I need advice on which real estate brokerage to choose

[Conway Morgan]

I need advice on which brokerage is best for a new real estate agent. Thank you.

[Joel Owens]

Generally 2 types of firms. 50/50 split for residential that focus on taking on new agents and intensively training them (agent mills). They know agents want to split for higher returns eventually so make 50/50 4 to 5 times on them. Most agents make a few sales and then leave the business once their sphere runs out. About 80 to 90% of new agents do not last the first year.

Per transaction firms. Generally you cannot get one of those as a new agent. They want to see 1 year or more of experience so they do not have to babysit you as much on the transaction since they are taking a low fee. Those firms you are more of a number and it's all about volume to them of deals closed. Those firms tend to be caretakers for lot's of agents rather than focused on selling much real estate themselves.

I won't sugar coat it. Whatever firm you choose isn't going to make you this magical success. It is going to be your personal truth of waking up every morning to learn something new and be your best. That desire that drives you to be in the top 10% nationally. There are plenty of agents that make maybe 40k a year and eek by. The top echelon can make millions in commission.

In commercial real estate I wake up everyday looking to learn more and more. It becomes something just like brushing your teeth daily or tying your shoes.

If you go into commercial plan on maybe making 30% and brokerage 70% in the beginning and over time 50/50 and eventually if you make it a long time then maybe getting 70% of the team earnings after the brokerage gets their 50% cut.

So commercial example 100,000 commission on a transaction. 50,000 to brokerage. 50,000 remaining on team of 3 agents. Senior gets 28k, middle 14k, junior 8k.

New agents miss the part about knowledge and experience COSTS MONEY. I have spent thousands of hours of 15 years learning the commercial trade and owning my company. That is not given away for a per transaction fee to brokerage. I simply keep working with my clients directly one on one and my own investments and have no agents. The problem with agents is they have not earned their stripes but think they are a gift to brokerages.

Again if you get a per transaction no frills residential company expect to usually just be a number and very little training. It's a volume and growth game for the brokerage to eventually get bought out by one of the larger companies.

Good Luck