Have you included in your real estate brokerage business plan any affiliated businesses? Many brokers have been scared away by talk of RESPA violations and the difficulty in setting up these relationships legally. If you don’t have a plan for these affiliated arrangements, you are losing a huge potential for more revenue.
I have always known of the profit potential of these businesses for real estate brokerages, but I was stunned by the data I learned recently at an industry conference:
Did you know that the average real estate brokerage listed in the Real Trends 500 only received 36% of its EBITDA from core real estate brokerage services? 64% of its EBITDA came from affilliated businesses!!!
I am curious if you have set up mortgage, title, home warranty or homeowner insurance partnerships, marketing agreements or joint ventures. If so, let me know how they are working for you and the challenges you have had with RESPA. If not, let me know why.