go straight to 100% comission broker?

[Dave Charron]

If you were only getting your real estate license for your own deals and maybe close friends and family, is there any reason not to go straight to a 100% broker with no training. Im not looking to learn all about farming for clients and working my sphere so what do you think?

Seems like most brokers only want to offer 50% comission to new agents.

[Jeff S.]

It has been a few years since I was a RE agent but back then 100% costs $1000 a month for an office. Check the fees and decide for yourself.

[Steve L.]

I'd go to 100% commission... or small fee brokerage. You don't need an office, name brand recognition, etc.

[Joel Owens]

Dave if you can find a broker to take you on then great.

Newly licensed agents need training to conduct deals besides passing the test.That training takes time as a broker.

If a broker just lets an untrained person start doing contracts they are an idiot.I know,I know some investors might have put deals together before being licensed.They also might not be able to put deals together that way anymore to be in licensing requirements.

There are 100% companies in my state.Usually the first few deals are at a 60/40 split and the after a few deals and training they will move you to the 100%. The per transaction fee works best for the agent instead of the monthly unless you do high volume.

Example if you pay 1,000 a month and 100% commission you would need to close 4 deals a month for a 1,200 value versus if you paid 300 per transaction and did 2 deals a month you would only pay 600 a month instead of 1,000.

On the low split starting out you can do small deals say a 20,000 house and save the larger priced deals for after you have gotten your first few deals out of the way.

This is what I did as an agent years ago to get the small ones to close first so that I gave away very little.

I haven't accepted agents in awhile.Too little money for too much work.

[J Scott]

I don't know what they splits look like in NY, but in Atlanta, I'm paying $68/month plus $300 per transaction. The broker has about 3500 agents, so there is a good training and support infrastructure. I see no reason to give away a substantial part of your commission when you don't need the brand, the office, the desk, the phone or the team.

[Dave Charron]

@Joel, Your right I do need help with my first few deals.

I am thinking about keller Williams for my first broker as the training is there if I want it and they are at a 64% agent 36% broker split right out of the gate. The other Brokers I have spoken to are at 50/50. Even that little 14% difference will just about help cover my yearly fees if I do a couple deals.

What do you guys think about that plan to start out?

[Dave Charron]

J Scott, The only 100% or close to 100 are ReMax (too many fees) or a few No Name Brokerages that I have never heard of or seen any of there signs around.

This might be a whole other thread but does the no name brokerage matter to buyers who wil be looking at my listings?

[Rich Weese]

Dave- if you're only doing your own deals, take the no name, especially if you don't need help. No one will care who the listing office is- only if it is a good deal or property the client is interested in. Good luck. Rich

[Andy Chu]

Defintitely take the no name one. I've never heard of anyone not showing a listing because it was listed by Mom&Pop Realty. Most of the time, the no one names have less agents and can give the one on one if needed.

[Joel Owens]

J Scott doesn't Michele Shoda now have it when you join as a new agent the first few deals are on a split instead of 100%??

I remember seeing she changed to that after the new agents or agents that hadn't closed a deal in a year were rusty or inexperienced.

When I joined she was just trying to grow and add agents at that point.

I was there after I left Metro Brokers years and years ago.Solid Source only had about 50 agents when I joined.It was a very small start up.She was doing mainly investment deals on her own and just starting to grow the 100% concept and add agents.

Dave it all depends on what you are trying to do.My average deals myself are in the five figures.

So I would have to track and close 50 transactions or more at 300 a pop to equal one of my own closings.

Not worth the time,energy,and headache for that.You have to remember as a broker many deals are falling out instead of closing.Appraisal,short sale,inspection issues,loan credit problems etc.

So to hit 50 deals closing at 300 a pop I now have to moniter way more than 50 contracts.Like I said just a waste of time and crappy ROI for a broker.

[J Scott]

Rich - exactly.

Joel - yup, I think the first 3 deals are spilt, then 100% to the agent minus fees.

[Carlos Flores]

100% can be pretty cheap in Texas. A friend is with one that charges $199 per year plus $175 per residential sale and $75 per residential lease. Includes E&O from what I remember.

