BiggerPockets


interviewing brokerage to hang license

Forum Powered By:

15 posts by 4 users

To participate in forum discussions, create a free account or login.

Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 05 '13, 09:34 AM


Hi BP

I'm on my last week of class.
Was told to interview asap before exam bc process is not exam then brokerage.
Told to get my criminal chk NOW.

My investors flip, aka probono work with no license, is ready in late march

time crunch......

Never did Sale, marketing is my weakness.

Question: should I sell as agent or hire at this point

-------------
Interview: I'm more confused then when I came in.

They are big name brands:

#1
high split,
monthly fee 104-550/mo(65%-90% split)
plus 125 processing and 350 broker commission for each closing all sides

Monthly fee gives same benefit only diff is split. And graduating commission Max.

I am allowed waive my commission on my properties.
I can compensate another agent if they open house for me. My terms/choice
I can be either residential and/or commercial
A lot of investor

But I don't see their sign in my farming area

#2
I start at 60% bc of my investor experience not 50%

$800+ initial cost to get in..including licensing
No desk fee, monthly cost MLS, key, etc (I'll post when I receive email)
Already just took in 9 new agents.

I'm allow 2 own property sale/buy @ 80% commission a yr
I can't compensate other agent for open house.
I can't waive commission on my own property. I get 80%
I can't be commercial unless I'm certified. It's separate

Cheaper but less flexibility.
I don't see much of their sign in my farm area
But use their website unknowingly a lot.

This one feels like churning agents. And her market analysis are too optimistic.
She is telling me I should list my property @ 255k while others 235k

I have 3 more lined up
all big name one huge local

1 recommended by instructor as investor
1 my broker works in And I'm taking classes in
1 the agency I bought last 2 deals on. Signs all over my farm


Edited Feb 5 2013, 09:50 by Jennifer Lee


Joel Owens Moderator

Real Estate Broker from Canton, Georgia

Feb 05 '13, 10:29 AM


Are you wanting to be a real estate agent or just want the MLS access for your own deals??

Are you wanting to do residential or commercial real estate??

What does your current network of investors consist of??

Example if you have a ton of potential contacts that buy the dumpy little houses then you are looking at being a residential agent and occasionally sell a house, duplex, triplex etc. A residential brokerage firm will be fine for that.

If on the other hand you have a base of sophisticated and experienced investors with sizeable amounts of cash then many of them will want to purchase in the commercial arena. If you enjoy regular hours and not the drama of residential real estate as a broker/agent then you will like commercial.

Many brokerages tout residential and commercial but most are small time dealing with a couple land listings and mom and pop type stuff. To do the big corporate type commercial deals you would be better off going to a commercial real estate only firm that specializes. The firm isn't going to bring you the business. Learning everyday and getting out there an connecting and running your own business will get you the deals.

Once you have put in your time then you can become a broker and keep it all.

Good Luck



Medium_allworldrealtyJoel Owens, All World Realty
E-Mail: [email protected]
Telephone: 678-779-2798
Website: http://www.AWcommercial.com
www.AWcommercial.com 678-779-2798 [email protected]


Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 05 '13, 10:34 AM


That latter, access for my own deals.

My investors are flexible in their needs its up to me really.

I own 2 commercial (mom pop) rental and 1 residential.

My knowledge is residential just fell into commercial.
But would love opportunity to learn about commercial.



Casey Kleinhenz

Fayetteville, Arkansas

Feb 05 '13, 10:36 AM


I have a RE salesperson license for property management.
One thing you should consider is if the firm has a "competing broker" - broker does their own listing and selling. I would recommend not having a competing broker. My competing broker will try to make time to help me out, but is pretty tied up in her own business. Additionally, it just feels ****ty to pay someone a huge % of your deals when you know that to them, you're just another income stream.



Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 05 '13, 07:32 PM


thank you for that heads up, didn't think about the competing broker

#3
I spend 1/2 hour in the presentation and didn't get much out if it (pitch).
I need to schedule a 2nd mtg for get the number.
because we ran out of time (bef my class)

but from my questions:
tiered commission (earn X amount and come up in split)
1 yr and/or $12,000 bef 90% on my own Property (?? quickly explained)
"similar" monthly fee



Karen Margrave Moderator

Developer from Orange County, California

Feb 05 '13, 11:16 PM


@Jennifer Lee Money isn't the only factor. Which office has the best training for a new agent? How familiar are you with the entire process of real estate? Are you able to work without any help, or do you need someone to counsel you? Don't get ahead of yourself. Learn the business, know your market, provide good service; and you'll make money.



Karen Margrave, Parlay Investments, 1st American Construction
E-Mail: [email protected]
Telephone: 949-933-3955
PARLAY: definition: to increase or otherwise transform into something of much greater value


Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 06 '13, 03:36 AM


Thanks. Karen great points.

They all have training, 2 of the 3 seems to have great knowledgeable broker.
The office atmosphere seems to differ by night a day.
I've got 2 more brokerage to interview.

So far I've met with 2 extremely opposite business philosophy.
Super professional vs mother goose/den mother/very casual
#3 is somewhere in between.

I'm very confused right now.



Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 06 '13, 04:42 AM


@karen

After reading your post again you made some excellent point I need to consider.
I'm heading to my next interview.

I'm familiar with real estate as investor but not as agent.
I understand the sales part being an agent once before.
But I myself needing mentor in the selling/marketing part.

