The pile of lawsuits facing Gary Keller and the real estate firm he co-founded, Keller Williams, just got larger. Former KW CEO John Davis filed his second lawsuit against the firm on Wednesday in the Western District of Texas.
In the filings, which name Keller Williams, Keller, former KW president Josh Team, Business MAPS Ltd. and Business MAPS Management LLC as defendants, Davis alleges that the defendants inflated key profitability metrics including company sales and profits to convince individuals to purchase Keller Williams Regions and Market Centers.
According to the filing, after the franchisees signed a contract, the defendants then required franchisees to adopt KWRI’s present market cap, which is the fee agents pay their market centers. Davis alleges that these fees went to increasing technology fees and the purchase of “unneeded goods and services” from KWRI-owned and affiliated companies, such as MAPS training and coaching.
“Nothing in the individual franchise agreements gave Keller or KWRI the power to set market caps themselves for independently owned and operated Market Centers,” the complaint states. “Indeed, in recommending specific and universal Market Center cap amounts, Keller was overstepping the franchisee’s role in leading an independently owned and operated Market Center.”
In addition, Davis claims that franchisees were required to purchase Keller’s books.
After signing the franchise agreement, if a franchisee attempted to move away from the KW system, the lawsuit alleges that they were forced to sell their Region or Market Center, and that Keller and KWRI interfered with any attempt to sell the franchise for market value, forcing the Region or Market Center owners to sell their franchises to Keller or other KWRI members at “extremely depreciated prices.”
In total, the lawsuit makes two civil Racketeer Influenced and Corrupt Organizations (RICO) claims, one Sherman Act restraint upon commerce claim, one intentional fraud in the inducement claim and one breach of contract claim against the defendants.
“Through this scheme, KWRI itself and the other Defendants suffer no loss, and only gains, from the harm caused to the individual owners,” the filing states. “In total, Defendants’ scheme has caused franchisees to lose hundreds of millions of dollars in total. Unless stopped, Defendants will continue to subject franchisees to the same scheme for the purposes of substantial interest and profit.”
Davis is seeking a jury trial and damages worth millions of dollars.
This latest lawsuit comes just three months after a judge in Texas granted Keller’s motion to dismiss Davis’ appeal, ordering Davis to settle his $300 million fraud claim against KW, Keller and Team through arbitration.
Originally filed in the fall of 2022, Davis’ initial lawsuit was prompted by Davis’ desire to “restore his reputation and clear his good name” after sexual misconduct allegations against him surfaced in the spring of 2022.
According to the initial complaint, Davis resigned from his position at Keller Williams in January 2019 due to a disagreement with Keller over a business strategy that he felt would hurt the income generated by Keller Williams offices.
In response to his resignation, Davis alleged that Keller and Team smeared him and withheld Inga Dow’s accusations of sexual misconduct from him as he was negotiating the sale of his KW market center regions following his resignation. This resulted in tens of millions in financial losses, according to Davis.
“This is yet another attempt by John Davis to smear Keller Williams in the press under the guise of a lawsuit. Two federal courts previously directed him to bring his claims [to] arbitration,” Darryl Frost, a Keller Williams spokesperson, wrote in an email discussing Davis’ August 2023 lawsuit. “Mr. Davis has ignored those courts. We will continue to act professionally, follow the law, and aggressively defend these baseless claims.”
In March, Colleen and Bart Basinski, former Keller Williams Market Center owners in Illinois and Indiana, and partial owners of a third Market Center in Southern California, filed their own lawsuit against KW, Keller and other top brokerage executives, alleging that they faced constant pressure from Keller, Marc King, and co-defendants Dan Holt, who is the regional director of Keller William’s Mid America Region, and Colette Ching, the regional director of Southern California, to alter their business operations, despite parameters set up in their franchise agreement, and adhere to Keller’s plans to lower Market Center caps in 2020.
Mat Ishbia, chairman and chief executive officer at United Wholesale Mortgage (UWM), provided more than half of the mortgage company’s outstanding shares as a guarantee to secure loans ahead of the acquisition of the Phoenix Suns, according to a Bloomberg report.
According to the report, Ishbia pledged stock he controls to back two loans that were finalized days before his purchase of the Suns was approved. The deal, which values the Suns at $4 billion, first became public in December. The executive received the NBA blessing in February.
In total, 805 million shares, currently worth $4.6 billion, secured two loans with JP Morgan Chase & Co. Ishbia holds his UWM stake via SFS Holding Corp., which owns 94% of UWM’s outstanding stock and pledged the shares, per the firm’s 2023 proxy statements.
“The number of shares of Class A common stock beneficially owned by SFS Corp. also includes a total 805,281,450 shares of Class A common stock which are pledged as security for two separate loan facilities,” the proxy statement states.
The risk of tying up the shares to the loans is that if the value of the stock falls, the bank can usually request additional collateral or for the loan to be repaid. And if the borrower fails to comply, the bank can seize and sell the shares.
The Bloomberg Billionaires Index shows Ishbia’s fortune dropped by $3.4 billion after the pledged shares were removed from his net worth calculation.
UWM and JP Morgan Chase declined to comment on the topic.
The seller of the Suns Legacy Holdings, which owns the Phoenix Suns and Mercury, was Robert Sarver. The executive acquired both teams in 2004. Earlier in 2022, Sarver was fined $10 million and suspended for one year following an NBA investigation regarding workplace conduct.
Ishbia and his brother Justin bought 50% ownership of the franchises, including Sarver’s interest. They also acquired a portion of the interest of minority partners, who were granted additional sale rights. Mat serves as governor and Justin as alternate governor.
First is fundamentally changing the real estate industry. We believe that operational excellence will be key to our success and will be driven by constant improvement as well as bold game changing innovations.
As one of our early engineers, you’ll help guide key design, architecture, and technology decisions. You will be a part of our platform team, helping us to build a platform to support our customer-facing and internal applications. You will help us to scale the system to meet the needs of our expanding userbase. This includes driving the product roadmap, bringing “design thinking” on product features, coordinating development efforts across the team, and working with the front-end team to ensure that our efforts are aligned.
