How To Build a Real Estate Team with Free Contract Template

Cody Cromwell
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Step 1: Assess Your Time & Budget

The starting stage of any business is all about assessment. We are surrounded by hundreds of opportunities that are constantly buzzing past us. We know it's hard to choose a product or service that has the potential to leap ahead. To determine if your time and money are well spent, you need to assess your time and money. Are you willing to invest all the required resources, or will you pick up the game later. In this step you will begin to make a list of all the resources and demand you will need to get your business running.

Before you purchase anything, assess your time and budget:

  • How much free time do you have to devote to the business?
  • How much money can you put in this business?
  • What are the laws that apply to this kind of business? (the main one is the licensing)
  • What are the potential risks?
  • What is the business' ability to capture market share?
  • If needed, do you have to remove any of the competitors?

Consider Your Transaction Limit

A precondition to a big auction house is the reliable use of the calculator and the accuracy of the result. Most companies provide an extensive and flexible calculator application that helps you in accurately calculating transaction limits.

Here’s how your transaction limit calculator works:

You enter the revenues of the client and the total selling costs for the properties, as well as all commissions and fees.

Based on this and on the exact sales and sales price history, the calculator takes into account the various commission rates, the listing price, the sales price, and the commission to the agent.

Based on the net sales amount, you will receive a result that will help you to accurately calculate the maximum signature value you can set on your commissions.

And the result will determine the maximum amount of units that are allowed on the transaction.

This way you can consider both the clients’ and the agents’ expectations to have a signed transaction.

Many companies that offer subscription-based services allow you to connect your lead and transaction reputation online in some platforms, such as Facebook, as well as online reputation management software.

These are very useful options that can be used to isolate managing customer complaints and queries and prevent them from being sent to any of your internal customer service representatives who are busy with contracts.

Consider Your Brokerage

You are not only looking for the right Realtor, you want to find the right Realtor who will take care of you. When you work with a real estate broker, you’re working with a professional with a passion to earn your trust. A top-notch brokerage for a commercial property owner can give you the peace of mind you need to focus on your business. When it comes to commercial property management services, the brokerage represents you and operates on your behalf within the real estate market.

Consider Your Finances

Before You Start Building Your Team.

If you’re considering partnering up with other investors in real estate, you should analyze your finances before you start. Although there are many different types of investors, most investors in real estate are private investors, buying and selling homes as they maintain a portfolio. As a matter of fact, you might have a private investor in real estate with your name on the deeds without even knowing it! Many real estate agents are distributors or brokers in their own right. If they are not, you’re still sharing the profits of the sale with your real estate team members.

Not all financial situations are created equal, of course, but before you think about joining or investing in a real estate team, be sure you can handle the MONEY. If you’re a beginner, you need to be able to build up your savings to last through the dips and peaks in the real estate market. If you’re already a successful real estate investor with a location portfolio and a small bankroll, a team will offer you more than just a new place to invest, it will offer new partnerships that will allow you to reinvest your profits.

Step 2: Document Your Team Contract

As you build your team and grow your business, you’ll need to document information relating to your contract and team management. So before you get started with sketches and designs, create a team contract template.

When you create your contract template, keep the following considerations in mind:

Include elements about how your company, including its founders, will be linked to the contract. (Know the relationship between the contract and the company, as well as the terms of each.)

Include elements about how a team consists of a manager, captain, vice captain, secretary, and assistant.

Include expectations for each team member, such as training, obligations for game availability, and deadlines for contract changes.

Include salary terms.

Include things that team members should know about the contracts; how to upload contract documents, how to access the contract, and when you plan to hold an office meeting.

Keep the contract template simple, easy to read, and easy to follow.

You can use Microsoft Word or a different word processor or spreadsheet program to help you create your contract template.

When you design your contract template, include the following elements on a separate page or additional sheets in a PDF:

  • A Mission Statement
  • Key Terms
  • Company Responsibilities
  • Player Responsibilities
  • Team Member Rights
  • Terms of Use and Other Policies

Standard of Performance

The Standard of Performance (SOP) is the standard that a real estate agent is required to provide to a client upon receiving an appointment. It provides a client with the comprehensive knowledge of the way their home will likely sell in the market.

This document should serve as a guide to all those parties involved from setting the price to post-sales stage. Therefore, the Standard of Performance is designed to make sure that all parties involved in the transaction are working in tandem.