Thx



Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 06 '13, 07:20 AM
1 vote


Thx you karen

I think I found the brokerage. U r so right its not the $$$
It's the fit... and the broker is so knowledgeable and willing to teach.

Thank you



Karen Margrave Moderator

Developer from Orange County, California

Feb 06 '13, 07:32 AM


@Jennifer Lee Sounds great. You want a professional atmosphere, with the help you need to learn, yet not so demanding as to make everyday stressful! But not so casual and laid back as to not have structure. It's always good to have agents that are good producers that you can learn from too. Competitive, but not snobs! Good luck.

P.S. I got my start in real estate being an executive assistant in an office with 35 agents. I tracked all the escrows, sales, listings, etc. and did all advertising. My boss was a former Coca Cola exec, very friendly, but disciplined and professional. Within a few years he was encouraging me to get my license, and I did.



Karen Margrave, Parlay Investments, 1st American Construction
E-Mail: [email protected]
Telephone: 949-933-3955
PARLAY: definition: to increase or otherwise transform into something of much greater value


Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 06 '13, 08:26 AM


I think this one fits the bill on all the things u mention.
thanks again! U font know it but u are changing lives.
Thanks karen
Can't @ on phone



Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 07 '13, 08:38 AM


I interviewed with #4 today

It didn't give me the warm and fuzzy feeling
But I think this is a best fit for my needs as INVESTOR.

ANNUAL COST 2000(includes monthly) I'm.rounding. over estimate ;)

But it has a graduating commissio:n schedule unlike #3.

#3 pays for everything but 50/50 co broke
30/30/30 in in-house
I get all 100% if mine

#4 is similar to #2
Minus the casual informality.
Very knowledgeable broker willing to teach.

As investor after I earn 12000 I get 90% if I sell and 100% if I buy. 2xs a yr


Edited Feb 7 2013, 08:48 by Jennifer Lee


Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 07 '13, 09:14 AM


Sorry I got my numbering wrong:

but here i quick break down:

annual cost is under $2000 across the board
includes the key, mls, NAR, ads, printing, card etc.

#1 : Experienced Investor
has HIGH splits if you pay for them in monthly membership fee
It's great for seasoned investor/realtor (which is not me just yet)
I get to control my own property transactions and pay transaction fee
Education but not hold you hand kind...
super professional
Knowledgeable broker, willing to help me

#2 : Agent Churning Machine
No desk fee, has normal monthly/yearly cost
Gradual commission increase, earn X get X%
80% commission on mine 2xs a yr.
Education
Casual, unprofessional, den mother feeling with all her cubscouts.
She didn't seem to have a grasp on the market.
Just hired 9 agents. office feels chaotic.

#3 ONE my broker is in...INTERESTED
No desk fee, monthly/yearly cost
gradual commission rate (more reasonable then #2)
90% of commission when I sell, 100% buy (2xs yr) but I have to earn 12000.
Great education program
Very helpful and knowledgeable broker
Professional colleage unlike #2

#4 LOCAL BIG BRAND.. the one I thought was best fit.
They pay for everything, I pay 250-500/yr
commission is 50/50 cobroke, 30/30/30 in-house, 100% mine
lots of benefits
Very nice motherly knowledgeable broker.
They have a lot of incentives but not for me as investor

#5... Will be tomorrow but it's similar to #1 I think


Edited Feb 7 2013, 09:26 by Jennifer Lee


Joel Owens Moderator

Real Estate Broker from Canton, Georgia

Feb 07 '13, 09:23 AM


Jennifer the bottom line is new agents focus on the MONEY SPLITS and not what goals they are trying to reach.

I got rid of all of my agents a long time ago. They want the world and only want to pay a minimal fee. I make so much more just working on my clients deals and my own investments.

100%,90% of nothing is still nothing. The experience you learn is worth much more than a starting higher split where the broker isn't around and they churn volume just to get by.

Agents that contact me I tell them I do not take agents anymore. They want to learn but every time in the past they do not have what it takes and I waste valuable time with them. Now I tell them you will need to give 20,000 upfront retainer and I will give 20k credit back off of your first deal. They have skin in the game now and it will be painful for them not to put in the total effort to close a sale and not quit.

Of course nobody takes the offer which is of course fine with me as I don't want to take that on anyways. Agents think they are gold when newly licensed but really they are just a dime a dozen.



Medium_allworldrealtyJoel Owens, All World Realty
E-Mail: [email protected]
Telephone: 678-779-2798
Website: http://www.AWcommercial.com
www.AWcommercial.com 678-779-2798 [email protected]


Jennifer Lee

Real Estate Investor from Gibsonia, Pennsylvania

Feb 07 '13, 09:31 AM


I agree, I picked #3, although it's split is not the best, but they have the best tool to help me move forward with my business.

I am essentially going to be totaly new at sales, and need all the help I can get, but also need be able to be an investor.

and my broker and I need to be on the same page on our strategies ;p



(Don't Want to See This? Log in or Create a Free BiggerPockets.com Account!)

Ubg-book

Get the Free eBook from BiggerPockets

Get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks, and techniques delivered straight to your inbox twice weekly!

  • Actionable Advice for Getting Started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more!

Sign up below to download the eBook for FREE today!

We hate spam just as much as you


To post a reply or start a new discussion, create a free account or login.

Manage Keyword Alerts

View All Forums