What you bring to the table
* 5+ years of developing Rails applications in production :
* SQL and relational database experience (not just using a database through an ORM)
* Experience in building APIs (REST at least, GraphQL a plus)
* Passion for startups and building products that will be used to change the face of real estate
* Generalist mindset, excited to jump into many parts of the stack to ship working software
* You can develop features without hand-holding in Rails, diving down into the database level as needed
* Clear, effective communication skills, both written and verbal
* Experience with agile practices, including TDD/BDD, continuous delivery, object oriented design, etc
* Comfort with asynchronous development: pull requests, chat, email, etc
Extra bonus points for
* Sidekiq (or another background job system integrated with Rails)
* GraphQL experience
* DevOps skills (Ansible and/or AWS cloud a plus)
* Front-end experience (especially React)
* Mobile development experience
* Proficiency in GitHub flow
* Experience with pair programming (remote or in-person)
* Open source contributions, side projects and gems (edited)
Now is your chance to become part of a world-class, industry leading organization that touts the #1 real estate brand in the world! RE/MAX is a business that builds businesses. We, alongside booj, our award-winning technology company, specialize in providing the tools, training and tech to our real estate network, which includes RE/MAX and Motto Mortgage franchises, agents, brokers and consumers. Join us and build a career where your contribution is heard, your innovative ideas are valued, and hard work and collaboration truly makes a difference.
RE/MAX LLC, Motto Mortgage and booj are an equal opportunity employer committed to diversity and inclusion, as well as non-discrimination in employment. All qualified applicants receive consideration without regard to race, color, religion, gender, sexual orientation, national origin, age, veteran status, disability unrelated to performing the essential task of the job or other legally protected categories. All persons shall be afforded equal employment opportunity.
The Swann Group, led by Rachel Swann, has joined Coldwell Banker Realty in Northern California from Compass.
The five-person team is known for its luxury property business in San Francisco and in Northern California’s wine country. Swann’s team closed $101 million in sales volume in 2022, according to America’s Best Real Estate Professionals ranking on RealTrends. It ranked 90th in sales volume among small teams nationwide.
“We’re incredibly excited to be partnering with Coldwell Banker for the continued expansion of our team. As we grow, we wanted to partner with a brand that had the infrastructure, footprint and brand presence to support us and our clients without disruption,” said Swann in a statement.
This move will allow The Swann Group, with more than $500 million in sales over the past decade, to work closely with other Coldwell Banker offices, including local franchises as the group grows based on client migration patterns.
Kamini Lane, president and CEO of Coldwell Banker Realty, added:
“The Swann Group is one of the definitive leaders in the Northern California market, and we are so proud to welcome them to Coldwell Banker,” said Lane. “Teams like Rachel’s are consistently making the move to Coldwell Banker to leverage our strong infrastructure, marketing support, and resonance that our brand has with consumers.”
Have you ever wondered what a 9-figure amount looks like? It’s a sum of money too big to ignore, with a whopping total of 100 million to less than 1 billion. Discover more about this colossal figure and the wealth it represents
When we mention nine-figure sums, we’re talking about a truly astronomical level of wealth. To put it in perspective, nine figures represent anything from $100,000,000 all the way up to $999,999,999.
This figure surpasses the GDP of several small nations. For instance, Samoa reported a GDP of approximately 843.8 million USD in 2021.
Or consider that according to Investopedia, 7-figure wealth is what puts you among the top 0.1% of the wealthiest people on the planet. This means that having nine figures puts someone at an even more elite level, one whose luxury extends far beyond mere financial freedom.
Only a small fraction of individuals or companies globally can boast such immense wealth. However, it is not an unattainable goal. Let’s take a look at some of the strategies you can employ to accumulate substantial wealth while also examining the lifestyles and pursuits of those who have successfully achieved it.
How Much Is a 9-figure Salary?
Table of Contents
A nine-figure income signifies any earnings that flaunt nine digits, starting from $100,000,000 and soaring upwards. To put it into words, we’re discussing one hundred million dollars.
Quite a mind-boggling figure, isn’t it?
It’s like being handed the keys to a kingdom of unimaginable wealth. But remember, this is a sphere occupied by only a select few worldwide.
Their playgrounds? Often, you’ll find them in the tech sector, inheriting vast wealth or expanding an already thriving family business.
Now, let’s delve a bit deeper, shall we?
When we speak of nine figures, are we referring to the lower end close to one hundred million, the middle ground around 550,000,000, or the staggering high end nearing 999,999,999?
So, the next time you find yourself daydreaming about a nine-figure salary, remember this: It’s not just a number; it’s a lifestyle, a testament to extraordinary achievements, and a beacon of exceptional success.
And who knows? With the right mix of passion, dedication, and a sprinkle of luck, you might just find yourself joining this elite club.
After all, isn’t the sky the limit when it comes to chasing our dreams?
Examples of People Who Earn 9-Figure Incomes
Cristiano Ronaldo: A Sports Icon – With an astonishing income of $105,000,000, this celebrated athlete is not just a football superstar but also a nine-figure earner.
Safra A. Catz: Leading Oracle – As the CEO of Oracle, Safra A. Catz’s leadership prowess is reflected in her staggering earnings of $108,200,000.
David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.
Nikesh Arora: The Palo Alto Networks Powerhouse – As the CEO of Palo Alto Networks, Nikesh Arora’s genius is rewarded with a hefty paycheck of $125,000,000.
Roger Federer: Tennis Titan – This globally recognized athlete proves that sports can indeed yield nine-figure incomes, as evidenced by his impressive earnings of $106,300,000.
Case Study: What Does A 9-Figure Earning Look Like?
Understanding the intricacies of nine-figure earnings can be a complex undertaking due to the lack of universally defined parameters. For the context of this case study, we will consider an annual income of at least $432K as the lower limit for this category. It is worth noting that any figure below this threshold would classify one into the realm of billionaires.
Renowned business magnates such as Warren Buffet and Mark Zuckerberg exemplify this earnings bracket, with annual incomes reported around $51M and marginally less than $50M, respectively.
Reaching the stature of a nine-figure income earner typically necessitates either a substantial inheritance or proprietorship of a prosperous company with diverse revenue channels. The case of Elon Musk serves as a prime example, with his considerable income derived from two distinct sources – Tesla and SpaceX.
Aspiring for this scale of income undoubtedly sets a high bar. However, with the appropriate strategy and relentless determination, it is not beyond reach. Be prepared to tread a path akin to those who have already achieved this feat.
