What does the FBI have to do with a Realtor Magazine 30 Under 30 Celebrity? Mortgage fraud, money laundering, According to the FBI indictment "The defendants engaged in approximately 432 straw buyer transactions, and obtained control over approximately 227 properties with a total purchase price of over $100 million." Wow! For many years now I've received Realtor Magazine where they run featured stories on "Rookie of the Year" type stories that espouse youth, success and equate that to money earned. At the end of reading many of those stories the reader feels like a loser. It is easy to say to yourself "What the hell am I doing wrong?" Some of the success stories are posted in a segment called "30 Under 30!"
Well a few years ago I was speaking to someone while I was speaking at the NAR national convention in Orlando. It was shared that one of the recipients of the "30 Under 30" was no longer in the business! I was shocked! It was only one year before, I asked why the person would leave real estate if it was so lucrative, and made so much money! The resonse? "They just burned out!" Now if you ask me, that is more of a story than a one trick pony! Maybe it would make more sense to hold up those that achieved in the business for many years, and not equate it to dollars earned for one year!
So this breaking story on Inman News Story that came out last week about one of the 30 Under 30 recipiants Eva Mazzarella is being indicted on a variety of charges: including loan fraud! It really makes you stop and think "Is it really all just about the money? Is more money equated with a better character? Is it a measure of one's soul? Some of these high flying agents may reach these goals by selling 1 or a just a few million dollar deals. There are other agents that may close 100 60K deals and never get a mention! Is that fair? Who has more real estate knowledge - the person closing 5 deals or the person closing 100 deals? My experience shows me the person closing 100 units on the low price side of the scaled does not even get an honorable mention.
Sooner or later it Realtors have to drop this mentality from the dark ages that is all about crunching the numbers club. To me it is about character and what you walk away with at the end of the day. Several years ago in Atlanta I knew an "Atlanta new homes agent" that was # 1 in Gwinnett county! She represented one builder and his products alone! She had closed an incredible amount of deals well into the 15 Million plus range, but the problem? The agent took home less than 35K in annual salary! Who is fooling whom?
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I agree sometimes it does seem all about the money. I live and work in a market where the average home sales price is less than $100K. My motivation for working in real estate just can't be money lol. I love the joy that homeownership brings to my customers. I know that I will never be eligible for awards because they are mostly based on $$$ but I also know I won't be indicted on charges of any kind of real estate fraud either!
Kathy Fisher REMAX Realtor Lexington TN 38351
Brian Schulman - Your Lancaster County, PA Real Estate Professional Quality not quantity works! I met a person several years ago in Virginia that was relatively new in real estate (under two years!) The person was closing over 20 million a year annually! I was impressed! Very articulate, a big team that seemed to be organized well etc... A year or so later I asked about the agent, and to my surprise I found out the agents licensed had been revoked. Some people just like to color outside the lines!
Neal Bloom-Realtor ® Assoc.-CRS-Weston FL What price fame and fortune? I do not know what possesses people to cross the line. Is money that important?
Kathy Fisher Well I really think that is more important in our business. OVer the years we have seen and assisted wiht folks going into foreclosure, divorce, loss of a spouse, terminal illness, AIDS, Cancer etc... There is a a certain sense of accomplishment that comes at the end of a deal that you made someone's world a little bit less stressful. Do we sell homes of provide peace of mind, security and a really decent shelter?
Hi Again Jim. Once again you're right on the mark, but I have to say that the philosophy of our industry and our national organization is not likely to change in our lifetime. Their focus is and always has been on the money. I remember years ago when one of the most "successful" agents in the nation was earning over 1 million dollars annually in commissions and was admittedly going broke. But hey, he looked good, smelled good and was closing lots of deals. I was glad I wasn't in his shoes and have no desire to strive to be. To each his own, but agents should remember that you'll never see a hearse followed by a U-Haul....because you can't take it with you.
