Real estate brokers and agents go through a lot of money in their careers. Whether you are looking at it annually or over the lifetime of one’s career, it all adds up to a great deal of coin compared to the average person on the street.
Yet, I constantly hear stories of good, productive agents taking part time jobs to supplement their incomes and lifestyle, especially when the market goes a little soft. I have often wondered why that would happen when I know that these folks have good prospecting and sales skills and should have been able to weather the temporary downturn in market activity.
After watching this happen over and over again, I asked some who I knew what happened along the way to make them go outside this incredible business and take on other income producing activities. Obviously, there were a million different reasons and stories but I have distilled it down to one simple reason. They did not have a clear understanding of the difference between profit and cash flow. Read the rest of this entry »