BrokerIPTV : We are talking today with Peter Niederman, the chief operating officer of The Kentwood Companies. Pete I want to talk about profitability in real-estate. Profits are down in the real-estate industry the average profit they say a top 500 company is making as less than 7%. So, the question would be why do you own a company, is it because of dividends, is it because of equity, is it personal satisfaction?
Peter Niederman: There are a lot of reasons and everyone has their own reasons of why they would own a real-estate brokers or any company in any type of business and they are trying to get a return on your investment on what you are trying to build. We understand the business very well, my partner Bill Moore, myself are very familiar with the operations running a real-estate business and we have always run a profitable real-estate business and running The Kentwood Companies is no different. We run and operate known very successful, profitable brokerage business.
BrokerIPTV : There are a lot of broker/office owners who really arent making a lot of money and I wonder, if consumers and brokers alike realize that some owners only making a $100 to $150 on a transaction. Do you think thats out there at all?
Peter Niederman: Well, I am not understanding what you are trying to address?
BrokerIPTV : I think brokers think that they are going to get into this business and that the office owner is making plenty of money and in most cases for that small to medium group that you pointed out thats not the case.
Peter Niederman: Thats not the case at all. There is pressure on commissions. There is pressure on the agents want to get more of the commission dollar from their brokerage and I think the brokerages has to offer full array of services to their realtors members to get a better split to the company. There is lot of discount houses out there, the you can work for 90%-100% type commissions, but their services that the company is going to supply those brokers with are few and far between. When you go to a more traditional type brokers that are going to offer more services, the brokerages is going to expect to keep more that commission share with their individual realtor which in turn leads to better profitability.
BrokerIPTV : There are some people who have complained out there that in fact whats going on at that the internet has actually watered down commissions. Another say
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