Questions for brokers, new agent looking for broker in Phoenix AZ

[William Petrisko]

I am currently an investor in Phoenix AZ (I have purchased 3 multifamily properties and sold 1 in the past two years)

I recently passed all my exams and will be applying for my RE license.

At this time, I am not looking to be a "retail" real estate agent. I want to concentrate more on my own investing (buy/flip or buy/hold), and feel that a RE license may give me an advantage at this time.

Reasons for getting my license:

1) Run my own comps (MLS access) when looking at off market properties that I might want to purchase.

2) Direct access (lockbox) for MLS properties that I want to look at.

3) Collect referral fees for listings referred to other agents.

4) List an occasional property or act as buyer's agent for people I know.

Does anyone know any specific brokers in the Phoenix area that they would recommend? Obviously, I am looking for a broker that will be understanding of investor (personal) transactions, but willing to help me expand my knowledge and experience in both personal and retail transactions.

During my classes, there were a bunch of brokers that came in and handed out their fliers with the costs and fees, and I talked to several of them at the time. Most seem to use a $X/month (covers MLS/NAR fees) and flat $X/transaction (covers E&O fees) type model for low volume agents.

If anyone has any specific recommendations for a particular broker or brokers to avoid, it would be appreciated. Any input on the pros/cons of various brokerage companies would be great.

Also, if anyone has any questions that I should be asking potential brokers before signing on with them, please let me know. (Questions specifically related to being an investor, certain fees that aren't obvious, etc)

If you aren't comfortable posting in the forum, please PM me.

I appreciate any information anyone can provide!

thanks

bill

[Account Closed]

I have had my license for about 14 years, and it has pluses and minuses as an investor. Keep in mind that it sometimes puts you at a disadvantage: You must disclose that you are an agent, and many people do not want to deal with agents. As a licensee, you are held to a higher standard by the State and NAR, and if you end up in court, you could be looked at as taking advantage of someone because you are assumed to have more knowledge. You will have added liability listing personal properties. And you will only be able to give/receive referral/finder/bird-dog fees to/from licensed agents, anyone else is illegal.

My recommendations for a broker:

Ask if they have a problem with you being an investor. Many don't want the added liability. They also don't make much money from you if you're only selling a small amount of your own properties (transaction fee based broker), compared to an agent representing many clients. Some brokers also like to brag in advertising that their agents sell an average of X amount of homes a month, and you'll drag the average down as a small investor.

Ask if they allow dual agency. Many will not allow you to sell your own property, and some will not allow any brokerage agent to sell the property. If it's a small brokerage this wont be much of a problem, but if you're with a large broker, or one that dominates an area, you may be unable to accept many offers.

Ask if their E&O insurance covers your own investment properties.

What is their fee structure? If you go with a high fee, low transaction cost broker, you may be paying a high price for each transaction if you are doing low volume. It may be best to go with a low-fee, higher-transaction cost structure. It just depends on how many transactions that you will have.

And now for the most important. What type of training does the broker offer. The schools teach a little about a lot. You come out knowing just enough to make you really dangerous. I started with a small brokerage, where the broker's office was literally next to mine. If I had a question, I just knocked on his door. There were only about a dozen agents in the office, most of whom were doing real estate when the ark landed, and without their help I probably wouldn't have made it. In the large brokerages you will be a small fish in a very big tank. I'm with Homesmart now, a very large company, but I can't give you a beginners perspective of the company, although I do know that they have training classes. The best thing to do is interview many of them. And when your ready to make a move, you might want to look up some of their current and past agents at the Department of Real Estate, and ask them what their experience with the company was like.

Good luck.