# Entrepreneur of the Week Post 1 Hello to the whole forum, I am happy and excited to be “Entrepreneur of the Week”, all of me…
#entrepreneurThis week post 1
Hello to the whole forum,
I am excited and excited to be "Entrepreneur of the Week", hoping that the content I present to you will be interesting and meaningful.
A little Ali, 47, married + 3 children, lived in Israel and almost a year ago I lived in Florida for 6 years until I returned with the family. I am a real estate agent before moving to the US and currently have a real estate license, complex management license (CAM) and notary license, all in Florida State only and hold a real estate license in Israel.
I came to real estate after reading a few books on the subject that immediately grabbed me and intrigued me even more, I realized there was something here that really attracted me and so I delved into the topic more and more, until I bought 3 properties in the country according to my simple understanding… buying, renting and selling at a profit. Simple Excel tables that give a true picture to each property after deep homework, no more. I was exposed to the US market after engaging in short-term apartment rentals in Europe and the US (Airbnb), so the road to real estate deals was short, and when I moved to the US, I had already gone deep into the many issues in the field.
I currently own a number of Florida properties and have gained extensive experience in many real estate related areas in recent years such as: managing and holding short term rental properties (Airbnb) primarily in New York (now establishing a startup with a number of partners in the field), buying and selling free market properties, deals Foreclosure and working with the districts, buying and renting (Rental income), escorting investors from A to Z and the topics I am going to talk about this week and they are - surplus funds in auctions (Overages), tax deed, tax lien Line), Home Owners Associations, Condominiums, Cooperatives Etc., and the work of the Realtor whom I all learned while I was in the US with the desire to get to know Brown in depth and engage them. And finally, in the last few months I have entered the commercial real estate field with a local Israeli partner in finding deals from banks at bargain prices through public auctions and working with financial entities, for every transaction we enter into only when we know we can achieve a 10% + cap at the beginning of the transaction and build an exit strategy until 5 years of possession (if they do not flip the property within a few months).
If we dive into the content, I will initially talk about the job of the US Realtor
I did the brokerage course with the idea that as a licensee this would open many options for me to get to the source of the transactions and from there to earn the "commission" that most of us do not really like to pay the broker. It was definitely a wise decision and I'm glad I got it.
In many ways, US middleware is heaven and earth compared to middleware in Israel and here I will list the differences:
In Israel:
Poor image for intermediaries
2) You receive the commission for the transaction at the beginning of the process when signed by an attorney
3) There is no serious mechanism for monitoring intermediaries
4) No courses and training after obtaining a license
5) Annual broker fee payment can be renewed even after few years of unpaid payment (from personal experience)
6) brokerage fee is around 1% - 2% of total transaction
7) Any broker can set up an independent office no matter how long they are in the field.
U.S:
1) has respect and appreciation for the mediator as a professional and professional authority. 9 out of 10 deals close with brokers.
2) receive the commission at the end of the transaction (Closing) which sometimes takes several months until the signing (and sometimes the transaction falls and the agent receives nothing !!!!), as a broker you are obliged to accompany the transaction all the way and make sure every detail is done at the time and under the contract, every miss May cost your customer a down payment and down payment.
3) is an organization of intermediaries of state and of all states that supervises intermediaries, which has legal authority to some degree. Where a broker can pay up to $ 5000 fines for certain transfers.
4) In Florida, every intermediary is required to undergo a course every two years (after the license has been issued) of 14 hours of instruction that includes various fields (the first two years require an undergraduate course of 45 hours including an external 100 test).
5) Every two years must renew a license only after the course has passed, unless the license is canceled and deleted and there is no way to repay it in any way… you lose everything.
6) Florida brokerage fees range from 4% - 6% depending on the client and the agent.
7) A broker must be registered with a broker office and if he wants an independent office he must hold a broker license for two years and undergo an 72 hours course to obtain a broker license. A mediation licensing course is a mandatory 63 hours, including a passing test of complex 100 questions.
The mediator's work in any transaction is critical to closing it and not "falling" any mistakes that could ruin the closing. He must make sure that a property expert is inspected, make sure the buyer has applied for a mortgage loan (unless the transaction is in cash), make sure that if the buyer is registered with the home committee if the property in the neighborhood is closed or requires approval, make sure an appraiser is underway. Independent or of the bank, make sure that the buyer and seller paperwork is correct (dealing with the Title) and finally coordinate the closing of the transaction. All this by complying with the terms of the agreement signed at the outset and being the "cop" if neither party meets the terms and dates. The responsibility is great and complex.
Only after all these terms and only after everything has been agreed and only after both parties have signed the deal is he entitled to receive his commission and here too…. The payee is the broker's office to which the agent is associated. The broker divides the funds between them and the agent according to the agreement they made in advance, sometimes the agent receives 100% of the commission (less a small amount for the office) or even a distribution of 30 / 70 or 60 / 40 or 50 / 50. Every office and its conditions.
A serious and professional realtor can show several homes and even dozens of homes until the client finds the desired property, the realtor needs to know the areas, neighborhoods and know how to use different systems that a private client cannot reach without a proper brokerage license such as MLS or RPR or other systems that can be analyzed Appropriate transactions. The broker must be knowledgeable in the appropriate paperwork for the transaction, the changes that apply to it, if it is an addendum to the agreement (Addendum), etc. There are brokerage offices that hold people whose job is to prepare the paperwork for the broker (I personally am not in favor of missing out on paperwork here, for example, I prepare all the agreements alone). Each broker is also listed on the board which gives him the ability to use the local MLS or other counties MLS.
For example: I'm listed on the Fort Lauderdale West Palm Beach board, but I'm also listed in the Duval County of Jacksonville. This means I have the ability to review deals in different areas of Florida.
So after showing you the differences between an Israeli broker and an American broker and how the process is different and sometimes tedious (especially for the American agent), I hope that the next time you talk to a broker, something will still feel different to you today.
See you tomorrow in the next post on Tax Deed.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
You wrote beautiful and clear. I was also issued a real estate license following investments we had (the Los Angeles area). I was glad that was a wise decision. Beyond personal benefit, I fell in love with the profession.
Remember the interview we did with you. Certainly sounds like the kind of people who would do business with them
Thank you! We'd love to hear about tips for working with American realtors as investors later on
You wrote beautifully! Waiting for the next post
Real professional! thanks for sharing.
Professionally written, instructive and very useful
Thank you