How to buy an Allstate agency?

Posted: Thu Jun 10, 2010 12:30 am Post Subject:

Unless you are pulling business from another company you used to work for it may be tough going. Allstate will examine your finances and make sure you have sufficient capital. Access to $50k. If you start scratch your first year commissions on p&c are as high as 50% decreasing each month for the first 3 years. If you are new to insurance it may be hard to make a living if you still need to pay bills. People with a spouse working can usually make a go of it. Good Luck.

FYI- I purchased a book 1.7m. The owner was willing to finance. Outside financing is tough now. I dont receive 50% first year commission but I do have a nice income after the loan payment and office expenses.

Posted: Tue Jun 15, 2010 01:08 am Post Subject:

commission is 10% First Year and 10% renewal. We would all be alot happier with 15!

Posted: Mon Jun 21, 2010 10:00 am Post Subject: Buying an Allstate Agency

How much would a 2.2 million dollar allstate book be sold for?

Posted: Tue Jun 22, 2010 03:47 pm Post Subject: buying allstate agency

Do your homework. Send an email to runningclock@aol.com and ask to be a subscriber. This is an email publication that gets input from agents and management people...it is NOT approved by Allstate. I've been an agent over 10 years. This company is NOT very agent friendly. High failure rate for agents. I started scratch and then bought another office 7 years ago. Allstate also sells direct over phone/internet. They will soon offer a special discount to internet purchases. You will be selling against your own supplier.

Posted: Wed Jun 23, 2010 01:47 am Post Subject: How much would a 2.2 million dollar allstate book be sold fo

2.2 million = 2.5 omes or $540k if you can sell homeowners through Allstate. If in a state that does not sell Allstate home then 2 times or $440. If the seller finances that is worth paying a little more etc.

Posted: Tue Jul 06, 2010 04:24 pm Post Subject:

What is required to be approved to buy an existing agency by Allstate. I have 9 years experience in Property and Casualty sales, but have been out for about a year and a half. Also, has anyone taken out a small business loan to finance a purchase of an agency?

Posted: Wed Jul 07, 2010 12:55 am Post Subject: buy existing agency

Start by taking an online test you must pass. Basically all the answers are that you have so much money you dont need an income for 5 years. Then you get a great score LOL. If you pass the test you are in good shape. They need agents and the managers get paid for new agents.
So, here may be the hard part. They need proof that you have $50,000 in savings or in an account available to you with your name on it. If you can do that they will approve you.

Now the financing can be tough if the book you want to purchase has been declining. Which is usually why they are for sale! Anyway expect to put at least 10% down. The SBA loan will not work since you are only buying the "economic interest and Allstate can terminate you at anytime".

Try these lenders:
Oak Street Funding-Based on the sellers termination payment
PPC Loan - They are tough I have known 6 agents includung myself and we all were turned down.
Allstate Bank- they are strict for an outside buyer.

Good luck, I hope this helps. I just bought a book 3/1/10. I have worked for Allstate agents last 5 years, so I know the game. It is a good opportunity.

Posted: Wed Jul 07, 2010 01:41 am Post Subject:

So, if you don't have $50,000 you are out?

Posted: Thu Jul 08, 2010 02:25 am Post Subject:

Posted: Thu Jul 08, 2010 02:26 am Post Subject:

Yes. it is a new rule that started 1/2010. If your name is added on a bank account with 50k or more it may slide.