Compass AI is poised to bring agents ‘massive productivity gains’

by Lillian Dickerson | Jun 17, 2025 | Industry, News Feed

Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!

In 2023, Compass launched the first iteration of its artificial intelligence tool, Compass AI. At that time, the tool, which is housed within Compass’ tech platform, could generate content for agents, including for social media posts, listing descriptions, emails and more.

Now, agents will have the ability to simply speak prompts to Compass AI, and the improved tool will be able to do things like create follow-ups, develop marketing collateral, send client invitations to Compass One (the firm’s public-facing platform), create custom listing presentations, build transaction timelines, update and organize client contacts and more.

“So this represents a really big acceleration of [the platform,]” Rory Golod, president of growth and West regions at Compass, told Inman.

“This allows, effectively all of the administrative work that comes with a day-to-day for an agent to be done by AI,” Golod continued. “So what I think you’ll see [are] massive productivity gains, but also massive increases in ease.”

When Compass founder Robert Reffkin announced the updates during Compass’ annual retreat on June 3, agents gave Reffkin a standing ovation for two minutes, Golod said.

The latest version of Compass AI is currently being beta tested by select agents, and will roll out across the company later this year.

Inman spoke with Golod about the new tool and how it will improve agent efficiency. Here’s what he had to say, edited for brevity and clarity.

Inman: Could you clarify what’s new about this rendition of Compass AI?

Rory Golod: What we launched a few years ago was kind of like that first iteration, where it was really about creating content or giving advice. This is now a whole workload, this is actually, do actual work for me. This is like a true digital assistant, an AI assistant, because now I’m able to tell the system: create this, email the client, send this, put this together. Do all the stuff, whereas, the first version was, write a listing description, create a social media post, which was great at the time. That was a big deal. But the world’s evolved and so this is just far more expansive now. This is more about like, ‘Hey, Compass AI: do work for me.’

That’s something that agents have been really wanting to do for quite some time.

In this latest rendition of Compass AI, the tool will be able to track buyer behavior and tell agents which of their past clients are most likely to sell soon. That sounds similar to Compass’ ‘Likely-to-Sell’ tool that has been around since 2020. Does this mean that ‘Likely-to-Sell’ is going to be sunsetted?

None of our tools are going to go away. All it is, is it’s just going to make it easier. It will take ‘Likely-to-Sell’ and put it on steroids.

Imagine being able to ask for likely to sell based on all different types of factors. Right now it’s based on looking at their address and the comps around it, but what about, I want to see the 10 clients that have been the most active looking at listings online right now. Who of my clients doesn’t have an agent in New York? Who of my clients are looking at listings outside of New York state right now? Who of my clients have been on a collection [of listings] and commented on the collection or shared it with a friend or a spouse?

It’s infinite what it can do, so ‘Likely-to-Sell’ will be a big part of it. But now with [Compass] AI, we can go even bigger and bigger.

At the Compass retreat earlier this month, Robert Reffkin said there will be some tasks that Compass AI will just complete in the background without an agent prompting them at all. Could you clarify what those tasks are?

Right now, a lot of that will be the intermediate steps to creating all of this, and setting these things up and building out folders and all sorts of things that can just happen. Setting appointments, reminders, coordinating schedules, so much of that can just happen.

And then being able to automate steps through a transaction. When you’re doing a transaction with a client, you’re going through the transaction, there’s a full checklist of tasks and all those things. Now, they’ll have the ability to have all this be able to effectively be automated. So the agent is the one being updated — not the agent having to do the updating. That’s part of what makes this really, really exciting.

Definitely. At this point, what features do you think agents are most excited about?

I think it’s just the totality of the fact that they can just run the workflow. That [Compass AI promo] video is a minute-and-a-half, but that probably represents what would have been maybe a few hours of work. And even just the intelligence of the system, for it to be able to respond back and say, ‘Oh great, I’ll add this client. Are they a buyer? Are they a seller?’ You hear little things like that, and you’re like, ‘Oh wow, it’s smart. It knows what to ask.’ So I think that’s kind of one of the things that’s got people really excited.