What Is the Potential Monthly, Weekly, Daily, or Hourly Income in the 9-Figure Range?
How Much Is 9 Figures Monthly?
To figure out the monthly income from a massive annual salary, just divide the yearly amount by 12. Keep in mind that this will give you a range of values. But if you want to earn a nine-figure salary, the smallest monthly income would be $8,333,333.33.
$100,000,000 per year / 12 months
= $8,333,333.33 per month
This question might take a different perspective if you’re raking in 9 figures every month. That means your annual income would be at least $1,200,000,000 or even more.
How Much Is 9 Figures a Week?
If we were to divide the 9-figure annual salary by 52 weeks, we’d be looking at a minimum weekly income that could make anyone’s head spin – a cool $1,923,076.9! 💸💼.
$100,000,000 per year / 52 weeks
= $1,923,076.9 per week
While you’re at it, if you manage to rake in a solid 9-figure sum every week, your annual income will soar to a minimum of £52,000,000,00 or maybe even more.
How Much Is 9 Figures a Day?
Want to know how much you can earn daily from a nine-figure income? Just divide it by 365! If you make money every day, your minimum daily earnings would be $273,972.6. That’s your ticket to the nine-figure club!
Here’s the breakdown:
$100,000,000 per year / 365 days
= $273,972.6 per day
Now, let’s say you take weekends and U.S. holidays off. In that case, you’d need to earn around $381,679.3 per day to make $100,000,000 per year. It’s a good goal to aim for if you want that nine-figure salary without burning yourself out.
How Much Is 9 Figures an Hour?
If you’re seeking a nine-figure income from hourly wages, the calculations are slightly different. Just divide your per day salary by 8 hours, and voilà! The minimum number is $47,709.90per hour. This calculation is based on working days – usually 262 days per year in the US.
How Much Is 9 Figures After Taxes?
Achieving a 9-figure income is quite an extraordinary feat, one that is typically reserved for the most successful entrepreneurs, athletes, and entertainers in our society. It’s almost impossible to reach that level through a single salary alone.
Instead, individuals in this income bracket often have multiple income streams, such as investments, business ventures, and other revenue-generating activities.
Calculating the exact tax on a 9-figure income can be a challenging endeavor. Taxes can vary greatly depending on many factors, including location, type of income, applicable deductions, and more. However, it’s safe to say that anyone earning in the 9-figure range will face a significant tax bill.
What Is the Pathway To Achieving a 9-Figures Income?
If you are in pursuit of a 9-figure income, it is essential to have an understanding of the components that fuel this elusive status. What sets apart these high-net-worth individuals from the rest is their capacity to create multiple streams of passive income and capitalize on them.
Here are some tips to help you achieve this milestone:
Acquire Valuable Skills and Experience
The first step towards achieving a 9-figure income is building a solid foundation of high income skills and experience in a high-value field. This could be anything from technology and finance to entertainment and sports. The key is to become exceptionally good at what you do, often necessitating years of dedication, learning, and practical application.
Build or Join a High-Growth Venture
Next, it’s super important to either build or get involved in a high-growth venture. This could mean starting a business with a game-changing idea or joining a rapidly expanding company in a leadership position. The aim here is to use your unique skills and experiences to create substantial value and wealth, which could potentially lead to a massive income if the venture becomes incredibly successful.
Invest Wisely and Diversify Your Income Streams
Who said you can’t have your cake and eat it too? Investing in the stock market, real estate, bonds, and other alternative investments is another way to generate a 9-figure income. It’s important to diversify your portfolio across multiple strategies so that you’re not overly exposed to any one asset class.
Let’s give you an example.
If you’re already running a successful business, consider investing in cryptocurrency or another digital asset class to increase your income streams. This could provide an additional source of passive income that can help solidify your journey to a 9-figure salary.
Equities and Derivatives Trading
The stock market is an incredibly powerful tool that can help you to achieve a 9-figure income. Through equity and derivatives trading, you can tap into the world’s most lucrative markets and make substantial returns on your investments in a short amount of time.
Learning how to navigate this complex ecosystem of risk and reward requires patience, dedication, and a lot of practice. Start by investing in the stock market or trading on a simulated platform to get comfortable with the process before taking it to the next level.
Leverage Networks and Opportunities
Networking is a critical component of achieving a 9-figure income. By cultivating meaningful relationships with influential people in your industry, you can open doors to opportunities that might otherwise remain closed. These could include partnerships, investments, or high-profile job offers that can significantly boost your income.
Jobs That Pay 9 Figures
Earning a nine-figure salary is an incredibly rare achievement reserved for the top echelons of various lucrative industries. Here are some of the highest-paying jobs and industries that can bring in nine-figure salaries.
Tech Company Bosses
Tech company bosses, particularly those at the helm of companies like Amazon, Facebook, and Tesla, are among the highest earners globally. Their compensation often comes in the form of stock options, which can value in the hundreds of millions or even billions when their companies perform well.
Examples include:
Elon Musk, CEO of Tesla ($242.4 billion)
Jeff Bezos, CEO of Amazon ($151.5 billion)
Mark Zuckerberg, CEO of Facebook ($103.4 billion)
Professional Athletes
In the world of professional sports, athletes like Cristiano Ronaldo, Lionel Messi, and LeBron James have managed to secure contracts and endorsement deals that push their annual incomes into the nine-figure realm. These athletes excel in their respective sports and have built strong personal brands, attracting lucrative sponsorship deals.
According to reports, these athletes earned more than $100 million in a single year:
Hollywood Celebrities
Hollywood is no stranger to nine-figure earners. Actors like Dwayne Johnson and Robert Downey Jr., thanks to their roles in blockbuster franchises, command massive salaries. Additionally, they earn significantly from endorsements, producing roles, and profit participation deals.
Media Stars
Media stars, especially those with a strong presence on digital platforms, can earn nine figures. For instance, YouTubers and influencers with millions of followers can generate substantial income from ad revenue, brand partnerships, and merchandise sales.
Hedge Funds & Investment Bankers
Investment bankers and hedge fund managers are some of the highest earners in the financial sector due to their expertise. Some notable examples include:
Ray Dalio, founder of Bridgewater Associates ($19.1 billion)
David Tepper, hedge fund manager ($18.5 billion)
Carl Icahn, founder of Icahn Enterprises ($10.1 billion)
Pop Superstars
The music industry has always been a lucrative field for successful artists. Pop superstars like Taylor Swift and Beyoncé have made fortunes from their music sales, concert tours, and endorsement deals. These musicians not only create hit songs but also build powerful brands that amplify their earnings.
