Commercial real estate commission equals income. What happens after commission, equals wealth. Please write that down, and cement it in your brain. Most of our readers have created a platform where their livelihood (and that of their spouse and children) is dependent on their ability to generate commission and convert those commissions to real wealth.
Last week I had the pleasure of co-hosting a webinar with Kevin Bassett, CPA. Compartmentalizing Kevin as a CPA is actually not fair, Kevin is more of a tax strategist. He works with his national clients to position them, and their personal businesses, for minimal tax obligations and maximum wealth creation. During our webinar, Kevin shared several tax strategies for commercial real estate professionals — and he shared far too many to review in this one blog post.
According to Kevin, there is a 4-step process to creating wealth:
Step 1 – Build your personal commercial real estate business.
Step 2 – Maximize your after-tax cash flow.
Step 3 – Take the resulting extra cash flow and invest outside of your business.
Step 4 – Rinse and repeat.
That’s the difference between a commercial real estate broker with no wealth, and a wealthy commercial real estate broker with a sustainable, thriving, personal brokerage practice.
Today we will dig deeper into Step 1. Before you can maximize our after-tax cash flow, you have to build a business that consistently generates high commissions. If you are a follower of this blog, you will recognize the concept of being the CEO of your own company. Even if you are a new to business broker in a large, national brokerage house, you are more than likely an independent contractor — thus, you are the CEO of yourself. As your career progresses, your team may expand, but the overall responsibilities of your company do not.
The key responsibilities to building your business include:
- Having a targeted prospecting plan that will consistently secure new, qualified clients.
- Having a comprehensive personal marketing plan, incorporating all three elements of personal, physical and digital promotion.
- Having a defined productivity plan that outlines how you spend your day, who you spend your day with, and what you do during specific time segments of the week.
- Having a differentiating presentation program, which allows you to stand out from your competition and demonstrates to your prospects that you are the right person to work with.
- Having partners. Whether internal, external, full-time, part-time, or outsourced — you need to leverage their expertise to complete the things you don’t do well, allowing you to do the things you do best.
- Having a self-development plan. What are you doing to improve? Even the best brokers know they can get better. Whether it be a training program, a designation, or perhaps personal coaching — you need to keep growing. If not, your competition is going to pass you by.
Are you building your personal commercial real estate business? You have committed to this wonderful profession. You now base your livelihood and that of your spouse and children on your ability to generate commission and convert those commissions to real wealth.
In my next blog we will address Step #2 – Tax Strategies That Maximize Your After-Tax Cash Flow. Once you secure your hard-earned commissions, it is essential that you keep as much of this as possible.
For a free strategy session with one of our program consultants, CLICK HERE. During this strategy session they will discuss with you your personal practice, and provide insight as to how you can develop a personal commercial real estate practice that generates consistent commission income!