How do you think Compass AI stands apart from other AI tools launched by brokerages over the past few yearss?

There’s no shortcuts in building technology. If we took over 10 years and $1.5 billion to build this platform, and we invest over $100 million per year in R&D, with some of the best engineering talent in the country, I don’t know how other companies that just don’t have anywhere near the financial resources to invest will be able to make that investment or are ever going to be able to build anything that’s comparable.

I think what happens is, a lot of the stuff we see are things that demo really well and look really good, but don’t actually work. And I think you can measure it by agent adoption and usage. You can show off great technology very easily but can you get people to actually use it? Does it work? Is it fully integrated? Does it do enough?

The challenge that I think exists, which is an opportunity for us with AI, is agents want to be able to ask it to do anything. If you give someone a car and you tell them they can go drive, but it only goes up to 40 miles per hour, it’s not going to be super effective, right? They want to be able to drive fast, slow, go long distances, whatever it is. So I think one of the things that really sets us apart is, because we have this platform, there are so many different workflows that this can quickly do. We don’t need to go get another piece of technology from another company to try to fit into what we’re doing for each one of these workflows. All these workflows exist. They all exist in Compass and all the data in the interactions and the interconnection exists.

If you’re creating a collection for a client, and then you want Compass AI to then write a beautiful email to your client with certain things in it, and then send that email, Compass AI can do that because it’s connected to your email. It’s connected to your CRM, it’s connected to the listing system. It’s all in one place.

But if you’re using another company’s tools, it’s not connected to your email, it’s not connected to your listing system, and so it ends up being really difficult and ultimately disappointing. So I haven’t seen another brokerage that’s been able to build technology that even comes close to the things that Compass has built. And I think that’s been kind of proven out in the market.

Get Inman’s Luxury Lens Newsletter delivered right to your inbox. A weekly deep dive into the biggest news in the world of high-end real estate delivered every Friday. Click here to subscribe.

Email Lillian Dickerson

Opendoor reaches $39M settlement in pricing algorithm suit

by Richelle Hammiel | Jun 17, 2025 | Industry, News Feed

Anthony Lamacchia had 3 minutes with Trump. This is what he told him

by Taylor Anderson | Jun 17, 2025 | Industry, News Feed

Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!

President Donald Trump has an ear for real estate, and for a few minutes in January, Anthony Lamacchia got to bend it.

The industry that put Trump on the map has felt under attack in recent years, and a chance meeting that put the Massachusetts brokerage leader in front of the president earlier this year provided an opening for Trump to hear about it.

Lamacchia, CEO of Lamacchia Companies, told Inman exclusively that he received an invite alongside other business leaders to sit down with Trump at Trump International Golf Club West Palm Beach in January, two weeks before his inauguration for a second term in office.

At that meeting, Lamacchia told the incoming president that the Department of Justice under President Joe Biden appeared intent on punishing the real estate industry.

“I said, ‘Mr. President, are you aware that the Department of Justice has it out for real estate, organized real estate?’” Lamacchia told Inman. “He said, ‘I’m not. Tell me more.’” 

Lamacchia said that for at least three minutes he talked “very substantially” with Trump about how the DOJ had backed out of a settlement agreement reached late in Trump’s first term.

The DOJ simultaneously announced a lawsuit and a settlement with the National Association of Realtors over various NAR rules in November 2020, after Trump lost his first re-election bid to former President Joe Biden. In July 2021, the DOJ withdrew from the settlement, and NAR tried for years fighting with the DOJ all the way to the Supreme Court.

At a meeting with 20 other business leaders, Lamacchia seized the opportunity to inform the president about one of real estate’s biggest headaches of late.

“He was not happy to hear it,” Lamacchia said. “He said, ‘Can you send me some information on that?’ So after the meeting, I sent an email to his assistant.”

