Kevin Breeland

Competitive by nature...the Best by choice!

10 Comments

Affiliated Businesses, why not?

04-03-09

I have heard on more that one occasion when marketing an agent to use the Affiliated Mortgage Partner the agent stating "all that does is put money into the Brokers pocket, how do I benefit?" So, let's explore how the agent benefits and stays out of court or even worse jail because of some RESPA violation.

Lets start with something small, have you bought a box of copy paper lately? The price of a box of legal size copy paper is close to $52.00 a box. Any idea of how many boxes your broker goes through a month? The response, the broker charges me for copies.

Ok, how about this, have you bought a copy machine lately? Depending on the office need a broker can spend anyway from a few hundred dollars for home use to more money than most homes cost. Here is the part I like, and we talk about the US automakers, you purchase a $60,000 copier which is a big copier but probably that average cost of most of the large copiers in the office, then of course you lease the machine because they don't last long, you do a 3 year lease and the last 6 months the copy repair guy is in your office working on this machine more than the staff is using it. So, you complain to the broker and what do they do, lease another one.

Ok, how about this. The office space this copy paper and copier sits in. How is this provided? Typically by the Broker and typically the Broker has even personally guaranteed the lease. Got to have an office, a retail presents, a sign on the street, advertising in the paper, all of those things.

Yes, Brokers charge desk fees, percentage cuts, copy charges, all kinds of various charges to pay the bills. They, like you also have to make a living and lets not forget they are the ones taking all the financial risk which can be quite substantial. The other issue Brokers have, how to remain competitive in the marketplace and attract you the Realtor. If the broker is taking 60% of the commission or charging you $60,000 a year desk fee then you would not work there. Yes, this is an extreme example but the point is the same.

Every business has to be profitable, you know that as well as I. Margins, as you know, have been and continue to be tighter. Successful Real Estate Brokerage operations typically now have Affiliated Partners. Why, not to purchase Bentley's or far away vacation homes. No, to pay the bills. Under RESPA, when an Affiliated Business Arrangement is created the Joint Venture Partners have to capitalize the venture with "working capital equal to there ownership interest". Although HUD gives no guidance on how much this must be they do say informally that the amount has to "be reasonable to conduct business" and so industry believes that to mean 6 months to 1 year of working capital. So, lets say your broker owns 50%. It is determined it will take $100,000 a year to operate. Guess what, your broker just came up with $50 grand CASH. That's how it works and where does that money come from, typically reserves. It doesn't stop there, leases, equipment, joint venture personnel, all the stuff you need to run a business and the JV Partner and your Broker are all liable for everything.

Your loan officers, title people, insurance people, home warranty are all working hard to earn your trust and your business. Why? Simple, we are all on the same team. Give us a try, more than once, and create the One-Stop Shopping Opportunity for your client. They will appreciate it, you will have less stress, and you too can then see "How do I benefit".

HAVE A GREAT DAY!!!!!

Kevin M. Breeland

General Manager

Residential Mortgage of South Carolina, LLC

427 Johnnie Dodds Rd.

Mount Pleasant, SC 29464

Competitive by nature...the Best by choice!

3 Comments

Wordless Wednesday - Mt. Rushmore, September 11, 2004

04-01-09

11 Comments

Don't forget who brung ya

04-01-09

My slang may not be all that good but I think you get point. Business has its share of ups and down but in my career my mentors have always reminded me not to forget where my business comes from and take care of those relationships.

Last night my son, who is 11, played in his first and his team's first real baseball game. Last week the team had a scrimmage game against the same team and lost 10-1. Last night most of these 11 year old kids were unaware they were even playing the same team. My son's team won 13-4 in what was truly a team effort. (Selfish promotion) This is my son's first time ever playing baseball and he has been so excited about playing we have been playing catch in the yard since October. I have been helping out the team with anything they ask me to do and for people who know me this is not something I do. I am by nature a competitive person so I have always stayed away from the "coaching" part because of that. Somehow I just ended up helping the coaches but I do not get in there way, just help where they need it. My game time assignment, bench, keeping the kids in dugout, keeping them focused on cheering for their teammates, picking up equipment, and so on. My son, he is doing great and I am very proud of him. He and I have practiced so much that at 52 I am aching everywhere. I run bases, throw batting practice, warm-up pitchers in a crouched catcher position that Advil has become my breakfast, lunch, and dinner of choice. These kids keep reminding all the time how they are just soaking up what the coaches are teaching them eager to learn more.

All of us are eager to do new things till it becomes a task. That is human nature and I believe it is the same for everyone, no matter what your achievements in life are. What separates us is the ones who can do those "tasks" everyday with kid like excitement and do them to best of our abilities.

Our company in the first three months this year has already done half of what we did all of last year. We are off to a great start. One of my jobs is I am always looking at the mix of refi's to purchases. It is our agents, the Realtors we have all developed relationships with, that is our core business. I remind all of our loan officers that while it is very nice we have the refi business we do, it is our Realtors we must take care of and not forget to do the little things the develop relationships. The results, well they are speaking for themselves. Even though we have more refi's than purchase business right now, our Realtors, our bread and butter, our referring their past clients, friends, and family to us for refi services.

That, to me, is the definition of a solid relationship, a strong team, and I want to thank all the Realtors out there who have that type of relationship with their loan officer, title company, home warranty company, and insurance company. In tough times it is these types of relationships that will keep everyone strong and working together. Thank you.

HAVE A GREAT DAY!!!!!

Kevin M. Breeland

General Manager

Residential Mortgage of South Carolina, LLC

427 Johnnie Dodds Rd.

Mount Pleasant, SC 29464

Competitive by nature...the Best by choice!

5 Comments

Has the Government taken over Social Media Networking?

03-27-09

What the &^%* is going on?

Have you noticed your ActiveRain, Twitter, Facebook. Linkedin, BrokerAgentSocial, all of the Social Media Networking you might belong too seem a little glitchy to you lately? Mine has...in the last two weeks I have had to email ActiveRain about my updates not being updated, Twitter just went off a few minutes ago and has been acting strong for the last week, Facebook...what can you say about that, Linkedin has been lets say less than dependable, and BrokerAgentSocial has been slow to say the least.

So to whomever out there is in charge, you got us to use it, please keep it working.

HAVE A GREAT DAY!!!!

Kevin M. Breeland

General Manager

Residential Mortgage of South Carolina, LLC

427 Johnnie Dodds Rd.

Mount Pleasant, SC 29464