The Standard of Performance will include all the elements of the process set forth by Department of Real Estate. One sop template you can download for free as part of our free contract template is from the Bar Association of Los Angeles. The document is further available to look at on the website. This SOP template can be used as a reference or a guideline for you when writing down your standard of performance.

Duties of Agents & Assistants

As a real estate agent or real estate assistant, you have a lot of responsibility, and things can go wrong at any time. You will have a lot of duties, and they will vary considerably depending on the type of agent you are. Working as an agent for a real estate firm will have some duties that agents for individual agents don’t.

Here are some general duties of people who work as agents and assistants:

Company Ownership

The agent is the business owner for the agency, and that means that they are responsible for maintaining a good rapport with local neighborhoods. Also, they are in control of the company’s advertising, which means they need to make sure that they are in compliance with the law.

Greater Responsibilities

The agent will be responsible for the actions of their team members. That means that if an agent has a team of agents and assistants working for them, they are responsible for everyone. If a team member screws up, the agent will be held responsible. The agent is also the first point of contact for clients and will come across as having more authority and credibility.

Finds Properties

If you’re the agent, you’re the one who needs to find prospective clients for real estate companies. The agent will have to go out and find a home or building to sell.

Compensation

In a team real estate, there are mainly 2 separate things that are in demand and necessary in a team real estate’s team.

The first one is the compensation and the second one is the salary or pay structure.

The compensation and the salary are the part of the whole process of real estate team and without the first, the second may be unsuccessful.

The compensation can be a fixed salary or piece rate or a combination of both. The compensation can be based on the commission or the basis of the output data of the team real estate.

In real estate team, the money is a big deal, and part of making money is having a profitable real estate team.

Most of the real estate team with the highest ratio of revenue to total cost is the one with a lot of compensation and the salary.

Most of the people start the whole team real estate with no plan or a plan that does not work.

If you are going to start a team real estate, I have a little bit of information for you.

It is a must with the contract template that it depends on the team real estate and the market.

You have to plan the whole process very well and the first thing you have to do before the team real estate is the process of getting the money.

Property of Team Leader

Noncompete & Liquidation upon Departure

One of the most important documents in the life of a real estate investor is the noncompete agreement. A noncompete is a contract that stipulates the terms of an investor’s employment. For example, it can restrict former employees from working for a competitor, while providing collateral for the same.

Noncompetes are also known as non-solicitation clauses, employees’ non-competes, and because of their restrictive clauses, –no-hire” clauses. A noncompete can be included in a contract to prevent an employee from…

Starting a Business Using the Company’s Likeness

Even though noncompetes are enforceable in most states, they are best added to the contract at the last possible minute to prevent you and your partner-in-crime from going to jail. For this reason, it is important that you take the necessary steps to scrub your records and get rid of data that is detrimental to your new business.

Expenses

The income of a real estate agent is different from one firm to another. At the very minimum, a real estate agent needs to have a license to work and understands the basics of real estate. But this is the bare minimum. An agent with real estate experience will have access to many benefits and advantages such as bonuses, selling plans, expense benefits, higher commissions, etc.

As a new real estate agent, before signing any agreement, you need to understand the expenses you will incur, at which point in time if any it is deductible and how much income in total it will produce. So the expenses you will incur will be the following:

Tax preparation and filing expense.

Employment Status

The employment status of operators for home-based businesses is easy to understand. Home-based businesses are considered to be the sole proprietorship. Sole proprietorships are the simplest type of business entity. The entire business is owned and operated by one owner, and therefore, is considered to be a sole proprietorship.

For contractors, the home-based business can be either a sole proprietorship or an independent contractor. An independent contractor is defined as:

“A person who is engaged temporarily and for a specific job or jobs with a client or a sub-contractor and who is engaged to perform services and not to master a specific trade as part of a regular business.”

Ultimately, the decision of whether a home-based contractor is an independent contractor rests with the government (either federal or state) that regulates their environment.

State and federal governments regulate the areas of employment and labor laws. They have their own definition of independent contractor and how it influences home-based contractors.

In response to how it affects home-based contractors, the U.S. Labor Department has provided the following: “A person who performs a service as an independent contractor is not considered an employee under the Fair Labor Standards Act (FLSA) even if the person’s pay is determined by a standardized rate that is usually lower than that paid for wages by an hourly, full-time employee.”

Step 3: Hire a Transaction Coordinator

The first thing you need to do is put together a team of people who care about your business. You’ll need more than one person to run the business and keep it profitable. You’ll need a lead negotiator, a back-up negotiator, a marketing coordinator, a recruiter for new employees, a book keeper, a separate broker that handles land and new construction, a web developer, and more.

