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2010-01-12 21:17:11

Exit Strategies for Real Estate Brokers

 

In the past six months, exit strategies seem to be a hot topic within the Real Estate Industry. Personally we had over 180 Brokers contact our firm during 2009 to discuss selling their real estate brokerages.
These brokerages ran from over 3,000 Realtors to as little as three Realtors. However, I realized that I didn’t have the expertise to put these transactions together, so we went out and hired one of the top consulting firms in the country.
We ran into the same problem every time in trying to help these brokers formulate an exit strategy. If a brokerage is not making a profit, no matter how large they are, then they don’t have any market value. Most of these companies wanted anywhere from $500,000 up to $10 million for their companies.
Back when the market was hot (ancient History) the companies that were doing the acquisitions were paying from 3 to 5 times net.
What I’m hearing within the industry at this time, that not only aren’t companies in the acquisition mode, they aren’t paying a dime for them. They will roll companies into their companies, but they won’t take on the expenses, i.e. leases, etc.
We have developed an exit strategy that not only gives the Broker that is looking for an exit strategy a way to get out from under their expense, but over time will give them 5 times net and quite possibly more. And, over time, give them value that they do not have today due to their financial situation.
We have developed a system that eliminates debt and makes every dime that goes into a Broker’s pocket pure profit. It sounds too good to be true, but it’s not. It’s the VIRTUAL CULTURE that makes it all possible.
In fact, the VIRUAL CULTURE has had so many surprising side benefits since I first concieved of the concept and opened nationally, that it still surprises me today! It has now been two years and we have learned that not only the corporate office benefit greatly from the VIRTUAL CULTURE, but so does the Realtor, the Broker and even the consumer.
It truly is a WIN WIN WIN WIN situation for everyone involved!
The consultants that we have hired to head up our National growth and help us put these acquisitions together have told me that they are now receiving calls almost daily from Brokers inquiring about starting a VIRTUAL CULTURE REAL ESTATE BROKERAGE.
So, if you’re a Broker and you’re looking for an exit strategy that gives you a chance of making a significant profit on your efforts, then you need to look at what we have to offer. At this point we are the leaders in the Nation, with the most experience operating a National Virtual Real Estate Brokerage.
We have made the errors. So give us a call and learn how you too can benefit from the VIRTUAL CULTURE.
James A. Crumbaugh III is a 38 year veteran of the Real estate industry and is the founder and CEO of Allison James Estates and Homes. You may reach Mr. Crumbaugh at jcrumbaugh@allisonjames.net

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