How to Increase Your Income

Editor’s Note: This article was first published in the June 1974 issue of the Real Estate News Observer.

[Compiled from a talk given in 1965 by A. H. “Arnie” Gardner]

One unusual benefit in the real estate business is your income (the ordinary variety) from fees, commissions and services rendered can be increased…and it can be changed and upgraded today!

The simple method of increasing income is by working on larger properties. Let’s say, for example, you are an investment broker or salesman who has specialized in selling units (duplexes, triplexes and fourplexes) and they sell from a range of $25,000 to $65,000. If you want to increase your income, all you have to do is upgrade your listing ability to start handling properties in excess of $100,000.

Where do you start? Your first move into a larger field is the result of some basic research. Determine which areas have properties in excess of $100,000. You might wish to poll the owners of the larger properties. Eyeball-to-eyeball contact should bring desired results.

How do you convert the larger listing to a closed transaction? As a starter, why not contact some owners of duplexes and fourplexes you sold in previous years. They may wish to buy a larger unit or affect a section-1031 exchange.

And another thing! It is a sad fact, but most real estate salesmen and brokers do not spend time “thinking” a transaction. A big yellow pad and pencil often will allow the broker to jot down the problem and leave room on the worksheet to “create” ideas. The concept allows the broker to list the problem at the top of the pad and then generate as many ideas as possible on how to solve the problem. These ideas should be reviewed to determine which will produce results with minimum work. Let’s be honest, often the minimum of work is a LOT OF WORK.

However, you now have developed a plan to work on larger properties, a formula on how to convert the properties to a closed transaction and your reward will be larger fees!

The only limitation to the above formula is located just above the collar and just under your hat!

NOTE: The above idea was developed in 1965 by the late A. H. “Arnie” Gardner of Salem, Oregon, who did a lot in the pioneer work in estate building and exchanging.

Clifford P. Weaver taught “Broker Estate Building Techniques” for the Richard R. Reno Educational Foundation. Mr. Weaver was Secretary-Treasurer of the Society of Exchange Counselors. He taught “Broker Estate Building and Administration Techniques” for the Richard R. Reno Educational Foundation. Specializing in real estate problem solving, he conducted his practice in the San Jose, California, area.

One Comment »

  1. Excellent advise. We at North Star Deferred Exchange describe ourselves as “deal makers, not order takers”, figuratively using that yellow pad, “what is the best way?”.

    Incidentally, as an alternative to Section 1031 exchanges where the prospective seller just wants to get out of real estate, we offer a program called a “Structured Installment Sale” underwritten by a life insurance company rated A+ by A.M. Best.Taxes on any gain are spread over a period of time determined by the seller with advise from its tax or financial advisor

    This is not the disallowed Private Annuity Trust and has significant advantages over a DST ( Deferred Sales Trust).