RISMedia's Real Estate Magazine

JAN 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1066259

Contents of this Issue


Page 71 of 118

RISMedia's REAL ESTATE January 2019 67 1. WHERE DO YOU FIT? • Survival Level: Struggling financial - ly, living month-to-month, need a quick fix to create a cash infusion within 30 - 60 days • Maintenance Level: Steadily cover your bills throughout the year, making enough to get by, but not really able to save or create finan - cial growth • Next Level™: Strong business foundation, systems in place, steady cash flow, preparing for eventual retirement and financial freedom 2. FINANCIAL ASSESSMENT (LOOK AT YOUR NUMBERS WITH LOGIC, NOT EMOTION): • Business bills—what is your an - nual break-even on fixed business bills such as dues, advertising, stationery, E&O insurance, office fees? • Personal survival bills, e.g., house, utilities, car, insurance, etc. • Taxes • A + B + C = Overall break-even • D + amount to put toward retire - ment and debt reduction = Next Level™. 3. CATEGORIZE YOUR BUSINESS PLAN STRATEGIES: • Now Business: Wake up every morning with one focus: get a listing. The quickest way to generate list - ing appointments is to call FSBOs and expireds. a. Get a good file system that will help you generate and organize these leads. b. Commit to certain days and hours for prospecting calls. c. Have a strong listing appoint - ment, which gives you the confidence to prospect. d. Use a visual chart to help stay motivated and focused. e. Have external accountability. • Future Business: Once you've got inventory and cash flow, focus on growing business to your Next Level TM through farming. a. It takes 6 - 9 months before you see ROI. b. Plan a concentrated neighbor - hood approach that includes door-knocking, community events, working Facebook closed groups and mailings. c. Have funding for at least six months of marketing before you get started. d. Consistency is key. Statistically, it takes at least five touches to get a response. e. Consider co-branding with a vendor to offset costs. • Financial Freedom: Being debt- free is a great feeling. The only debt that's good is mortgages and car loans or leases—all of which are single-digit loans. Any cost of money that's in the double digits is hurting, not helping, so anything over 10 percent interest needs to go. a. Map out a plan to pay off any debt that has double-digit inter - est first. b. Savings has to be habitual. Every month, put a set amount toward your future. c. The formula I taught my son: Leftover money (after bills): 50 percent goes toward spending, 20 percent savings, 20 percent investing, 10 percent God. If you have credit card debt: 25 percent spending, 25 percent debt, 20 percent savings, 20 percent investing, 10 percent God. RE Watch for more training on this topic as we roll out the first quarter of 2019 at www.PowerAgentWe- binar.com. Darryl Davis has spoken to, trained and coached more than 100,000 real estate professionals around the globe. He is a best-selling author for McGraw-Hill Publishing, and his book, "How to Be- come a Power Agent in Real Estate" tops Amazon's charts for most sold book to real estate agents. He is the founder of the Next Level™ real estate train- ing system The Power Program®, which has proven to help agents double their production over their previous year. Davis earned the Certified Speaking Professional (CSP) designation, held by less than 2 percent of all speakers worldwide. To learn more, visit www.ThePowerProgram.com. Now Business, Future Business and Financial Freedom Commentary by Darryl Davis, CSP T here's no one path to success for everyone; however, there are smart strategies that can help agents get to their Next Level™ faster. Recently, we started reimagining real estate business planning. While we still teach our students the value of breaking goals into numbers, what was missing were strategies for now business, future business and financial freedom.

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