Should a new RE agent join a brokerage or go solo?

Question

a bit of background info is required for this one. I'm 30, married and own a house that is cash flowing about $340 dollars a month through house hacking. I'm in college for cyber security but I've always felt like that would be more of a fallback if things go south. This upcoming summer I've found that I have time to take the pre-license real estate classes needed to get my license. My wife makes enough to support both of us while I am in school and getting started as an agent. I see myself as an investor first and foremost, but in order to really get the ball rolling so I can start BRRRRing properties I need to build up some extra money faster than my dividend growth account can support. I am connected with my local real estate investor's association and want to work primarily with other investors to grow my network. My plan is to provide value as an agent until I can start funding my own deals and grow a network within my community.

In regards to my plan, should I focus more on going solo and working on creating value for others as much as I can while I learn on my own, or would it be more efficient to attempt to join a team or brokerage to learn the ropes. Am I just putting the cart before the horse or am I on the right track with trying to build a plan for success early?

Kobe Xin · Answer

@Andrew Wilkins

Hey there! It’s absolutely great that you’re able to have a fall back plan as well as pursue a future in real estate. Getting licensed is a great way to learn the ropes of the business if I can do myself. I’m not sure if you mentioned which state you would be getting licensed in but here in Texas and in most states I believe you would be required to join under a broker once you’re licensed. On that note, some brokers offer more freedom and flexibility while others will offer more of a job opportunity and stability. In my opinion I think you should look for brokers that offers a little more freedom. Hope I can help and good luck getting your license!

Russell Brazil · Answer

You have to join a brokerage.  I dont know of any state that allows you to not work under the supervision of a broker.

Doug McVinua · Answer

@Andrew Wilkins In Arizona you are required to work under a Broker for 3 years at which time you become eligible to upgrade your license to a Broker license.

Under a Broker, you have the choice of going under a Team or working on your own. It's really a personal decision, are you a self-starter or do you need someone to kick you in the seat of the pants daily? Some teams require you to come into the office regularly for cold calling, lead gen, etc, others may just provide leads. Of course, many Teams offer training, generally, most of it is offered by the broker. Some Brokerages offer lots of training, others not so much. Some Brokers offer 100% Commission plans with fees for each deal, others will put you on some sort of split.

What is it you are looking for, lots of options to consider, it's all about identifying what your wants and needs re and then finding the best fit.

Hai Loc · Answer

If you want to learn the trade of selling real estate and put on the realtor hat then I would recommend you join a team to start off to gain some experience as they will feed you leads and train you and likely will be a 50/50 commission split. If you just go to a brokerage with a high commission split like 90/10  or even 100% with a flat fee don't expect that much support unless you accept a mentor who you may have to give some of your split say 75/25 or even 70/30..

Or if you simply want a license to make investment deals and some side deals for your sphere of influence then you can just go to those flat fee brokerages to hang your license..

Andrew Wilkins · Answer

@Kobe Xin

Ah ok well that solves that conundrum fore me 😂🤣

Andrew Wilkins · Answer

@Kobe Xin

Hey thanks for the reply, I should have mentioned I am in Arizona. I will update my post with that info. I'm unsure if AZ has a similar requirement to Texas.

Ryan Swan · Answer

@Andrew Wilkins in AZ you must "join" a brokerage, otherwise you can't practice real estate as an agent. If you're only going to do RE part time, then you really want to hang your license with a broker that either charges no monthly fees or very low fees.

Joining a team can be a great way to learn the ropes, network with other agents, get free training/mentorship, and often get free marketing materials. In my experience, the fast majority of teams will expect you to be a full time agent before you can join.

Lucia Rushton · Answer

@Andrew Wilkins. If I understand your question properly- you have to join a brokerage as you must hang your license. Joining a team is a different story. Do you want to work with investors or residential sales? Or commercial? Different worlds - different lingo.

Most teams have a residential focus.

Good luck making your decision.

Jake Kain · Answer

@Andrew Wilkins I will send you a PM.

@Doug McVinua makes a lot of great points in his post above. I started as an agent with a very similar situation to yours and almost the same mindset as it relates to investing and making money to help with my investing goals. Let's get together and I will share my experiences thus far and hopefully give you some insight on what would be best for you.

Andrew Wilkins · Answer

@Jake Kain

I live near downtown Phoenix but I'm often traveling to Mesa, Chandler and Tempe for school stuff

Should a new RE agent join a brokerage or go solo?

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