Real estate agents typically incur various expenses when running their business. These expenses can range from marketing and advertising costs, office rent, utilities, and insurance to technology fees, MLS dues, and professional development expenses. According to the National Association of Realtors (NAR), the median annual operating expenses for a real estate agent is $4,090, however, this figure can vary depending on the location, business size, and level of success.

In addition to these expenses, real estate agents also pay commission splits to their brokerage or franchise. Commission splits can vary, but typically range from 50-95% of the commission earned and are negotiable between the agent and the brokerage. Some brokerages may also charge additional fees for marketing materials, technology, and administrative support.

It’s important for real estate agents to carefully track their expenses and factor them into their budget and business plan to ensure profitability and success.

Here are ten tips for financial planning and budgeting as a new real estate agent:

1. Create a budget: Start by creating a budget that lists all of your monthly expenses, including rent/mortgage, utilities, car payments, insurance, groceries, and any other bills. This will help you understand your monthly cash flow and how much money you need to earn each month.
2. Track your expenses: Keep track of all your expenses, including business expenses such as marketing materials, MLS fees, and office supplies. This will help you understand where your money is going and where you can cut back if necessary.
3. Set financial goals: Determine your short-term and long-term financial goals, such as saving for a down payment on a home or paying off debt. Then, create a plan to achieve those goals.
4. Save for taxes: As a self-employed individual, you’ll need to pay taxes on your income. Set aside a portion of your earnings each month to cover your tax bill.
5. Build an emergency fund: Set aside some money each month into an emergency fund to cover unexpected expenses, such as car repairs or medical bills.
6. Live below your means: As a new real estate agent, spending money on luxury items to impress clients can be tempting. However, it’s important to live below your means and avoid unnecessary expenses.
7. Diversify your income: Consider diversifying your income by taking on additional work, such as property management or staging services.
8. Network: Networking can lead to new clients and opportunities. Attend local events and join professional organizations to meet new people in the industry.
9. Invest in your education: Stay up-to-date on industry trends and regulations by investing in your education. Attend seminars and take courses to improve your skills and knowledge.
10. Seek professional advice: Consider working with a financial planner or accountant who can help you create a personalized financial plan and provide guidance on tax planning and investment strategies.

Following these tips can set you up for financial success as a new real estate agent. Good luck on your journey!

The post Financial Planning and Budgeting as a New Real Estate Agent appeared first on Polley Associates School of Real Estate.

Caride reminded “all licensees to be vigilant and diligent when handling or arranging wire transfer transactions.” She asked licensees to familiarize themselves with the bulletin and “exercise all reasonable care with such transactions.

An image of a portion of the bulletin appears below. Clicking on the image will open an Adobe Acrobat copy of the bulletin in your web browser, which can be downloaded to your computer and read or printed for your convenience.

This item is reproduced by Polley Associates as a public service for its students or others interested.

The post Avoiding Wire Transfer Fraud In NJ Transactions appeared first on Polley Associates School of Real Estate.

Photo by David Clarke via Unsplash

The post No One Wants To Deal With Second Banana appeared first on Polley Associates School of Real Estate.

The year is only half-gone but predictions are surfacing that property flipping, which accounted for a lot of money changing hands last year, could approach even bigger volume during 2018.

“A record 207,088 houses were flipped in 2017,” Forbes Magazine reported Friday (June 21, 2018), citing the ATTOM Data Solutions’ House Flipping Report in an article it published about transactional funding. “Even more could be flipped this year, especially with more foreclosure inventory coming online in states like New Jersey and home values reaching new highs,” Forbes suggested.

But a potential barrier looms. “Conventional lenders haven’t significantly eased up on their underwriting requirements,” the magazine noted, and that’s had a shrinking effect on cash purchases of real estate. Investors who want to ramp up their flipping business “need more liquidity,” author Kent Clothier added.

That’s where transactional funding plays a role. It “offers real estate investors a speedy and easy way to qualify for financing for rapid house flips and wholesale deals,” according to the magazine. Money can be made available to investors who hone in on a discounted property deal and expect to profit heavily by flipping it without renovations to another buyer.

Transactional funding isn’t cheap.Lenders may charge between $2,000 and $5,000 per deal for what amounts to a very short-term (usually only one to three days) loan, Clothier wrote, but if the investor anticipates earning a substantially bigger bundle at settlement the financing expense may not matter. It also requires the borrower to have a qualified buyer for the flipped property already under contract.

Free video stock footage from Videezy;
production by Polley Associates

The post Flipping: Big Last Year, Maybe Bigger In 2018 appeared first on Polley Associates School of Real Estate.

This continuing education course addresses the specifics of the National Association of REALTORS® Code of Ethics and ethical practices and decision making for real estate professionals.

Additionally, this course may potentially be approvable for REALTORS® who wish to fulfill biennial Code of Ethics requirement from the National Association of REALTORS. Check with your local REALTORS® association for applicability.