Lamacchia spoke with Inman ahead of Inman Connect San Diego, where he’ll be speaking alongside other titans of real estate.

The following is a Q&A with Lamacchia, edited for clarity and brevity.

Inman: What do you expect the next three and a half, four years to be like under the Trump DOJ as it relates to real estate? 

Lamacchia: I think it will be better. The prior DOJ, when Trump was in last time, was much more reasonable. And they made a deal with us.

I told Trump this. I met with Trump in January with 20 other business owners. I said, ‘Mr. President, are you aware that the Department of Justice has it out for real estate, organized real estate?’ He said, ‘I’m not. Tell me more.’ I said, ‘Your Department of Justice made a deal with NAR in November of 2020, signed the deal. There were a couple of industry changes that were agreed to, and Biden’s DOJ came in and undid the deal in June of 2021.’

And he was like, ‘Really?’ He was not happy to hear it. He said, ‘Can you send me some information on that? So after the meeting, I sent an email to his assistant and I never heard anything. But he was not happy to hear it.

I would think that this would be an industry that he would have an ear out for. 

Frankly, I’ve been sitting around saying, when’s the shoe going to drop? Because I talked to him about it for three, probably three and a half minutes straight. Very substantively.

He was very interested. He asks very good questions. I mean, this guy, there’s no flies on him. And he said to me, ‘Why were you guys being investigated in the first place?’ And I said, ‘Well, the DOJ does an investigation in various industries every so many years. And with real estate, they do it about every decade.’ And then he goes, ‘Oh, antitrust?’

I said, yes. He goes, ‘OK, that makes sense.’ I said, ‘They negotiated for about a year, agreed to a couple of small changes. Your DOJ made the deal, finalized the deal in November of ‘20. Biden’s DOJ came in and undid the deal for the first time in history. A DOJ deal was undone.’ And he did not know. He was like, ‘Wow.’

That’s pretty incredible.

At the end, when I took a picture with him, he grabbed my arm and he goes, ‘OK, make sure to send that information.’ ‘OK, I will.’ He goes, ‘Don’t forget.’

I go, ‘Mr. President, I’m not going to forget.’

That’s interesting. I had no idea you met with him. Why did you not make it public? 

I think just because it’s like everybody is so politically mental now. From where I sit, if Biden, if I had a chance to meet with Biden a year, two years, three years ago, I would have done it in a second.

But if I met with Biden, everybody would be like, ‘Oh, cool.’ You meet with Trump. It’s like, ‘Oh, you’re horrible.’ Listen, it was a business meeting.

On CCP, you’ve been clear all along. You said throughout you wanted CCP to stay, but that NAR was basically in a bind and needed to do something. What was the bind that they were in.

DOJ pressure. And then Robert Reffkin. I think he sort of self-perpetuated it. And hey, you know, good for him if that’s how he feels, but I think he’s wrong. And I also think the way that he went about it was terrible.

I mean, he’s criticizing NAR. You see the stupid post he did one weekend, put up a post about, this is NAR’s boardroom. What the hell does that have to do with the CCP policy?

But I think Robert Reffkin and the DOJ, although the DOJ never publicly came out and said they’re for or against CCP. But I think they pressured NAR. I don’t know that, just so you know. But I think they sort of put pressure on them. 

Maybe I’m asking the wrong guy here, given where you already stand. But how is that pro-consumer in the DOJ’s eyes? Do you have any idea? 

They don’t know what the fuck they’re talking about. You can quote me on that. They don’t know what the fuck they’re talking about. And here’s the thing. When I say the DOJ, I’m talking about the DOJ that we’ve seen for the last four years. I really can’t tell if this new DOJ is different yet. From what I’ve heard, they’re a bit more reasonable.

They’re a bit more business friendly. But when I say that comment, I’m referring more to the policies of the last four years. My attitude is the DOJ of the last four years has really gotten things wrong in our industry. 