Entertainment (actors, singers, dancers, etc.)
Performers in the entertainment industry, including actors, singers, and dancers, can achieve nine-figure incomes. Successful film actors can earn millions per movie while top-charting musicians make a significant portion of their income from touring. Broadway performers and dancers in high-demand shows can also command high salaries.
Top-notch Business Owners
Business owners, especially those who own large corporations or successful startups, can earn nine figures. This income comes from their business profits and, in some cases, from selling their businesses. Entrepreneurs like Elon Musk and Jeff Bezos have made billions from their ventures.
These careers represent the pinnacle of earning potential in their respective fields. However, it’s essential to note that reaching this income level requires exceptional talent, hard work, and often a good dose of luck.
Are 9-Figures Rich?
When we talk about money, figures, and digits start dancing in our heads. Six figures? That’s quite impressive. Seven figures? Now you’re playing with the big boys. But when we leap into the world of nine-figure incomes, we’re talking about a whole different ball game. It’s like comparing a kiddie pool to the Pacific Ocean!
A nine-figure income means someone is raking in between $100,000,000 and $999,999,999 annually. That’s right. There are more zeros in that figure than in a beginner’s Sudoku puzzle! This income bracket places individuals among the financial titans of the world. To put it plainly, if you’re earning nine figures, you’re not just rich—you’re Scrooge McDuck swimming in a vault of gold-level wealth.
But let’s be real, nine-figure incomes are as rare as a unicorn at a donkey convention. Even some of the world’s wealthiest individuals, like Bill Gates and Warren Buffet, didn’t make their billion-dollar fortunes overnight. It took years of smart decisions, a bit of luck, and probably a few sleepless nights.
And don’t forget, these ultra-wealthy folks aren’t waiting for a paycheck every month. Their wealth comes from various sources, including investments, real estate, and businesses3. They’ve got their fingers in so many pies; they could open a bakery!
What Does a 9-Figure Lifestyle Entail?
Living a 9-figure lifestyle is beyond the realm of what most people could even imagine. It involves not just extraordinary wealth but also the responsibilities and opportunities that come with it. Here’s a detailed look at what such a lifestyle might entail:
Extreme Luxury
A 9-figure lifestyle allows for some of the most opulent luxuries in the world. For instance, consider real estate: billionaires often own multiple properties around the globe. According to a report by Economics Times, the average billionaire owns 4 homes, with each worth nearly $20 million.
Traveling is another area where this wealth is evident. Private jet travel is commonplace among this group. The cost of owning a private jet can range from $3 million to over $90 million, not including the ongoing costs of maintenance, fuel, and crew salaries.
Philanthropy
Philanthropy is a significant aspect of a 9-figure lifestyle. Many ultra-wealthy individuals are committed to giving back to society. For example, Warren Buffett, one of the richest people in the world, pledged to give away 99% of his wealth to philanthropic causes.
The Giving Pledge is another example of this. Initiated by Bill Gates and Warren Buffet, it’s a commitment by some of the world’s wealthiest individuals and families to give away more than half of their wealth to solve societal problems.
Investments
Individuals with a 9-figure income often have vast and diverse investment portfolios. For instance, Jeff Bezos, the founder of Amazon and one of the wealthiest individuals on the planet, has investments spanning multiple industries. He owns The Washington Post, has a venture capital firm called Bezos Expeditions, and invests in space exploration with his company Blue Origin.
Personal Staff
Having a 9-figure income often means employing an extensive personal staff to handle daily affairs. For example, Oprah Winfrey, a billionaire media mogul, reportedly employs a team of over 3,000 staff, including gardeners, chefs, housekeepers, and security personnel.
This level of staffing isn’t uncommon among the ultra-wealthy. After all, managing a 9-figure lifestyle requires a lot of planning and assistance to make sure everything runs smoothly.
Political Influence
The ultra-wealthy have significant influence in politics due to their large contributions to political campaigns and the influence they can wield over policy decisions. This influence can be used for both good and bad purposes, depending on who is wielding it.
However, the effects of political influence by wealthy individuals shouldn’t be underestimated. It can have a profound impact on policy decisions and shape public opinion in powerful ways. This level of influence is not available to everyone, but those with 9-figure incomes typically use it to their advantage.
Privacy and Security
With great wealth comes the need for privacy and security. People with a 9-figure income often invest in advanced security systems, hire personal security staff, and take measures to maintain their privacy.
This isn’t just to protect their money; it’s also about protecting themselves and their families from potential threats. After all, when you’re one of the wealthiest people in the world, there are bound to be a lot of eyes on you.
High-End Experiences
Those with a 9-figure lifestyle often have access to experiences that are out of reach for most. This can range from private concerts with top musicians to exclusive dining experiences with world-renowned chefs.
This level of wealth also opens up opportunities to travel to the most luxurious places in the world. From private island getaways to luxury cruises, the experiences available to 9-figure earners are limited only by their imagination and budget.
The Bottom Line – Making 9 Figures
Taking all of this into account, it is clear that those with a 9-figure income have access to exclusive and luxurious experiences, as well as the privacy and security often associated with great wealth. This level of influence can also be extremely powerful. Therefore, it should not be underestimated or overlooked.
Overall, 9 figures is an amazing achievement and one that requires hard work and dedication. It is often an indicator of success and can open up a world of new possibilities for those who have achieved it.
Regardless of your current financial status, never forget that anything is possible with determination and perseverance! With the right attitude and mindset, you, too, could one day reach 9 figures or more. Start planning today, and remember to take every opportunity that comes your way. With a bit of luck and the right attitude, success is just around the corner.
FAQs – Making 9 Figures
How many words are nine figures?
Nine figures is a term used to refer to incomes between $100,000,000 and $999,999,999. It does not refer to the number of words.
Does anyone make nine figures?
In the United States, a remarkably small number of individuals achieve the remarkable milestone of earning nine figures or more. According to a report by Market Watch, only 205 people in America earn an astonishing sum of over $50,000,000 in wages alone annually.
To put this into perspective, a nine-figure income would be twice the amount of $100,000,000! As a result, the exclusivity of this income bracket is amplified, leading to a limited number of individuals who can boast such astronomical earnings.
