Is there a “best” real estate company or is Redfin the move?

36 Replies

Hey guys! I dove into the real estate world, of course post Epiphany after reading Rich Dad, Poor Dad, at the beginning of 2020 after my third (and last) babe was born wanting to secure our kids' future financially. I decided to get my real estate license, I'm currently taking the pre licensing course on The CE shop and I'm realizing I really have no desire to become a residential real estate agent. I decided to take the classes to get my license to be able to sell future properties on my own and to get the education. I plan to start a career to 1. Save up money for properties and 2. Break the ice into the real estate world. I know people start without getting their license first but I feel much more comfortable taking this route. If you're still reading at this point, many thanks for listening to my ramblings and now to the question for you guys: should I start with an established real estate company? Is there a best company to work for in Maryland? My google search and local recommendations came up short. Seems that more people than not have their license so most recommendations were of individuals' family members, not so much good companies to work for. I know there's a trend in Redfin and I'm wondering if there's not really any difference in companies, should I just go the Redfin route? Thoughts??

Thanks in advance, hope to connect with some of you wonderful people 

@Rebecca Salazar it sounds like you are getting the license to prepare for investing, so Redfin probably wouldn't make sense. If I were in your shoes, I would find a local brokerage that will let you hang your license for low fees/overhead. The license really doesn't do much to help prepare you to be an investor. There are undoubtedly local brokerages that are more investor friendly where you might even get to meet some other active investors! 

You are going to want a low fee, low requirements brokerage if you don't plan on using your license. You don't want a brokerage with a big office (you pay for that in fees). You don't want a brokerage that wants you to come in a do training since it is all geared to residential selling and buying. There are low fee companies like HomeSmart, Big Block (depending where you are), eXp that can service what you want and will be more hands-off, but I also agree with @John Warren about local mom and pop brokerages. They may be more friendly, but their split is usually terrible, like 50-50, whereas HomeSmart is 100 I think and eXp 80-20. I am building a nationwide team just for investor/agents and agents who want to use their license the best way they can as an investor just for this niche. Hope this helps.

Originally posted by @John Warren :

@Rebecca Salazar it sounds like you are getting the license to prepare for investing, so Redfin probably wouldn't make sense. If I were in your shoes, I would find a local brokerage that will let you hang your license for low fees/overhead. The license really doesn't do much to help prepare you to be an investor. There are undoubtedly local brokerages that are more investor friendly where you might even get to meet some other active investors! 

That’s a great idea, I’m sure I could reach out in the community to find who investors use for their listings. Thanks for your time and advice! 

 

Originally posted by @Jonathan Greene :

You are going to want a low fee, low requirements brokerage if you don't plan on using your license. You don't want a brokerage with a big office (you pay for that in fees). You don't want a brokerage that wants you to come in a do training since it is all geared to residential selling and buying. There are low fee companies like HomeSmart, Big Block (depending where you are), eXp that can service what you want and will be more hands-off, but I also agree with @John Warren about local mom and pop brokerages. They may be more friendly, but their split is usually terrible, like 50-50, whereas HomeSmart is 100 I think and eXp 80-20. I am building a nationwide team just for investor/agents and agents who want to use their license the best way they can as an investor just for this niche. Hope this helps.

 Thanks for the advice, I didn’t realize the fees differed with different companies. I saw eXp on my google search recommended for part time real estate licensees so I’ll look more into that. If you don’t mind, I’ll reach out once I get my license and see if you’ve expanded to Maryland by then 🙂

You cant 'hang' your license with RedFin, it's a working brokerage so you have to be in an active role such as a showing agent. Other (smaller) brokerages you can hang it for the time being and figure out where you want your license to take you to from there. 

If you just want something passively to do like show houses and talk to some buyers in the area go to RedFin bc it's hourly plus a small commission on customer experience. If you're looking to excel as an agent and understand your market go with w top producing TEAM in a local brokerage that'll teach you everything you need to know. Don't know which ones are top? Drive around your neighborhood and count who has the most signs .. 