What Lurks Beneath

The federal Real Estate Settlement Procedures Act (RESPA) was signed into law more than 40 years ago. Its primary goal: to ensure home buyers received professional, ethically delivered services in obtaining a mortgage, and then to ensure they successfully closed on the purchase of their portion of the American Dream.

RESPA has been revised many times during that period, to address both changing economic circumstances and to plug legal loopholes that could have been exploited by unethical parties. It can be safely said, however, that the latest revisions to RESPA and the mortgage sourcing and settlement process – called the TILA-RESPA Integrated Disclosure, or TRID, and scheduled by the Consumer Financial Protection Bureau to take effect during October 2015 – are the broadest and deepest changes ever to this legislation.

Pennsylvania real estate sales and broker licensees MUST alter or abandon many of their past settlement practices as they deal with home buyer clients. The bureau program includes new Loan Estimate and Closing Disclosure documents. It demands strict adherence to deadlines and time requirements in the delivery of information to buyers and lenders. It creates new penalties for, and promises aggressive enforcement against, licensees who fail to fully represent or protect buyers as the process proceeds.

Our presentation advises licensees on what experts say they should consider as best practices to ensure compliance with RESPA and the bureau’s program. It offers guidance on avoiding traps and pitfalls that represent potential RESPA violations. It provides a checklist of actions meant to ensure the home buyer client’s settlement experience is easily understood, and moves as pleasantly and quickly as possible.

Course State Approval: Continuing education for Pennsylvania real estate broker and salesperson license renewal.

This is a one-day, 7-hour, live classroom course consisting of two state-approved topics. No post-course exam is given. It is approved by, and meets 7 hours of continuing education requirements set by, the Pennsylvania State Real Estate Commission. It can be combined with other courses to fulfill all 14 hours of continuing education required by the Commission for a real estate salesperson’s or broker’s biennial license renewal during the 2014-2016 cycle that ends at midnight on May 31, 2016.

Price: $75

Student Material: This course may be accompanied by in-class materials distributed by Polley Associates.

Related:

• PA Continuing Education: What’s That Course About?
• PA Continuing Education: Live Course Attendance
• PA Continuing Education: License Renewal And Reactivation
• PA Continuing Education: License Renewal Online
• PA Continuing Education: First-Timer Requirements
• PA Continuing Education: Re-Activate A License In Escrow

Find Courses For:

• Pennsylvania Real Estate Salespersons and Brokers CE
• Pennsylvania Real Estate Salespersons’ First-Timer CE
• CE For Pennsylvania Commercial Real Estate Practitioners

The post Polley Courses: ‘Ethics, Your Promise Of Professionalism; and What Lurks Beneath’ appeared first on Polley Associates School of Real Estate.

This course starts by taking a close look at mortgage fraud in real estate transactions, including the history of mortgage fraud and its impact on consumers. It examines participants in fraud cases, as well as the role of agencies in monitoring fraud. Then it identifies various types of mortgage fraud schemes and mechanisms involved, as well as identify red flags to watch for.

The second portion focuses attention on consumer protection and its role as it relates to mortgage advertising.

Finally, the course wraps up with a look at reverse mortgages by identifying the types, requirements, payment options, and providers as they relate to consumers and the law.

Course State Approval: Continuing education for Pennsylvania real estate broker and salesperson license renewal.

This is a one-day, 7-hour, live classroom course consisting of three state-approved topics. No post-course exam is given. It is approved by, and meets 7 hours of continuing education requirements set by, the Pennsylvania State Real Estate Commission. It can be combined with other courses to fulfill all 14 hours of continuing education required by the Commission for a real estate salesperson’s or broker’s biennial license renewal during the 2014-2016 cycle that ends at midnight on May 31, 2016.

Price: $85

Student Material: This course may be accompanied by in-class materials distributed by Polley Associates.

Related:

• PA Continuing Education: What’s That Course About?
• PA Continuing Education: Live Course Attendance
• PA Continuing Education: License Renewal And Reactivation
• PA Continuing Education: License Renewal Online
• PA Continuing Education: First-Timer Requirements
• PA Continuing Education: Re-Activate A License In Escrow

Find Courses For:

• Pennsylvania Real Estate Salespersons and Brokers CE
• Pennsylvania Real Estate Salespersons’ First-Timer CE
• CE For Pennsylvania Commercial Real Estate Practitioners

The post Polley Courses: ‘Mortgage Fraud, Consumer Protection and Reverse Mortgages’ appeared first on Polley Associates School of Real Estate.

A percentage of buyers is anxious to find and move into a new home before winter sets in. It’s their gotta-get-it-done-now emotion that may cause buyers to miss obvious problems with a property; Bailey calls them his “red flags.” Buyer representatives probably will be more attuned to these items, but even pros can miss a warning.