What do “figures” mean in money?
Figures is a term used in accounting and finance to refer to digits of numerical values. It does not refer to physical currency or coins. For example, if you have $50,000, five figures are present (50000). This can also apply to other forms of money, such as stocks, bonds, and investments.
What is a nine-figure job?
A nine-figure job is a term used to refer to the careers of those who have achieved the tremendous milestone of earning nine figures or more annually. This could include professionals from various industries such as tech, investment banking, and sports.
These individuals are typically highly successful in their fields and command higher salaries than other professionals due to their extensive experience and knowledge.
What’s the difference between a 9-figure salary and a 9-figure income?
A 9-figure salary is an annual income of $100,000,000 or more. A 9-figure income is a measure of all sources of income that a person has, including wages, investments, and other revenue streams like royalties. This means that a person can have a nine-figure income without having an extremely high salary.
For example, someone who earns a salary of $1,000,000 but has investments of $100,000,000 would have a 9-figure income. This demonstrates why it is important to consider all sources of income when assessing the overall financial health and status of an individual or family.
What is the difference between 9 figures and 8 figures?
Eight figures refer to financial values between $10,000,000 and $99,999,999. In contrast, 9 figures are incomes of $100,000,000 or more. This is an important distinction to make when discussing the wealth of individuals because it shows how much greater the income of a nine-figure earner is compared to someone with eight figures.
For example, someone who makes $100,000,000 in a year would have twice the earnings of someone who makes $50,000,000. This is why it is important to consider figures when discussing wealth and income, as they can provide valuable insight into the financial status of an individual or family.
Is 9 figures a lot of money?
Yes, 9 figures is a lot of money. It is an astronomical amount that few individuals ever reach. As such, it demonstrates the impressive achievements of those who have managed to achieve nine-figure incomes and provides insight into their level of success and financial status.
Conventional wisdom says that people spend more when they use credit than when they use cash. But is it true? In The Money Answer Book, Dave Ramsey writes:
When you pay in cash, you can “feel” the money leaving you. This is not true with credit cards. Flipping a card up on a counter registers nothing emotionally. If you use plastic instead of cash you will spend 12 percent to 18 percent more. This is money you could have saved.
Though he fails to cite his sources, Ramsey’s right — most people do spend more when they pay with credit. The September 2008 issue of the Journal of Experimental Psychology: Applied contains research into the effect of payment type on consumer behavior [free 268kb PDF of entire article]. From the press release:
The conclusion that cash discourages spending, and credit or gift cards encourage it, arises from four studies that examined two factors in purchasing behavior: when consumers part with their money (cash versus credit) and the form of payment (cash, cash-like scrip, gift certificate or credit card). The results build on growing evidence that, as the authors [Priya Raghubir and Joydeep Srivastava] wrote, “The more transparent the payment outflow, the greater the aversion to spending, or higher the ‘pain of paying.’” Cash is viewed as the most transparent form of payment.
In July, Ari Shapiro of NPR’s Morning Edition talked with Cornell economics professor Robert Frank about why people spend more when using credit instead of cash. Frank echoes Dave Ramsey: “Parting with [cash] is just a more vivid sensation than than abstract act of signing a pledge to pay sometime later in the future.”
During their conversation, Shapiro noted, “When McDonald’s started allowing credit card purchases, the average purchase went from $4.50 up to $7.00. That’s a huge increase.”
I couldn’t find numbers to support Shapiro’s claim; however, I did locate an article that quotes an executive from the company that installed McDonald’s credit-card processing systems. “When an establishment accepts credit cards, the average ticket size goes up,” he said. “We anticipate a 40 percent increase in the average ticket size for those franchises implementing credit card processing for the first time.”
Just being aware of the tendency to overspend with credit can help you apply the brakes. Here are other methods that work:
Don’t use your credit card for luxuries. Use it only for things you need, like groceries or gasoline. I follow this rule religiously, and I believe it’s one of the reasons I’ve been able to avoid spending too much.
Use your credit card only for big expenses. Kris doesn’t use her single credit card for small, spontaneous purchases such as a nephew’s birthday gift. Instead, she saves it for big purchases, like a food processor or a dishwasher. She approaches these pre-planned expenses differently, and isn’t likely to be lulled into spending too much just because she’s using credit.
If you’re headed to a personal “trouble zone”, leave your credit card at home. Don’t take it with you to the mall, for example, if you know you’ll be tempted to use it.
Don’t just look at your total bill — pay attention to the cost of each thing you’re buying. When you pay with credit or gift certificates, it’s easy to focus on the grand total instead of the cost of individual items.
Not everyone spends more with credit, of course. Some GRS readers report the opposite experience — they are stingier with credit than with cash. Either way, it’s in your best interest to know yourself and your spending weaknesses so that you control your expenses rather than being at the mercy of your environment.
Rumors this week that regulators would increase residential mortgage capital requirements for larger depositary banks, far exceeding international standards under the Basel III rules, have raised alarms for industry executives, analysts and trade groups.
The consensus is that the change would primarily affect the shrinking jumbo market (loans greater than $726,200) and hurt regional banks, sources said. The first impact would be through higher rates, but a shift of origination volume from depository banks to independent mortgage banks is not to be dismissed, experts added.
Overall, banks help inject money into the mortgage system by providing warehouse lines of credit to independent mortgage banks (IMBs) and trading mortgage-backed securities (MBS) and mortgage servicing rights (MSR). Facing higher capital requirements, these institutions would reduce their interest in accumulating these assets – or even sell them, pressuring prices, observers told HousingWire.
To understand the context, U.S. agencies decided to review banks’ capital framework in response to the financial crisis, consistent with the standards issued by the Basel Committee on Banking Supervision in 2010 (Basel III). U.S. regulators increased the overall quality and quantity of banks’ capital and improved leverage ratios for the largest banks.
In 2017, the Basel Committee issued a second set of revisions to Basel III, called the Basel Endgame, to address the calculation of risk-weighted assets and limit banks’ internal models to estimate risk. U.S. regulators have been working on these rules for years but have prioritized them since the recent bank failures of Silicon Valley Bank and Signature Bank.