@Rebecca Salazar yes, the fees and splits are drastically different throughout different brokerages. Generally, if you want to be an investor/agent, you just want a brokerage that will be there when you need them, but also one that doesn't ask much of you as long as you pay the limited fees. We are currently recruiting in any state, happy to chat. But remember that everything is about fit. Getting your license is great for access, the education, and the MLS. Using your license is about where it fits. And also don't discount doing a few deals a year. A lot get into it saying they don't want to, but when you are investing, your friends want to invest too. Then all you do is take them with you when you look and find them a property. Then you get a commission. When the pressure is off the license as a primary means of income, it can actually be empowering to use it as an investor first, but agent second to help friends learn to invest. That's why I focus in this niche. Best of luck and reach out anytime.

Redfin agents are salaried employees. You cant just place a license there. You have to apply for a job, and you know show up to work and do that job if they hire you. 

@Rebecca Salazar

Hey, Rebecca

I liked that you mentioned getting your RE license at the CE shop. I’m in a similar boat right now, looking for a platform to become licensed through. Would you suggest the CE shop? How was/is the experience of getting the license going?

As far as which brokerage to use, I would subscribe to the advice others mentioned, of finding a place that is geared to benefit investors and getting into Real estate investing itself.

Best,

Josiah

Originally posted by @Josiah Patrick Zebarth :

@Rebecca Salazar

Hey, Rebecca

I liked that you mentioned getting your RE license at the CE shop. I’m in a similar boat right now, looking for a platform to become licensed through. Would you suggest the CE shop? How was/is the experience of getting the license going?

As far as which brokerage to use, I would subscribe to the advice others mentioned, of finding a place that is geared to benefit investors and getting into Real estate investing itself.

Best,

Josiah

 I would absolutely recommend The CE shop! It’s been a really smooth process, at the end of the majority of units there will be a study sheet you can bookmark to look back on when preparing for your test, you can do it right at home and they give you a great timeline to do so, I’ve really enjoyed my experience so far. 

Originally posted by @Russell Brazil :

Redfin agents are salaried employees. You cant just place a license there. You have to apply for a job, and you know show up to work and do that job if they hire you. 

Oh okay so it’s not commission based? I don’t think I’d be interested in that. 

 

Originally posted by @Lien Vuong :

You cant 'hang' your license with RedFin, it's a working brokerage so you have to be in an active role such as a showing agent. Other (smaller) brokerages you can hang it for the time being and figure out where you want your license to take you to from there. 

If you just want something passively to do like show houses and talk to some buyers in the area go to RedFin bc it's hourly plus a small commission on customer experience. If you're looking to excel as an agent and understand your market go with w top producing TEAM in a local brokerage that'll teach you everything you need to know. Don't know which ones are top? Drive around your neighborhood and count who has the most signs .. 

Thank you, that’s great advice! I think I’ll do some of that this weekend. 

 

Originally posted by @Jonathan Greene :

@Rebecca Salazar yes, the fees and splits are drastically different throughout different brokerages. Generally, if you want to be an investor/agent, you just want a brokerage that will be there when you need them, but also one that doesn't ask much of you as long as you pay the limited fees. We are currently recruiting in any state, happy to chat. But remember that everything is about fit. Getting your license is great for access, the education, and the MLS. Using your license is about where it fits. And also don't discount doing a few deals a year. A lot get into it saying they don't want to, but when you are investing, your friends want to invest too. Then all you do is take them with you when you look and find them a property. Then you get a commission. When the pressure is off the license as a primary means of income, it can actually be empowering to use it as an investor first, but agent second to help friends learn to invest. That's why I focus in this niche. Best of luck and reach out anytime.

