Why 80% of Real Estate Brokerages Are Worthless (And How to Fix It)

What is your real estate company worth right now? What would you sell it for?

I ask because many people tell me, “I don’t want to do this forever. At some point, I want to escape. I want to sit on a beach with a margarita in my hand. I don’t want to die with a pen in my hand at a desk.”

My answer is always the same: Your company is not worth what it should be today.

Here’s why:

For a company to be truly profitable, it needs experienced agents. The more experienced agents you have, the more sales you generate and the more profit you create.

So, what is a real estate company worth? The answer depends on market conditions, how long your agents have been with you, your brand, and other factors. But in general, companies are valued at two to five times net income.

Now, what if you don’t have net income? Then your company is worthless. In fact, 70-90% of real estate companies in America today fall into that category.

How do I know? Because the brokerage owner still has to sell real estate. If you have to sell real estate—not by choice, but to keep the doors open—then your company doesn’t have real value yet.

Here’s the good news: you can change that. With consistent recruiting and the right roadmap, we can build your business to the point where it has real value.

And here’s the bigger opportunity: most of your competitors are in the same position. In your market, 70–90% of brokerage owners are losing money right now.

What if you approached them and said:

“I’ve got a solution. Join forces with me. Do a walkover with your agents—bring them to my firm. I’ll give you an override, maybe 10–20% of company dollar for the next 2–3 years. Everything you make will now be profit. You’ll cut the stress, the leases, and the overhead. I’m not taking your building or your brand—you’re just moving your agents over. It’s a win for both of us.”

At first, some owners will say no out of ego. But you’ll plant a seed. Six months or a year later, they’ll come back and say, “Tell me more about that.”

I’ve done this many times. The "Walkover Strategy" works. We call it recruiting en masse, and it’s one of the many recruiting strategies we’ve built out for you at e Real Estate Coach.

If you’d like to explore how to grow your firm, get to profitability, and eventually sell your company, sign up for a discovery call with me directly (not an assistant) here.

Let’s have a real conversation about where you want to take your company.

Have a great day, and good selling.
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Why do Brokerage Owners, Office Leaders, Team Leaders, and Solo Agents choose Jim to be their coach?

+ 32 Years of Real Estate Sales, Management, and Coaching Experience
+ Top 1% REALTOR Himself (he has been in the trenches)
+ Opened his First Real Estate Company at 23
+ Grew his Real Estate Company to 17 Offices (largest in Oregon)
+ His Current Team Closed $1.4 Billion in Sales in One Year
+ He is a Current Real Trends Top 500 Broker

When you work with Jim there is no "team" of coaches - you are being trained by Jim and tapping his knowledge and experience.

When your office or team joins our brokerage coaching platform, every agent at your firm will tap into our training and coaching resources.

These benefits include:

20 Weeks of On-Demand Lead Generation Coaching: Access our extensive coaching program, offering daily guidance for 20 weeks, empowering your agents with proven lead generation strategies.

Extensive Downloads Library: Gain access to a vast collection of resources, including scripts, texts, emails, drip campaigns, checklists, systems, forms, and more, all designed to enhance your agents' productivity and success.

Marketing Assets: Stay at the forefront of real estate marketing with new social media and digital assets delivered to your team on a weekly basis, ensuring you have the latest tools and strategies to effectively reach your target audience.

Live Monday Coaching: Kickstart your week with our live Monday coaching sessions, where we deliver the biggest and brightest ideas in the industry. Gain invaluable insights and stay ahead of the curve.

Live Wednesday Coaching: Join our tech and marketing experts every Wednesday as they dive into the hottest real estate tech and trends. Discover innovative tools and strategies that will give your agents a competitive edge.

Live Friday Coaching: Tap into our live podcast series, where we interview some of the biggest names in the real estate industry. Learn from the best and gain inspiration from their success stories.

At eRealEstateCoach.com, we are committed to helping you and your team thrive. Productive agents become raving fans helping you attract the top talent in the industry.

Visit https://www.erealestatecoach2.com/explorecoaching to learn more.