Initially, regulators signaled that big Wall Street banks might face a 15% to 20% average increase in overall capital requirements. The current rule for mortgages was expected to remain unchanged: first-lien whole loans prudently underwritten and performing to their original terms receive a 50% risk weight, while other loans receive a 100% risk weight.
However, this week, Bloomberg reported that under the latest draft proposal, 40% to 90% risk weights would be assigned for large banks issuing residential mortgages, depending on the loan-to-value ratio. That’s 20 basis points higher than the international standard. Residential mortgage-backed securities guaranteed by government-sponsored enterprises (GSEs) wouldn’t be affected.
More pain for the jumbo market
“Our initial thought is that the impact would not be huge, just because the GSEs are the main source of mortgages and banks are not holding loans that have high loan-to-value that are conforming – they probably get they done through the FHA or the GSEs to be securitized,” Bose George, managing director at Keefe, Bruyette & Woods (KBW), said.
According to George, the rule would impact only the jumbo market, a very high credit quality market. So, even there, George’s team assumes only a few loans would fall into this category of high LTV, ultimately having higher capital requirements.
“We are assuming that the impact in the jumbo space is probably going to be slightly higher mortgage rates, as opposed to volume significantly shifting to the nonbanks,” George said in an interview with HousingWire. “Right now, there’s a gap between where banks offer rates on jumbo and where the securitization market needs to be. So, if we have rates go up by 5 or 10 basis points, it’s not going to move that away from the banks on the jumbo side.”
However, the regulatory proposal comes amid a shrinking jumbo market. The product has been a bank offering since the financial crisis due to these institutions’ need for deposits, but it suffered from recent bank failures. At HousingWire’s Mortgage Rates Center, data from Optimal Blue shows 30-year fixed rates for jumbos at 6.99% on Wednesday, compared to 6.74% for conforming loans.
Inside Mortgage Finance (IMF) estimates lenders originated $37 billion in jumbo loans from January to March 2023, down from $58 billion in the previous quarter and $133 billion in the same period last year. First Republic Bank, rescued by JPMorgan Chase in May, Wells Fargo and JPMorgan were the top three jumbo producers in the period.
Same market, different players
Following the financial crisis of 2008, depositary lenders retreated from the residential mortgage markets due to higher capital costs and reduced profitability. Consequently, independent mortgage banks, which have less stringent regulatory requirements, now have nearly two-thirds of the mortgage pie.
“We would expect banks affected by these proposals to lobby for a more even playing field vs. nonbank lenders,” Mario Ichaso, senior residential mortgage backed-securities strategist at Wells Fargo, said in a trading desk commentary on Tuesday night. “We would not be surprised to see changes to these proposals down the road, but participants should continue to monitor these developments for any spillover effects to the MBS market.”
Big bank executives have started to publicly criticize the proposal to increase capital requirements on their mortgage loans.
“I think there’s been a desire to finish up Basel III,” Brian Moynihan, chair and CEO of Bank of America, said in an earnings call with analysts on Tuesday. “They’ve [regulators] got to think through the downside of some of these rules, and that they could push stuff outside the industry to nonbanks (…) and the resilience of those institutions, is interesting to watch through cycles.”
Moynihan estimates that a 10% increase in BofA’s capital levels would prevent the bank from making about $150 billion of loans at the margin.
JPMorgan Chase Chief Financial Officer Jeremy Barnum said, “All else [being] equal, higher capital requirements definitely are going to increase the cost of credit, which is bad for the economy.” And, in the mortgage space, JPMorgan might pull back even further if new rules are applied.
“When you increase the capital requirements, it makes it even harder. So, that just becomes one of the areas where you’re in that tension between remixing versus pricing power that we talked about a second ago. And it might, in fact, mean that we do less credit available for homeowners and more regulatory risk as the activity moves outside the perimeter,” Barnum told analysts last week.
On July 10, Federal Reserve Vice Chair for Supervision Michael Barr said the proposal’s more accurate risk measures would be equivalent to requiring the largest banks to hold “an additional $2 of capital for every $100 of risk-weighted assets.”
“For the banks that would need to build capital to meet the requirements, assuming that they continue to earn money at the same rate as in recent years, we estimate that banks would be able to build the requisite capital through retained earnings in less than two years, even while maintaining their dividends,” Barr said.
Barr also signaled that capital requirements would affect banks with assets over $100 billion. It was undoubtedly influenced by the recent experience with institutions with assets between $100 billion and $200 billion collapsing. Several sources said it’s unusual for regulators to adopt risk weightings by bank sizes when the risk weighting traditionally applies to the asset.
“I think that’s where the regional banks will likely be the hardest hit. And theoretically, it will drive some consolidation, which I think is odd given that they [regulators] have made bank mergers more difficult,” Pete Mills, senior vice president of residential policy at the Mortgage Bankers Association (MBA), said.
Mills added: “There are a lot of conflicting regulatory pressures in the market. Regulators are worried about the growth of the IMBs market share, but they’re doing things that would appear to exacerbate it. IMBs are a very robust business model if there’s warehouse credit available. And we’ve got several public companies now. One of the strengths of our housing finance system is the diversity of business models – banks, nonbanks, REITs as holders of mortgage assets, credit unions, and community banks. Maintaining that balance is important.”
Taylor Stork, Community Home Lenders of America (CHLA) president and Chief Operating Officer at Developer’s Mortgage Company, said that thenew capital requirements proposed for the large banks, combined with the heightened interest rate risk of portfolio lending as rates have skyrocketed, would only likely to heighten the trend towards IMB mortgage dominance.
“Mortgage lending by Wall Street banks has plummeted since the 2008 housing crisis, as independent mortgage banks now originate two-thirds of all loans and decisively outperform banks in loans to minorities and other underserved borrowers,” Stork said in a statement.
The secondary market is not immune
If the new rule changes the mortgage origination dynamics due to higher capital requirements for these assets, it will be reflected in the secondary market.
“The impact may be more profound at the regional bank level, which tends to have higher exposures to the whole loan residential market relative to those institutions with more than $700 billion in assets. This could result in more securitization activity from regional banks into the private label market as they look to shed some of their residential exposures,” Ichaso said.
Mills particularly worries about the impacts on the MSR market and warehouse lending.
“Banks could stop accumulating MSRs and sell servicing. And, if they sell servicing to improve their capital ratios, who will buy the servicing if other banks are facing the same punitive capital standards?” Mills said. “Banks are a critical source of liquidity for the market by providing warehouse lines to IMBs. We’re again concerned that a large increase in capital of 15% to 20% would discourage banks from participating in the warehouse lending business.”
