Residential Asset Manager (RAM)

Our goal in creating the Residential Asset Manager (RAM) is to expand the role of the realtor.  Realtors aren’t just for sales anymore. 

One of the challenges that realtors have always faced is the lack of a consistent reoccurring revenue stream.   When selling homes is all an agent does, it’s feast or famine.  But what if home sales were only one aspect of an agent’s source of revenue?   Wynd Realty believes agents of the future will have multiple revenue streams that may not yet be visible in today’s market. 

Home sales going forward will continue pretty much as it always has except with much less money involved.  NAR’s decades of mismanagement coupled with the lawsuits handed down from the DOJ, means the days of the 6% listing, and probably the 5% listing as well, will soon be a fond memory.   Career realtors are going to have to become creative. 

One of the traits I have seen with realtors over the years is they tend to swing for the fences trying to hit a grand slam even though no one is on base.  Think small ball.  A better approach would be to simply put the ball in play.     This means utilizing a volume approach.  Don’t try to max out what you can get out of every customer.  Small wins over volume represents the core of an Asset Managers business model.

Wynd Realty suggests a three-pronged revenue stream for Residential Asset Managers.

  • Home Sales—This will still represent the largest percentage of an agent’s revenue.
  • Subscriptions—These are yearly, low-cost assessments of a home, its place in the neighborhood, and plans for its continued care.
  • Project Management—These are small fees paid by the Contractor to the agent for managing the projects they bring to the table.

Statistics show that $300 dollars represents the ceiling for spur of the moment casual purchases.  It also presents the amount that a consumer can spend “without permission”.  Meaning it doesn’t require a significant meeting of the minds. 

While the price for RAM subscriptions has yet to be set, you can pretty much bet it will be under $300.  If you are asking yourself, is that all?  Yep.  This is where volume thinking enters.  If an agent sold 100 subscriptions, that would be $30K dollars a year. 

A professional salesperson shouldn’t fear selling 100 low-cost subscriptions with a common sense, money-saving approach.   The problem is the amount of work involved.   This is a lot of work.  This is NOT for everyone.   But if you’re a real housing geek, this can offer an avenue toward a reoccurring revenue stream that will augment your home sales activity.   Heck, why couldn’t an agent sell 200-300 subscriptions? 

All contractors have a sunk cost into human resources.  If a realtor recommends a contractor for a home project, that contractor is responsible for the labor and overseeing of that project.  Meaning the contractor is paying someone to look over the project and ensure it moves along in a timely manner.  But what if the realtor who recommended the project was the overseer?  Whatever the contractor was paying his people, the RAM can do the same work for much less.   In effect, realtors now become the new Project Managers for all home-related projects.  Contractors need not pay for their own Project Managers.  They can sub the work out to realtors for much less. 

Again, volume thinking must prevail.  Spending an hour at a job site doesn’t make the agent a lot of money.   But, doing a few a day or couple dozen on-site visits a month will eventually add up to a real stream of revenue.  Remember, this too is an augmentation of your home sales and subscription revenue. 

We have identified 3 distinct areas of revenue a real estate agent can develop.  We have also stressed this proposed business model is a volume-based activity.  Those agents who aren’t big into details will not be successful in this environment.

Our next blog will go over specific details of each revenue stream as well as the sales highlights an agent can start utilizing in their own client pitches.

Stay tuned.  

 

2 thoughts on “Residential Asset Manager (RAM)”

  1. First, let me say thank you for your innovative spirit and creative mindset. I think this is a great idea and I’m all in! Looking forward to learning more about this new venture.

  2. Your proposal is an interesting idea on how to earn a living in real estate. In a way, many agents already are project managers when they accept a listing that needs some amount of renovation. But if this is to become the norm, then the training of agents needs to also be changed. Real estate school will have to take a look at its curriculum. Not everybody has to be a project manager.

    My second thought about your proposal is that it seems like a lot of “running around “ for very little money.

    I’ll wait to read parts two and three before I make a concrete decision.

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