Do you feel like the industry itself, players in the industry are divided amongst each other right now? Does it feel like a divisive time or or not?

Yes, there’s no question. And part of it’s just grumpiness. There’s been a very big housing recession for three years now and people are just grumpy. And I don’t know if it’s a coincidence or if it was on purpose, but our industry also came under attack. You know, came under attack from frivolous lawsuits.

And it ended up being that, you know, we got hit with what I refer to as judicially sanctioned extortion. But even putting the case aside, there’s just other stuff. 

It’s a divided industry. What are you doing? What are you standing for? 

The biggest thing I want to see is interest rates come down. The biggest thing.

I do think that the Trump administration is making some progress that is going to lead to interest rates coming down. But is it happening as fast as we would all like or as fast as he promised? No. It’s hard to fix the system. But there are some roots of the economy that are screwed up.

And he’s obviously working to fix that. And I think it’s working. And I think we’re going to see rates come down later in the year.

Email Taylor Anderson

AI in real estate: The agent’s guide to the ChatGPT revolution

by Terry LeClair | Jun 17, 2025 | Industry, News Feed

Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!

Artificial intelligence (AI) and tools like ChatGPT are here, and they are revolutionizing the real estate industry. This isn’t a passing trend — it’s a transformational opportunity. AI is not about replacing agents but empowering them with tools to streamline their businesses, amplify productivity and elevate client service.

Why AI matters in real estate today

Let’s put things into perspective:

• ChatGPT-3.5 was introduced just last year and is free to use.
• ChatGPT-4, released a few months later, is 10 times smarter and available for just $20 per month.
• This AI powerhouse has already passed:
• For context, Einstein had an IQ of 160. ChatGPT-4 ranks at 155, and GPT-4.5 is predicted to surpass this exponentially.

AI isn’t a replacement for agents; it’s a tool. The local expertise, emotional intelligence and relationships agents bring are irreplaceable. However, agents who embrace AI now will gain an unbeatable advantage over competitors who hesitate.

Practical applications of AI in real estate (with full prompts)

Here’s an in-depth breakdown of how AI can be integrated into your business with prompts you can use immediately:

1. Business planning

Creating a 12-month business plan can feel daunting, but AI can simplify the process in seconds.

Prompt:

I am a Realtor. I would like you to write me a one-year business plan. I would like to sell 12 houses this year. My preferred methods of prospecting are hosting open houses, door-knocking the neighborhood of 1,200 homes in the Port Streets of Newport Beach, and communicating with my sphere of influence, which includes my friends, family and former business associates. Create a business plan that outlines my activities above on a monthly basis. Include dropping off postcards, sending emails and phone calling people.

2. Real-time coaching and negotiations

AI can act as your personal negotiation coach, providing you with scripts for tricky situations.

Prompt:

I want to act as a real estate coach and provide scripts for the following scenario to a Realtor from the selling side. The Realtor is representing two sellers. The house has just been listed for two days, and they have received a full asking price offer of $879,000 with only a home inspection clause. The deposit from the buyers is also $70,000, showing their commitment to buying the property. The sellers were talking to their neighbor, and he said they could easily get $900,000 for their property. The sellers are now getting cold feet about the offer and thinking they might want to hold out for a better offer since this was the first offer and they have only been on the market for two days. Provide three different scripts on the approach for the selling Realtor in encouraging them of the benefits of this strong offer, and three possible rebuttals from the selling clients thinking they can get more money. Then provide three different ways to respond to those rebuttals.

3. Newsletter creation

Creating valuable newsletters for your sphere of influence has never been easier. AI can generate content, titles and additional articles.

Prompt 1:

I want you to be a creative real estate copywriter who needs to create newsletters. I first want you to give me five newsletter titles for a real estate newsletter to engage first-time home buyers. The goal of the newsletter is to show that I have strong knowledge in the process of homebuying, and I focus on education, guidance, and communication to reduce the stress and emotional rollercoaster of buying a home.

