The millionaire real estate agent - Do i need to join Keller Williams?

[James Park]

One of my favorite books is the millionaire real estate agent by Gary Keller. The book shows how one can build a brokerage and have a mind set of a business owner. Although, I've ran my own business (non real estate related) since July of 2007 and it has provided me a stable income for the past 5 years, however it is not a business of my passion. It is becoming harder and harder for me to sustain.

July 2012 was a turning point in my life when my father, who was friend and mentor, suddenly died of a heart attack at such a young age of 65. He always told me that you have to be in a business that you love... otherwise you will not be successful. My father's sudden death completely changed how i viewed money and life but that's a different topic for another thread.

I am currently wth a small brokerage, Park Mason Brokers who gives me a very generous commission cut of only a $195 transaction fee. I recently closed two investors working as a buyer's agent. I don't mind working with investors, but i quickly realized that I much rather work as a listing agent than a buyer's agent. You have more control over your time and have more leverage. When you work as a buyer's agent, you have less control over your time.

If you work as a buyer's agent, i assume that most people don't care about whch brokerage you are with, but as a listing agent, customer would care a great deal if you are from a brand name brokerage like Keller Williams, compared a no name brokerage like Park Mason. Am I correct in my thinking? Ideally I would like to work 80% in the list side and only 20% in the buy side. Would it be wise for me join Keller Williams at this time if i want to eventually have my own brokerage. Sort of feel like a lone ranger trying to kick start this new business. I do have 5 year team of a web developer/DBA,designer, and an assitant with my current business and trying figure out how to leverage this team to my new real estate business.

[Steven Hamilton II]

Originally posted by @DJ Porter:

Originally posted by @Steven Hamilton II:

James Park,
There is no point in building up a business with someone else when you should build up your own brokerages's name. Most don't care about the brokerage. They look for the agent they are referred to or that they see advertised often. -Steven

Harsh.

Some people could use the benefits that a large brokerage offers. With Keller Williams you can have your own company within a company. If you feel that later you want to break away and start your own brokerage, then that is easy. You've already established your brand and gotten the education while starting up.

Also in most states you must be affiliated with a brokerage for a minimum time. In WA it's 3 years before an agent can be a managing broker. If your intent is to own your own brokerage you must go through this right of passage. In the mean time build up your clientele.

@Dj porter,

For some it makes sense. There is very much a fine line. I will say some people are not meant to be truly in business for themself. As someone who works on the books of many different businesses... it depends. I'd want the my own brokerage as soon as possible. I want to have others making money for me. Work smar not hard. If you can do both you'll go farther.

If you have to pay someone else a franchise fee every year it's not that great in my eyes. Call me cheap but I like saving money. Many Agents should be tapping the property management aspect as well. If a tenant likes you and asks you to find them a space 5 times in ten years you could make just as much as one commission selling a house. Which as you're growing makes a difference. Then you hire a PM under you.

If that didn't make sense I'm sorry. Way too late.

[Bill Gulley]

Just going to mention, you need to be a good sales agent to be a good listing agent.

You don't really want a reputation of telling clients what they want to hear to get a listing, then later advise them to drop the price when another agent brings an offer, as many if not most do.

This really isn't a good approach saying I'll specialize in listings, you can lean that way and should as you have more control in finding an owner that needs to sell than finding buyers, but it takes both for a successful agency. You get listings the buyers will come. But you need to be the seller (or selling broker) too in order to justify an owner listing with you.

And, it's pure psychology, owners really don't understand the role of agents, brokers and cooperative transactions, most think the guy they list with is "selling my house". This really helps the agency PR. There are bragging rights for the agency that sells the highest % of their listings or/and all listings.

A good listing agent sells their listing and demonstrates that they can actually sell it at or near their listing price. Doing that will get you listings!

It also has much to do with your circle of influence, who you know as to contacts to have an ear to the ground, so network!

I have watched 4 large brokerages grow from single operators or a few partners. I know them all. Carol Jones use to ride her bike over to my house when she was just getting started, I suggest you look this lady up as to her bio, her story, dirt poor as a little girl in OK to a multi millionaire. My comments above are based mostly on what she preached.

Another was started by a doctor's son, his circle of influence is obvious having family friends in a large medical community. But just knowing folks won't be a meal ticket, it helps but there is a lot of organization building.

There are franchised networks that independent brokers may obtain to match the educational and referral systems of lager franchised brokerages.

I'd suggest you look into the referral systems and agency relationships, this is an important aspect if you are in a good size community with population growth and shifts in activity.

I agree that starting out you need to go with a big office, they will have the staff to teach and support you, when you advance you can move on.

And, in large organization, the team approach and branding yourself is a great way to operate that can easily lead to your own brokerage.

Most agencies I know are on a graduated compensation scale, reach 100% commissions from production. You may be tied to a 60/40 split in the first year as the broker is still training you, they also have more liability with new agents on the street, but as you season you can get a better split.

In any sales organization, there are rules, you'll also find there is no substitute for production and how rules in a company are applied may certainly be made with production in mind. I learned this long ago in insurance, when I was new I had to be at the meetings, when I hit being the top producer in the region, they didn't require anything of me. Same with any other organization, production covers a multitude of sins. :)

[James Park]

Thanks everyone for your comments. It is fun to look at your own post asking for direction couple years ago. I am now a full time real estate broker in the northern suburbs of Atlanta and started my brokerage in January 1st, 2014. I am having a lot of fun, learning a lot, meeting interesting new people, and enjoy my new vocation, while making money in the process. So far I may even surpass my previous W2 income this year.

I know that the only brokerage I would hang my license would be Keller Williams if i ever went the traditional agent model. I've read every KW book out there, but they all address the traditional agent model. I wish there is a book out there called "The Millionaire Investor Brokerage". It is a different model.

So far, without a doubt getting my broker's license and starting a brokerage was the right decision and the perfect vocation for me.

[Phil Z.]

Hanging your license at KW isn't going to make you a top producer. Look at the top producers in your area .. are all or even most of them agents under KW? .. unlikely. It all has to do with the agent and their own business skills, not the brokerage.

The book is good, but at the end of the day, all it is trying to drill into your head is that you make money focusing on listings .. which most top producers already know.

[Phil Z.]

Originally posted by @Keith Lutz:

When I was selling in Charlotte, NC my 100% company charged $35 per month, and $299 per closing and they were the second largest with over 800 agents. Now that was a great deal!

Did they go out of business yet?

[Steve Lay]

You will always be the key to your success, not the real estate broker you choose!

Some things you might want to consider when choosing a broker are:

1. The type and quality of training available
2. What kind of technology tools are in place
3. Office chemistry, do you feel like you are part of a family?
4. Is the broker more interested in his success than yours?
5. What is the broker's reputation in your community?

Choose well, and have a great career!

[Cindy Bowman]

I work for the top producing team in the Keller Williams Charlotte University office. I can attest to the value of the team approach and certainly appreciate your wanting to focus on sellers rather than buyers. We have a dedicated listing specialist and several dedicated buyer's specialists on our team. Since you are a real estate newbie, I strongly recommend working for a firm with excellent training and support (KW has some of the best training available in the field). Study the teams that are high producing and try to learn their best practices. KW culture promotes sharing information. I agree with others that recommend you interview with several larger firms. You will most likely get a vibe for whether it is a good fit or not. PM me if you would like to discuss KW and teams further.