How To Choose a Brokerage If You Want to Be an Investor-Friendly Agent

[Jonathan Greene]

The questions in the forums about choosing a brokerage are everywhere, so I thought this might be helpful as a placeholder for other investor-friendly agents who can add their experience in choosing or switching brokerages over the years.

I've been investing for over 30 years and licensed as an agent for 10 years. I have my broker's license in NJ and NY. I have worked for Keller Williams, Berkshire Hathway, eXp, Sotheby's, and Real. I am currently at Real. I am not a brokerage evangelist. I can tell you that for sure, without any question at all, that no brokerage cares about you unless they are a small mom-and-pop (and they won't have the technology stack to help you grow unless you only want to stay local). You are just a number on their board. This should help you because you will get told that they all will help you, but next week, they will be working on a new group of agents.

Pro tip: Cloud brokerages and some big box brokerages (eXp, Real, KW) operate a downline model, so many people who "recruit" you to join their excellent brokerages are just adding you to their downline. Hence, they get more money if you pan out.

Let's start with the investor-friendly part of it. If you want to work with investors, no brokerage will help you do this at all. They won't give you leads, they don't know investors, and it's of no consequence. But since that's where most of the questions come on BP, it's relevant to note and move on to brokerage models.

You generally have four kinds of models. Big box (KW, Coldwell Banker, Remax), Cloud (exp, Real), Mom and Pop (Fred's Real Estate), and 100 percent (Big Block). The truth is none of it matters because 95% or more of the agents in the world do nothing. So, the model and brokerage is way less important than you think.

You should choose a brokerage where you know someone, especially if they work with investors. It doesn't matter what the split is because if you have no one to help you (your broker will forget your name by mid-week), you will not do anything with your license. The way to find that person is to see who lists all of the flipped homes in the area. Go to those Open Houses and get to know them. Go there, help them.

Also, real estate meetups are great for finding agents who also invest. If someone owns 3 properties and uses their license to help a few small investors, that's right up your alley. The logo on your card makes no difference. No buyers will remember what brokerage you work for. No investors care. A few sellers in luxury markets care, but they wouldn't remember if it was not for the sign in their yard.

Don't get into analysis paralysis when choosing a brokerage. Go to one where you know someone, and don't go there after you spoke once. Build relationships with agents. Don't listen to a brokerage pitch, they are all generally the same - our marketing is excellent, we are the leader in the area, look at our website and partnerships - they all have that.

Cloud brokerages, in general, are better for independent self-starters, but the con is you will be on Facebook Workplace trying to network and won't have an office to go to. Big box brokerages, in general, are better for agents who want to learn for six months in person, but you will pay for that office.

If you are an agent, weigh in below, and please don't make it a recruiting seminar.