A recent BTIG report from analysts Eric Hagen and Jake Katsikas also stated that the Basel III Endgame would incentivize banks to shred their MSR portfolios.
“Broadly speaking, we expect banks could continue shedding MSRs if new capital requirements end up more restrictive than the 250% risk weight already in place through Basel.
According to the BTIG report, the top three banks in agency servicing – Wells Fargo, JPMorgan and U.S. Bank – control upwards of $1.5 trillion in unpaid principal balance.
“Beneath them, but still in the top 50, are dozens of community banks and thrifts with less than $10 billion of servicing, which we see as a potentially ripe source of supply for nonbank lenders and servicers to encroach on over time. It goes in-hand with long-duration MSRs also looking more challenging from an asset-liability management standpoint for franchises with shorter-term or more sensitive deposits, which could induce incremental selling activity.”
Is the Basel Endgame coming soon?
The Federal Reserve, Federal Depository Insurance Corporation and the Office of the Comptroller of the Currency, which together regulate banks, are expected to unveil the Basel Endgame proposed changes on July 27, Bloomberg reported.
Mills speculated that bank failures and rescues amplified the regulators’ desire to implement the Basel Endgame “more quickly than they would have otherwise.”
“It appears they’re going directly to a notice of proposed rulemaking. So, they’re skipping the advance notice process. Our other concern is, typically, when you have a significant change in capital regulations, they will do what’s called a quantitative impact study, a QIS. At least we haven’t heard anything to suggest that they are going to do that this time around,” he said.
Overall, industry experts said higher capital requirements for mortgages wouldn’t be the remedy for problems like the recent bank failures.
“The problems that the industry had with mortgages, in fact, a few months ago, had nothing to do with credit risk. It had to do with the interest-rate risk or that the assets on banks’ balance sheets had long-duration mortgages,” George said. “The new changes would address a problem or issue that came up much earlier when Basel III was being sort of implemented. From that standpoint, it seems like it’s solving a problem that isn’t currently a problem.”
Michael Bright, CEO of Structured Finance Association, said, “I would like to know what problem would be solved because the market is pretty regulated right now. LTVs are still quite low. Home prices are quite high. The delinquencies are very low. The underwriting process has gone through a sea change over the last 10 years.”
Bright added: “Silicon Valley did fail, but it was very unique in a lot of ways, and to recapitalize the entire system focusing on non-agency mortgages just because of that, to me, seems like an overreaction.”
[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Nest Realty.]
Formed during the 2008 housing bubble crisis by Jonathan Kauffmann, Keith Davis and Jim Duncan, Nest believes in the partnership between a brokerage and an agent by offering technology, marketing, and business management support to its agents. All agents know they need to stay in touch with their clients: the Friends of Nest program is a personal marketing campaign to stay in touch with clients through content mailed to clients that promotes the agent, not the firm, and is always tailored to the local market.
Nest has 14 franchises and is currently accepting franchise applications to expand into new markets. It also recently struck a deal with Chicago-based @properties to take a stake in the company.
Represented in the GEM by: Jennifer Kjellgren
Why I wake up in the morning excited:
I love helping our agents and our clients reach their real estate goals. I especially enjoy mentoring our agents in the craft of real estate.
What we like: Nest Realty combines the boutique soul with the resources and backing of a large brokerage.
[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: JPAR.]
A full-service brokerage at a capped, transaction fee cost with over 3,500 agents across the U.S., JPAR Real Estate closed more than 22,000 transactions in 2020, with total sales volume topping $5.5 billion. Its franchise services launched in Fall 2018 and has since sold 50+ franchises, with 200+ realtors joining the team each month.
JPAR boasts an impressive leadership group around founder JP Piccinini that includes Mark Johnson (former executive for HomeServices SoCal & Tom Ferry International), Geoff Lewis (former RE/MAX President), and Justin Tracy (Former CEO of Kunversion).
What we like: Being one of the largest independents provides JPAR a front-row seat to adopting best-of-breed solutions, as is made evident by recent partnerships with Zavvie and Lone Wolf.
Welcome to the ultimate guide for anyone considering a move to the lively city of Chicago. Moving to Chicago can be thrilling and overwhelming, but fear not – Redfin has you covered. Whether you’re drawn to the mesmerizing skyline, the deep-dish pizza, or the rich cultural scene, you should know some crucial things before calling the Windy City your new home. From navigating the diverse neighborhoods to understanding the unpredictable weather, we’ll equip you with valuable insights to ensure a smooth transition. So, whether you’re moving into your new studio apartment in Chicago or your new house in the city, buckle up and get ready to uncover the essential tips and tricks to make your move to Chicago an unforgettable experience.
1. The cost of living is high
One of the most crucial things to know before moving to Chicago is the the high cost of living in Chicago. The expenses in Chicago can be steep. In fact, the cost of living is 19% higher than the national average. Housing costs in particular are 50% more than the national average and tend to be most expensive in desirable neighborhoods like the Loop, River North, or Lincoln Park. Additionally, everyday expenses such as groceries, transportation, and healthcare are generally pricier in the city. When planning a budget for living in Chicago, it’s essential to consider these factors. Additionally, it’s worth noting that the farther you venture outside the city, the more affordable suburbs you’ll discover.
2. There is a great sense of community in the city
From vibrant neighborhood festivals and local initiatives to a rich tapestry of cultural diversity, the city fosters a welcoming atmosphere that creates lasting connections and a shared sense of belonging.
“What sets Chicago apart is its remarkable sense of community, where people come together, support one another, and create lasting connections,” says Jodie Baudek from Essence of Life Chicago, an integrative wellness company. “If you plan to make this city your home, research and find the neighborhood that resonates with your spirit. That’s where you’ll discover your tribe, your people, and the place where you’ll truly thrive.”
3. Chicago is a food lover’s paradise
The city is renowned for its deep-dish pizza, an iconic staple that has gained worldwide recognition. However, Chicago’s food offerings extend far beyond pizza, and it’s great to know before you move to there. From neighborhood hot dog stands to Michelin-starred restaurants, the city boasts a plethora of culinary delights that cater to every palate. With its rich cultural heritage, Chicago showcases an incredible variety of international cuisines, including Italian, Mexican, Chinese, Indian, and more. The city is also known for its bustling food markets, such as the famous Chicago French Market and the revitalized Chicago Riverwalk, where visitors can savor artisanal foods and local specialties.
