All Forum Posts by: Eric Jubeck

Hey Mike, need a little more context to which section or page you're referring to. Cost of Sales for your entire "business" is never that high following the models. Keep in mind there are multiple sections to the book including separate sections dedicated just to MREA's (Millionaire Real Estate Agents)...maybe what you're referring to is about when you are the MREA and you're following the organizational model to build out a Team? You're cost of sale as the actual MREA from your Buyer's agents production is 50%, meaning the transactions they complete for you could end up being a 50/50 split where you split the commission with your Buyer's Agent, meaning you as the MREA have a Cost on that Sale of paying your Buyer's Agent 50% of the commission? Keep in mind the numbers in the book are general statements and the book is now over 20 years old so certain items like that are just a guide to understand the models more than anything. Happy to discuss further if you have other questions or if you're thinking of building out a team or joining one...

Most reasonably priced cabinets end up being RTA style (Ready To Assemble) which I always try to find local cabinet wholesalers/liquidators to source them. Usually hop on FB Marketplace and you'll find a bunch of them posting them there linking back to their actual shops/business. Just make sure you find sets that have easier assembly usually with cam locks like Ikea does, and make sure they have soft close hinges and dovetail drawers are usually the basic features you want to be of better quality. Best of luck!

No benefit, in theory could only work against you. I suspect most people keep it inactive for awhile, continue to do CE credits and renew every two years purely because at some point they MAY decide to get back into the business, or do referrals. Thinking they already went through the trouble to get it, so don't want to just let it go in case they end up needing it again one day, they can avoid having to do 63 hr pre licensing course, fingerprints, background, passport photos, and trying to pass the state exam all over again...easier to just leave it inactive for a rainy day I suppose...

Hey James, two things I caught out of your post...your license is currently inactive...and you still don't have a desire to represent clients directly. So in my opinion this is very easy to answer...

First, you need to make your license active by joining a brokerage that brings you on and operates solely for referrals. This is typically done with very little out of pocket, sometimes free to start if you find that right situation, and you essentially "park" your license in an active status with the DBPR. What happens here is you are NOT a REALTOR®...you are ONLY a Licensed FL Real Estate Sales Associate on paper. By joining a "referral brokerage" you will not be required to join any local, State, or National Associations...and you will not be required to sign up for MLS access. The only thing you will be doing is simple...refer clients to other agents and get paid from them, typically 25-35% depending on the arrangement you make to just simply hand them off. That's what you can refer to as mailbox money!

Now after you find yourself a nice situation in a referral only capacity, start networking to find a great agent in the areas your family members are looking. Help vet any potential agent candidates and do a little upfront leg work for them to ensure they are getting a capable, qualified pro to assist them. You can still stay involved, get updates from the agent, help out and advise your family members at a distance since you are a party to the transaction(just don't step on the other agents toes in doing so)...you just won't be the actual REALTOR® doing the majority of the work and completing the contract and paperwork...make sense?

Then once those transactions are complete, keep doing it over and over again with anyone and everyone you know that needs to buy or sell real estate again! Now most referral brokerages will still take a small transaction fee, or small split from each check(how they make money)...but it will save you quite a bit over all the other dues and fees you pay joining a traditional brokerage and still having transaction fees and splits anyways...

Congrats Matthew! Did you buy in Abacoa? Will be great for a rental long term...obviously you living in it min 3 years as primary before renting will avoid any 1-2 yr min occupancy HOA rules which is a smart play! A lot of homes in that area have downstairs living areas as well, any plans to do room rentals off the books or bring in roommates part of your house hacking?

This question is probably more specific to your area, as it most likely varies by State. Here in FL, an Agent can only be paid directly as an individual 1099 for commission, or they can create a Corporation or LLC to be paid, but the name of the Company has to be their exact name as it with the DBPR. In my case the company is Eric Jubeck, LLC as I can only be paid in my name per FL Statute. Sounds like it is different where you're at in TX.

Hey James, I'd be interested to hear how this progresses for you. I have a friend that does agent coaching nationwide and this is one of his hot topics using LinkedIn. But it's more for finding potential leads through shared connections or asking for warm hand offs when you find sellers with mutual connections, or using something like same school or employer in past you both worked for, etc. to start a convo. I like your approach at going right after the sellers directly via direct message asking to sell. I'm not sure about their policies either, but I know a ton of other people spam message me on LinkedIn so it must not be that strict...

It's always a good idea to speak with multiple lenders, which I would suggest to you.

I'm assuming your lender said you need to rent out your existing home because most likely your DTI won't qualify you for two mortgage simultaneously. But, which is why you should check with multiple lenders, the criteria to rent out doesn't necessarily mean you move out now. Most cases you can have a lease agreement in place for after you close on the new home, or the lender may go off market rent calculations for your existing home to determine how much of that existing mortgage payment can be removed from your DTI calculation when applying for the new loan. All of this can be done without you having to move out of your current home is the point...

As for doing second home loan, you have to factor in it will cost more because interest rates will be higher. You will also have to put more money down on the purchase vs a loan for primary residence if that's a concern to you or not. But, more importantly it sounds like you're planning to buy this second home near where you currently live. In most cases, you will not qualify for a second home/vacation home mortgage anyways with it being so close to your primary residence and it would have to be structured as an investment/rental property which would have even higher loan costs.

Point being, work with a lender that can help you navigate the renting out of your existing primary residence for after you close on the new home, and just go ahead and purchase the new home as a primary residence to save yourself trouble and more importantly money!

Hey Chris,

Is the product something along the lines of a Curbio or similar offering? Where you're funding the renovation costs so there is no upfront expenses to the seller, so that you can list/sell for more?

That's becoming more popular across the board and some brokerages are starting to jump in as well...

I'm just curious how you're doing the equity split...are you just setting a number with them now on the current market value as-is that they are guaranteed to receive...then anything above and beyond that figure just gets split like a jv? 

That's the part I'm trying to wrap my ahead around for the verbiage and how to effectively market that aspect, above and beyond the traditional "We Buy Houses" "We Pay Cash" etc...