall we? Starting with the infamous “red book.” The Millionaire Real Estate Agent (MREA) by Gary […]

by adminkwblog

Many real estate professionals dream of building a million-dollar business. However, to hit that $1 million annual revenue mark, you need to have a solid sales system and abide by some basic good practices.

So, let’s get back to basics, shall we? Starting with the infamous “red book.”

The Millionaire Real Estate Agent (MREA) by Gary Keller offers a well-defined and easy-to-grasp model and systems to hit that million-dollar mark.

Keller recommends that real estate businesses follow the MREA Economic Model. In short, it’s based on three concepts: What goes in, what goes out, and what’s left over. In financial circles, those concepts are called income, expense and profit, respectively. The MREA model recommends that the proportions look like this:

What Goes In (Income): Gross commission income (GCI) is 100% of the revenue your business takes in.

What Goes Out (Expenses): Expenses have two categories:

  • Cost of sales (COS), which are the costs of making a sale including marketing, should be limited to 30% of GCI.
  • Operating expenses include your real estate business’ overhead, including your office and your staff. That should also be limited to 30%.

What’s Left Over (Profit): When you keep your expenses to those levels, you’re left with profit. Some of that is for you to enjoy as the fruits of your labor, some of it is for savings, and some of it is to reinvest in your business to grow it.

the-basic-economic-formula-for-the-millionaire-real-estate-agent

 

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It’s often easy to get caught up in more complicated financial measurements, but keeping it simple frees you to focus on the real drivers of wealth in your business and in your life.

Keep an eye on the bottom line, including meeting proper gross income levels, as well as keeping expenses in check. The latter is critical because even “minor” expenses can add up and eat away your profitability.

When you abide by these thresholds, your profit margins are healthy enough to provide enough income for you and your team members, allowing you to attract new talent and grow your business to that million-dollar mark and beyond.

 

Rookie Round Up in Fairfax Virginia

Rookie Round Up with Rick Guthrie at Keller Williams Fairfax Gateway office. Rookie Round Up covers all the essentials of navigating the real estate world.  Rick Guthrie teaches different topics each week to help new agents learn the ins and outs of real estate to help make new agents the most educated, and knowledgeable agent […]

Rookie Round Up with Rick Guthrie at Keller Williams Fairfax Gateway office. Rookie Round Up covers all the essentials of navigating the real estate world.  Rick Guthrie teaches different topics each week to help new agents learn the ins and outs of real estate to help make new agents the most educated, and knowledgeable agent you can be.  If you are interested in attending this program or others like it please contact the Keller Williams Fairfax Gateway office in Fairfax, Virginia at this link for more information. Keller Williams is known for their extensive options and coverage of topics when it comes to training.  Keller Williams was awarded the #2 training company in the United States and the only real estate company to make the list.  Come meet with Rick and the other amazing trainers at Keller Williams Fairfax Gateway, to kick start your real estate career today! Knowledge is power!

Rookie Round Up

Real-Estate Trends for Fairfax County Virginia February 2014

I’d like to share the same information with you that I share with real-estate agents in career development here at Keller Williams Fairfax Gateway in Fairfax Virginia. The Sold Summary for February 2014 is not only interesting but encouraging even with the unusual inclement weather that we’re not use to seeing here in Fairfax County […]

I’d like to share the same information with you that I share with real-estate agents in career development here at Keller Williams Fairfax Gateway in Fairfax Virginia.

The Sold Summary for February 2014 is not only interesting but encouraging even with the unusual inclement weather that we’re not use to seeing here in Fairfax County Virginia.

The sold residential real-estate dollar volume was $394,314,537 that’s up by 7% from last year at this time.

The average sold price was $499,765 again up from the average sold price of $476,735 from February of 2013.

Fairfax County real estate units sold increased by 2.07% totaling 789. This is all great news for Fairfax County Real-estate.

The number of active Fairfax County real-estate listings in February 2014 was 1,814 that’s up by more than 26.32% with the average days on the market just at 60 days.

