How do Realtor/Investors fairly split commission with Broker?

Question

Hi BP family,

I going to start taking Maryland RE licensing classes this month and have several questions.

• Once I'm a licensed Realtor as an Investor, what should I look for when choosing a Realtor/Investor friendly Broker?
• What would the approximate Broker/Realtor commission fee be if I am also an RE Investor?
• Does my Broker receive a commission if I purchase or sell a property as an Investor?
• How do Realtors who are also experienced Investors do this legally and ethically?
• Are there certain criteria in being a successful Realtor and RE Investor you can suggest?

Please excuse my many questions. I know this is a good place to get feedback, so I thank you in advance for your reply and suggestions.

Rebecca

Russell Brazil · Answer

• Once I'm a licensed Realtor as an Investor, what should I look for when choosing a Realtor/Investor friendly Broker?

Depends on your goals. If you just want to park your license someplace and have MLS access without actually practicing real estate, a brokerage that is virtual, or a place that just charges you a transaction fee. But if you actually want to practice, you need to learn what you are doing. In that case, some of the larger places with better training are likely a better fit. You may also want to consider joining a team.

• What would the approximate Broker/Realtor commission fee be if I am also an RE Investor?

Flat fee places may charge you a fee and let you keep the rest of the commission, all the way down to 50% splits

• Does my Broker receive a commission if I purchase or sell a property as an Investor?

Yes. As a real estate licensee, all of your real estate activities are subject to the oversite of your broker. Buying. selling. renting, everything real estate related.

• How do Realtors who are also experienced Investors do this legally and ethically?

Disclose, disclose, disclose. Also understand that having a license means you may actually have to buy a property at a price higher than if you were unlicensed. If the real estate commissions feels you have taken advantage of a member of the public (negotiating the price too low, and they complain later) the full wrath of the law can and will come down upon you.....and your e&o insurance does not cover you when you are a principal to the transaction.

• Are there certain criteria in being a successful Realtor and RE Investor you can suggest?

Everyone does it differently. I sell a lot of real estate, then I take the money I earn and invest it back into what I know, real estate.

Ray Slack · Answer

Just discuss it with your Broker.. Most brokers have a policy where they will allow their agents to sell their personal property and not owe a listing comission but it's usually capped at once every x years. You may also want to consider one of the 100% companies. Last time I researched it for Maryland Brokers Tri-star Realty was the best deal for agents out there. They charge $50 a month $395 per closing and then you get 100% of your commission. It's hands down one of the best deals out there even for new agents. $90 fee for Rentals.

Rebecca R. · Answer

@Russell Brazil Russell thank you very much for always taking the time and giving me a clear prospective on all things RE. I will seriously consider your thoughts regarding my questions also. Thanks again.

Rebecca R. · Answer

@Ray Slack Thank you Ray. I checked out their site after your first post to me and will keep them in mind, thanks again.

Ray Slack · Answer

Both my mother and my sister work out of their Bowie office. Both love the company

Rebecca R. · Answer

@Ray Slack Thank you very much for the suggestions Ray. I will definitely look into Tri-star Realty. Do you know anyone personally who works or has worked for them? I'd like to know what their experience with them is or was. Thanks again.

How do Realtor/Investors fairly split commission with Broker?

How do Realtor/Investors fairly split commission with Broker?

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