Finding a real estate brokerage for new realtor

Houston, TX · Member since 2018 · 72 posts · 6 votes

I am working on getting my realtor license. Hoping to finish up the courses by end of month. What should I be looking for in a brokerage? What questions should I be asking? I would like to preferably work in Conroe or the Woodlands. I am an investor so that is important to me. Are there any investor based agencies which can be me learn the business and grow as a salesperson? I eventually want to be able to manage investments for myself and others. Suggestions?

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Joel OwensBusiness Member

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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

Brokerages that offer low fees to agents tend to be mills that do a volume game. If they can get 1,000 agents and 50% do not close anything, another 30% close some, another 20% close a lot then they might can eek out a profit.

The other end of the spectrum are brokerages that do not want to be mills. New agents think they are the gift to the industry and highly overvalue themselves or their skills when starting out.

The brokerage is not going to make an agent a success. The agent is simply given tools to use or not.

I do not currently have any agents at my commercial brokerage firm by choice. I find many to feel entitled to want all of your knowledge but pay nothing in fees and be users. I enjoy doing my own investments and my deals with my clients.

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Christopher Sparacino
New to Real Estate · Sarasota, FL · Member since 2018 · 82 posts · 49 votes
8y
I work for Coldwell Banker in Brooklyn New York, I have to pay a fee every month just to work, it adds up over time, they also take a 70/30 split until i make over $30k. They offer alot of training, but in my opinion it's just not worth it. So look out for brokers like that
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Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Thanks Christopher Sparacino good to know. Are you thinking about switching eventually?
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Vijaianand Thirunageswaram
Real Estate Broker/Owner & Property Manager · Sugar Land, TX · Member since 2013 · 660 posts · 459 votes
8y
@Dan Roma There are lot of things need to look out when signing up with Broker especially in your case you need to look out for someone who has investment experience. Few BP investors have joined my brokerage recently. Check out my profile and website and ping me interested.
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Christopher Sparacino
New to Real Estate · Sarasota, FL · Member since 2018 · 82 posts · 49 votes
8y
@Dan Roma Eventually once I get a few deals under my belt, the one good thing I forgot to mention is that all I have to do is bring in leads, I work with another salesperson, he has about 9 years of experience, so I bring in the leads either through the phone or through another source and he closes them. So it's not so bad, but if you can find that without paying desk fees and a 50/50 split, I would go with them
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Ryan Terwilliger
Real Estate Agent · Houston, TX · Member since 2015 · 93 posts · 46 votes
8y
I work in the Cypress, Spring and Woodlands areas. There are several different ways to pick a broker.
1. Name recognition.
2. Look at the $ flowing through, it's all public info.
3. Training.
4. Call the agents and brokers and ask them. Remember you are interviewing them.
5. Ratings online. My broker is rated one of the top five place to work in Houston by a business magazine.
Just find what is important to you and do the work but don't just pick the first one that you interview. Remember that you will be branded tho that office with all its marketing materials. Switching is a big deal.
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Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Texas has a preliminary check called a Moral Character Determination(MCD), does anyone recommend I do this before applying for my license?
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Fred Heller
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
8y
Once you get your license, you will be flooded with emails from broker firms asking you to talk to them.
1 Reply
Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Fred Heller What types of things should I be looking for in a broker?
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Brendan Taylor
Real Estate Agent · Akron, OH · Member since 2017 · 73 posts · 48 votes
8y
Every brokerage is different and it all depends on what your ultimate goal as a realtor is. When I was searching I looked for average deals per agent. All too often do you see brokerages trying to bring in anyone with a license and a pulse.
As far as the "desk fees" mentioned in earlier comments that is all subjective. If you plan on growing your business fast a 70/30 split is much more beneficial than a 50/50 with no fees. At least this is my opinion. It depends what those fees go to but I know the $150 I pay per month is money extremely well spent for what I receive. Shoot, you can just use the fees as tax deductions anyway. Also, no matter what a broker might say, your commission split is negotiable.
You also mentioned property management so make sure whatever brokerage you go to has a PM branch.
At the end of the day, choose the broker you feel most comfortable with. Being a realtor is running your own business and you have to weigh the pros and cons of every brokerage. Where do you think your business will succeed?
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Russell Holmes
Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
8y
@Dan Roma you should include consideration of eXp in your search process. I interviewed with local brokerages but ultimately went with eXp and I'm really glad I did. The brokerage is cloud based, but you get set up with a local experienced mentor in addition to all of the training available from the brokerage. Their systems and support are top notch to the point where franchise brokers from big name brokerages are switching over. You never hear of a KW broker going to ReMax, but I've lost count of the number who have come to eXp. Growth last year was over 200%. I pay $50/month. 80/20 split with only a $16k cap. The mentor gets 10% of first five (my mentor hasn't made a dime from me yet and has poured her decades of experience into me and other mentees, the 10% is well worth it). It is a different model and not the right thing for all, but I absolutely love the brokerage I'm with. I found eXp before picking others to interview, but still interviewed them to solidify my choice.
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Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Thanks Brendan Taylor , Thank you so much, that was a great synopsis. Where would I be able to get information on sales per agencies and any other metric to make my decision easier? Also, what is the typical desk fee? And, do you think mentoring is needed, especially in the beginning?
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Brendan Taylor
Real Estate Agent · Akron, OH · Member since 2017 · 73 posts · 48 votes
8y
Originally posted by @Dan Roma:

Thanks Brendan Taylor , Thank you so much, that was a great synopsis. Where would I be able to get information on sales per agencies and any other metric to make my decision easier? Also, what is the typical desk fee? And, do you think mentoring is needed, especially in the beginning?
You can check out the national brokerages numbers for deal per agent but most of that is all propaganda. Yes, I work under the RE/MAX brand but really I work for myself. Ask the broker of the franchise or office what the number of transactions per year the average agent does there. If its below 12 thats a red flag for me.
Desk fees are usually $100ish. At least in my market. I am not sure how they differ. For me I get your typical stuff: showing time, dotloop, bomb bomb, etc. but the big kicker is that I have access to a top of the line CRM. A good CRM is priceless when staying in contact with and managing your database.
Mentoring is definitely something that is needed but paying for it, I am not so sure. Unless you think this mentor is going to really invest their time into helping you do not pay for that. I help people and I do not ask for any referral fee. You can not make it without a little help in this business and all I ask is they return the favor one day. Try to find a mentor that invests time in you and sees your potential. This might involve joining a team at first. Yes, that means lower commission splits but a good team feeds you leads and, ultimately, deals that you were never going to have anyway. 50% of something is better than 100% of nothing. Plus if you are on a team, the team leader must be pretty good at what he/she does and you can learn from them.
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Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Thanks @Brendan Taylor
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Martha Nowlan
Real Estate Agent · Waterbury, VT · Member since 2018 · 151 posts · 65 votes
8y
@Dan Roma I think the important questions are, will you be doing this full time? What do you have experience in and what do you need a lot of training with? Do you know how to generate your own leads or will you need help getting some? Do you have a good space to work at home? Do you want to focus on just doing deals, or do you want to be totally independent and do everything for yourself? How many deals are you hoping to do every year? I chose to work with one of the top producing teams at KW. A team so that I don't have to do BS like put my listings into the MLS myself and take photos myself etc, and KW because of the amazing training my market center offers. eXp sounds cool but for me I really need an office to go to, I need the energy of other people and the lack of distractions I have at home. And I want to do a ton of deals, and can generate some of my own leads but want them handed to me too. I want to focus on conversations with buyers and sellers. If that's what you want, join a top producing team and the high splits won't matter because you'll kill it. If you want to work from home and be independent and don't think you need any training or help and just need to hang your license somewhere, go for the best splits.
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Andrea Lizcano Summers
Member since 2018 · 6 posts · 1 vote
8y
Dan, check NB Elite Realty. I switched to this Brokerage since I am a RE Investor and Broker is an Investor himself and has done all aspects of RE Investing. No monthly fees. Lower fees per transaction than Champions yet I feel as agents we are getting more from our Broker than the competition. Thanks and best whished on your new career.
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Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Did anyone do a Moral Character Determination? Texas suggests it but it isn’t required, I already started my courses, what should I do?
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Jessica Wygal
Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
8y
Hey Dan,
I am in the Cypress area and just went active this week actually. I interviewed 5 brokers; Coldwell, Gary Greene, Remax, Keller Williams and a small brokerage called Soluna. Some of them (Coldwell and Remax) I knew pretty much when I walked in that it wasnt a fit for me...just the vibe, the people, etc I knew werent a fit for me. Gary Greene and KW were what I was left with and both seemed like great options. When I dug deeper into KW (I asked for a copy of the contract I would sign, which was SEVERAL pages long) I realized that the split was rough for the first year with them. First year you have to give a cut to your required mentor/accountability coach, school fees, etc and that left me with about 35-40% of my commission. However that isnt what steered me away, in the contract it states something to the effect of if you leave before 12 months you owe 1k even if you have no pending transactions...I decided against them. That left me with Gary Greene and Soluna. After talking to any realtor that would help I decided to go with Soluna Realty. I will get 100% of my commission and pay a flat $200 fee per transaction that I close. I am prepared to work hard for my own clients as I dont foresee being given many leads from my broker, but I am ok with that for now. If this doesnt work out I have no obligations or monetary amount due in order to move on. Ultimately its whatever feels best for you. I think KW and Gary Greene would have turned out to be great options but I would rather join them when I am little more experienced. Since you are almost done with schooling start getting out there, make some appointments, meet with the brokers youre interested in..its time!
