Posted by Jim Kennedy - Houston, TX on March 19, 2003 at 09:02:34:
Just curious. Why do you think that listing 59 tract houses doesn’t count?
I’m sure that Zack didn’t have any trouble cashing the commission checks.
The broker that I use has over twenty years of experience. His first few years in the real estate brokerage business were a definite struggle. He was barely able to eke out a living until he got his first investor client. Their first deal together started out as thirty-two condos in one complex. My broker friend represented the investor who bought all thirty-two units as a package deal. They then sold them individually to owner occupants. The investor was committed to purchase all thirty-two units but the deal was structured so that he could close on the units one at a time. Therefore, the investor didn’t close on a unit until he had an owner occupant buyer in place. They did simultaneous closings on each of the thirty-two units. It went so well that they ultimately picked up another forty units in the same complex. That was the first time that my friend made over $100K in a year.
When my broker friend realized how much money the investor made without having to come out of pocket with any cash (except earnest money), my friend decided he was missing the boat. He continued his brokerage business but started investing as well. For his first deal for his own account, he duplicated what he had seen the investor do but on a slightly smaller scale. He did eleven condo units in a different complex. From that point, he was hooked. He became a very active investor. He still maintains his brokerage business, but now he only works with investor clients. The bulk of his income comes from his own investment deals. And he routinely negotiates his commission based on volume.
BTW, my friend still has the above mentioned investor as a client.
Best of Success!!
“Only eyes washed by tears can see clearly.”
– Louis L. Mann