I have done a bit of research about this new RE company and was wondering if anybody else has any insights about them.

Are they a "here today, gone tomorrow" company?
Thoughts on their structure?
Any thing else?

Thanks, your comments will be greatly appreciated.

Another profit share real estate company. They'll promise you a big profit pool income while they stick your money in their pockets and spend almost 0 on advertising the brand name. These business models depend on agents who feel a need to be part of a family. Except when the head of the family croaks, your name is not in the will. Sorry, been there-done that. If i'm wrong, i'm sorry...but I bet I ain't.

jbt4e ---

This is yet another multi-level real estate company.

A few fun points:

* It's a 5 level deep mlm setup rather than seven like Keller Williams. The "radical" commission plan is a 70%/80% model. Exit/KW/100%/and many traditional firms have plans that go higher (I do).

* The earth-shattering technology tools are what most major brokerages have had for 2-3 years. My favorite one is where you track what you earn from those in your downline. In defense of KW, at least they have some real tools for their agents.

* They are attempting to sell who the founders are. At least one, according to a quick web search, has been heavily involved in mlm companies before.

To be blunt, there is nothing there. The plan, from reviewing their Powerpoint presentations, apparently is to hype the company and suck some folks in. It is over-hyped and kind of silly. Who ever designed this one really thinks those in the real estate industry are really stupid.

Whenever you see the phrases "revolutionary", "change the world", etc. --- run.

Thanks Broker/Appraiser, you're probably right, as that what I was seeing also.

Happy New Year!

jbt4re --- Is the Boise market starting to pickup at all? Given how well the rest of the state is doing I've been really amazed by your slump. I've heard that the influx of California investors is primarily to blame. Accurate?

Steve, thank you too, I appreciate your bluntness. I wasn't going to say MLM outright, but that is exactly what I am seeing or AKA network marketing. Not something I want be involved in. Just never sure about these new start ups.

Yes, about the CA investors. The majority of the BPO's I've been doing are investor owned, either vacant or tenant occupied and the rest are ARM loans gone bad. So many 1-2 year old homes, never lived in, sitting there and going to foreclosure.

It seems to have picked up in the last 6 weeks, a lot more showings and activity. I hope this is a good indicator of a busy Spring/Summer. We also have a lot of inventory to be absorbed, particularly new construction and that seems to be leveling off a bit.

Sound like you are keeping busy in IF, any bites on the 80 acres Bert has co-listed with you? He's in my office and we were talking about it one day recently.

Happy New Year to you too!

I'm unfamiliar with the 80 acres but we've got several hundred listings. Where is it?

Actually in Rexburg, up on the plateau area near the high school.

Hi Steve,

Would you mind me asking what you DO think of KW? I don't want to open up a can of worms or put you in the hot seat, but I follow your posts/knowledge with lots of interest and would like to know your opinion. I just recently found out about that KW had an MLM type structure to it.

I am shopping for a brokerage and will mostly likely hang with KW - I liked Gary Keller's book and a good friend whom I really admire is already there and loves it (but of course, she is going to "sponsor me" if I do....),but I like to keep my eyes and ears open at all times...

Thanks!

I don't like the MLM structures - they encourage recruiting but they bring in a lot of not so good agents

texastwostep --

I'm not a big fan of the multi-level/residual systems. And, I assume by drafting this, I'll draw some arrows. Sigh.

Here's why I hold my opinion:

* The focus on recruiting tends to distort the companies and their agents. Virtually anyone who interacts with them is pitched. And, often, effort is focused on feeding the recruiting element rather than doing what makes money in real estate --- listing properties and selling them.

* Their agents tend to operate on the fantasy that they will make all kinds of money from the mlm/residual element. Doesn't happen (except in rare incidences). Yet, their agents tend to retain an almost quasi-religious fervor in the system (I suspect in the belief that "someday . . ).

* Like most mlm companies, there are strong incentives to "sell" the system to everyone. I've seen family and friends drug in --- not because it is good for them --- but because the advocate thinks it might benefit themselves.

Obviously, I strongly dislike the mlm/"profit-sharing"/residual element when combined with real estate. That does not mean all agents involved are bad people or the companies are evil. I just strongly believe that their structure is distortive. Others will disagree . .

As to KW specifically, they have some fine folks --- many are on this board. But, I believe the analysis above applies to the mlm/profit-sharing element.

Thank you Steve for your honest response.

FWIW, the gal who is my friend at KW was my friend way before I ever thought of real estate, and I am the one who went to her for advice and guidance on getting into the field (and she's been very laid back but helpful when I needed it). So in a way I am sort of glad she might "make" something if I sign under her - then I can bug her a little more and not feel so bad! LOL And she is really a wonderful person (like I am sure many KW people are regardless of the MLM set up)

The KW office itself had such a warm, wonderful, welcoming feeling (I've visited several times) - and I am sure I am a tad bit overreacting with these thoughts........but I hate to think it was just a farce -a "fake" comraderie pushed along by the desire to build their "team"? That kind of bums me out to think they *might* not all just be truly sincere, nice, helpful folks. I really want and need to work in an upbeat, energetic, helpful environment. I know in RE we are all "competing" in a sense, but I don't like a cut-throat, jealous, I'll step on your toes type astmosphere. I want to be somewhere where everyone just plays "nice and fair". (does that exist???)

I have a sincere distaste for MLM type companies, having been sucked into Mary Kay in a big way in my early years. It was a shame too, because the products themselves are pretty good, but the overall phony-I-think-you-are-the-best recruiting behavior of the dominate "managers" made me never ever want to touch another MK product again. Ever. (and this was many moons ago)

I suppose all the "big" names have their downfalls, but do you have any others you would recommend over KW? Century 21? Any opinions you can give will be greatly appreciated.

Thanks again!

texastwostep --

The problem is that every individual agency, even in the same franchise, is unique because of the local ownership/leadership.

I'd interview around and see what is in your market.