I work with a franchisee of HomeVestors in the Tampa Bay market. Been associated with them for almost 4 years. There are approximately 1,000 franchises in the network. My first year I was number 6 in the network for the number of purchases (home buys). My second year was the second place finisher and year three was finished number four. This year numbers are not totaled but ours will be respectable. I work as an independent contractor and receive 18% of the net proceeds on every transaction. So once all expenses including hard money lenders cost, REALTOR fee's, rehab cost etc then I receive 18% of that number. They also use my brokers' license allowing us access to the MLS for retail selling of property and comparable information. I am a 37 year veteran of the real estate industry having owned and operated a multi-office real estate firm in this market for thirty years. Is my compensation fair overpaid? underpaid? would really appreciate your input, Thank You
I know buyers who get paid more and buyers who get paid less.
Pay depends on a lot of things like the particular market, the buyer experience, and what else the buyer does for the franchise owner.
Only thing that matters is that buyer and owner come to an agreement.
Congratulations on your huge successes!
Hi @Tom Hedick I agree with @Karen Rittenhouse as the most important thing that matters is that you and the company come to an agreement. Are you happy with the current compensation structure? If not, maybe revisit that discussion since it has been a few years working with them and see what happens.
From my perspective, that compensation looks respectable as you are not caring the risks associated with the purchase, rehab and the monies required to make it all happen. If you are meeting and or exceeding expectations it is always worth having the discussion to be sure both parties are aligned and feel good about the working agreement on a recurring basis. Best of luck!
Thank You for responding and yes I'm not unhappy with my arrangement, however, I don't have any basis for comparison either. Buyer compensation is not talked about much in these forums so your input is appreciated.
Great point, Eddie, employees don't carry the risk. We've had buyers make some really bad deals and guess who has to cover the loss when those deals go south. Ugh...
@Tom Hedick - Chiming in as a HVA franchisee since 2007. Your comp sounds very typical and it a tad bit more than we have paid to buyers in the past. Be thrilled you don’t have to pitch on on the occasional property that carries a loss! Don’t forget about that. LOL!
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