Unless the parties involved are careful, Bailey wrote Thursday (Sept. 18, 2014) in Realty Times, “those items … could potentially cost (buyers) a lot in the future, or even in the beginning.” Here’s the first five on his checklist of top 10 red flags:

1. The Neighborhood. Visit it at different times of the day to get a true sense of what it’s like to live there.
2. Fixers. They can be great deals, but it’s important to know how much you’re getting into when you buy one.
3. Issues With A Home Inspection. All offers should be contingent upon a satisfactory home inspection.
4. Additions and Decks. Ensure all work has been done to code, especially when it comes to remodeling.
5. Noticeable Structural Problems. Check the fit of doors and windows, and for large, noticeable cracks in foundations.

Read more of Bailey’s article, titled “Red Flags For Homebuyers” and published Thursday in Realty Times, here.

Photo from Google Images

The post As Fall Approaches, Buyers Should Look For Red (Flags) appeared first on Polley Associates School of Real Estate.

Little else says “close” like dollar bills on the barrelhead. Most sellers will gravitate toward an all-cash deal because they won’t have to wait out financing approval, or risk more time on market if financing falls though.

Don’t let your buyers be discouraged, Massachusetts real estate veteran Bill Gassett says. In a blog article published Tuesday (May 27, 2014), he suggests six different ways to counter, and maybe beat outright, an all-cash offer.

Read “How to Beat a Cash Real Estate Offer For The Perfect House,” written by Bill Gassett for Maximum Exposure Real Estate, here.

Photo from Maximum Exposure Real Estate

The post Little Beats An All-Cash Deal, But Try These Tips appeared first on Polley Associates School of Real Estate.

If you or a loved one is a Baby Boomer, the institute offers advice on how to avoid some of the pitfalls that could prevent those in the group from enjoying a happy retirement.

Be Realistic

Fitness is a high priority for boomers, so it’s not surprising that their average life span continues to lengthen. According to the Social Security Administration, the average 65-year-old man today can expect to live until age 84; a woman until age 86.

One of every four 65-year-olds today will live past 90, and one of every 10 will live until at least 95. That means it’s important to have a solid plan for funding your retirement years. If you don’t think you have enough for 20 or 30 years, it may be necessary to step up your savings or consider postponing your Social Security payments so you receive a higher monthly amount later on.

Know What You Need

You will need about 80 percent of your pre-retirement income to cover your expenses in retirement, according to the Center for Retirement Research at Boston College. Many people who thought they were on their way to a well-funded retirement saw their investments reduced by the recent recession. The Retirement Pension Planner on the American Institute of CPAs 360 Degrees of Financial Literacy site can help you get a sense of how much you might need, and provide an estimate of when your retirement savings will run out.

Simplify

If you want to have more money for retirement, start changing your spending habits now.

Living within your means can help you stretch your money now and in retirement. A common change in retirement is downsizing from a larger home to a smaller one. You’ll want to talk with a trusted area real estate agent about how to approach that, and ways to maximize your profits from a sale.

Additionally, as you discard or give away things collected over the years, consider how many new things you’ll actually need to purchase during retirement. You may find yourself better able to enjoy what you already have.

Focus On Priorities

Saving for a second home or for a child’s or grandchild’s education are worthwhile goals, but be sure to put your retirement needs first. Remember, it’s always possible to use student loans to pay for college tuition, but there won’t be similar financing available to cover retirement expenses if your savings run out.

Don’t Give Up

If you’re near retirement, it’s not too late to create or enhance your retirement account. Remember, your money can grow tax-deferred in an IRA, 401(k), or annuity, so it’s possible to do some catching up. Many members of the ever-adventurous Baby Boomer generation are also working past the traditional retirement age, so consider your options for continuing with your current job or launching a new career.

Consult A CPA

No matter how close you are to retirement, a CPA can answer your questions and help you create a plan that addresses your short- and long-term needs. To find a CPA in Pennsylvania by location or area of expertise, see the institute’s website here.

The post Hey, Baby Boomer; Saved Enough To Retire Yet? appeared first on Polley Associates School of Real Estate.

MOORESTOWN NJ – What goes through the mind of a landscape designer as he or she surveys a property for a prospective client?

Dianne Walker, owner of and landscape designer for Colorstone Gardens LLC in Moorestown, says her technique is to “paint with plants.” With the land as her canvas, she told the Burlington County (NJ) Times newspaper, she creates outdoor environments that reflect what she hears people tell her during client interviews. She tries to tie their desires in to the surrounding property’s features or elements, she said.

A video (above) in which Walker was in interview subject herself and explained her process, was posted Thursday (Aug. 29, 2013) by The Times on the YouTube channel of Calkins Media.

The post Landscape Designer’s Technique: ‘Paint With Plants’ appeared first on Polley Associates School of Real Estate.