Financing on sold properties this month was

  1. Conventional loan formats
  2. Cash
  3. VA loan formats
  4. FHA formats

The average sold to listing price ratio was 96.9%

This data and the following data was provided by MRIS as of March 5th 2014

The following is data for all of Northern Virginia real-estate which includes; Alexandria City, Arlington County, Fairfax City, Fairfax County, Falls Church City, Fauquier County, Loudoun County, Manassas City, Manassas Park City, Prince William County.

  1. Month on Month Volume up by 15.02%
  2. Month on Month Closed Sales up by 13.11%
  3. Month on Month Average Sold Price up by 1.69%
  4. Month on Month Average Days on the Market Better By 1.75%
  5. Month on Month Average Sold to Original List Ratio Better By 0.45%

So what is the Morale of the Story in Northern Virginia Real-estate?

It’s up and Rick Guthrie says, “That’s no Snow Job”.

  Lovely day in the DC area

Lovely day in the DC area

 

 

February Real estate Trends 2014

Rick Guthrie, Team Leader for Keller Williams Fairfax Gateway, discusses real estate trends for February 2014 for Fairfax County Virginia and Northern Virginia. How did the massive amount of snowfall this winter have an impact on real estate sales in the Fairfax County, Virginia area.  Each month Rick Guthrie will have these trends so come […]

Rick Guthrie, Team Leader for Keller Williams Fairfax Gateway, discusses real estate trends for February 2014 for Fairfax County Virginia and Northern Virginia. How did the massive amount of snowfall this winter have an impact on real estate sales in the Fairfax County, Virginia area.  Each month Rick Guthrie will have these trends so come back for more details, also for more articles like this and to see what else Keller Williams Fairfax Gateway has to offer check out Rick’s vlogs at the link below. Rick is always looking for talented agents if you would like to contact him please go to the contact rick link above.

Rick Vlogs Real Estate Trends

007 Ways to keep from being a Secret Agent in Real Estate in Fairfax, Virginia

Coaching, consulting and training real-estate agents in Northern Virginia always unveils similarities, in agents, that seem to prevent them from realizing their true productivity potential.  I’ve found the secret to more clients is simply not to keep what you do a secret. You may have heard it said, “Don’t be a secret agent” yet many […]

Coaching, consulting and training real-estate agents in Northern Virginia always unveils similarities, in agents, that seem to prevent them from realizing their true productivity potential.  I’ve found the secret to more clients is simply not to keep what you do a secret. You may have heard it said, “Don’t be a secret agent” yet many of you are just that. Secret agents in real estate agents just don’t lead to a successful business. In your social, familiar and recreational environments you’re a secret agent. No one knows you’re a Real-estate professional what company you’re partnered with and what you specialize in. Ask yourself this, “which Real-estate agent would I recommend to my friends, family, neighbors and close acquaintances?” Then before you answer realize this; the only person’s real heart felt motivations you know of are your own.  You’re not pushy your just the best for your sphere. So don’t keep it a secret. Here are my 007 ways to keep you from being a secret agent.

  1. Make sure you include a real-estate phrase in your home voice mail and email signatures.
    ( “Thanks for calling the Guthrie Family and Rick Guthrie Real-estate Career Counselor For Keller Williams” )
  2. Every time you’re out at a social event, in conversation, give two cards to two people. Ask them to keep one and give one to a friend.   (I Make it a game and say “I’m going to do 20 seconds of business here” and hand them the cards with their instructions.)
  3. Make a neighborhood Facebook page not primarily about real-estate but also community events such as HOA minutes or school sporting events. (Make sure your occupational information on your regular Facebook page is up to date to include your website and contact info.)
  4. Start a Business professionals group. Start with 5-10 in different occupations. Lawyer, doctor, landscaper, insurance professional, Realtor® (you), restaurateur just to name a few. Meet monthly, each taking a topic around their profession and speaking to the group.
  5. Host a community garage sale. Go door to door and introduce yourself handing out a flyer describing the event. Have them email you if they want to participate. Advertise the garage sale weekend then walk the subdivision on the day of the event and say hi!
  6. Organize a community clean up or playground restoration event. Contribution is good for everyone including you. Sellers take interest in agents who take an interest.
  7. Sponsor a local youth sports team. Make sure you’re at the games cheering them on. Kids love snacks after the game. Talk with the coach and  parents to offer any help.

