How Do You Vet Sponsoring Brokers?

Question

Hello everyone,I recently just passed my IL broker exam a few days ago and was looking to take the next steps as far as finding a sponsoring broker to work under. I know this doesn’t necessarily have to do with investing, but I believe it is important regarding the next steps towards my investing journey. What questions should I be asking, what should I be looking for and what should I watch out for as a future investor while searching and interviewing sponsoring brokers?

Garrett Brown · Answer

Congrats on passing @Jaiden Young! When I found my broker, I interviewed about 4 before I decided. You are not interviewing for a job, you are deciding if you want to work together more so.A few things to ask or decide before going in1) What training do you offer2) Do you offer leads3) What are the typical commission splits and what fees do you have for agents?4) Do most agents work in teams or individual5) What tech tools do you offer?6) What are the primary clients that are brought in? (Luxury, first time home buyers, investors, etc)There are several others that may be specific to yourself but only you can decide your final goal. Do you want training and don't mind higher fees? Do you want to work in a team? Are you wanting low fees or no fees in exchange for less training? Feel free to shoot me any questions you may have (Agent for 7 years now and have switched brokerages only once).

Bruce Lynn · Answer

Congratulations on getting your license.Picking a broker.#1 Find one that is profitable and growing. If they're public, look at their stock prices, look at their income. Many of the shiny object brokers I expect every day to see they've decided to call it quits. Even if that one branch is doing well, if the whole firm is upside down, that's not a good business model. You never want to be a creditor of a broker. Look for one that is growing and profitable. I mean if they can make a nice profit in 2021 and 2022, 2025 is not going to be kind for them.#2. Ask to see the training room. No room, then I question how serious they are about training...and you need training....real estate school teaches you laws, contracts, and concepts. Training in the brokerage teaches you how to be successful.#3. Ask to see the training calendar. Again no calendar, probably no training.#4. Ask how much the training costs.#5. FORGET about broker sponsored leads. Nobody is calling the brokerage asking to list their home...and if they do, they're not giving that lead to a new agent. Sorry....just bust that myth right now. GO to a broker that teaches you how to lead generate. #6. Ask about investors in the brokerage, ask how you get connected to that. Ask if there are other agents that work with investors. Ask if you can meet them. Ask if the brokerage has any books about investing, like FLIP, HOLD, or the Millionaire Real Estate investor. Read those books.

Jonathan Greene · Answer

You want to find a match for what you really want to do. Ninety percent of agents fail or quit in the first couple of years because they think the job is easy or they can do it as a side hustle, but why would any client want to work with a part-timer?In terms of brokerages, you really have three types:1. Big box / old school2. Cloud / modern3. Mom and popIf you want in-person training and offices and more camaraderie, bib box like KW, Coldwell Banker, etc are good options to start (you will leave after one year).If you are mobile and doing a lot and want to work freely, but have a ton of online support, cloud brokerages are great and have better splits like eXp and Real. But you won't have the same office culture because they don't have many offices.If you want to work in a small town and learn from a person, but not necessarily have the latest CRM and tech, a mom and pop usually works a single town and crushes it, but won't have much training other than here is a lockbox.

Gary Nelson · Answer

When vetting sponsoring brokers, think about both the support they offer and how they align with your investing goals. Ask about their training programs, especially around investment-focused transactions, and find out if they offer mentoring opportunities. Check if they’re investor-friendly and familiar with STRs or rental properties. It’s also key to ask about commission splits and what resources they provide, like marketing or lead generation. Look for a broker who can help you grow as an investor, not just as an agent.

Jaiden Young · Answer

Thank you and Thank you again for your reply! I really appreciate the insight and guidelines you have given me, I will surely incorporate them into my search.