Real Estate and Property & Casualty

[RE Farmer]

I went from a Commercial producer for 6 years to an independent agency owner for 8 years… then sold my agency and became an realtor for the past 5 years and now that my non compete is up I am buying a very well established Farmers agency. I will continue selling real estate and operating the Farmers agency with a strong staff. I don't think I would have attempted to do both at the same time without having an existing background in insurance. I am also a bit concerned how I will be perceived as a realtor with a very visible "second job".

Insurance is much more complex than everyone expects coming into it. People assume they have a good network and sales skills so it's an easy thing to get into. It's much more complicated than that and to really make money you need to be adding 20+ policies a month rather than the 2-4 deals a good realtor is doing. I do think it is worthwhile to get licensed and refer to a good existing brokerage that can pay you on a new and renewal basis. Make sure you have ownership in those clients to get paid if there is ever a sale or you part ways. I would never recommend trying to open an insurance agency "on the side" as I have heard some realtors mention.


You will see real estate brokerages, title companies, mortgage lenders, insurance brokerages etc combine to attempt to be full service for their clients. Keller Williams is trying, Others are trying as well.

 

[marindependent]

Insurance is much more complex than everyone expects coming into it

BINGO was his nameO

 

[fed up]

I think it's a good option, especially since many people then look for their own home insurance. Many people will find it convenient to insure their home right away after purchase.

No bank will close a loan without coverage in place.

 

[Bill Billock]

I am in Texas and have both. My main focus is on insurance though. When I left my corporate agent role in Insurnace, I was staring at a 2 year non compete. So prior to my exit, I got my real estate license. I only work buyer leads through a VERY close friend of mine who is very successful in real estate. I essentially just pick up his overflow on the side. He pays me well for it...and every person I meet is at the least a warm Insurnace lead (most moving in from out of state).

I do not allow it to bog me down, but do allow it to provide me REAL supplemental income as I grow my agency and work through my 2 year non compete contract. Short term, it's a win/win for me.

 

[ceypater]

I used to work for an insurance company. My advice is to insure only with a large, well-known company.

 

[JosephLCampo]

Wanted to see if i could get any recent opinions on Real Estate Agents also selling Property & Casualty.

Both my wife and I are in Real Estate. We have in past referred business between a few insurance companies. I recently was approached by a Insurance Broker who said I should pick up My Insurance license and sell Home Owners Insurance through him. My first thought was this would just be another services I could directly offer my buyers and still make a little bit on the side.

My other thought though is this would give me another great reason to always stay in touch with past clients.

I know the big debate on this so far has been if you are doing to much then what are you really a master at, however my thought is, unlike most agents in my area as soon as they get a question that isn't 100% related to their job they just pass the question off. As someone who knows more than most agent when it comes to home construction, whats going on in my community, things happening in the mortgage industry I am always amazed by the lack of knowledge in other real estate agents (insurance for commercial properties). My clients are always amazed by what questions I am able to answer for them. So to me this is just another tool in my toolbox that I can speak intelligently about when I am with a client or just a social or networking event that sets me apart from other Real Estate Agents.

Anyone else out there selling real estate and insurance?

Agreed with you, one should stand out from others. And selling both things isn't doing too much, you can master them both. The best course of action would be to partner up with the Insurance broker until you think you have learnt enough to do it on your own. Good Luck! with it.

 

[Valor]

You've received some really good opinions about this, I would tend to focus on one industry although there is some legitimate over-lapping between RE & home ins.

It seems that you have quite a bit of experience but if you're considering STARTING a new business, I would ask about your energy level because as you know, it will require energy. You may have plenty of energy for starting a new ins agency while balancing the requirements with your RE business.

My next question is, what role, if any will your wife play if you decide to do this? Would this be an equal proposition or will you be the main person in this or will it be her as the main person?

Do you foresee either you OR your wife to ultimately lead this agency now and years to come OR are you considering one of your kids (provided that he/she is an adult) to run it OR hire somebody with significant and successful P&C experience operate your agency?

If you were to do this, at what time frame into this new ins agency would you look back and see if owning & operating an ins agency has positively or adversely affected your ESTABLISHED RE agency?

How would that be measured?

Risk vs Reward isn't clear-cut. If you do this and it turns out that you didn't get the benefit that you thought you would get with your RE, well, you can sell that "book of business", all is not lost and you will gain a new and broader perspective as a businessman and gain from that.

If this is something that you've been thinking about for a while, then maybe that's the "sign" to go out and try it. You sure don't want to think 10 years or so from now and wonder if this idea would have worked or not.

My last word is this, if you decide to do this, please do your best to not sacrifice too much, your relationship with your wife and kids. There's a time & place for everything and we can never recoup time back with those who mean the most to us.

I wish you well.

 

[marindependent]

I used to work for an insurance company. My advice is to insure only with a large, well-known company.

Interesting - Why?

 

[adjusterjack]

Looks like the stupids have found us.