May 24, 2018

Foundation Provides Aid to Struggling Real Estate Brokers

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Foundation Provides Aid to Struggling Real Estate Brokers

Real estate brokers often have the perception of “living the high life,” particularly in markets like New York, says Patricia Frank. “But not everyone out there is making million-dollar deals.” In fact, some real estate brokers are just barely squeezing by. 

Frank is the executive director of the Realty Foundation of New York, a foundation formed in 1954 to help brokers financially in various ways. 

The foundation boasts a membership of 75 real estate top producers and companies. They pay $5,000 annually to be a member, and those funds are then distributed to help brokers in need. 

The foundation has provided $3.15 million to 840 brokers, as well as millions of dollars in scholarships.

The housing downturn caused applications to increase to the foundation, which keeps the names of those who apply confidential, even to its members. For example, in 2009, the foundation awarded 30 brokers with $10,000 to $20,000.

For example, one 51-year-old broker told The Wall Street Journal that he had four deals fall through in 45 days, which prompted him to apply for assistance. He received $10,000 from the foundation. 

"Our livelihood is feast or famine," the broker told The Wall Street Journal. "Pre-2006, I'd see five deals and close three. Today, I have to see 12 to 15 to close three.”

Source: “Helping Brokers in Need,” The Wall Street Journal (March 10, 2013)

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