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A smarter start for real estate rookies

Business management, cash flow training should be required for newbie agents

Have you completed your 2012 business plan yet? Have you guessed at goals, exaggerated your income expectations and underestimated your expenses? I hope so. After all, you don't want to start the new year on the wrong foot. All joking aside, let's talk about agent turnover and why it is disgraceful. Disclaimer: What you are about to read is controversial, but needs to be discussed. The core problem: broker-owners and general agents are both operating their own business. The broker-owner typically understands cash flow better than the general real estate agent. The broker-owner understands the business cannot operate without cash and the ability to manage it, while the general agent understands the need to close a sale, and sooner than later. Realtor associations may recognize that business owners, not just newly licensed independent contractors, are joining the association. New licensees need business advice. They need to understand a business plan based on cash flow. ...