 That’s a great point, I think this was my main thought process when deciding to dive in and get it. I’d really want to use it as a means for my investments and to avoid any hiccups if I have to sell a property at wholesale. There are just so many laws  and regulations I thought it would be worth my while to get the education and license. I know a lot of investors start from nothing at all and do great learning as they go, I’m sure I’ll do the same because I learn best hands on but I just felt so much more secure doing it this way and I’m just exploring my options on where to take it immediately after getting my license. I actually lost my job due to covid because all the daycares in my area are at capacity and I couldn’t return to work on the date they set so they told me I needed to turn in my resignation so I’m kind of in a transitional period in my career anyways so I figure it’s the perfect time to dive into what I’m really passionate about 🤷🏼‍♀️ 

@Rebecca Salazar I started on the same path you are mainly because I wanted to be more educated when buying. One thing I didn’t know and just stumbled upon are that some brokerages will let you do personal deals where you are able to use 100% of your commission towards the purchase of a property. For me I try to buy with as little out of pocket as possible so that’s important to me when shopping a brokerage. I know EXP and KW both do but not sure of any other and they both have the best commission splits. KW will let you do one a year and pay a 6% royalty (of the commission) and I believe EXP is 3 deals a year with some minimal brokerage fees. Hope this helps and good luck!

I got my license specifically for MLS access. If you are looking to buy in a year from now, you can do a lot between now and then to generate cash. Wholesaling and being an agent are two ways.

@Rebecca Salazar the thing that people miss is that the class to get your RE license is way more beneficial to investors than agents. Most agents just go into residential sales and when they do that, the homeowner completes a lot of the back-end things like permits, CO, easement checks and title does their part on a sale. An agent forgets everything from the class because most of it never comes up in standard residential transactions. But as an investor you are often stuck with limited inspections and need to be very clear on things like easements, wells vs. septic, flood zones, etc. to protect your investment. It will be worth it whether you use your license or not.

Originally posted by @Kate Reese :

@Rebecca SalazarIm I have an identical timeline/ strategy! Thanks for asking, I’m curious at the types of responses!

Great to know someone’s following the same journey! Great minds think alike! 🙂 

Originally posted by @Justin Hutchins :

@Rebecca Salazar I started on the same path you are mainly because I wanted to be more educated when buying. One thing I didn’t know and just stumbled upon are that some brokerages will let you do personal deals where you are able to use 100% of your commission towards the purchase of a property. For me I try to buy with as little out of pocket as possible so that’s important to me when shopping a brokerage. I know EXP and KW both do but not sure of any other and they both have the best commission splits. KW will let you do one a year and pay a 6% royalty (of the commission) and I believe EXP is 3 deals a year with some minimal brokerage fees. Hope this helps and good luck!


I’m seeing a trend in recommendations for eXp! Thanks for the input!!

 

Originally posted by @Ian Walsh :

I got my license specifically for MLS access. If you are looking to buy in a year from now, you can do a lot between now and then to generate cash. Wholesaling and being an agent are two ways.

Yeah I've been hustling side businesses online but I definitely want to focus in more on my one obsession - real estate. Awesome to know that others think it's a good idea to get a license to benefit their investing! MLS access was a huge deciding factor for me to pursue getting my license.

 

Originally posted by @Jonathan Greene :

@Rebecca Salazar the thing that people miss is that the class to get your RE license is way more beneficial to investors than agents. Most agents just go into residential sales and when they do that, the homeowner completes a lot of the back-end things like permits, CO, easement checks and title does their part on a sale. An agent forgets everything from the class because most of it never comes up in standard residential transactions. But as an investor you are often stuck with limited inspections and need to be very clear on things like easements, wells vs. septic, flood zones, etc. to protect your investment. It will be worth it whether you use your license or not.

 I completely agree!

@Rebecca Salazar . Great job on licensing. I was going to but didn’t. You can save commissions on personal purchasing plus check out Tax Strategies for Savvy Real Estate Investing. There are pluses for having your license as an investor. I have the audio but you can get book.

Nothing like having a plan that you’re passionate about. Trump always talks about loving what you do relative to your success. Sounds like you. 😄

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