[Vladimir K.]

Originally posted by Dave Charron:

If you were only getting your real estate license for your own deals and maybe close friends and family, is there any reason not to go straight to a 100% broker with no training. Im not looking to learn all about farming for clients and working my sphere so what do you think?

Seems like most brokers only want to offer 50% comission to new agents.

In my opinion, you should go to 100% broker, as long as monthly fees are reasonable. You can always pay for the training if needed.

As an example, if you need hand holding at first, consider splitting the commission with a knowledgeable agent from your office. You can always negotiate your split this way.

Also, i'd recommend that you contact agents who sell their own homes (search Agent Owned/Agent Interest) to find out what their opinion of the brokerage is.

[Kelly Wali]

The following article is from the National Association of Realtors, It completely makes sense it is the agents knowledge, work ethics and personality that makes the deal not the name of the company.

Article from NAR;

you know the names, even if you're only a casual observer of the real estate market. Coldwell Banker, Re/Max, Century 21. The list goes on. And so do the ads, because national real estate brands blast away at consumers with marketing that ranges from TV spots and local signage to search engine optimization and social media. Clearly, competition is fierce for those brands. But if you're a buyer or a seller, does the brand name really matter?

The choice

Of factors that go into picking a real estate agent, some evidence suggests that brand name isn't important. According to data from the National Association of Realtors, only about 3 percent of buyers and 4 percent of sellers report considering an agent's association with a particular firm to be an important factor in hiring that agent

Read more: http://www.bankrate.com/finance/real-estate/does-brand-matter-pick-agent.aspx#ixzz3oSoensEf
Follow us: @Bankrate on Twitter | Bankrate on Facebook

[Sonia T.]

Originally posted by @Vladimir K.:

Also, i'd recommend that you contact agents who sell their own homes (search Agent Owned/Agent Interest) to find out what their opinion of the brokerage is.

Hi - Where do you do the search? Is it on the MLS or something ?

[Vladimir K.]

 Hi Sonia, in my area, there is an option (only for Agents) where you can select Agent Interest as YES.  You may have luck with text search "Agent Owned" too.

[Max T.]

I think my 70/30 split is decent.

But I didn't need training. I got that from my first few deals I did as a buyer before I was licensed. Got to work with 2 good agents then and 1 bad one.

I still get questions answered by my broker usually same day. The better I do the better he does.

[Jonathan Greene]

@Dave Charron - if you don't want training or need an office mentor (which you will need a mentor of some kind just to make sure you are doing everything correctly on the contract side working your own deal), don't go somewhere like KW. They will get you on monthly tech fees, training requirements, etc. If you don't need the branding of the big agency (which is really only relevant for higher end listings), find the best deal.

My best advice for this is to do what most of us do as investors - drive for signs instead of dollars. When you are driving for dollars looking for properties, see what agency is listing investment properties. When you see the sign three times and the same name on it, that might be your agency and mentor right there. Hope this helps.

[Melissa Kirchhoff]

My question is why wouldn't you *want* the training? (and other general experience)

To me, that's the most powerful part of it. Learning the real side of your market - working with tenants, working with real buyers in your area, working with sellers, negotiating, learning ins and outs of the contracts and hearing other people's stories is an amazing way to learn lessons on other people's time and money, no matter what your investment strategy. Maybe you are past this point, but I think that's very useful. Every day I learn new things as an agent that helps me learn more about the investing world (not to mention most agents I work with are also REI that aren't going to these get togethers and on these forums but have been doing it forever and it's great to pick their brains and network!)

Also, a side note, agents will show any brokerage's properties because we have to. But honestly, there's ones that are better to work with than others. In my area, working with a lot of these small ones can be a complete transactional nightmare! So I do try to promote to my buyers listings that are with agencies and brokers that I know are smooth and good so my buyers have a better experience (as well as myself since that's all part of it!)

@Vladimir K.

@Vladimir K. - Yes! That's an excellent idea and the search is the same for me but we are both likely in MRED.