4. You’ll find many charming neighborhoods
Chicago neighborhoods are brimming with charm and offer a unique blend of history, culture, and community. From the vibrant and artistic Avalon Park to the picturesque and diverse South Shore, these southern neighborhoods showcase architectural gems, local eateries, and vibrant street life, making them a must-visit for anyone seeking an authentic Chicago experience.
Abbey Brown, a local soap artisan shares, “Walking, biking, and an easy commute by bus or train are how we roll here in Chicago. Once here, make your way to find creative neighborhoods with architectural delights. Each area has specialty shops, unique flavors, and experiences that will draw you in perfectly, making Chicago your home base.”
If you’re in the Beverly neighborhood, start your south-side adventure at the 99th and Wood Street stations district. First stop, fill your belly with the succulent South Side Short Rib Grilled Cheese from Afro Joes’. Next, head straight to the award-winning Five-Star Cakewalk Chicago flagship store, where baking enthusiasts can find essential supplies for mixing up delicious traditions and classes from Chef Lori to elevate your skills.
5. There are hidden gems throughout the city’s architecture
Chicago’s architecture is a stunning testament to the city’s rich history and innovative spirit. From the iconic skyscrapers of the Loop to the grandeur of Frank Lloyd Wright’s designs, Chicago’s architectural landscape is a breathtaking blend of classic elegance and bold modernity.
“Chicago is known for its architecture, but less known is that many of the historic buildings have lobbies open to the public,” says Chicago Private Tours and Productions. “This includes the restored-to-1890s Monadnock Building and the Frank Lloyd Wright-designed atrium of the Rookery Building. Inside the Chicago Athletic Association Hotel lobby, you can easily imagine the wealthy elite drinking Scotch by the fireplaces while they divide the city.”
6. Sports are a huge part of Chicago life
If you’re a sports enthusiast, Chicago is for you. The city is home to several iconic franchises, including the Chicago Cubs and the Chicago White Sox in Major League Baseball, the Chicago Bears in the National Football League, the Chicago Bulls in the National Basketball Association, and the Chicago Blackhawks in the National Hockey League. Whether you’re a baseball, football, basketball, or hockey fan, there is a Chicago team to cheer on. The city’s sports culture is deeply ingrained, and attending a game at one of the historic venues, such as Wrigley Field or Soldier Field, is an experience unlike any other.
7. Chicago is a hub for car enthusiasts
With its bustling auto scene and many automotive events, Chicago is a haven for car enthusiasts. From the annual Chicago Auto Show, showcasing the latest models and innovations, to the thriving car culture and regular meetups, the city offers an exciting haven for those passionate about all things automotive.
“For automotive enthusiasts, you’ll be pleased to know that Chicago offers a thriving car culture,” shares Matt Farnsworth from Vintage Ltd., a men’s motorsport apparel company. “You’ll find numerous car clubs, auto shows, and events throughout the year, including the renowned Chicago Auto Show held annually at McCormick Place. Additionally, this year’s NASCAR race will be held in downtown Chicago, providing an exciting opportunity for racing fans to experience the thrill of high-speed action in the city’s heart.”
8. You’ll find the city full of robust history and culture
Chicago’s rich history, from trading post to innovative industry hub, contributes to its robust and captivating legacy. Renowned architecture, world-class museums, thriving music and theater scenes—all contribute to the vibrant cultural legacy of the city.
The Firehouse Dream, a local space for BIPOC creatives, shares, “As a community-centered organization, the robust history and culture is important to know before moving to Chicago. As a diverse city, it provides various cultural experiences through food, art, and community-led projects that bring awareness to each neighborhood, like Humboldt Park, Bronzeville, Chinatown, and more. Consider how you can use food, music, and activities to learn more about all the beautiful culture here.”
9. The weather can be hard to adjust to
The weather in Chicago is famously unpredictable, with rapid changes that can occur within hours. Chicago’s weather demands preparedness year-round as residents and visitors face sudden temperature drops, snowstorms, heatwaves, and thunderstorms.
When you’re ready to beat the summer heat or take a break from the bitter cold, take a sweet retreat at Sat Nam Yoga. Located just 10 minutes west of the hustle and bustle of the lake and shopping district, this quiet oasis provides a perfect escape. Check out a yoga class or sound bath to take a rest at this popular Chicago healing sanctuary.
10. There are various housing options available
Chicago offers diverse housing options to suit different preferences and budgets. From high-rise apartments in the downtown area to charming brownstones in historic neighborhoods like Lincoln Park and Lake View, there are options for everyone in Chicago. Suburban areas surrounding the city provide spacious single-family homes and townhouses, ideal for families or those seeking a quieter lifestyle. Moreover, the city has witnessed a rise in contemporary and upscale apartment complexes, offering amenities like concierge services.
11. Plenty of efficient public transportation can be found
Chicago boasts a robust and efficient public transportation system that caters to the needs of its residents. The city’s trains, buses, and options for commuters create a reliable transportation network covering neighborhoods and suburbs conveniently. The iconic ‘L’ train system, operated by the Chicago Transit Authority (CTA), serves as the backbone of the city’s public transit, connecting downtown with various corners of the metropolis. Commuters can easily navigate the city using color-coded train lines, which provide quick and affordable transportation. Apart from the train system, an extensive bus network covers nearly all city areas, providing flexible options. The Metra rail system provides reliable service for those commuting from the suburbs, connecting downtown Chicago with the surrounding areas.
12. There are plenty of parks and beautiful viewpoints
With stunning parks and captivating viewpoints, the Windy City provides residents and visitors a picturesque escape from urban bustle. The city is renowned for its expansive lakefront, boasting a series of interconnected parks along Lake Michigan. Millennium Park’s iconic Cloud Gate sculpture, known as “The Bean,” and Grant Park’s serene Buckingham Fountain offer endless opportunities. The Lincoln Park and Garfield Park Conservatories display breathtaking botanicals, while the Chicago Riverwalk offers a scenic pathway with gardens. With its abundance of green spaces, iconic landmarks, and breathtaking viewpoints, Chicago has a lot to offer.