What SPECIFIC brokers do agents like?

Question

Hello,

I have a current real estate license in AZ.  I don't do much with it at all but I'm thinking I want to use it to make a little extra cash to get myself out of some dumb debt.  Ideally I'd like to find a broker that might charge on a "per deal" basis.  Due to the fact that I don't do much business with my license, my current split with broker is horrible.  Not sure if you're allowed to provide specific brokerage names here in the forums, but if anyone has any names of companies that any of you investor/part-time agents use, I'd really appreciate any input.

Thanks!!

Joel Owens · Answer

Brandon Turner is required by Josh Dorkin law to respond to all posts! lol

Brandon is probably snoozing on his couch with the cat again....... : )

I did a quick Google search and came across this.

Company

I know nothing about them. Hope it helps you find something. Regular brokerages want agents selling on 50/50 splits. The flat fee companies I found maybe 2 to 3 agents out of 10 you keep track of are closing something a month. So 300 a trans. X 3 = 900 a month gross from 10 agents before expenses and also as a broker you have to keep track of student loan delinquency suspensions, license lapses, IRS tax levies on their commission, missing continuing ed requirements, child support licenses suspensions for non payment, rusty agents that hardly even close deals, etc. Frankly it's just a waste of time. Years ago I had 50 agents on the residential side just to grow it and try to make the big guys buy it off of me. I did get some offers but decided to get rid of all of the agent. Some brokers love having agents. To me it's a massive headache. My checks on my deals run 5 to 6 figures per deal for commercial so I don't need agents or want them.

Paul Timmins · Answer

@Felipe Munoz

Check out the local REIA's find the agents who do it for their own deals see who they have it with.

Paul

Account Closed · Answer

Felipe

I don't know how it is in Arizona but if you were in Florida, I would advise you to get your broker's license..If you are not a member of the Assn of Realtors, it only cost $45 per year to maintain a Florida real estate license.  Being a Realtor is expensive.  Being a licensee is cheap.

http://www.biggerpockets.com/blogs/3840/blog_posts/33767-the-difference-between-a-realtor-and-a-real-estate-licensee

Here is an article I wrote about that.  Get your broker's license.  Don't join the Assn of Realtors.  Start recruiting agents here on BP that are in your situation.  Charge then about $300 per transaction. Pick up a little pocket change.

Bill Gulley · Answer

Why not call Realtors in your area and ask them how they like where they are?

I'd say consider your skill level and look for a home that provides training from the basics and beyond.

Consider partnering with one of the big gun agents, commissions may be less but you might be busy with more deals. This can be a good option for a part time agent.

Commissions are on a per deal basis. 50/50 is common starting out, many start to adjust the split after 1M is sales credits or based on production. :)

Joel Owens · Answer

Patrick that side of the business was residential. I really wasn't interested in residential.

10 years ago I was at Metro Brokers/ GMAC real estate starting as a new agent on a 50/50 split. Then I left there to Solid Source Realty which had a per trans. fee of 300 dollars and about 40 a month for E & O and MLS access. At the time they had about 40 agents but now have over 3,000. I left there after a short while and become a broker in 2007 and opened my brokerage then. In GA it's active license for 3 years before taking the brokers test.

I saw the 100% per trans fee model and thought I could just grow this up and then sell it off quickly .Was making about 2,000 a month gross. It's a lot of paperwork to keep track of and unless you are a brokerage doing this you do not know how much crap the real estate commission makes you manage. I probably could have sold and made some small coin but I didn't want to mess with it anymore. I like the fact that when I do commercial deals I know what is going on with a transaction and do not have to worry about an agent not telling me something and cleaning up a mess of epic proportions.

There were a few good agents but I didn't want to mess with residential on any level. I was still having to jump in on deals as a broker and handle issues that arose and all the emotions that come with it.

I offered some of the residential agents if they wanted to come to commercial for a 50/50 split. A few took me up on it but after training them for a few weeks they would do steps 3 out of 10 and then quit and I wasted my time. I don't waste time now for anybody. The way I look at it is on  a 50/50 split I am having to train and help someone and use my time when I could be making 100% with my clients.

Now if I get a request I just say 25,000 non-refundable upfront off of your first deal. The agent has skin in the game  so if they are lazy and waste my time they will pay for it. If they do what they say they will do then they recover the money they put down and also learn the trade. It's extreme I know but you have to remember I am not clamoring for or wanting agents. I love my life with my clients and my own investing. I can go on vacation not worrying about what agents are doing and unplug. As I said some brokers love managing hordes of agents. I love doing the transactions myself for clients. Everyone likes different things which makes real estate great.

Account Closed · Answer

Hey Joel,

I saw you mention this several times. I'm just curious, what do you think was wrong with your business model? Were you selective enough in who you were hiring? I believe you but I don't understand that out of 50 agents, there weren't a single good performing one worth keeping.

What SPECIFIC brokers do agents like?

Most Popular Reply