DMS Properties, LLC ... Residential Real Estate Services

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Here is How We Develop New Agents at
DMS Properties LLC ... Residential Real Estate Services

Every real estate brokerage company has their own way of doing things. We are no different.

DMS Properties, LLC Kitchen

There are three areas where companies differ (other than number of offices, number of agents, and areas of service) ... those are:

1. The company's agent expense structure;
2. The company's agent compensation structures(the split); and
3. The company' agent training (specifically when it comes of lead generation and on business management).

This is where we believe we are different and can be helpful to new and/or struggling agents. Read further about:

1. Our Agent Split Calculation philosophy for our real estate agents;

2. Typical Real Estate Start-Up Expenses an agent can expect with us;

3. Agent Training and Marketing Breakdown by Maryland County.

Agent Split Calculations

Brand new real estate agents who affiliate with DMS Properties, LLC ... Residential Real Estate Services can expect to be on a 50/50 split ... this is our Standard Compensation Plan ... and that will change as an agent's production increases. Unlike many other real estate companies, we use a graduated scale based on production over a "rolling 12-month period" to determine the commission split. What this means is that an agent's production level doesn't go back to $0 at the end of the year. In addition, we include commissions received for property rentals in the overall production statistics ... we base that on a 2% "commission" for that calculation.

Based on some inquiries that we have received, we are also introducing a second Compensation Plan whereby an agent will start at a 65%-35% Split with a monthly "desk" fee of $225.  Under this plan, the 65-35 split would apply up to $1,000,000 and increase for each additional $1,000,000 in production.

An experienced agent who decides to affiliate with us may be able to start out at a different split based on their production at their previous company ... as long as it is verifiable. Our agents will be expected to generate annual production of at least $1 million during any 12-month period. As mentioned above, though, that would include rental transactions, too.

DMS Properties, LLC ... Residential Real Estate Services charges a 6% commission (although it is negotiable) on our resale listings for homes and land, but this usually doesn't apply to REO properties. On a 6% listing, a Real Estate Agent will earn 3% per side of the transaction (before the broker "split"), so $1 million in production could generate pre-tax and pre-expense income of $15,000. Once an agent exceeds the $1 million production level, the split will change and will increase at $500,000 increments up to a 90% level at $5 million.

Our Standard Compensation Plan for our agents is, we think, unique. It is based on a "split" system, but is graduated to enable each agent to keep more of the commissions that they earn as they generate more and more business.

$0 - $1,000,000 50-50
$1,000,000 - $1,500,000 55-45
$1,500,000 - $2,000,000 60-40
$2,000,000 - $2,500,000 65-35
$2,500,000 - $3,000,000 70-30
$3,000,000 - $3,500,000 75-25
$3,500,000 - $4,000,000 80-20
$4,000,000 - $4,500,000 85-15
$4,500,000 - $5,000,000 + 90-10

Our agent commission split system does not reset every 12 months ... we use a "rolling 12-month" split schedule. As an example, an agent who affiliates with us on January 1, 2017 begins on a 50-50 split. If they exceed $1,000,000 in production in the first 12 months, they will increase to a 55-45 split. The agent's production and split will always be calculated based on the previous 365 days and will change daily ... so on February 1, 2018, the split will be calculated based on production from February 1, 2017 to February 1, 2018, etc.

In addition, as part of calculating the agent split discussed above, we include income from rental transactions in the overall production.  An agent who has a rental listing at $2,000 per month will be able to count that towards their production as a $50,000 transaction ($2,000 / 2.5%).  While the rental income cannot be used to calculate local Association production awards, it does help with the split progression.

Real Estate Start-Up Expenses

We try to minimize the expenses to help new agents get started. Here's a breakdown of what you can expect beginning a real estate career with DMS Properties, LLC ... Residential Real Estate Services :

  • Business Cards (Approximately $100) ... while not a necessity, we recommend them as a way of personal promotion.

  • Car Magnetic Signs -- roughly $100 ... also not a necessity, but a good way to promote yourself as an established business person.

  • Errors & Ommissions Insurance -- this is absolutely required in the real estate business, but our company blanket policy covers all of our agents, so there is no out-of-pocket expense to you.

  • Board Dues -- We do not require that new agents become a member of the National Association of Realtors, the Maryland Association of Realtors or the local board of realtors ... immediately.  This generally costs approximately $700 per year and can be a deal-breaker to new agents. There are some disadvantages to this for the agents ... and we'll gladly discuss that with you, as well as how we can help with this as you begin your business.  Eventually, though, you will want to begin your Association membership.

  • We are also developing our Referral Network, whereby licensed Real Estate Agents can "hang" their license with us on a "referral" basis only.  This allows agents to avoid the yearly Board Dues to the National Association of Realtors, the Maryland Association of Realtors and the local Board, along with the quarterly MLS subscription costs.  The only thing the agents need to do is maintain their license and complete all required Continuing Education classes.  They can still earn money by making referrals of friends, relatives, co-workers and acquaintences to our agents ... they will receive a 25% referral fee for each completed transaction.

  • Cell phone with a good data plan and a personal hot spot -- we do not provide these, but most people have them now already, and the personal hot spot comes in handy when you're on the road.

  • Internet access -- Our office is equipped with WIFI, but you need to be able to get on-line elsewhere; most people already have access to Internet at home.

  • Agent Web Site -- we will set up an agent web site as part of the company web site. Agents are not required to do provide their own "personal" web site or anything additional (except write some of the copy that will be on your company web site) but are welcome to if they like, subject to Broker approval just like all forms of advertising.

Because Dale M. Servetnick is now the Principal Broker, his direct involvement in real estate sales is continuing to be reduced as we bring on more agents and he is concentrating more on company and agent businss development. ... training agents in the philosophy that "It's a GREAT Day in Real Estate and a Good Life!"

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