Financial Management for Real Estate Agents: Insights from Nathan Ganz, CEO of NW Premier
In the world of real estate, financial management plays a crucial role in the success and longevity of agents. However, many professionals struggle to navigate the complexities of bookkeeping, budgeting, lead generation money management, and tax planning. Enter Nathan Ganz, the visionary CEO of NW Premier, who has dedicated himself to helping real estate agents enhance their financial skills and overall well-being. In this video, we explore Nathan's game changing insights and strategies to enhance the financial management for real estate agents and frankly all business owners.
Bookkeeping: The Accountability Program of Success creating Clarity and Visibility
Imagine bookkeeping as the accountability program that underpins your entire real estate venture. Nathan emphasizes the significance of maintaining up-to-date financial records. This practice not only enhances transparency but also connects your financial decisions to the quality of your life. By creating clarity on the money side of your business, you can become a better business owner and improve your overall financial management. One thing Nathan said that I love is “what helps our company be successful is, that what's connected to the data, and what's connected to the numbers, is the quality of your life, and the quality of our clients life, and the quality of their businesses and what the impact is that they can have in their communities”.
Separating Personal and Business Finances: Non-Negotiable
One critical aspect of financial management that real estate agents often overlook is the separation of personal and business finances. Nathan stresses that this separation is non-negotiable in the industry. By developing a solid business plan that includes a profit percentage and personal income, you lay the foundation for a sustainable and successful real estate career. Don't underestimate the power of having distinct financial compartments. Commingling is a significant problem in the real estate industry. Commingling simply means that your personal and business income expenses are coming out of the same account. It is an absolute NO-NO! JUST DON’T DO IT!
Budget Model and Accountability towards the plan of PROFIT!
Effective budgeting and lead generation dollar allocations are essential for real estate agents. Nathan introduces and utilizes the budget model, found inside of the MREA Book (Millionaire Real Estate Agent), the chart of accounts, and economic model breakdown is one of the best for agents that don’t have one to follow already. These tools enable you to set realistic financial goals, allocate resources wisely, and monitor your progress closely. Additionally, Nathan emphasizes the significance of holding your budget accountable by visiting your money regularly. For those newer in budgeting and financial management, visit your money Quarterly and others more seasoned, spend more time with it on a monthly basis so you can respond to necessary changes in the business fast enough.
Tax Planning and Compliance: Maximizing Opportunities
Navigating tax planning and compliance can be challenging for real estate agents. Nathan sheds light on the standard practices in this domain, emphasizing the importance of recognizing missed tax opportunities that agents often overlook. By staying informed and seeking professional advice, you can ensure compliance while minimizing your tax burden. Nathan says “our metrics show us that an agent who comes to us, on average gets a 10% take home raise net of our fees.” He continues to say “if I cannot make you money, don't hire me.”
6. Value Creation: The Ultimate Hiring Criterion
When it comes to hiring, Nathan's mantra is clear: value is the only reason to bring someone on board. He shares an example of a failed business transaction and stresses the significance of transparency and willingness to consult with others. By seeking a good fit between your team members and their respective roles, you can foster an environment that thrives on collaboration and success. When there is a lack of value he said, money always becomes an issue. Understand your values and deliver those at the highest degree possible.
Debt Management: Prioritize and Get out of the Debt cycle.
Dealing with debt is a crucial aspect of financial management. Nathan emphasizes the need to prioritize paying off your debts before making new financial commitments. By addressing outstanding debts and negotiating with creditors, you can secure your financial stability and pave the way for future growth. Remember, the fastest way to get out of debt is to avoid accumulating more of it. Nathan shares his gratitude for people like Dave Ramsey and Susie Orman although blames them for causing people to remain on the cycle of debt. Following his sage advice is a surefire way to get off this cycle and to virtually live DEBT FREE!
Nathan Ganz, the man, the myth, the legend. The CEO of NW Premier, offers invaluable insights into improving financial management for real estate agents. By embracing these strategies, agents can achieve greater transparency, accountability, and profitability in their businesses. From meticulous bookkeeping to separating personal and business finances, implementing budgeting and lead generation profit maximization techniques, maximizing tax planning opportunities, prioritizing value creation in hiring, and effectively managing debt, real estate agents can embark on a path of financial success under Nathan's guidance.
Link to Nathan’s Company here. He is for hire and is happy to offer a free consultation to determine how his organization can serve you and your organization.
To your success,
Aaron Heard
Links to Resources discussed in the video (Click here to download the MREA2 Budget model and a Harvard Business Review Lead Management Study)
