All Forum Posts by: Jake Fugman

@Lori Sinclair  If you are from TX you may have heard of eXp Realty since they have a large presence there.  Im an agent in Chicago, but we are actually based in Washington.  Im not positive if we are looking for a managing broker in the state but I know we need team leaders and mentors EVERYWHERE. 

I would be happy to get you more info if you wanted!

@Yaric Mifedov I am an investor that also recently got my license. All agents of course chose their current firm for a reason (myself included). Very general advise that some people overlook is make sure that no matter what commission split you negotiate that your firm offers a commission CAP... especially if you are a self starter that doesnt rely on a team lead for all of your leads

Ex:  if you are on a 80/20 split you should be able to get 100% commission (100/0) after you pay a certain amount into your sponsoring broker during the year.

@Jacob Mallison I found a good way for realtors to plan for the future is to work on creating at least 1-2 passive forms of income that dont come from direct selling or a 401K.  In my case I researched and joined a firm that awarded stock as well as had an aggressive revenue share program for helping grow the company.  This way I can see my monthly residual income grow until it reaches an amount that would allow financial freedom.  I also personally own/operate my own rental properties which is a common route for agents to force themselves into building long term equity. 

As far as the need for a financial planner I would say that any of the agents who take a similar route would have a need for a financial planner that can help them maximize the gains/tax savings from these sources. 

Im an investor/agent in Chicago and joined eXp just a few months ago.   Its great for self starters who create their own value.  I am not the typical residential agent but its the perfect balance of support / independence for me.  

@Dewayne Reid I would say that conventional is always the best if you can make it work. Understand that if this property is an investment only then you will likely need to put down at least 20% since you wont owner occupy. If you can find a way to remove the tenant and move in yourself for the first 12 months you can take advantage of FHA loans which cater to lower credit and allow 3-5% down. PM me if you want a few names of mortgage brokers. Good luck!

@Byron W.  I always now require proof of insurance as well as switched to collecting a nonrefundable move in fee VS security deposit.  I use an online management portal (cozy.co) where you can easily switch on the requirement for tenant to upload or purchase insurance direct from site.  I would recommend it. 

@Joseph Parker  Correct.  For example the firm I'm with does an 80/20 split and caps at $16,000 paid to sponsoring broker.  So assuming average commission of 2.5% an agent typically starts to collect 100% of commission after selling about $3.2M.  Anyone selling over about $3-4M who is generating their own leads REALLY needs to be at a capping firm or they are giving away $$. 

I would do your homework on where the $1,200/mo fee is being allocated.  Typical monthly minimum fees are closer to $100 - 200/mo and still include advanced lead gen, CRM software, training, document portals, etc.  

Hope this helps!

@Joseph Parker   Does either cap your commission paid to sponsor? Ex: after _______  (cap) paid to broker in a 12 month period you should be keeping 100% of commission.

This is something often overlooked by agents.  An aggressive split sounds great in beginning, but if you are a performer then a cap is almost a necessity to maximize your share. 

@Tashinga Musekiwa  I started a similar way and I feel I made the right choice with where I landed (eXp).  I own several cash flow rentals and looking to expand so I spend about 50% of my time on RE investing (revenue stream #1) and the other 50% on building a network for RE sales (revenue stream #2).  They are a cloud based firm so they can afford to offer an aggressive split, low fees, and a commission cap.    

As an investor who is likely building their own network and wont need to rely on a brick & mortar shop I would try to find a firm with a similar asset light model that give the most possible back to the agent.

Hope this helps!

Calling all Illinois agents that are seeking a model that support financial freedom!

Lunch is FREE and will be provided while experienced eXp agents talk about the model behind the fastest growing real estate firm in the US, and how eXp is helping them gain financial freedom. Drinks on rooftop to follow for anyone that wants to hang around and network.

Location: SPACES - office/venue
Address: 159 N Sangamon Ave, Chicago, IL 60607
Date: September 5th
Time: 1pm - 3pm

NOTE: THIS IS A MEETUP FOR CURRENT (OR SOON TO BE) AGENTS/BROKERS. If you are only a RE investor seeking multiple income streams I can surely recommended several other groups.