Guy E. Gimenez ABR, CRS, GRI - Broker - Austin Texas Homes (512-731-5613) Guy, that is my favorite line! No U-Hauls to Heaven! We think alike! There were a lot of really big teams in the Atlanta area, and I noticed in the last year they are doing no business. Many have gone out on their own and are selling even less. It isn't about grossing a $1 Million in cash a year and you have a staff of 20! That is peanuts! It should be about the person making 100K a year and having low overhead. I've met agents that brag about earnings, but in reality have over a 65% expense budget! They talked a big game, but are no longer in business.
I first read about this on Jay Thompson's NAR Wisdom blog. Someone there also mentioned that it would be interesting to have follow-ups 5 years later to see if they're still in the business or if they burnt out. Like your Virginia person, we had a similar situation here - and licenses have been revoked.
I think it's misleading to the public the way team dollars are reported under just one name (at least that's how it's done here) when it might be 10-12 people doing the contributing. Often on a per-person basis, the teams are doing less volume than many single agents. But the single agents aren't recognized.
Very interesting perspective Jim! Someone took over her profile here on AR. It appears her brokerage still exists AND she is still a member of our board.
Very interesting story
Jim this is another well written and well founded article. We have the 'one trick ponies' and ' one night stand' agents in our area as well. But; I must admit, there are still a lot of true professionals working and selling property here and doing a good business. The whole idea about being a good agent boils down to finding your niche in the market and then striving to be honest, keep your word with your clients, know your job, do your job and create a win, win, win, all parties need to walk away feeling good about the deal. That's good business!
I know that you can't please everyone all of the time, but it doesn't hurt to try.
Jim: Very well written and I share you same views about the business and those who are 'awarded' Top Producer status, etc. This published status (i.e. newspaper articles awarding these agents) fools the public and does not do justice to those who ARE working full-time, without recognition!
I enjoyed your post. There really are so many unsung heroes in this business and they aren't the folks who make the most commissions. The really GOOD REALTORS are the ones who truely care for their clients and put their needs above their own (as per the code of ethics). I have trained many new agents over the years and I have to say that I have certainly seen my share of agents burn out. I think that the key to success is focusing on providing excellent service. Sometimes we don't earn any commission for these efforts, but we do earn the respect of the consumer and that, as they say, is PRICELESS!
If you treat people right, gain their respect and loyalty, and treat people like you want to be treated (Golden Rule), the money will follow. When you start putting the money ahead of your Clients and Customers, you will have a short lived career. Greed is the number one killer of many agents and our industry.
Great Post!
Jim,
...ouch...get out the owie cream...it is a tough time, isn't it? Greed knows no season.
Steve
Renee Burrows - Las Vegas NV Real Estate Well in America we are innocent until proven guilty! However before a person is indicted there is more there than coincidence or being at the wrong place at the wrong time.
Katherine Anderson, Managing Broker I agree. I have a lot of agents that I refer work out to because they get the job done without issue. They would rather let a deal go than do the wrong deal! They are above board, ethical, hard working, and the best interests of their clients comes first. They never refer to their clients to as a deal.
Guy E. Gimenez ABR, CRS, GRI - Broker - Austin Texas Homes (512-731-5613) Guy you have touched upon something really great! "What really defines success?" Obviously, my faith in God and my beliefs are very different than those espoused in the NAR and our industry!
Mahatma Ghandi created the "Seven deadly sins!"
Bill Gassett Metrowest Massachusetts Real Estate I like to think that there are those that call achievements accomplishments that are in jail for holding up banks! There are those that have accomplished for inventing the cure for a disease that took up their entire lifetime in research! There is always someone that wants to steal teh headlines!
Obeoman Steven StearnsI love the term "Owie cream!" LOL! You are correct, "Greed knows no season!"
Jan Wood, Realtor (R) - Nashville TN Real Estate Jan no I didn't I have clients emailing me this! This is sinful! I found the FBI press release easily on the net! This story is all over the place! A Black Eye for Realtors!
Good point as always Jim. I've never found the "awards" to be palatable or even relevant. And I think it's embarrasing for NAR to highlight these people only to have them out of business one year later or indicted on loan fraud.
It is easy to give credit for a good year. I agree with Jim, let's do a 5 year followup and see where they are now. What about referral business from past clients might be a good followup question to add to the mix of questions.
Thanks for the post.