working for a Investor Friendly Real Estate Broker

[Hira Bakhsh]

Hi Fellow BPs,

I am in the process of getting my RE license next week. I am seeking advice to find the right brokerage (investment focused and has extensive training for fresh agents) to work for and learn from. Eventually, I want to establish my own brokerage. Location is San Mateo/San Francisco and surrounding areas.

[Charlie Cameron]

Morning @Hira Bakhsh!  What are your plans/goals?  Will you be going into it full time as a residential agent?  Is it mostly for your own investing?  Commercial?  Will you be part time initially and then transition to full time?  

All of those questions may result in vastly different answers on what makes sense as the best move for you.  

For example, when I was looking for an investor friendly brokerage that would allow me to get started part time, outside of my day job, I found the on demand training and local mentor and team support that eXp Realty provided worked for me.  If I wanted to start as a full timer and be a top producer in no time, I wouldn't have joined eXp if there wasn't an agent team in my area.  I'm sure I'd find many teams in the San Fran area though.  

I'd love to hear a little more about your goals - as would potential brokers/teams/agents in the area!  

[Hira Bakhsh]

Hi Charlie,

Thanks for the response. You have asked some great questions to point me in the right direction. Much appreciated!

I will be joining full-time. In parallel, I will be running fix and flip projects as an investor. My main focus is personal residential investments (fix and flips to begin with and later transition to the rental market). Eventually, when I have enough rental property portfolio, I want to establish a brokerage and management company.

Thanks in advance!

Regards,
HB

[David M.]

@Hira Bakhsh

Well, I'm not sure I'll have the exact answer for you.  In my opinion, each office is going to be different. Many are franchises so each brokerage will be run the way the owner/broker-of-record wants to run it.

If you are going full time and want training, perhaps any of the major franchises might suit you.  They "usually" have structured training classes both for new and senior agents.  If you want something less "structured," either find an existing real estate agent /friend that will train you (and thus join that brokerage) or perhaps a smaller, independent brokerage would work.  In some brokerages, the Broker actually runs the agents and hands out assignments.  In others, the agents are truly independent contractors and left to their own devices with usually some senior agent or office manager directed to provide "supervision."  

So, what does that mean for training?  Figure out what sort of training style you prefer and ask/interview around to find the one that suits you.

As for an investor friendly broker...  This actually sort of goes back to the above.  If they want you to be attending meetings, training sessions, sitting the front desk since you are the junior agent, etc.  that might make it difficult for you to run your own investments.  It can be like having a full time job again.  Some brokers will give you a discount on the sale side commission when you are selling your own property be it your primary residence or an investment property.

I honestly have never heard of a residential (I assume we are talking about residential real estate here) brokerage that is focused investment.  Its usually focused on "retail" real estate -- sort of why we have BP...  Jonathan Greene who is BP builds teams of agents around the country via eXp since its a national company (and not a franchise system) focused on investment, not retail real estate.

That being said, I've been half assuming that you are interested in learning the trade, not just being an investor.  You need to decide your allocation of being a residential real estate agent to being your own investor you want to be.  If you are going to establish your own brokerage, I say that you definitely learn the trade, all aspects of it.  Otherwise, how else will you be able to bring on new agents (unless you will only hire super senior/seasoned agents)?  Also, why would they want to work for you?

I hope this helps.  Good luck.

[Jonathan Greene]

There are a lot of different options out there, but if your main goal is to be able to do personal transactions you have to look for the brokerages that allow as many as possible. @Charlie Cameron and I both work for eXp and it definitely is an investor-friendly brokerage for what you want because they give you 3 personal transactions at MLS costs and then reduced amount on more deals. But as with all brokerages, there are pros and cons. It works for me, but if you think you might benefit from a brokerage with an office and a water cooler type of atmosphere, the big boxes might be better, but note: they are not investor-friendly and the splits are worse. I have an investor-friendly team where all of our agents are training in regular agent business, investor-friendly agents business, and their own personal investments every week. A couple of us flip two at a time so we work all parts of the market. Happy to talk brokerages anytime. I've worked for four big ones and can give you pros and cons on any. No pitch.

[Steve Morris]

If you want to learn the math and get trained, go to the large commercial brokerages.  They're always looking for juniors.

You'll find out quick if you know/like the math and working phones.

[David M.]

@Hira Bakhsh

just remember that commercial and residential real estate are two different "animals." From a Realtor point of view, transactions aren't really even handled the same way. Commercial agents don't even use the MLS normally...

I thought about doing commercial.  But, I figured its was too much to work commercial real estate but somehow learn residential real estate to do my flips.  At least for me, having two keep up with two separate markets was going to be too much.

Good luck.