Networking is the most important part of this process and the most difficult step. You need to meet people and create relationships with them, one-on-one. Eventually, you’ll need to have a core team of people you can count on and can trust to do the right thing when the time comes.

Robert Mathews, a case study in the year 2000, says the key to recruiting great people is that they already have higher goals in life. ”We’re not looking to create the next "Who’s Who"”; on the other hand, this is a business, so they have to feel a part of the team.

While recruiting a team is difficult, you can hire a new employee yourself. Don’t expect to do it all; however, you can do some things online. Get a new phone number and get the phone you like. Reuse your business cards.

Step 4: Hire a Buyer’s Agent

This part will vary depending on your personal situation. If you –re planning to purchase a distressed property that is on the market and hoping to get the sale pushed through, you’ll want a buyer’s agent. But if you’re selling the property yourself and not hoping to do any work on the house, you could do this yourself.

Two Factors to Consider When Hiring Your First Buyer’s Agent

The number one thing you need to consider when hiring a buyer’s agent is whether you’re going to get your money’s worth. When hiring a real estate agent or broker, you’re essentially hiring them to negotiate the sale of your home. Therefore, you want to make sure you find the right agent for the right job.

So how do you know if you’ve found the right agent? How do you know how good they are? What does it take to be an effective seller’s agent? Ask yourself these questions, and look for answers that apply to you.

Consider your needs and budget. If you’re having trouble finding a good fit, it’s probably because you’ve set the bar too high. Instead of thinking about how much you want to spend, think about how much you can afford to spend … even if that’s less than you’d like to.

Two Common Fears to Hiring a Buyer’s Agent

According to a study by the National Association of Home Builders, the number of home sellers in the US peaked in March 2006 and then fell every year to a low of 8.5 million in November 2015. In an attempt to attract these potential sellers, Matthew Mastriello and Keith Miller met with major real estate brokerages and asked them about the role of a buyer’s agent in building their business. They were surprised to hear that real estate agents preferred to give away this valuable commodity to new agents.

This was followed by the results of a survey done by Drew Taylor Real Estate on their 200,000-plus agent members. The results showed that 98% of realtors believe that a high-tech, online presence is the best way to attract prospects. Why is this so important? Because you need a few quality prospects to make a sale or agent income. A large number of prospects are not the way to go. What the agents developed was the all-in-one real estate website, which attracted more prospects than the agent could handle. At the same time, the number of listings on the market was low.

Step 5: Hire a Licensed Assistant

You can go a long way without hiring a licensed assistant. But when you hire one, you’ll get the following benefits:

Assist you in finding deals and make phone calls on your behalf.

Add new members to your team.

Make appointments on your behalf.

Prepare prospecting presentations.

Prepare marketing materials for your marketing efforts.

Determine which prospects are best for you to visit.

Locate permits and legalize or lessor properties.

Help you understand and execute buyer’s contracts.

Help you negotiate when necessary.

Send you written reports and provide you with advice.

Take care of more administrative tasks that take time away you.

The cost of hiring a licensed assistant depends on the responsibilities we take on. You will need to determine what you need your assistant to do and what additional tasks you’d like to outsource to them.

My assistant is a licensed assistant in my area who specializes in real estate sales (she was going to be a licensed agent until the real estate market crashed). So she doesn’t do all the work I do, but she is often the one doing the administrative tasks that take a long time for me to do.

Traits to Look for in Your Real Estate Assistant

The term —Real Estate Assistant” is new to many, including me, but let me be the first to tell you, you do not want just any assistant!

There is more to a real estate assistant than simply following you around and asking questions.

You are looking for a dedicated real estate assistant that follows a path that leads to success. That person will care about you and your goals and want to make them their own.

First off, you want to make sure that whoever you hire is reliable. They will need to be dependable, because your time is valuable; time that could be better spent marketing, closing deals, or enjoying your family.

Next, you are looking to find an assistant that can help you grow your business. You have ambitions of building a great business, because you want to be able to give back to those who have helped you grow your business, and to help others with the same ambitions they have.

Finally, you are looking to find an assistant that is a professional. This person will understand that a real estate assistant is more than just an errand-runner, and they will know you will have the same expectations of them.

