Profile of Today’s SW Florida Real Estate

Recruit

Today’s AgendaA word about Larson Educational ServicesCommon perceptions about licensing educationFive things that make us differentProfile of today’s real estate recruitThings to considerProfile of today’s REALTORWhy choose Larson Educational Services?

                      

Larson Educational Services is a family-owned business that opened in November, 2008

Larson Educational Services is an approved Florida Real Estate School, CAM School, Mortgage Business School and NMLS Approved Course Provider

A word about Larson Educational Services

The SW Florida market has several providers, but a common perception of licensing education has been:Homogeneous productMost fail the examMost hate the course

= Selection criteria: CHEAP / FAST / CLOSE

Common perceptions about licensing education

What is YOUR viewpoint?

Q. As an employing broker or manager, what do you want from the school where you send your recruits?

RECRUITS PASS THE EXAM KNOWLEDGE OF THE BUSINESS ENTHUSIASM FOR A FAST START COME BACK ALIVE!

1. Our curriculum

2. Our instructors

3. Our course materials

4. Our classrooms

5. Our attitude

Five things that make US different from the rest

1. Our CURRICULUM is different

Not a guessing game. An up-to-the-minute program of study that focuses students on what they really need to know to succeed on the exam and get off to a fast start.

2. Our INSTRUCTORSare different

We hire the best instructors in the business. It’s that simple

3. Our COURSE MATERIALS are Superior

No one has more effective sample exams and course workbooks.

All others Larson Course I + Prep0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

44.00%

92.00%

Pass

4. Our CLASSROOMS are different

Our classrooms are shining examples of what classrooms should be. In short, ours are professional classrooms – in every sense of the word. Opening soon in Naples!

5. Our ATTITUDEis different

We orient everything we do from the customer’s perspective.

We expect to earn the right to be YOUR SCHOOL.

Today, sharing valuable information is part of our commitment to give you MORE than what you expect.

Profile of Today’s Real Estate Recruit

Lee County new licensees

2001 2002 2003 2004 2005 2006 2007 2008 20090

200

400

600

800

1000

1200

1400

1600

1800

587

875

1066

1315

1786

1013

522450

737 Series1

Survey Says…

Each of our real estate licensing students completes an Anonymous Survey at the conclusion of Course I. The following data were collected from February, 2009 – January, 2010

Q. What is the primary reason for attending real estate classes?

1. Income and investment opportunities 41%

Improve my credit card status / make more money / only means to make good money today / better my family’s life / love real estate investing / market is improving / now is the time / want to be on top of investments

Q. What is the primary reason for attending real estate classes?

2. Attributes of the business 35%Be my own boss / help people buy / freedom / like helping people find a nice home / like people, like houses, like money / love real estate

3. Career change 12%New career, sales oriented / it fits at this point in my life / always thought about it / more control of future

4. Another tool in my belt 12%Background in lending / property management / CAM / contacts in finance / construction / foreclosure

Q. How did you first contact the broker or office?

1. Personal contact: friend, family or customer

2. Searched the Internet

3. Found on Craig’s List

IF YOU DON’T ADVERTISE, THEY DON’T THINK YOU’RE HIRING!!

Q. What was the primary reason you chose this broker?

1. Personal relationship 42%Already work there / friend or through a friend / known for x years / ethics / compatible goals / motivated me / business relationship

2. The broker offered MORE 36%Commission split / support / lower fees / paid some start-up costs

Q. What was the primary reason you chose this broker?

3. Training / mentorship 14%Proven plan for success / training and successful history / mentorship

4. Paid for my classes 8% Offered scholarship / paid for my classes / offered to pay tuition

Florida Unemployment and struggling industries12/2008 7.6% 12/2009 11.8%Jobs lost 232,400

Mortgage / HousingFurniture Securities Services

What do real estate recruits do now?

