Find the right broker as a new Real Estate Licensee
Specialist · Santa Clara, CA · Member since 2020 · 4 posts · 3 votes
Hi all,
I am getting my exam soon which I should pass. Next step would be finding a broker in Bay area to work with/for.
Here is my situation:
- I am in the Bay Area (CA)
- Can only work part time as I also work full time right now outside Real Estate
- I am also a small investor and sometimes I want to represent myself to buy
Any tips on where to find info the right broker for me? I can of course call up some brokers too but trying to find out who to contact.
Thanks for reading!
Congratulations on getting your license.
One thing I think you need to plan for and seek assistance from the broker is how will you manage part-time. Does that mean 8-12 hrs days on the weekends prospecting and selling? Does that mean 6-10pm evenings every weekday? Can you partner with someone...for example someone who wants to only work 8-5 M/F and you take the of hours.
Another thing to consider is how many properties you plan to buy? Is that 1 a year? 10 a year?
I'd ask what kind of training they have for off hours agents? Anything live on Saturdays or evenings, or will that all be by video/youtube type trainings.
I'd ask if you have to sell any properties to others before you represent yourself. If you represent yourself, are there still commission splits? Some brokers might allow 1 per year or 2-3 per year with no split...so would be helpful to understand that. Some want you to sell to others maybe 2-3 houses before they give you a fee free one for yourself.
I'd ask if there are other investors in the brokerage, what are they investing in, any partnerships or JVs, what are the requirements to get in on those investments.
I'd ask if they have wealth building training...to assist you.
I'm at KW-Keller Williams where people wrote the books Millionaire Real Estate Investor, HOLD and FLIP.....we are profitable, debt free, and growing....so I would ask questions about that too. If you join an unprofitable broker, how are they going to teach you to be profitable?
Good luck and best wishes....
First, good luck on your exam!
There are a few things to look for:
1. Commission. You may want to know what kind of commission split will occur. I personally had one person offer me 50/50 and I've heard as high as 90/10. Personally, I'm at 70/30 with a cap. After cap, I get 100%. I've even heard of a big billboard agent offers his agents 18% (but they do 4-6 transactions per month). Split isn't everything though. Some of it may come up to what you end up getting from the broker as other incentives.
2. Training & Support. As a new agent, this is probably the most important point for you to stress. What kind of training do they offer? My office offers classes almost every day to expand our knowledge. I've heard of other offices that might have some dvds that they sit down and watch once a month. As for support, is your broker available? Are there any other people available if you have any questions? If you can never find your broker to ask questions and then you get in trouble because you didn't have the support, you're getting in trouble less so the broker.
3. Leads. Will your broker help you find leads or will they leave you to your own devices? They may train you on lead generation. Teach a man to fish something something...
4. Branding. This is kind of similar to #3. Will they help you get started with signage or business cards? How about a nametag? Some places I went offered 100 free business cards. Other places offered nothing. The strength of the brand can also have an effect.
If your experience is similar to mine, after you pass your exam, people come out of the woodworks to try and recruit you. Personally, I interviewed with 6 brokerages (7 if you count the one that flaked on me) before I sat down and chose Keller Williams. If you have any other questions, feel free to dm me.
David has it down to the science there. A broker who will provide training and support will far be better off than a bigger split. Now if you are looking to only be part time and represent your self, then a higher commission split may be more favorable. If you are looking to represent a lot of other clients then would go to one with more support as getting your self sued can take away all of what you earned on a higher commission split. Benefit to being with a larger broker is networking with other realtors in the office and being apart of deals you wouldn't have normally.
Congratulations on getting your license.
One thing I think you need to plan for and seek assistance from the broker is how will you manage part-time. Does that mean 8-12 hrs days on the weekends prospecting and selling? Does that mean 6-10pm evenings every weekday? Can you partner with someone...for example someone who wants to only work 8-5 M/F and you take the of hours.
Another thing to consider is how many properties you plan to buy? Is that 1 a year? 10 a year?
I'd ask what kind of training they have for off hours agents? Anything live on Saturdays or evenings, or will that all be by video/youtube type trainings.
I'd ask if you have to sell any properties to others before you represent yourself. If you represent yourself, are there still commission splits? Some brokers might allow 1 per year or 2-3 per year with no split...so would be helpful to understand that. Some want you to sell to others maybe 2-3 houses before they give you a fee free one for yourself.
I'd ask if there are other investors in the brokerage, what are they investing in, any partnerships or JVs, what are the requirements to get in on those investments.
I'd ask if they have wealth building training...to assist you.
I'm at KW-Keller Williams where people wrote the books Millionaire Real Estate Investor, HOLD and FLIP.....we are profitable, debt free, and growing....so I would ask questions about that too. If you join an unprofitable broker, how are they going to teach you to be profitable?
Good luck and best wishes....
@Reza Hosseini Congratulations for making it this far in the pre-licensing process. You should definetly be proud of yourself for making it this far. I wish you success in passing your final exam.
Finding the right brokerage that will partner with you is so imporant and they need to be the right fit for how you want to run your real estate business. Here are some questions I wrote for a blog post. Let me know if you want the link for the whole post as it is beneficial to read:
You’ve got some excellent advice here @Reza Hosseini! The biggest challenge you’ll have is starting part-time as a new agent as many traditional brokerages won’t hire part-time. Although you do have some investing experience this can be helpful, but may also may be a red flag to brokers that you may not be focused on selling to clients and making money for the brokerage. Selling your own properties is also viewed as high risk with potential liability to the broker. You may want to also consider joining a team until you get rolling…. You have many options in choosing a brokerage- you can either go the traditional bricks and mortar route (remember Blockbuster? …although you may be too young to remember them!). …or you may want to consider a virtual brokerage (think Netflix!) which may likely be more suitable for a part-time agent who can access training 24 seven. As an investor you’ll also want to know how much the brokerage is going to charge in a split for your personal deals. I would add a eXp to your list in researching your options. Best of luck on your exam and welcome to the world of real estate! I wish you all the best.
@Reza Hosseini
I am an investor and a mom of 3 and 1 year old.
I knew I didn’t want a old school lead generation type of brokerage or a team with a W2/job kind of environment. I wanted to do things at my pace, on my time, in my preferred way.
I followed other investor realtors who were with EXP so I just jumped in. I love it, but it’s not for everyone!
EXP seems to be on the lists for best brokerage for part timers. And we have a really strong investor community here.
Good luck and congrats!
Have you considered going full time eventually? Are you looking to grow a portfolio of investment properties? Maybe check out the David Greene Team who is the host of the bigger pockets podcast?... I imagine he knows a thing or two about investing and has some resources you could tap into
I passed exam! Thanks a lot everyone for so much great advice / info! I did not expect such great responses!
I passed exam! Thanks a lot everyone for so much great advice / info! I did not expect such great responses!
Hi Reza!
CONGRATS on passing your exam! That is an amazing accomplishment, so I wish you all the best for a successful journey. I was in your shoes just 2 years ago and wanted to find a brokerage friendly to investors, epecally because I was also doing real estate art time. My guess is through your research and the other responses you’ve heard a lot about eXp Realty. If you were interested, there are a lot of great groups within the company that can help you meet your specific goals.
For example there are several groups that are investor-friendly and provide extra training and 1 on 1 help for investors looking to maximize income with their license. I’m part of a group with the founders of the Fortune Builders group, so that’s been really beneficial for me to learn from those guys!
Regardless of where you choose, Good Luck and please don’t hesitate to reach out if you have any questions.