Step 6: Hire a Listing Specialist

As the name implies, a listing specialist is a real estate agent with expertise in selling. They are well versed in the process of selling homes, and they are in constant contact with price ranges, agents, and buyers. A listing professional can bring their own clients to the table, and they are in many cases rumored to have a higher income than their traditional counterparts.

These individuals are also in the business of connecting you with the right buyers and agents, and they help get the ball rolling by setting up open houses. If you are considering a real estate team, you might want to hire one of these listing specialists. The extra services they provide might be worth the extra money you pay.

Examine their Experience Level

The best way to hire and train a new real estate agent or beginner broker is to follow a proven system. I like Zillow team which uses a strategic process to help us hire new real estate agents. Waypoint Real Estate helps you use the strengths you already have to find the person who will lead your team for the next few years. This system provides you with a way to hire for future leadership. The end goal is to create a positive system where you will always hire the best, for the long term.

If you are hiring a broker for a new office or in a new market, look at their experience level and decide if that is what you need for your brokerage. I actually created a simple spreadsheet to help me answer that question. Use this to look at the experience level of agents and determine if they are a good fit for your brokerage. A more seasoned broker will have experience managing agents in a busy office and they will be effective recruiters that will make you happy. It is not a hard and fast rule to hire experienced agents because I believe that experience can be because it’s leadership qualities. A newer broker can be an effective recruiter because they are working to establish a good company culture. The key is to hire the best person you can, for the right role.

Examine their Marketing Ability

Most Real Estate Agents Are Bad at Marketing.

Real estate agents have a lot to offer their sellers and buyers. Not only will they save your clients a lot of legwork, they will also help them steer clear of a lot of headaches. There’s more to them than just negotiating a great deal for their clients. Real estate agents, with time and devotion, can build a successful team and a booming business.

Real estate agents act as brokers. While negotiating a deal with their clients, they’ll also secure a buyer for their seller. They’ll find them a suitable real estate property, it will go through the background checks, and then it will go on the market. These are, all of these, some of the scouting processes that real estate agents will find their clients.

In this video, we’ll show you how to build your own Real Estate team and implement their tactics.

Learn how to prepare your web presence with this free real estate marketing contract template.

Examine how they Communicate

Listen and Connect.

A real estate team has one thing in common … a desire to get the job done. While it can be challenging to work with someone whose communication skills aren’t ideal, there are a range of techniques you can put to use to bring out the best in your team.

Communication is always an issue when multiple people are involved in a project. But it’s a particular issue as a real estate team, where you have a Salesperson, an Agent and a Broker. There’s the challenge of finding a balance between the sales-related and marketing-related goals of the two separate facets of the business and getting everyone on the same page.

Certainly, great communication is a top priority, and it’s essential for your team to be on the same page from the first meeting to the closing day. But as Sales, a good Agent and a great Broker, you’re going to have to work together in order to make sure that communication is a two-way street. In other words, you’re all required to listen as much as you talk.

Here’s a look at how every member of your team can improve their communication skills so that you can get through the project and make a sale.

Step 7: Build Out Your Team & Improve Your Life

Once your model is in place and your team mock-ups are in the works, it’s time to get your team hired. You should have hired them from the start. The process of building your team starts about the same way it ends, by doing the hiring.

Ask them to create a mockup that incorporates their name, bio, and job title. The point of this is to create a work sample for you to review over the Internet.

Your objective is to figure out who the best from the mesh design was for their skills, background, and experience. What I’m giving you is a long explanation, but I’m also giving you a template to help make this process easier for you.

In 2015, I released several work templates on both LinkedIn and my blog, to help make this process as effective and effective for you as possible.

One of the templates that has worked best for me is the New Member Sign-Up Work Template. This template is such an easy way to go through the entire process of setting up the new member team and getting the new member onboarded. You can also use this template to set up the new employee role and to add the new member to any group.

The Bottom Line

Aside from giving you a well-structured contract template that you can use as a foundation for the lease/rental agreement, using a free contract template can save you time and energy.

When you use a contract template, you will be able to save yourself the time and energy you’d otherwise spend trying to find and assemble each of your lease/rental agreement’s sections. And when you have a number of rental agreements to draft or review, using a free contract template can save you even more time.

Having a enforceable contract template at the ready can also save you a lot of money. With the risks and burdens of contracts to consider, many landlords and home renters choose to draft contracts before signing them. This is where you receive help from a lawyer, and this can cost thousands of dollars. While it may be impractical to expect your lawyer to draft and review contracts for every rental agreement, a contract template can help your lawyer create a template lease/rental agreement with a few tweaks.