 

Now I’m sure you can think of more. Maybe 009 or 025. The point is, never be a “Secret Agent” again. Everyone should know who you are and what you do. You know how James Bond is always aware of his environment and surroundings? You need to be aware of yours too. Listen for those conversations that involve investments and real-estate. Guess what? You speak that language. Offer up your expertise. Be the Northern Virginia Real-estate go to person. Be the one that your sphere will ask professional advice from.  But first they have to be reminded over and over that Real-estate is what you do.

“My name is Guthrie, Rick Guthrie.” “Sometimes I’m stirred but never shaken.”

Keller Williams Reports Record Growth, Productivity and Profitability Gains

 Real estate industry giant Keller Williams reported record growth, productivity and profitability gains for 2013. Already the largest real estate franchise by agent count in North America, the company added 15,000 associates last year, bringing its overall associate count above 95,000. During the company’s annual convention in Phoenix, Keller Williams CEO Mark Willis announced that […]

1467461_186145038249670_623232651_n Real estate industry giant Keller Williams reported record growth, productivity and profitability gains for 2013. Already the largest real estate franchise by agent count in North America, the company added 15,000 associates last year, bringing its overall associate count above 95,000.
During the company’s annual convention in Phoenix, Keller Williams CEO Mark Willis announced that the company’s associates had both outpaced the industry and shattered records in every category Keller Williams measures:
  • Transactions were up nearly 20 percent to 644,000 units
  • Sales volume was up almost 30 percent to $158 billion
  • Commissions earned increased by 30 percent to $4.2 billion
The extraordinary productivity gains drove profitability for franchise owners and fueled historic Profit Share distributions to associates. Ninety-five percent of offices were profitable for the year – a figure far above the standard for franchise businesses. The company shared more than $78 million with associates through its Profit Share program – an increase of 41 percent over 2012. Since the program’s inception in 1996, the company has distributed $475 million in profits with associates. It is on pace to double that cumulative Profit Share to more than $1 billion over the next five years.

The strong financial results are the exclamation point on an historic year for the Austin-based company:

  • Signing master franchise agreements covering Austria, Germany, Switzerland, Turkey and the UK and celebrating the launch of KW Indonesia, KW Southern Africa and KW Vietnam.
  • Being named the #2 training organization across all industries by Training Magazine.
  • Reaching No. 1 on the Wall Street Journal business bestseller list with co-founder Gary Keller’s The ONE Thing, which has now been translated into 23 languages.
  • Unveiling a new logo and branding campaign;
  • Transitioning the company’s entire associate base to Google Apps for Business;
  • Launching a mobile search app individually branded for associates and holding a consumer sweepstakes that will give $50,000 to a consumer who downloads the Keller Williams Real Estate Search App.
Keller Williams family, this year you showcased to the world that an education-based, technology-driven, consumer-focused company can drive innovation and excellence,” Willis said. “You’ve shown what an energized army – 96,000 strong and growing – can achieve when we all work together and are focused on a shared vision.”
During an update on the company’s global expansion, Keller Williams Worldwide President Chris Heller announced plans to open Keller Williams offices in Dubai. He also welcomed more than 130 guests from 24 countries.
Keller Williams President Mary Tennant shared that the company’s charitable foundation, KW Cares, had awarded more than $2.5 million in grants in 2013 to Keller Williams associates and family members struggling against unexpected hardships – from health issues to natural disasters, such as tornados in Oklahoma and flooding in Colorado.
“Thanks to you, Keller Williams has developed a culture of success, innovation, giving, and fun,” Tennant said. “You’ve attracted the best people, delivered the most impressive results and created the strongest culture. You and your colleagues have built the most extraordinary real estate business in the world.”

