What to look for in a broker as a new agent

Question

I have almost completed my RE class and I am about to take my classroom exam. When is a good time to look for a broker to work with. Also what brokers are very competent to teach aspiring agents and what should I look for in a broker when I begin my search?

I know the RE world is tough to make money right now and I am here for it, I care more about learning everything I can then making as much money as I can. I know when I become an expert the money will follow, I am actually fully prepared to make no money my first year (though I will work my *** off to get my first deals). What can I expect my first year with a broker? My second year?

Bruce Lynn · Answer

!. Training Room.2. Training Calendar3. How much does the training cost?Everyone tells you they have training, but if they don't have a classroom to do it in, and they don't have a calendar, then you have to ask yourself how serious they are about training. There is a cost, but is the broker paying for that as their investment in you, or are you paying for it.Real estate school teaches you the basics of real estate and contracts typically. Broker training teaches you how to do the business.Lots of people ask for mentorship and leads, but I think that is a bit of a stretch in almost every brokerage. Rare will you really find someone who is going to hold your hand and walk your thru step by step on how to become a millionaire. No one really has time for that. Leads...well they are everywhere. I'd almost be suspect of anyone offering you free leads. What you really want is training on where you can develop your own leads...and then what to say to them, systems to keep in contact with them.It's pretty common I hear from new agents that they want mentorship and leads, never kept track of that, but that almost tells me they are passive people and might struggle in the business. People who are determined to go find the business are probably the ones who are going to last. Just a thought, no proof of that, but something to think about.

Bill Schrimpf · Answer

@Sean Dye - I'll echo may of my colleague's comment above about training and how to actually be a good agent, help your clients and make some money for everyone. That knowledge is invaluable.Not mentioned: * You will have MLS fees and likely Realtor fees you cannot escape. * What are the office/desk/technology fees in the office. * What about mandatory desk/floor time? Some brokers want you there 40 hours a week doing office admin work and call it training. * Ask about E&O insurance, is it per transaction or a yearly lump sum? * What is your commission split? It is flat, variable, sliding scale?* Will you be part of a team? Will there be office admin to help if you need it?* how available is your broker to help; are they too busy with board meeting and the 100 other agents? * When you get licensed, everyone (including BP) will try to sell you leads, signs, more leads, business cards, more leads, name tags, more leads, health insurance, leads, print/mail services, leads. Ask the agents in your office who have been in the biz for over 5 years about this stuff before spending money on it.Welcome to the circus!

Elizabeth Dawan-Abdullah · Answer

Keller Williams has great training. It does have a step by step approach. Also there are so many ways to get leads and KW teaches how to do that, how to structure your day etc. I'[m in MA however, KW has a STRONG network for agent to agent deals across the country and the world. We have been given a map of all of the agents and their market centers PLUS what are their strengths such as Buyer Agent or Seller Agent.

Sean Dye · Answer

@Bruce Lynn Thank you so much for this insight Bruce. I already own 2 small businesses so being a W2 employee is definitely not what I am looking for. This has been a huge help!

Mark R. · Answer

Hi Sean, welcome to BP. You should start speaking with potential brokerages whenever you are almost ready to jump into this one-of-a-kind industry. I would suggest also considering a team. You'll be wanting to evaluate what tools, training, and access to a mentor you'll be able to obtain. The #1 trait that correlates with success (in my experience) is drive. Very, very rarely do good things just happen to people sitting on their hands in this business. If you want to chat, send me a DM. I'm a broker (in TX) and have a lot of experience with rentals/flips.

Bruce Lynn · Answer

There are pros/cons on joining a team and they all operate differently. I would say the difference is working a W2 vs being an entrepreneur. Being on a team might mean you are in the office working the leads of the rainmaker until you get an appointment, then you go out and show homes. They're feeding you some business and might take 1/2 your commission to do that. Benefits are that you're not 100% on you own, you'll probably get some faster business, you might learn some from an experienced agent, you can see how a team operates, you might see a more disciplined approach to the business and perhaps get to hang out a bit or be in the presence of someone organized. Con is you can get siloed into just learning one part of the business and doing all the grunt work without really getting broad exposure. Holding open houses might benefit the rainmaker and their listing business vs you directly. They will also probably take a big portion of your commissions.Doing it on your own within the brokerage, you'll keep more of your commission, you'll be the entrepreneur than many agents want to be. It might be a slower start for many. You'll get to learn all aspects of the business.

Clint Galliano · Answer

@Sean Dye Bruce is giving you gold here. Look for training on how to run your business as a real estate agent. They should have an in-person training schedule with a classroom for you to learn. To supplement that, there should be additional self-paced study opportunities in addition to free and cost-to-you live virtual training. That is just the training aspect. You also want to have broker availability for any legal/transactional questions that may arise. Add to that a mentor or productivity coaching program to help you to become successful. There will be some cost to you for that, but the benefits should more than outweigh the costs.Please feel free to reach out if you have any questions.

Sean Dye · Answer

Definitely some good food for thought, thank you!

Lucas Thomas · Answer

Hello! I've been a real estate agent for a decade. I specialize with working with Landlords. You need to start looking immediately as each broker has their own unique commission split system. And if that is important, it takes a while to root through them all. The biggest thing for me was commission split when I started as most brokers aren't going to teach you much of anything and are really only a resource for advice before you make dumb mistakes. So I worked with a 100% commission broker who only charges a flat fee. This might not be available in your state so that's why you have to start your search now. Once you figure out the payment schemes, next you have to see what kind of resources they have to help you. 80% of real estate agents fail or only make like 40k a year so you have to avoid those people and only focus on finding a niche. Try to find the one with the most resources such as people who are in the niche you want. The Niche is the most important decision you can make as an agent. Because each niche has different methods and techniques to build your client base. For example, I only work with Landlords/Investors and social media is a useless outlet for connecting with those people. I instead, teach seminars and classes on real estate investing which is how I get 99% of my clients. However that strategy is worthless for getting retail clients as they don't care about real estate investing and only care about buying and selling. Another example is if you want to do property management as most brokers won't touch property management with a 10-foot pole. So you have to review if they have the niches you want to grow in. As I required my broker to have a property management division which eliminated like 75% of the broker houses for me. So figure out your niche and potential niches and find the broker with the best resources and support for thoseL. Thomas

Elizabeth Dawan-Abdullah · Answer

All of the TEAMS are different. You don't have to be part of a team. I'm a lone wolf agent. However, every time I bring someone into KW and they say it was my input that made the difference in their choice,if the Office they join is profitable, I will get 6% of their deals up to $3,000 per year; even if I don't work that year. Because I know them, of course I help them if I can with information and sharing experiences. I will tell them, don't do this or I did this and this is what happened... one is not in the same state as me however we met in the state they used to live in and we are in the same spiritual group.