Hope this helps, good luck.
1 Reply
Jessica Wygal
Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
8y
also - I didnt do the MCD.
I highly recommend checking out Shane Woods post titled "A TX Real Estate License Journey', it has really helpful information about finger printing, submitting broker paperwork, etc....just the whole timeline on when you should do what.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
8y
Brokerages that offer low fees to agents tend to be mills that do a volume game. If they can get 1,000 agents and 50% do not close anything, another 30% close some, another 20% close a lot then they might can eek out a profit.
The other end of the spectrum are brokerages that do not want to be mills. New agents think they are the gift to the industry and highly overvalue themselves or their skills when starting out.
The brokerage is not going to make an agent a success. The agent is simply given tools to use or not.
I do not currently have any agents at my commercial brokerage firm by choice. I find many to feel entitled to want all of your knowledge but pay nothing in fees and be users. I enjoy doing my own investments and my deals with my clients.
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Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Thank you Jessica Wygal for the synopsis. That helped. Thanks and good luck in your endeavors as well !
1 Reply
Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Joel Owens Thanks for the feedback, I’ll message you directly.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
8y
Just something to think about for new agents.
About 80% fail the first year and leave the business. Of the remaining 20% about 80% of those are gone after 5 years. This business is very tough to make it long term. I am 15 years in for commercial real estate. If you have made it and thrived more than 5 years in the business you have doing something very few ever will.
Most agents the first year might do a few sales from their sphere and then they have to generate new business to survive. Brokerages running mills know this so do the (rah,rah,rah) pep talk and your potential is unlimited to hype them up to close those few sales before petering out. NAR conventions have affiliate companies they partner with to sell agents on all kinds of do dads. It's a way for new agents to go broke fast.
If agents make 100% with a small fee but make 10,000 part time is that better than paying 50% but making 200k? Just something for the new agents to think long and hard about. It's not about what you are paying but what you are getting a learning with the investment that matters. There are agents with higher splits now but they did not start out that way.
Good luck to all of you. I hope you are one of the few rare ones that make it.
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Jessica Wygal
Real Estate Agent · Cypress, TX · Member since 2018 · 156 posts · 73 votes
8y
Super helpful info Joel, thanks for sharing. I am threading lightly and I have the whole '100% of 0 is still 0' ingrained in forefront of my brain thanks to BP haha...I will pay close attention to my broker and even closer attention to myself and make adjustments as necessary.
1 Reply
Sharon PowellPro Member
Realtor · La Vernia, TX · Member since 2014 · 153 posts · 124 votes
8y
Dan Roma the moral character determination is necessary if you have a conviction; otherwise don’t worry about it. Questions for brokers: Do you personally invest? It’s not necessary for them to do so, but you’d have that in common and be able to leverage their experience. Do you provide leads? This is one of the two biggest needs at the beginning of building your business. Do you provide training? Is it in person or cloud-based? Does it cost? This is the other biggest need. It doesn’t have to be a deal breaker though, if they don’t. You can find lenders and title companies that do amazing trainings. Do I have to pay desk fees? Am I expected to work from your office? If so, how many hours a week? What are all the costs and fees you’ll charge me? What’s the commission schedule? Will that change over time? Do you provide transaction coordinators? (for MLS work, contracts, and making sure all deadlines are met) Do you provide professional photographers and videographers with drone work? Do you provide a contact management system and/or communication tools like bombbomb? Do you have an open door policy when I get stuck? What are your professional goals? If it’s a small brokerage, you want to be sure they aren’t going to fold up in a year. You’ll also be paying MLS and local Board of Realtor dues right up front. And just know that it will be several months before you see a paycheck, but fees will still have to be paid. I’ve sadly seen people drop out four or five months in because they couldn’t afford it and had to go back to work. Best of luck finishing classes and with your exam!
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Dan Roma
OP
Houston, TX · Member since 2018 · 72 posts · 6 votes
8y
Thank Sharon Powell , are residential agents required to work weekends and nights? Is there any other way around this?
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