Prompt 2:

I want you to be a creative real estate copywriter who needs to create newsletters. The title of the newsletter is “The First-Time Home Buyer’s Guide: From Dream to Reality.” I want you to create an opening, body and conclusion for this newsletter. The focus is on engaging first-time homebuyers and providing a guide on the process. For example:

1. First reach out to a reputable and knowledgeable Realtor.
2. The Realtor will then guide you in getting a mortgage broker.
3. The Realtor will discuss the real estate market.
4. The Realtor will educate you on the buying process.
5. The Realtor will talk about the negotiation process.

Prompt 3:

Add another page to this newsletter highlighting the benefits of buying a home now rather than waiting for mortgage rates to drop, which will bring more buyers and competition to the marketplace.

4. Simplifying legal language

Complex contract language can confuse clients. AI simplifies these clauses.

Prompt:

I want you to simplify the following statement to a grade 8 level of understanding:

The Seller hereby appoints the Listing Brokerage as agent for the Seller for the purpose of giving and receiving notices pursuant to this Agreement. Where a Brokerage (Buyer’s Brokerage) has entered into a representation agreement with the Buyer, the Buyer hereby appoints the Buyer’s Brokerage as agent for the purpose of giving and receiving notices pursuant to this Agreement.

5. Social media content creation

Hyper-targeted social media posts resonate better with specific audiences.

Prompt 1:

Create a persona for a 65-year-old empty-nester female who wants to downsize her home in Newport Beach, California.

Prompt 2:

Create three Facebook ads for the persona above with emojis and hashtags.

6. Blog creation

AI can also fuel your website content strategy.

Prompt 1:

Create six real estate blog ideas for my website blog. My market is Orange County, California.

Here are six engaging blog ideas tailored for your Orange County, California real estate audience. These topics provide value, establish your authority, and resonate with local buyers, sellers, and homeowners.

1. ‘Orange County market update: What’s happening in local real estate?’

• Why it works: Stay ahead of the curve by providing monthly or quarterly updates on trends in OC. Include home values, average days on market and market inventory.
• Key highlights: Newport Beach, Laguna Beach and other top-performing cities.
• Target audience: Buyers, sellers and investors curious about market conditions.

2. ‘5 things you need to know before selling your Orange County home’

• Why it works: Orange County sellers want actionable tips to maximize their home value. Offer advice on pricing, staging, marketing and timing.
• Key highlights: Discuss buyer demand, why homes sit on the market and unique OC property trends.
• Target audience: Homeowners considering listing their homes.

3. ‘Hidden gem neighborhoods in Orange County you need to know about’

• Why it works: Showcase your local expertise by highlighting lesser-known neighborhoods in OC with strong growth potential, beautiful properties or unique lifestyle perks.
• Key highlights: Spotlight neighborhoods like Eastside Costa Mesa, Corona Del Mar or Dana Point’s Lantern District.
• Target audience: Relocating buyers and investors.

4. ‘How much does it really cost to live in Orange County? A complete breakdown’

• Why it works: Buyers relocating from outside the area often have questions about living costs. Provide transparency on housing, utilities, taxes and lifestyle expenses.
• Key highlights: Compare coastal cities (Newport Beach) to inland areas (Irvine) to show options for different budgets.
• Target audience: Out-of-area buyers and relocation clients.

5. ‘Luxury living in Orange County: What buyers are looking for in 2024’

• Why it works: OC’s luxury market is a major draw. Highlight current trends in high-end real estate like smart homes, outdoor living spaces and sustainable luxury features.
• Key highlights: Showcase examples of local luxury listings and their standout features.
• Target audience: High-net-worth individuals and luxury homebuyers.

6. ‘Orange County’s top 7 family-friendly communities: Where to move with kids’

• Why it works: Appeal to families looking for safe neighborhoods, top-rated schools, parks and community activities.
• Key highlights: Feature communities like Irvine, Ladera Ranch and Aliso Viejo with detailed reasons families love them.
• Target audience: Buyers prioritizing family-friendly living.

