Hello BP community,
I am looking for advice or a recommendation for a good compensation structure for a Real Estate Assistant that will help an established real estate investment company with Marketing. I was tentatively hired, though no official paperwork, to help this RE Investing company to advise, improve, and streamline all of their Marketing efforts to acquire, buy, and sell properties. A majority of my effort will be centered around helping this company acquire off market deals - wholesale deals.
The proposal I received was to get a percentage (don't know what that is yet) of each deal that I help their company acquire. However, I would prefer to receive some compensation along the way as I am spending my free time working for them evenings and weekends.
Any help, advice and/or tips is greatly appreciated. Thank you!
I would get an agreement in writing. What all are you doing for them at the moment. Usually we do a compensation package that is detailed to the needs of both. Either commission only or a draw and commission etc.
Thank you very much for responding! I really need advice here and possibly a sample compensation structure. A big incentive for me is getting a commission but I would also like to get paid along the way. I will be doing the following for them:
Digital Marketing: setting up and deploying automated email campaigns, helping them with the design and layout of their direct mail pieces, helping to pull lists from a database (Rebo Gateway), marketing strategy to determine who to target, frequency, etc., recommended and maintaining software, systems, and lead databases.
I'm helping with all of the activities (minus cold calling and door knocking) that help to generate leads and acquire properties that they can either exit through wholesaling, fix and flip, wholetailing, and possibly buy and hold rentals.
Actually, I may do cold calling, door knocking, driving for dollars if the compensation is attractive.
@Brad Fletcher I don't have experience with this specific compensation packages, but I would think that it would somewhat depend on how good the group you are working with is at getting deals done. If they are only mediocre, you could be spinning wheels getting great leads but they can't close.
Maybe talk to them about setting up weekly meetings to go over your activities in exchange for $xxx a week until things get rolling. Some questions to ask - How do they track your deals vs something that might result from previous activity? Do you get paid on deals that came in based on your activity after you part ways? What's your marketing budget? Do they deduct anything from your percentage for marketing expense?
The Denver area is pretty competitive when it comes to REI. You might consider targeting Seniors with 15+ Year Ownership. They are often ready to downsize or transition to assistance. I wrote ablog that gives some ideas for a mail piece to seniors. Click Here.
Most investors do not mind paying you by the hour. These jobs are often business graduate students that gets ~ $15 bucks a hour in Silicon Valley and a bonus for successful deal making. I will ask for travel mileage like $0.575 per mile etc. It is rare people offer you a split of total profit unless you put your own money on the table. In the contract I would ask for 30 day notice in writing either way to end.
The ones contacted me in the past involving purchase negotiation. They get just $15 an hour asking realtors to write 10 purchase contracts 50% off the market value which means low probability of getting accepted. Those PM jobs actually should get paid more.
@Chrissy Arnold EXACTLY lots of Hat and NO cattle in this business.. that would be the first thing I would want to know what is there capacity to transact.. if they are trying to get you on the come ( the OP) and drown you in futures.
along with majority of their revenue has to be from making what in essence is real estate broker fees IE wholesaling.
Denver it is quite tight for inventory.. you would probably be better served to get a license and work for an established top producer on their team.. were you really get paid...
now if this is a big well capitalized group and you know for sure they have many millions in cash and credit ready to rock then that's another thing.. but your position should be a paid for position if they have the wherewhithal to do this they should be able to easily afford you on salary and small bonus.. other wise they can out source all of what your doing pretty easily with VA's etc and the direct mail guys on this site but those guys don't work on performance you have to pay up front and direct mail is very expensive.
So doing this based on performance in Denver Not so sure.. If you were setting this up in Detroit that would be one thing there are literally thousands of vacant homes that you could target.. and other older urban cores.. Denver not one.
Why do you even need them? Is it the pay? Experience? Or???
If you are getting the deal/leads, why pass that on to someone else without keeping the more of the deal?? I've got a couple of guys set up in your similar situation that I help. We could chat about it if you are interested.
To make it here in Denver, you are going to have to cold call. Period. You can't afford to spend at the level like some of the guys here in town do on direct mail, ppc, etc.
@Brad Fletcher I wouldn't do a straight commission deal with them. As others pointed out, you don't know their ability to close things on the backend. You could produce great leads and then they drop the ball. Streamlining and setting up what you described is a 3-6 month project. Get a contract to cover your time and resource to "lay the foundation." Add a percent on the backend for closed deals or assigned. If you're streamlining their entire process, do you get a piece of everything? Or just what you to bring in?
If you're that good at generating deals, go out on your own.
I haven't done off-market deal marketing here in Denver, but I've been helping a friend in Las Vegas who is a very well established flipper (10+ years, 50+ deals a year) diversify his marketing from strictly direct mail to online. It's been tougher than expected. The OpenDoors and others have deep pockets that make PPC costs crazy. And LV is probably not even as hot as Denver!
I have 15 years experience in building two successful online (non-RE) businesses. My plan was to use what I learned from my LV friend and do it here in Denver. Not anymore! I'm seeing way more opportunity on the RE broker side in the online space. Wholesalers have gotten good at marketing, Realtors still suck at it. That's where I'm putting my focus.
@Brad Fletcher I just read your profile background. If you're good at marketing and sales, go out on your end and assign deals to the various flippers around town. I have zero interest in wholesaling, but if you want to grab coffee, I'm more than happy to share what I've learned so far.
You should want to be paid hourly probably 12-15 dollarsish an hour. If you’re good at t I’d also ask for a commission split. 100 percent commissioned jobs rarely work out well or long term, especially at the beginning.
Also, thank you @Chrissy Arnold
Really excellent feedback and I appreciate all of the recommendations, I will definitely go in with a salary/hourly for my marketing efforts and percentage commission on deals I help bring to the table to start.
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