Software Solution: Build a Better Back Office
Here’s how one broker found the right software to support his growing business with everything from paperless transactions to complex commission calculations.
When Nathan Berlin bought RE/MAX Masterpiece Realty four years ago, it was a small brokerage in Port St. Lucie. Since then, he’s opened an office in Jensen Beach and two more in metro Detroit. But as the company grew, his old back-office system struggled to keep up with what his agents needed. “It had a lot of glitches and didn’t provide support, so we started looking at options,” he says.
Berlin’s franchise company provided another software platform at no additional cost, but it couldn’t keep up either. Support was another deciding factor, Berlin says, adding that his team made the switch to Loft47 for commissions and a paperless transaction management platform called appFiles because both platforms “excel at support.” Loft47 is a cloud-based back-office platform with built-in AI that automates complex commission calculations, agent payouts, accounting workflows and financial reporting.
Brokerages have multiple back-office platforms from which to choose, and Berlin and his team evaluated more than one before deciding on the best fit for their operation. Pricing varies by brokerage size, and companies can either license the software or choose a higher-level plan that includes AI-assisted back-office services.
Here’s how his brokerage uses the platform:
1. Commission Payouts
Loft47’s primary role at RE/MAX Masterpiece is handling commission payouts across multiple divisions with different compensation structures. Berlin says that’s critical because the brokerage has agents working across multiple divisions, and compensation changes based on the division and type of transaction. Instead of recalculating payouts manually, his team can build those right into the system. “We needed something customizable and adaptable,” he says. “We have about 78 agents across the four offices, and some practice in two or more areas,” he says.
Berlin says Loft47 handles the money side, while appFiles handles document management and compliance. Once a transaction is approved in appFiles, his team enters the financial details into Loft47, including income, transaction type, who was involved and who needs to be paid. They can also add fields for internal tracking, such as the title company and lender or other reporting details they want to capture.
Once an agent’s split structure is set up, he says, the payout process typically takes less than five minutes per transaction.
2. Accounting Efficiency
Loft47 has also improved the brokerage’s accounting workflow by breaking out charges the way his team needs to see them. Instead of sending one lump sum total into QuickBooks, for example, the platform separates each line item tied to a transaction, such as assistant fees, franchise fees and other charges. He says that level of detail reduces manual changes for the accounting team and helps the brokerage process payments more efficiently.
3. Custom Reporting
Reporting is another major use, and Loft47 built a custom report that matches RE/MAX’s required format. “We can submit it at the click of a button,” he says. The platform also helps his team track office-specific performance, companywide metrics, agent and division performance, and profit-sharing across multiple locations.
Berlin’s team can also use custom fields to track details tied to each transaction, such as the title company and lender. This helps the brokerage spot patterns and measure partner activity.
4. Commission Advance
A newer feature for Berlin’s agents is Loft47’s integrated commission advance program. It wasn’t a deciding factor in choosing the platform, but he says it’s a “huge value add for agents who want to access capital quicker,” especially when closings are delayed.
Because the system already has both the transaction and agent history on file, the approval process is more streamlined than if they used a third-party service. Agents will have to give up a little of their percentage of the commission, he says, but quicker access to funds can bridge the gap when a transaction drags on.
Berlin says that making your tools easier to use not only gives your brokerage a clearer picture of what’s actually going on, but it also helps agents and staff.
Leslie C. Stone is a Vero Beach-based freelance writer.