Prompt 2:

Write a blog for No. 3 above.

7. Cost-effective virtual staging and photos

AI tools like AIHomeDesign and Clipdrop offer low-cost solutions for:

• Virtual staging
• Decluttering rooms
• Day-to-dusk photo enhancements

These tools ensure listings look professionally staged for a fraction of the price.

8. Creating press releases

A press release can promote community events, milestones or recent achievements.

Prompt:

I am a Realtor. My name is Terry LeClair, and I would like to create a one-page press release for me. I have recently joined First Team Real Estate as the Sales Manager for Newport Beach and Laguna Beach offices in Southern California. I’d like the press release to include a brief bio on me and information about First Team Real Estate. I’d like there to be a tone that would encourage other agents at other companies to think about joining the Newport Beach or Laguna Beach offices to help grow their business.

9. Summarizing reports

AI tools like ChatGPT-4 can summarize lengthy real estate market reports.

Prompt:

I want you to summarize the attached document. The following document is a real estate report for the County of Orange, California, for the month of April. I want you to create a one-page document that identifies the health of the real estate market, plus the trends that are being seen in the market. Please provide H2 headlines for each trend and explain why it is happening. Do not guess on why it is happening.

The importance of prompt engineering

To get the most out of AI tools, you need to master prompt engineering. Unlike Google, which thrives on short queries, AI requires specific, detailed prompts for best results.

For even better results, try the Super Prompt:

I want you to act as the best AI prompt in the world and take the following prompt to 10x the quality of its output.

Early adopters will lead the future

The AI revolution is here, and agents who embrace these tools today will dominate tomorrow. AI doesn’t replace relationships, hard work or local market expertise — it enhances them. Whether it’s creating business plans, simplifying contracts, generating social media content or writing newsletters, AI is the ultimate assistant for forward-thinking agents.

As real estate evolves, leverage AI as your preferred method of prospecting, and take incremental steps toward mastering this game-changing technology. The future of real estate belongs to those who adapt and innovate.

Want steady income? Pay yourself 1st. Build wealth 2nd

by Amanda Neely | Jun 17, 2025 | Industry, News Feed

Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!

Real estate agents face a harsh financial reality: The median gross earned income of Realtors from real estate activities was $55,800 in 2023. According to an often-cited study published in Forbes and Business Insider, 82 percent of businesses fail due to poor cash flow management or a lack of understanding of cash flow.

Even successful agents often struggle with the feast-or-famine cycle, watching commission checks arrive only to be consumed by business expenses, fees and interest, leaving little for the agent who generated the income.

Enter the Profit First methodology. Profit First is a cash management system that’s transforming how real estate professionals manage their finances. Created by entrepreneur Mike Michalowicz, Profit First is used by hundreds of thousands of companies worldwide to drive profits. The system flips traditional accounting on its head, ensuring agents pay themselves first rather than hoping something’s left over. (It also helps with taxes, so keep reading.)

Why real estate agents need this now

The commission-based nature of real estate creates unique cash flow challenges. Even experienced agents face irregular income streams that make conventional budgeting and accounting nearly impossible. Traditional business accounting follows the formula:

Sales – Expenses = Profit

This leaves profit as an afterthought. Profit becomes whatever remains after covering all business costs, which is often $0 and sometimes even negative.

The Profit First formula takes a different approach, inverting the standard profit calculation. Instead of seeing profit as what’s left over, the Profit First formula allocates revenue to profit and then uses the remaining funds to cover expenses. The Profit First formula is

Sales – Profit = Expenses

The 5-account system that changes everything

The Profit First system requires opening five separate bank accounts and allocating percentages of each commission check as follows:

• Revenue account: Where all commission checks initially land before being distributed.
• Profit account: Your reward for being a business owner. This is never touched except for quarterly distributions to yourself.
• Owner’s pay: Your regular salary, the money you live on. Use the baseline described below to establish a steady income and achieve greater financial stability in your personal life.
• Tax account: Funds set aside for tax payments. Be sure you’re not scrambling at tax time.
• Operating expenses: Money for marketing, technology, transportation, staff and other business costs

For each full-time employee, your company should generate real revenue of $150,000 to $250,000 (ideally more, but this is the minimum). For solo agents, this benchmark helps determine if your business model is sustainable.

