Here it is.. 2008. And the manner in which we real estate brokers conduct business continues to change and evolve...Changing for the better in many ways. I've been doing this for more than 30 years and it's clear that internet will continue to morph the industry. The "virtual brokerage" model (or "Virtual Office") is now being fully implemented by a company headquartered in Houston, TX. Connect Realty is the fastest growing "online broker" today, with more than a 1,000 new brokers added in the past several months.
As all of us here on active rain know, communication and internet technologies continue to evolve and become easier to use for both the real estate practitioner and the consumer. One of the side benefits of this is the reduced, or even eliminated, need for expensive investment in the "tricked out" office.. and related ongoing overhead expense! After all, that expense is passed along to the agents and clients. Current market realities is making the re-evaluation even more pressing.
In this slow market, many managing brokers are running into cash flow trouble. Big trouble. The "virtual office" helps reduce costs in many different ways. It takes some time to fully understand the systems, but once in place, you'll wonder how you managed in the "old world" model!
Are there drawbacks to doing business as a "virtual broker"?
What I hear most often is the lament that there is less "interaction"- they miss the "office atmosphere" for sharing ideas, leads, etc. is missing. Other brokers are concerned over having a home office. Both concerns are easily solved. And the advantages far outweigh the concerns anyway.
The interaction issue... solved by joining a network of like minded "virtual brokers". I do that by being an associate with Connect Realty. In fact, now my broker circle of friends has expanded substantially, and growing larger every week! I like it. The other issue-having to do with perceived need for an office- is not so important, in my view. Since all files, paperwork, coordination, etc is centralized, reviewed, and maintained by the company, the need for extensive "office space" is minimal at best. If you plan to meet someone in person, it's easy to do so at your favorite lender or title company- get the loan process started and create stronger bonds with your vendor partners this way, too.
I have a home office that works quite well, I also have access to an executive office on an "as needed" basis. Same for conference room(s). In truth, my "office" is wherever I have an internet connection and/or wireless phone service. I have a wireless phone and a tablet computer which I can use to communicate with virtually anyone, anywhere.
At home, I have a color lazer printer/scanner/fax multifunction copier, 2 networked desktop computers, podcasting hardware, video tools, and assorted variety of software for tasks ranging from accounting to website construction.
What intrigued me about Connect Realty was the actual internet platform that made this all come together as one cohesive "turn key" virtual brokerage package! For $200/year, that entire virtual office is provided FREE to me by the company. If I tried to buy these components directly from the vendors, it would cost me $300-$400 per month, and I would still not be networked in with agents all over the nation. I didn't have to ask my wife if she thought trading $200 for $4,000-$5,000 was a good idea or not...I could figure that out all by myself.
Administration housework is kept to a minimum, as all documents are centralized and executed doduments are scanned into an online, centrally maintained database. Documents are reviewed by the designated broker and stored for easy 24 hour access to authorized users. Sweet.
The company pays me 80% split on commissions I generate. Connect Realty is not a franchise, so I don't pay a franchise fee, transaction fee, administration fee, ad fee, or any other fee (except for $45 for E and O per transaction). That's refreshing.
I think a large majority of brokers today would benefit by "going virtual" using Connect Realty as the engine and foundation for their practice. Brokers are free to develop the business as desired, so long as brokers stays within the law and state regulations, and NAR ethical standards.
What about managing brokers who struggle to keep good producers? Well, that problem is not going to go away by simply ignoring it! In fact, retention of better producers is going to be an even bigger problem for manager-brokers as more producers understand the benefits now available to "virtual brokers". But do not fear Mr/Ms. managing broker..there is a solution to this headache! A TERRIFIC solution in my view.
Connect Realty designed a lucrative, simple financial incentive that is attractive to both top producers AND broker-managers (who prefer training and/or supporting personal producers).
All Connect Realty brokers ( including personal producers who employ "assistants", or manager-brokers) may (at their option) build a network of broker affiliates and earn overides on the business generated within that network. The model removes almost all the overhead normally associated with a bricks/mortar operation. If you provide excellent support and advice, you will attract a quality group of affiliates. You'll be paid directly by Connect Realty for your efforts. This is a huge advantage for all Connect Realty brokers, but especially attractive for those who love to recruit, train and motivate.
Under the Connect Realty model, every broker is empowered to recruit brokers from any state where Connect Realty is licensed (1). No additional license is required. Residual income is tied to the gross commissions generated in that network (residual overides are vested and paid immediately as earned and are not related to company net income, length of broker's affiliation, or to one's personal production). Details available Connect Realty. Contrast that with the complexity and "gotcha's" built into the residuals offered by some franchised brokers- there's a BIG advantage- to Connect Realty.
To learn more about Connect Realty, and what it takes to become an affiliate, visit my intro site at www.realtyadvisorsweb.com , or go to www.Connectrealtyor.com
Bill McKee
State Broker
Oregon
(1) states currently licensed: AZ, CA, TX, WA, OR, ID, MN, NC, SC, FL, IL, NV, WI,
