{"id":10182,"date":"2021-02-15T08:17:54","date_gmt":"2021-02-15T16:17:54","guid":{"rendered":"https:\/\/propy.com\/browse\/blog\/?p=10182"},"modified":"2025-08-27T02:25:05","modified_gmt":"2025-08-27T06:25:05","slug":"master-your-brokerage-finances-saving-on-costs-and-stimulus-packages","status":"publish","type":"post","link":"https:\/\/propy.com\/browse\/master-your-brokerage-finances-saving-on-costs-and-stimulus-packages\/","title":{"rendered":"Master Your Brokerage Finances Saving on Costs and Stimulus Packages"},"content":{"rendered":"\r\n

Propy\u2019s weekly webinar Episode #2<\/a> is with Rob Hahn, Managing Partner at 7DS Associates, and Tami Bonnell, CEO at EXIT Realty.\u00a0<\/h4>\r\n\r\n\r\n\r\n
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Rob Hahn, Managing Partner at 7DS Associates, and Tami Bonnell, CEO at EXIT Realty join Propy\u2019s Alex Tieu, COO to discuss how to manage your brokerage finances during the pandemic. They also discuss some of the different loans and stimulus packages available to help business-owners survive during this unprecedented time. <\/strong>
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The current big picture<\/strong><\/h3>\r\n\r\n\r\n\r\n

As CEO of Exit Realty, Tami Bonnell is expected to be a good forecaster and to know where things are heading for the industry. As a result, Bonnell spends a lot of time talking with economists at the California Association of Realtors, as well as from the Wall Street Journal, and other financial publications. When she can find a common thread in what they all are saying, then she feels comfortable about where we are headed. The recession of 2008 was a perfect storm of several factors happening all at once, from mortgage-backed securities, the stock market, the real estate industry, and unemployment, that caused such a slow recovery. However, economists are viewing the COVID-19 pandemic as a one-time incident. Because mortgage rates have been great, the stock market has been doing really well, unemployment has been low, and real estate has been strong, they are predicting that we will come through this fairly quickly once we are able to flatten the curve.  Bonnell stresses that that everyone needs to be reassured that this will not last forever. <\/p>\r\n\r\n\r\n\r\n

Rob Hahn agrees with Bonnell, and shares another perspective that bodes well for a faster recovery: the equity in homes. He explains that during the 2007-08 recession period, people didn\u2019t have much equity in their homes, and from the height of the bubble to when everything crashed, there was a 35% decline in home values. But today, it\u2019s estimated that most home owners in the US have between 30-37% equity in their properties, so they will be able to weather any dip in the market that may occur. Overall, he feels the market will come back very strong. <\/p>\r\n\r\n\r\n\r\n

The focus for brokers and agents in the immediate future<\/strong><\/h3>\r\n\r\n\r\n\r\n

Hahn states that brokerages that are not well capitalized may end up in trouble from this once-in-a-lifetime situation.  To survive when we can\u2019t do business as normal, all depends on how much cash a brokerage or agent has in the bank to cover expenses while they aren\u2019t earning commissions. He knows many brokers that can easily survive for 3-6 months, and he also knows some who only can survive for three weeks with their cash on hand. Hahn stresses that if you find yourself in that latter category, it\u2019s critical that you think about how to increase your cash flow and reduce your overhead. You need to maintain as much cash as possible so you can survive during this crunch. <\/p>\r\n\r\n\r\n\r\n

Bonnell explains that 79% of the brokerages in the country have 6 agents or less, and in most of those, the top producing agent is the broker\/owner. Those brokers are already putting money back into their company, so she doesn\u2019t expect to see as many of these brokerages closing down. What she does expect to see, however, are more mergers with these smaller brokerages. The pandemic has these brokers thinking about what is best for their future, and what will help them take care of their agents moving forward. <\/p>\r\n\r\n\r\n\r\n

Bonnell recommends that every broker and agent immediately look at their profit and loss, and all of their variable costs. Even if you\u2019re currently in good shape financially, she urges you to have a conversation with all of your creditors, and to look at where your money is going.  Get smart about your finances, and your return on investment. Some of her suggestions included:<\/p>\r\n\r\n\r\n\r\n