Also, don’t let your bookkeeper fool you. The extra time to input five bank accounts is minimal (less than five minutes per month usually), but the time and money saved knowing your numbers easily is priceless.

Implementing profit 1st in your real estate business

Start small, think big: Begin by allocating just 1 percent to your Profit Account.“If you get a $1,000 deposit, transfer $10 into your PROFIT account…You’ll never miss that 1 percent,” Michalowicz writes. Gradually increase percentages as you optimize expenses.

Calculate your baseline: Look at your slowest three months, and average them out. “That is the lowest your revenue will likely ever go,” Michalowicz explains. Once you know this, you can use that as a baseline for calculating your owner’s pay. This becomes your steady paycheck, even during slow periods.

Automate the process: Set up automatic transfers, or block your calendar twice monthly on the 10th and 25th of each month. Transfer the funds in your revenue account to your remaining accounts according to their respective percentages.

The psychology behind the system

The beauty of Profit First lies in its behavioral approach to money management. When you see a smaller balance in your operating expense account, you naturally become more creative and efficient with spending. This constraint forces you to question every expense: Is this marketing campaign essential? Is there a more cost-effective technology solution available?

Sixty percent of SMBs cite ineffective cash flow management as a major challenge, yet many agents have never implemented a systematic approach to managing their finances. The Profit First system provides that framework.

Real-world results

Agents implementing Profit First report several benefits:

• Consistent income: Regular owners’ pay eliminates the stress of irregular commission cycles.
• Tax preparedness: No more scrambling to find tax money at year-end.
• Business growth: Forced efficiency in operating expenses often leads to higher profit margins.
• Peace of mind: Knowing money is allocated for specific purposes reduces financial anxiety.

Common pitfalls to avoid

Don’t rob Peter to pay Paul: Resist the temptation to “borrow” from your Profit or Tax accounts during slow months. This defeats the system’s purpose. One of the beauties of Profit First is its adaptability to unique businesses.

For example, real estate agents could consider seasonal adjustments. Adjust allocations according to your market’s seasonal trends. During the winter, you could have more allocated to owners’ compensation, and during the summer, you could have more allocated to taxes and operating expenses.

Intentionally implementing seasonal adjustments is very different than robbing Peter to pay Paul when you’re in a pinch. The former is a creative solution. The latter shortcuts your creativity.

Start where you are: Don’t wait until you’re earning more to implement the system. Small businesses that monitor cash flow monthly have an 80 percent survival rate. Even a 1 percent allocation to profit or taxes can be life-changing.

As you see results, adjust your allocations by 1 percent to 3 percent per quarter until you reach your target. Additionally, implementing Profit First has just become easier with the recent release of the Profit First app.

Your path to financial freedom

The Profit First system isn’t just about managing money; it’s about managing your finances effectively. It’s about changing your relationship with business finances. By paying yourself first, you ensure that your hard work translates into personal wealth, not just business revenue.

Take action today: Open your five accounts this week. Start with conservative allocation percentages, and adjust as you gain experience. Your future self will thank you for taking this crucial step toward financial stability and wealth building.

The real estate industry will always have its ups and downs, but with Profit First, you’ll have a system that ensures you profit regardless of market conditions. Stop leaving your financial future to chance. Implement Profit First and start building the wealth you deserve.

Frank Lloyd Wright’s prairie-style DeRhodes House lists near $1.18M

by Richelle Hammiel | Jun 16, 2025 | Industry, News Feed