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. 

[Abel Curiel]

Great post @Jonathan Greene, definitely made me laugh a few times... you are on point! lol

I've worked with mom & pop, big box, and cloud brokerages, and I agree with you - the broker doesn't really care. If you're earning, they might show they care a little, but they're more focused on the next batch of agents to recruit.

Mom & pop experience: the broker barely answered my calls but when she did, I had already found the answer myself OR she was able to share something I couldn't find on my own - experience.
This helped me become very resourceful as it forced me to figure things out in case she couldn't get back to me in a timely manner.

Big box experience: I went to KW and found the best 'community' feel/vibe you could ask for in the business. Regular trainings held by top-producing agents, accountability coach, tech, great company culture and more. Of course, with any office that has 100's of agents, you'll also be surrounded by many who just hanging out at the office and that isn't the best environment.
This experience helped me narrow my focus to only income-producing activities and led me to join a team.

Cloud experience: From KW I went to exp where there is little to no culture but an online group of 10,000's of agents and a half dozen brokers to answer my questions. Similar training to that of KW but its all virtual so while it can be more convenient, it just isn't the same as KW. 
This model works for me but it isn't for everyone.

As Jonathan mentioned, have multiple conversations with agents/brokers, look beyond the "pitch", and just pick someplace where you feel you'll have the best shot at learning the business.

Investors don't care what brokerage you're in and if not for paperwork, email signatures, etc., they might not even KNOW which company you're at.

If you want to be an investor-friendly agent, concentrate on what investors want.

They want someone who can source deals, analyze them, negotiate them, and help them make more $. 

To be good at these things:

1. learn your market. MLS has a ton of stats that they share with you and that you can compile yourself i.e. sold data, new listing data, buyer demand/DOM, historical data, etc.

2. improve sales skills. Join a broker or hire a coach where you can learn how to convert leads. The more leads you have, the more listings and buyers you'll have. The more clients the more deals. The more deals, the more experience with negotiation, etc.

3. Find investors and help investors find you. Go to meetups, attend auctions, host your own meetups, hit up EVERYONE in your sphere of influence and add value to/communicate with your database on a regular basis so that you remain top of mind.

Just put in the work and try to be a better agent every day. No broker will do that for you.