HARRIS REAL ESTATE UNIVERSITY Real Estate Training Event Cost: FREE Topic: 2012 Business Planning Event Info: LISTEN NOW: FREE REAL ESTATE TRAINING EVENT <<<<<< Click Here To Listen NOW! Notes and Event Outline: (Cut and paste, you will need this outline for

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Article Content:

HARRIS REAL ESTATE UNIVERSITY Real Estate Training Event

Cost: FREE

Topic: 2012 Business Planning

Event Info:

LISTEN NOW: FREE REAL ESTATE TRAINING EVENT <<<<<< Click Here To Listen NOW!

Notes and Event Outline: (Cut and paste, you will need this outline for the event)
My Financials: Knowing My Numbers

Part One:  Know how much it takes for you to accomplish all of your goals.  The most successful people and businesses in the world are experts at  ‘knowing the numbers’!

SECRET: Most agents (and people in general) earn only what it takes to pay for their basic needs.  This is why agents get in trouble at tax time…they didn’t budget for it.  It’s also why Realtors often feel they are living check to check.  Use this formula to know what you REALLY need to earn to achieve your personal, business, family and financial goals this year!

MONTHLY

a)    Personal Overhead $__________________________________

b)   Business Overhead

$__________________________________

c)   ‘Fun’: The money necessary for you to accomplish all of your ‘fun’ goals this year.  If you skip this category, you won’t have any fun!  If it’s not planned for, it doesn’t happen.

$__________________________________

d)   Taxes:  Add up a, b, and c and add 25% as a general rule of thumb.  Some people pay more, some less, but 25% will cause you to prepare for taxes.

$__________________________________

e)    Savings:  All Realtors say, ‘I want to save more’…decide how much more.  A good place to start is at least 90 days of personal and business savings.  If you already have that, work on having 1 year of reserves saved.

Add up a + b + c + d + e =

Income Required to earn per MONTH = ____________

My Outside Income is:  $____________________

(this is any non-real estate income, including spouse’s income, investment income, etc.)

LISTEN NOW: FREE REAL ESTATE TRAINING EVENT <<<<<< Click Here To Listen NOW!

The difference is: (Take Income Required from above, subtract Outside Income) =  $___________________

It’s ok if you don’t have any outside income.  Many agents don’t but if you do have money coming in from somewhere else, if it’s predictable income, you need to account for it.

What I MUST EARN:  $____________________ / month.

Take that amount, multiply by 12 to equal your required YEARLY income for personal, business, savings, taxes and fun.  That amount is: $______________________________________.  You’ll need this figure later when you use the Income and Unit Calculator, which shows you how you’re going to accomplish this income.

Part Two:

The amount of my average net commission is: $____________________________________

Secret: If you’re not sure, ask your Broker if he/she tracked this for you.  If you’re a NEW agent, find out the average sale price in your area and use the average net commission based on that price.

Secret: Net commission is what you KEEP after all broker splits, any processing fees, etc.

Take the amount you must earn per MONTH and divide by your average net commission.  This will reveal the number of transactions necessary to cover your personal, business, savings, fun and taxes each month.

Amount needed per month divided by my average net commission = _______ deals needed monthly.  X 12 = deals necessary yearly.

Part Three:

I am currently averaging _______ deals per month.

This does / does not cover my personal, business, savings, taxes and fun.  (circle your answer)

I am / am not satisfied continuing to earn at this level.

Secret: if you keep doing what you’ve been doing, you’ll keep producing what you’ve been producing, -or- you’ll slide backward as other agents pass you by who have upgraded their skills, education, mindset and goal setting.  Don’t let this happen to you!

LISTEN NOW: FREE REAL ESTATE TRAINING EVENT <<<<<< Click Here To Listen NOW!

Am I motivated by fear?  Am I motivated by Incentive?

What is driving me?

We’ll examine these questions more in our Goal Setting modules.

After completing the exercise above, you now know how much you must earn monthly and how many deals that requires you to produce. Don’t worry if it’s more or less than you thought.  Keep working through this business plan so you will have the confidence and the know how required to create your Real Estate Treasure…the amount required to achieve your personal, business, savings, and fun objectives, and also pay your taxes.  Budgeting and planning what it takes NOW will help ensure your success throughout the year.  Reviewing this worksheet every two weeks will assist you in following your schedule, and making any changes necessary as you go. Watch 2012 Real Estate Business Planning Video and Download Your Plan NOW.

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