How do you decide what broker to work for? How to get the best %?

Question

I will be getting my real estate license the end of September.  I need to start work asap!  I do not know where to start to find a broker.  I am in Fort Worth, TX on Eagle Mountain Lake.  I want to eventually be an investor, I currently have 1 rental.  However, I need to make some money to be able to buy.  Since this is my goal I decided to get my licenses so I could learn the business while earning an income.  I have been approached by Keller Williams but have heard their fees are very high.  Someone else suggested United.  I sent in a resume for an investment real estate company, they pay a salary which would be nice, but I did not hear back from them.  About me, at still a young age I have over 25 years of sales, management & marketing experience and have owned six companies. I would appreciate any suggestions you guys have.  With such diverse backgrounds and experience I trust that you could lead me in the right direction where I can learn, grow and be able to keep as much money as possible for my hard work.  Thank you!

John Thedford · Answer

Training is crucial. Lead generation is almost as important. Having a desk fee is not a big deal and in fact could be a good incentive to make things happen. One of the biggest drawbacks is with agents that are hesitant to ask for business. ALWAYS ask for business every place you go. Market market market. Spend the money...it pays off. In Florida, in our area, over 90% of new agents quit within five years due to lack of success. Keep in mind that agents are independent contractors...and their success not only is tied to the company, but to the effort the agent puts in. The training will help teach how, what to do to make things happen, and then the agent has to take the steps that lead to success. Best of luck. It is a rewarding profession as well as a rewarding career for someone with an investor mindset.

William Stokes · Answer

As mentioned earlier, the big name brokerages will be beneficial in generating business. It is up to you to choose an agency who appears to have personal interest in your development as an agent, or at the very least, connect with a successful agent from your office to get you spun up, and won't mind you tagging along to learn in the field.

Once you pass the exam you will have brokers from all over the place contacting you. Be very picky and selective to ensure that you will benefit from being a part of that agency since you'll likely be paying them your desk fee.

It's also important to ensure the brokerage isn't too behind the times. Becoming taught something that MAY have worked for 1 person 30 years ago isn't always the most reliable training that a new agent should be devoting their time to. Check out their website, their marketing, and presence on the internet. This alone will give you an idea of how they present themselves, what the potential client is seeing, and how easy it is for people to find them.

With your diverse background and personal interest, you will do well if you stick to it, so ensure that you choose an agency that works for you and not against you.

All the best!

Rex King · Answer

I started 12 years ago when I was 22. I went with Keller Williams and I thoguht they were a fantastic company. I LOVED the training there and they do have an amazing culture that was different than Edina Realty or Coldwell. Very similar split to Remax but Remax you pay it monthly and KW you pay when you make money. Which to me was important to a new business owner.

I left KW about 6 years ago because I was sick of splitting commissions, I know the KWers will say it is only until you cap. Well $22,500 paid to my broker was more than I paid for my first duplex.

If you want to learn the business find a larger broker who is driven to educate you and work with you.

Tyler H. · Answer

@Sherry Patterson My suggestion would be to interview with at least 3 brokers (or more) to get a better feel for each office and how they do business--that helped me my make my decision. Every agent is different in what they need as far as support (crucial), interaction with other agents, continued education, commissions, etc.

Quang Nguyen · Answer

Hi Rex, what did you end up doing after leaving KW? Are you still an agent or an investor?

Blake Watkins · Answer

@Sherry Patterson I just passed my license exam and am looking. Just curious on where you decided to go and why?

Matt Lefebvre · Answer

Hey @Sherry Patterson, welcome to the wonderful world of real estate agency :).  I'm from KW myself, and I would be more than happy to chat about the company or answer any questions you may have.

Russell Brazil · Answer

@Sherry Patterson My suggestions being a new agent would be to go with a big brand name brokerage that has good training.  Some new agents chase the better commission split which I think is a bad idea.  What good is having a 90/10 split if you only do 1 or 2 deals.  I have been with both small boutique brokers and large brand name ones, and I actually prefer the large brand name ones because it is much easier to generate business.  I spend half as much on marketing as when I was with a small brokerage and do twice as much business.

I would though suggest trying to steer away from a brokerage that has expensive desk fees.  For instance you said that KW approached you. If they have a large fee....just try another KW office, as they may not have a large fee. These things can vary from office to office within the same company.

How do you decide what broker to work for? How to get the best %?

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