100% Commission Brokerage Vs. Traditional Brokerage

[Timothy Lewis]

Hello BP! I just passed the board exam to become a licensed Real Estate agent in Florida. Specifically in South Florida. My plan is to find a good 100% commission brokerage to hang my license with. The reason I was looking at this versus a traditional brokerage is because I believe I have a relatively good grasp of my local market and RE, in general. I have experience with wholesaling, flipping, and managing rentals down here. I am mainly looking to leverage my license for my real estate business and to purchase a primarily residence for myself. Due to the high price point of Miami RE, I would be giving a large chunk of money to a traditional brokerage per deal. From what I've researched, most 100% commission brokerages charge a standard amount per transaction. Few have monthly fees. All charges would be significantly less than a brokerage taking 30%-50% of my commission.  However, to my understanding, traditional brokerages offer a lot that a 100% commission based brokerages don't; like training and resources. 

My questions to the BP community are:

• 1. From your experience, what are the main pros and cons of working with a 100% commission brokerage?
• 2. Out of the hundreds of 100% Commission brokerages out there, what qualities set the great ones apart from the mediocre? Simply put, what should I be looking for?
• 3. What pivotal resources would I be missing out on from a traditional brokerage, like a Keller Williams, by going with a 100% commission brokerage?

Thanks in advance for all your feedback and help!!

Tim

[Mindy Jensen]

I'm licensed, and work for a 100% commission broker. I pay $25 per month and $295 per transaction. On a typical deal, I'm at $12,000 before any fees. I also pay a Transaction Coordinator for every transaction, which I don't count because I don't HAVE to pay it, I choose to.

I could be licensed on my own and truly take home 100% of that commission, but I like the opportunity to ask questions of my managing broker. I've had some weird deals happen lately, and it is super helpful to have someone else to bounce ideas off of.

However helpful it is, it isn't worth 40% of my commissions.