 

About Keller Williams Realty, Inc.:
Keller Williams Realty, Inc. is the largest real estate franchise company in North America, with approximately 700 offices and 95,000 associates in more than a dozen countries around the world. The company has grown exponentially since the opening of the first Keller Williams Realty office in 1983, and continues to cultivate an agent-centric, education-based, technology-driven culture that rewards associates as stakeholders. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information or to search for homes for sale visit Keller Williams Realty online at (www.kw.com). For more information about KWWorldwide, please visit kwworldwide.com.

Spring Cleaning Time Is Almost Here! Kick Clutter To The Curb With These Home Cleaning Tips

Spring is around the corner, and it’s time to get your home in order!

It's Almost Spring Cleaning Time! Kick Clutter to the Curb With These Home Cleaning TipsSpring is around the corner, and it’s time to get your home in order!

Spring cleaning can be fun and easy if you follow some general guidelines, which are sure to get your home ready for the nice weather and looking as beautiful as the weather is about to. Kick the winter clutter to the curb with these spring cleaning tips.

Start With The Closets

Spring is here, and winter wear is no longer needed! It’s time to box up all of the winter boots, jackets, gloves, and scarfs until next season.

Starting your spring clean with your closets is a good tip, and will get you prepared for the rest of the process while creating more space and organization in the bedrooms of the house. This is also the perfect opportunity to create a “give away” box full of clothes that are no longer being worn.

Reorganize: Bookshelves, Countertops, And Desks

Reorganizing is the perfect way to prepare your home for the spring and summer. Good clutter is common in many homes, like useful books that are interesting for guests to read or decorations that offer a sense of warmth and character to the home.

So pick up the fallen and leaning books on the bookshelf, reorganize your kitchen countertops, and de-clutter your home office. For busy home offices, purchase organizational tools like additional shelving units, compile and file away old bills and receipts, and toss anything else that is no longer needed or of any use.

Get Scrubbing: Removing Stains And Odors

Getting ready for spring means removing the stains, dirt, and odors that accumulated in your home over the colder months. First, you should start with wiping your painted walls with a wet cloth to remove scuffmarks and dust.

If the water doesn’t do the trick, you can try mixing a little dishwashing soap in with the bucket of warm water. You may even want to repaint certain high-traffic areas, like entrance halls and the baseboards around the front door.

Next, you can go for the floors. Having a fresh carpet cleaning is sure to kick-start your spring cleaning; this may be something that you wish to have done by a professional. To make the most out of your carpet cleaning, have it scheduled for when the kids are out of the house for a while, and wait until the worst of the weather is over.

Make sure the kids take their shoes off inside, but get them to leave their socks on to avoid natural oils from getting into your freshly cleaned carpet. Vacuum area rugs in the same fashion, and mop the kitchen and bathroom floors at the same time you clean your hardwood floors.

Give the showers, bathtubs, and toilets in the house a good scrub. In the kitchen, empty the fridge and freezer of their contents, and give the inside a good scrub down as well.

Once the tidying, de-cluttering, and scrubbing are done, you will get to enjoy the fun part of spring cleaning: spring decorating! And while you’re at it, why not buy yourself and your home some spring flowers for a job well done.

If you’re doing a big spring clean this year because you’re looking to sell your home, these tips will get your home ready for any buyer’s eyes. Contact your real estate professional today to get more tips on buying or selling a home.

NAHB Housing Market Index Ticks Upward

Spring is almost here, and the National Association of Home Builders Housing Market Index (NAHB HMI) thawed slightly in March.

NAHB Housing Market Index Ticks UpwardSpring is almost here, and the National Association of Home Builders Housing Market Index (NAHB HMI) thawed slightly in March.

The current reading of 47 is one point higher than for February, but still indicates pessimism among a majority of builders surveyed. Analysts expected a March reading of 50.

The gauge of builder confidence stayed near its lowest level since May.

March’s NAHB HMI reading remained below the benchmark reading of 50, which indicates that an equal number of builders are positive about housing market conditions as those who are negative.

A reading over 50 indicates that more builders are positive than negative. Last August the NAHB HMI reading reached 58, its highest level since 2005.

