choosing a brokerage, New agent advice.

[Account Closed]

Hey  BP family, so i know you dont need your real estate license to be a real estate investor however getting it wouldnt hurt etthier. I just finised my real estate state exam  in NJ and now i have to make a decision where to hang my license. So far im down to 3 brokerages. Keller williams, Provdient legacy (small brokerage), and Remax. Im having trouble on what i should do,  i just wanted to see what you guys  have to say if you were in my position when you first started. im looking to do this for the long run and the money i make as an agent will go to my investment properties.  what are some key points you guys look for when choosing a brokerrage, or when you chose yours,  your advice will be highly appreciated.

sincerly, Steven Betancurth 

C:2017593235

E:[email protected]  

[Moses Kagan]

Choosing a brokerage is an incredibly important step which should not be taken lightly. The reason is that real estate brokerage is all about your network. Once you start brokering, you will inform everyone in your personal network that you are now an agent and can help them buy and sell real estate. If the next thing they hear from you is "And now I'm switching brokerages", that is going to undermine your credibility and make growing your business much more difficult.

So, making the right choice up-front is critical. But how do you do that?

The answer is that you need to figure out what kind of an agent you want to be. There is a huge difference between residential brokerage, where you specialize in selling homes and investment brokerage, where you work with investors. Within the broad category of investment brokerage, you can specialize in 2-4 unit deals, larger multifamily, office, retail, etc.

If I were you, I would want to work with investors. Rich people who own investment property tend not to own just one. They transact a lot, and their deals tend to be larger in size (so the commissions are larger). Also, working with investors is a very good way to learn about how deals are structured, where the equity and debt come from, etc. Finally, rich people who invest in real estate are EXACTLY the type of people you will need to back you in your own deals.

Once you decide which type of business you want to do, then you should identify the brokerages that lead in that area. Meet with all of them and try to find the place that is going to offer you the best (1) training / mentoring; and (2) leads. It's reasonably likely this will be a smaller brokerage, because bringing along new agents is how smaller brokerages grow.

Hope this helps!