What 165+ CRE Brokers Taught Us About Money

Welcome to CRE Broker Playbook!

In a few hours, football season will be here. It will still be close to 100 degrees here in North Texas but it will officially be fall in my eyes. But before we get there, I’d like to share what we’ve learned from our clients.

After working with 150+ commercial real estate brokers over the past few years, we've noticed some clear patterns about what separates financially successful brokers from everyone else.

Here are 15 observations from brokers earning anywhere from $200K to $2M+ annually.

THE TOP EARNERS DO THIS DIFFERENTLY

1. They automate everything financial The highest earners set up systems so money moves without their daily input. Automatic transfers to tax savings, retirement contributions, and personal checking accounts. They keep themselves from spending money they've earmarked for other purposes.

2. They invest in people and systems before lifestyle We've watched brokers go from $300K to $1M+ net commissions by consistently choosing team members and technology over fancy cars and bigger houses. The Range Rover can wait, but the assistant who frees up 20 hours of your week can't.

3. They treat their brokerage like a business, not a job They have separate business accounts, track metrics religiously, and think in terms of profit margins rather than just gross commissions. They know their cost per lead, time per deal, and profit per square foot.

WHAT SUCCESSFUL BROKERS REINVEST IN

4. Geographic specialization beats generalization Brokers who dominate specific markets (even small ones) consistently out-earn generalists.

5. They build systems for the boring stuff CRM automation, standardized marketing materials, templated contracts. They systematize/outsource everything that doesn't require their unique expertise so they can focus on relationships and deal-making.

6. Technology that saves time, not money They'll pay premium prices for tools that give them hours back in their day. A $200/month software that saves 5 hours weekly is worth $10K+ annually at their hourly rate.

COMMON FINANCIAL MISTAKES WE SEE REPEATEDLY

7. Lifestyle inflation outpaces income growth The biggest trap: getting a big commission check and immediately upgrading your entire life. Your income might be lumpy, but your expenses just became fixed.

8. Not setting aside cash for taxes This is probably the most common one I see. Nothing kills momentum like owing $80K to the IRS in April. Set aside a chunk of every check, no exceptions.

9. Mixing personal and business expenses Using your business credit card for personal purchases doesn't make those expenses deductible. It just makes your bookkeeping a nightmare, increases audit risk and probably increases your compliance costs.

10. Trying to time the market instead of building systems Waiting for the "perfect time" to invest in their own business. I’m talking marketing, hiring team members, or expanding geographically.

THE WEALTH-BUILDING PATTERNS

11. They maximize the QBI deduction You don’t get rich from tax strategies, but 5 figures of annual tax savings each year compounds like crazy.

12. Real estate investments follow expertise If they invest in real estate, they invest in their expertise. Not a single family rental. Gross.

13. They have 12 months of expenses saved Commission-based income requires a bigger safety net. Top performers can weather any market downturn without panic decisions.

THE MINDSET DIFFERENCES

14. They think in terms of systems, not hustle Average brokers work harder. Top brokers work smarter. They build processes that generate results whether they're in the office or on vacation.

15. They view expenses as investments Every dollar spent gets evaluated: "Will this generate more than $1 of future income?" Marketing, team members, technology, education—all viewed through the lens of ROI.

Thanks for reading!

Jake and Mike