What Option for a Brokerage Would You Recommend?

[Brian Connelly]

Hey BP Community,

With a little under 20 hours left of classes for my real estate salesperson license, I'm beginning to consider options for a brokerage post-licensure.

Ideally, I'd like to work with a broker that specializes primarily in real estate investment and works with investors. I've done a bit of research, but it seems these types of brokers/brokerages are on the less conventional side.

I currently run a marketing company that does a bit of work in real estate, and would like to continue managing this company while working for the broker. My concern, however, is that this might be a deal breaker should I disclose this in a preliminary interview with the broker.

My question to you is: Do you have any recommendations or a place to start looking for these type of investment brokerages? Are they difficult to find? Difficult to join? Would they frown upon an agent operating a separate business?

[Joel Owens]

"Favorable fees and some training/coaching would be great, although I do feel somewhat competent in regard to agent marketing and the sales aspects of being an agent."

And there it is............. : )

There is no having your cake and eating it to in this world. This is the exact reason I have no agents currently on the commercial side.

Some new agents say: I don't have money to go full time but I would like to learn the business off of you and while doing that pay little to nothing in commission splits and fees.

That is not how it works in the business. You either are on a 50/50 split learning the craft or you are at a higher split but the company does little to next to nothing for you as fees are minimal. Brokers time is worth A LOT of money. Agents have to have skin in the game in the form of big splits to brokerages while they learn the trade. 

As agents get more established or become brokers then they can request higher splits or eventually go to open their own companies.

I get inquiries all the time for commercial. I tell them currently 25,000 non-refundable fee upfront as an agent and then 50/50 split. If first deal they make 50,000 they get to keep all the commission as they have paid 25,000 already. Some almost took me up on it but I wasn't looking to take on agents anyways. Agents have to have skin in the game just like using a hard money lender for a rehab so when it gets tough it will be very painful to walk away. When an agent will not put the 25k up non-refundable it tells me they are a dabbler and do not have enough confidence in themselves to take the risk. If they do not then I sure do not have the time to waste spending on them to learn the craft.

Keller Williams has an investors mindset. You might try them. If you go on a team your return will be even less as the brokerage gets their split and then the head of the team gets the lion's share of commission generated for the team. Senior agent more, then regular agent, then junior agent smallest amount is typical.