Series105

10152025303540

37

19 19

9 74

RE Related

Other

Self

Sales

Services

Medical

Agents by race

White Hispanic Black Asian Other0

10

20

30

40

50

60

70

80

90 84

11

2 2 1

New Agents

Agents by gender

Male Female0

10

20

30

40

50

60

45

55

40

60

New Agents

Current Agents

Agents by marital status

Married Unmarried0

10

20

30

40

50

60 55

45

58

42

New Agents

Current Agents

New agents committed to a broker before enrolling

Committed Not Committed0

10

20

30

40

50

60

70

8077

23

New Agents

New agents by own versus rent

Currently Own Currently Rent0

10

20

30

40

50

60

70

80 71

29New Agent

New agents by hours expecting to work per week

0-20 21-40 41-50 51-60 61-70 71+0

5

10

15

20

25

30

35

40

17

27

36

13

7

0

New Agents

New agents by age versus national trend

18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 0

5

10

15

20

25

30

12

20

24 24

2020

2830

15

6

New Agents

National

New agents by household income

0-20 21-40 41-60 61 - 80 80,000+0

5

10

15

20

25

30

8

17

28

18

29

New Agents

New agents by source of income

Primary source

Secondary source

0

5

10

15

20

25

30

35

40

45

5050 50

New Agents

Things to consider

Career Night: Do-it-Yourself Disc

Web-based recruiting

Participating Broker ProgramMaterials at LarsonEd Career NightParticipating Broker ConnectionLicenseTrak Scholarship Program

Recruit, Train andRetain

Thoughts on management functions and the need for training / re-training

2009 REALTOR Profile

Realtors & Technology60% of Realtors have a website aged an average of 5 years.

The most common info on the websites is the member’s own listings.

Over 1/3 use social networking sites.

17% of Realtors regularly use blogs, RSS feeds and podcasts, up 5% from last year.

Years in practice had no bearing on use of social media.

Realtor Demographics

Typical REALTOR® is a 54 year old white female who attended college and is a homeowner.

60% of all Realtors are female.

The median age of Realtors is 54 years old.

25% state real estate is not their only occupation.

Under 50% of Realtors surveyed noted real estate is their primary source of household income.

9% of Realtors were born outside the U.S.

Business Activity

Brokerage specialists averaged 7 transactions in 2008 and averaged 8 in 2007.

40% of Realtors transacted at least one property in foreclosure.

23% of business originated from past client referrals for Realtors licensed 16+ years

39% of Realtors generated “some” business from holding an open house.

Income & Expenses

Median gross income fell 14% to $36,700 in 2008.

Median gross income of Realtors with 2 years or less experience was $8,600.

Median gross income of Realtors with 16 years or more experience was $53,900.

Realtor annual business expenses were $5,810

70% of Realtors are compensated on a percentage split commission.

27% reported uncertainty about being in business for 2 more years

Brokerage Models

50% are affiliated with an independent, non-franchised brokerage.

Median firm has 23 brokers and agents.

25% have spent 11+ years with their current brokerage.

64% of brokers have some ownership interest

72% receive no benefits through their firm.

12% worked for a firm that was bought or merged in the past 24 months.

Designations and Affiliations

35% hold at least one professional designation

20% have a GRI, 13% have a ABR, 10% have a CRS and 5% have a SRES

16% hold a specialized training certification (like e-pro)

25% belong to one or more affiliated institutes or councils. 11% belong to CRS, 10% to REBAC, 4% to WCR and 3% to CREB

Professional Focus

7% of sales associate licensees do something other than sell

The average years of experience is 10 years.

82% specialize in residential real estate.

22% have a secondary focus on relocation, 21% in commercial brokerage, 17% in residential property management, 14% in land development, and 14% in counseling.

Why choose Larson Educational Services?

Our unique course development strategy prepares for exam success

Our students don’t just start, they get a license.

Our students come back to you alive, happy and excited

They will succeed on the exam They will NOT be recruited or

solicited Their energy will carry into the office

Why choose Larson Educational Services?

We cater to brokers who recruit: Massive scheduling for a fast startCompetitive pricingConsistency in educational

objectives, materials and instructors

Consistency with in-house training

Why choose Larson Educational Services?

In short, we will be YOUR SCHOOL

Thank you, and best wishes for continued success!

Why choose Larson Educational Services?