I am an investor who just obtained the salesperson license in Massachusetts. I am looking for a brokerage to hang my license with minimal fees and higher commissions.
I came across The Virtual Realty Group during my research. They have a branch office in Massachusetts. The brokerage offers an appealing Flat Fee 100% commission program. Here is the fee structure:
- Flat fee of $595 per transaction (deal over $1M has a higher fee)
- 100% commission to agent
- Free E&O insurance $1M for every transaction
- Updated forms for buy & sale transactions (similar benefits as from the NAR membership)
- Annual membership fee of $109X3=$327
- No mandate on NAR membership ($550 per year in MA. Besides the benefit of the forms, I do not think the money is well spent) or MLS membership (approximate $190/quarter, which is useful investment)
- Brokerage has no trust fund/escrow account. The Brokerage advises agents NOT to handle deposits, but have buyers send it directly to the closing company (e.g., closing attorney or seller attorney). This is odd, but it makes me feel they are more legitimate and not try to take the deposits and run.
- They do have a catch that even if you waive the buyer agent fee as a leverage for negotiation of the deal, the brokerage will still charge the transaction fee. You are not allow to do deals behind their back and have to submit all paperwork within 48 hours. However, it is only $595 per deal and it is covered by the E&O insurance.
- They do NOT issue Form 1099 MISC. This is odd, I thought they are required by the tax law. However, as long I keep good records, I can still correctly report my income.
Here is the link to the Flat Fee Program.
https://vrgne.com/flat-fee/
Here is the link to the Independent Contractor Agreement:
https://thevirtualrealtygroup.com/VRG-ICA-OPPM.pdf
In summary, after paying the annual membership fee of $327 and $595 per transaction fee, the agent gets to keep 100% of the commission. It sounds a little too good to be true. Let me know if you see the catch. If you are working or have worked for this group, could you share your experience? Thank you!
