What Are The Big Do's and Dont's When Interviewing at a Brokerage?

Question

I recently completed the Colorado Brokers Exam, and the next step is to find a brokerage. I seek to be an investor with a brokers license, and not a retail broker. In a past career I interviewed with many CPA firms, and there was a great deal of formality, posturing, etc.

I wonder what are the big do's and dont's in interviewing to become an investor with a license through a brokerage?

In real estate school I was told that I'm actually interviewing them, as its all a numbers game and the brokerage benefits regardless of the number of transactions due to the monthly fees I would pay.

I'm sure I would need to relate my investment career to date, ask about fees, splits, etc. As I hope to get it right the first time with a firm thats well recommended locally, I'd prefer not to have to climb an interviewing leaning curve, but may need to anyway.

Anything in particular I should include or seek to exclude in interviewing at brokerages?

Mat Lewczenko · Answer

As far as what your needs are, just sit down at your interview, and when they say "So, tell me why you want to be in the wonderful world of real estate?" You then reply with your current strategy or focus. For me my interview went something like this:

{them}"So, tell me why you want to be in the wonderful world of real estate?"

{me}"Well I got interested in RE investing, wanted to start by wholesaling(you expalin what this is) to other investors, so I got some bandit signs(you explain what those are), couldn't find any good deals cause all my leads are underwater, kept referring them out to my realtor friends and realized I was handing over tons of money. So I want to get my license so I can take those leads that I have been giving away, list them as short sales, have access to the MLS, build some cash so I can fund my flips and find some really great deals on buy and holds(explain that means rentals)... oh and I still work fulltime somewhere else - so I don't want to have to commit to any board duty and answer phones and stuff, but I plan on turning about 12 deals a year(24 sides) when I get going."

At this point you will know by the look on their face wether or not you are in the right office. My current broker was all about it, so that's where I hang my license.

It will be obvious when you lay out your plan to them if it fits.

Have fun and talk to a bunch of people.

Mat Lewczenko · Answer

Do:
Let them know exactly what your needs are as an investor/agent and they will either embrace it or try to tell you what "they" want you to do.

I think the idea that you are interviewing them is correct.

Don't:

...Eat Yellow snow :)

Burt L. · Answer

I appreciate the replies on this board. In spending some more time at BP on Investor-Friendly Brokerages it seems that being able to work easily with the Broker-In-Charge is more important that the company itself. Other threads have mentioned how frustrating it is having to educate the BIC about an investing transaction, and then having to pay THEM for it.

Training in contracts also seems crucial, especially as it can take so many offers to get an REO deal. I look forward to being able preview properties and having access to MLS data by neighborhood, etc.

Not having worked at a brokerage before, I'm not sure how to commuicate just what all MY needs are without the experience of prior brokerages, but am filling in many of the blanks with the help of BP people. A first interview still has to be a first interview though - no way around it.

Anson Young · Answer

You ARE interviewing them.  The most they can give you is:
1. support
2. leads
3. training

Info you need from them is:
1. split %
2. Fees, and what you get for those fees
3. If they are OK with you being an INVESTOR first

The big box agencies never made sense to me for an investor/agent who isnt doing retail.  Most retail agents sign up with a re/max or KW due to name/brand recognition, and in return they take $18-21k of your commission, capped out.

Mark Brian · Answer

Find out what your split will be, what the fees are. What else are you responsible for, such as signs?

What free training is there? Even if you are an investor/agent, there may be free training that you can use.

Good luck & best wishes.

What Are The Big Do's and Dont's When Interviewing at a Brokerage?

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