Should I join an online brokerage?

Question

Hi, I've passed my salesperson test and am looking to select a brokerage. I am an investor; I'm getting my license for MLS access, the ability to make my own offers, and save on commissions. I was wondering if anyone has had experience using an eBroker such as reebroker.com. The savings on desk fees and the 100% split are very enticing, my only concern is that training will be lacking.

I'd really appreciate it if anyone out there who has used reebroker or a similar eBroker could give me some insight on their training. I am most concerned with training regarding making offfers, making a listing, and understanding the REO process. If it matters, I will be licensed in California.

Russell Brazil · Answer

You should join a brokerage that has lots of training to begin with. It's very easy to break the law making a mistake, better to give up some of your commission so you can learn how to do things properly before you go more independent.

Shane Hedeen · Answer

@Patrick P.,

I will chime in with my two cents here, only having worked with RE/MAX in my career. I would not trade the training, leads, and benefits of being with the top team in MN for anything. Don't get bogged down in thinking you should go somewhere with 100% split. 100% of nothing is nothing. No training puts you in a vulnerable position like @Russell Brazil mentioned. A few thousand bucks isn't enough on that 100% commission to cover a lawsuit.

Your brokerage and team are very important. Training is very important. Even with your mentioned goals of doing this for yourself as an investor, you need to treat yourself like any other client - with the highest level of fiduciary duty.

I don't personally know anything about the online brokerage you mentioned. Maybe it's great, maybe not. I think a lot comes down to the particular people within your brokerage you meet and learn from. Seems like that could be tough with this setup to find something like another agent who was an investor to mentor you through some deals.

If you don't have interest in being an agent at a high level, even for only yourself, I will kindly and bluntly tell you to just hire a great agent, and find better deals on or off market. If the only purpose is for a few thousand you save on commissions for yourself, remember that transactions are two sided. If you don't know what you're doing, you pose a risk to both yourself and the other side.

Best of luck on the decision if not yet made!

Patrick P. · Answer

Thanks for the feedback. I'm still not decided either way. Do most brokerages have you sign contracts where you have to do a certain amount of deals or wait a specified period of time before you can change brokerages? I'm thinking if I were to join a big brokerage it would be with Keller Williams because of their extensive training.

Martin Z. · Answer

"my only concern is that training will be lacking. " Yes, no training, why would they bother training someone they make peanuts on.

Patrick P. · Answer

Thanks for the info. I will plan on sending you an email once the BRE issues me my id number.

Maria D'Aura · Answer

Almost forget.. there are also team building options too. Not sure exactly how those work, but if you're interested message me your email address and I can send you an invite to my "team". Would be nice to know another investment minded agent with the same broker to share ideas with.

Maria D'Aura · Answer

Patrick,

I wanted to follow up since I've learned a few things this week. I'm currently in negotiations on a property and my broker, REeBroker, has been helpful. The different departments have been very quick to respond to my emailed questions which is great. I also discovered they offer a mentor program. If you want a mentor to help you through a transaction the cost is 20% of your earned commission for that deal. Not a bad cost IMHO. I didn't go that route this time because I only just found out about it after the process was already started. I may do it for the next one.

They also do have step by step instructions on completing forms and things like representing buyers or sellers which I found helpful as well. The brokers cell number is shared for any after hour urgent needs too.

Over all I'm feeling better about my choice vs. a more expensive broker.

Hope that helps.

Maria D'Aura · Answer

Hi Patrick,

I'm in a similar boat. Currently have my license with reebroker. There is not much training, some videos, but I'm just not willing to pay monthly fees to a broker for training at this point. Considering asking a few experienced agents to mentor me through a few transactions for a share of my commission. I think it would be more beneficial for me, and my style of learning, plus will build relationships along the way.

Should I join an online brokerage?

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