Kevin Kelly, NAHB’s chairman said that builder concerns included a lack of land available for development, the lagging effects of severe winter weather and labor shortages.

NAHB HMI Details Show Regional Variances

The NAHB HMI national reading is based on builders’ views of three aspects of housing markets. The March reading of 47 is based on three components. The reading for prospective buyer traffic in new home developments rose by two points to 33.

Builder expectations for present sales of single-family homes rose from 51 to 52. Builder confidence in home sales in coming months fell from a reading of 54 to 53.

Rising mortgage rates and home prices along with inconsistent labor markets influenced builder confidence concerning future home sales.

March Readings For Regional Home Builder Confidence Were Varied:

  • Northeast: March’s reading was five points lower at 29.
  • Midwest: Builder confidence gained three points in March for a reading of 52.
  • West: Builder confidence dropped by five points to a reading of 53.
  • South: March’s reading rose by two points to 48.

In related news, the Department of Commerce reported housing starts for February dropped to 907,000 as compared to January’s reading of 909,000 housing starts and expectations of 908,000 housing starts.

Building permits for February rose by 7.70 percent to their second highest level since the recession for a total of 1.02 million permits. The rise in building permits was attributed to construction plans for condominium complexes and rental units.

BUSTED 4 Myths About Buying Your Home That Just Aren’t True

It can be pretty intimidating to dip your toes into the realm of home ownership, especially if you’re a first-time homebuyer. To make things worse, there are a number of myths floating around out there surrounding the home buying process.

BUSTED: 4 Myths About Buying Your First Home That Just Aren’t TrueIt can be pretty intimidating to dip your toes into the realm of home ownership, especially if you’re a first-time homebuyer. To make things worse, there are a number of myths floating around out there surrounding the home buying process.

Such misconceptions have many kept many would-be homeowners from realizing the personal and financial rewards of owning a property. To clear things up, here are 4 myths about buying your first home that simply aren’t true.

Myth #1 – It’s Cheaper To Rent Instead Of Own

If you buy a property that is within your budget and your mortgage terms allow you to make comfortable monthly payments, the cost of rent can often be higher than mortgage payments.

Sure, there are other expenses associated with owning a property that you wouldn’t be responsible for if you were renting, but one thing that many people forget is the fact that renting does not allow you to build equity.

The ability to build equity into a property that you own is like paying into a savings account – if you buy a home for $200,000, and pay down your mortgage to $175,000 in 5 years, you’ll have $25,000 in home equity that can be tapped into later if you need a lump sum of cash to pay for other large expenses. If you sell your property down the line, any equity that the property has accumulated will provide you with more profit from the sale of the home.

Myth #2 – Whatever Shows Up On The Inspection Report Is The Seller’s Responsibility

Most offers on a home usually come with a home inspection condition that makes the offer contingent on the acceptance of a home inspection report by the buyer. Many buyers, however, are under the impression that sellers are responsible for any issues that show up on the inspection report.

Although the seller is required to make certain major repairs as stipulated by the lender, everything is still negotiable. A buyer may ask the seller to fix a minor crack in the basement wall or repair any scuff marks on the hardwood flooring, but the seller can essentially refuse, leaving the buyer with the decision of whether or not to continue with the offer anyway.

Myth #3 – The Perfect Home Is Out There – I Just Have To Wait For It

Buyers have a tendency to focus too much on all the little things that may be wrong about a house rather than on the majority of the things that are right. Homes are much like people – they aren’t perfect. Even brand new homes might have a few minor flaws.

The goal of a house hunt is to find the perfectly acceptable home – one that may have a couple of quirks that you can either live with or fix, but is otherwise ideal. An experienced buyer’s agent can help you identify issues that are deal-breakers, and help keep some perspective by separating irritating details from the big picture.

Myth #4 – I Don’t Need A Real Estate Agent To Buy A House

Without the proper team behind you – especially if you’re a first-time homebuyer – you could potentially find yourself in a compromised position. Many buyers don’t take the time necessary to shop for an agent who can best represent them in their purchase.

Think about it this way – would you perform surgery on yourself? Do you feel comfortable filing your own income taxes, or do you opt to use the services of an accountant? Being represented by a licensed real estate agent will give you the benefit of professional skills and knowledge, including the ability to find financing and close the deal with your best interests put first.

It’s always in your best interests to have an experienced, knowledgeable agent representing you in a home purchase. With such a major investment on the line, you want to have someone who can help you complete a purchase leaving no stone unturned, and ultimately saving you money – and a lot of headaches.

A professional real estate agent will be able to sort the myths from the reality and make your first home-buying experience a positive one. Contact us today for more information on how you can become the proud owner of your first home!

Living The Dream: Five Amazing Movie Houses That We Wish We Lived In

Our dream homes are often inspired by our own imaginations, from the homes we see in our own neighborhoods or the perfectly designed interiors we see in magazines.

Living the Dream: Five Amazing Movie Houses That We Wish We Lived InOur dream homes are often inspired by our own imaginations, from the homes we see in our own neighborhoods or the perfectly designed interiors we see in magazines.

However, sometimes our dream homes can be seen on a much larger scale, operating as the home to some our favorite movie stars. Check out these five amazing movie houses that film buffs commonly lust after!

The Alaskan Mansion in The Proposal: A Colonial Stone Paradise

In the hilarious romantic comedy The Proposal featuring Ryan Reynolds and Sandra Bullock, a gorgeous waterfront house acts as Ryan’s family house in Sitka, Alaska, nestled at the base of the mountains and featuring a pull-up-by-boat-only dock.

Though this house is just as incredible as it was portrayed in the film, its physical location is actually in Manchester, Massachusetts. The mountains were added using special effects, however, this natural stone house is just as lovely as seen in the movie.

The real thing is much more colonial in style, though, and much of the interior as seen in the film was created with a facade to create a more rustic feel.

The Fantastical Great Gatsby Estate: Better Than a Dream

Who doesn’t fantasize about throwing lavish parties in the castle-like mansion that played as Leonardo DiCaprio’s home in The Great Gatsby? Just as it might have been suspected, most of this castle is like something out of fantasy.

This house features an intricate pool, a two-story master bedroom, an incredible library with a winding staircase, and a grand ballroom. 42 different sets were built in Sydney to piece together this ultimate fantasy house.

The Cullen House in Portland, Oregon: A Log House With Style

Actually existing in real life is the magnificent house that was used as the Cullen house in the vampire movie Twilight. As a contemporary, ultra-modern log house – if you can call it that – the Cullen house drops jaws with its floor-to-ceiling windows that open it to its natural, woodsy surroundings.

The contemporary and beautifully designed interior is just as jaw-dropping, which was all completed in 2007 – just in time to make it to the big screen.

Sex and The City’s Real Estate Heaven

When Carrie walks into her soon-to-be apartment and exclaims “I think I’ve died and gone to real estate heaven!” we know that many of the women (and men) in the audience agreed.

Many of the interior sets were shot at Silvercup Studios in Queens, including the incredible entry and heavenly closet that Big builds for Carrie. Still, real or not, there’s no reason why you can’t aspire to reach this level of real estate heaven or own the closet of your dreams.

The Classic American House In Mr. & Mrs. Smith

The movie that can never be forgotten, which sparked Brad Pitt and Angelina Jolie’s controversial – and lasting – relationship, is also one that presents a traditional American home that many lust after.

The house that plays as the family home to Mr. and Mrs. Smith resides in Pasadena, California, and offers many modern and contemporary design features. The home has many glass chandeliers, all of which are eventually destroyed in the characters’ “falling out.” Still, this movie house is a great source of inspiration for interior designers everywhere.

Wherever you get your inspiration from for your perfect dream house, knowing it’s a possibility is the most important thing. With your real estate agent on the lookout for you, it’s not only a possibility, it’s a high probability! Don’t wait any longer; contact a real estate agent today to find a piece of real real estate that will make you feel like a movie star.