Approaching Broker as New Agent

17 Replies

I'm taking the classes to get my California RE license right now, I Should have those done in about 5 weeks then take state test.  I heard there is a 6 week backlog on taking the state test right now, not so happy about that.  

I could use some opinions on how I can approach the brokers in town to let me hang my license with them? I'm only getting my license for investing purposes, access to MLS but also to make sure I'm not running into legal issues. I don't want to be a buyers agent unless it's someone I know, but I figure I'll list my own properties and save a few bucks.

How do I make this relationship beneficial to the broker?  I do not want my investing controlled by them in any way.  I do think that I could come up with 10-20 listings a year based on the marketing I plan to do.  I already did one round of Direct Mail and felt I had to pass up 3-5 deals (listings, lease options) because I was not an Agent so I decided to put that on hold and get my license quick then restart the campaign.  I could keep going but I feel like i'm throwing money away and stopping also allows me to focus on getting the license quickly.  

@Lee S.

I went with a broker that is know for managing property and dealing with investors.  Review the active brokers in your area that are well known.  It is good to be part of a system or team that the community like to deal with.  Bad broker reputations will derail your deals.  

To see value in a license you probably would want at least a dozen transactions a year.  A few transactions a year makes it hard to keep your head wrapped around the paper work.  

If I still had a day job I wouldn't have become an agent.  I see value in having an agent.  The cost associated with using an agent can easily be recouped through good negotiations.  

Frank

You don't have to go with the first broker you talk to.

Heck, talk to them all!  Tell them your plans and see how the react.  See what they can offer you.  A broker's job is to recruit as many agents as possible.

I do know one of the Brokers personally, bought a condo through her and she was a patient of another doctor in my office.  I also know another broker and have a friend that works for that one.  I figure I'll start with those two, just wanted some ideas on what they may be looking for and what I have to offer considering I'm focused on investing rather than being an agent.  Is it bad that I don't want to be listed in their advertisements that list all the agents?  Would it be weird to request that they leave me out of those?

@Lee S.

I just did the same thing in Florida.  After passing the class and state test (and before) I have spoke with many brokers.  Be up front with them, some will not want you as an agent, others will love to have you.  Like @Frank R. said, tell them your plans and ask them if they have other investors as agents, if they do they will understand what you do and probably have a structure that is more geared for investors, i.e. better commission rates from you (since you have RE experience).

Different brokers offer various training levels, some offer in-house services (i.e. title companies, attorneys, lenders, etc.), desk space in an office or no desk space... these are all questions you should ask...

Good luck...

Originally posted by @Lee S. :

I do know one of the Brokers personally, bought a condo through her and she was a patient of another doctor in my office.  I also know another broker and have a friend that works for that one.  I figure I'll start with those two, just wanted some ideas on what they may be looking for and what I have to offer considering I'm focused on investing rather than being an agent.  Is it bad that I don't want to be listed in their advertisements that list all the agents?  Would it be weird to request that they leave me out of those?

 No, once your up front with them, they should be able to understand due to you not buying/selling for others.  If they cannot understand or give you somewhat of a hard time, I would look elsewhere.  Some brokers require specific duties, you are their employee after all... there should be many brokers that will work with and understand your requests. 

@Lee S.

Congratulations on choosing to get your real estate license Lee.  It is a good idea to interview several brokers.  You can begin the process now while you are waiting for the results from your exam. Visit both large franchisers and independent brokers. The relationship with a broker is a two way street.

You articulated clearly the kind of business you intend to run and that is important for the broker to know. Every broker specializes in a particular market, even if they are part of a national chain.  I think it is great that you know what you want. You can definitely find a good fit based on your requirements. If you need recommendations, please feel free to contact me.  Best wishes for your success at the exam. 

@ Lee --

  If you have a 4 year degree, go ahead and get your Broker's License and start your own business. Incorporate and run it the way you want. "There is nothing that beats being in the Captains seat" ... Jean Luc Picard of the USS Enterprise.  :-) Check out Inc. and Grow Rich by C.W. Allen  ISBN # 0-9671871-o-9

Hmmm... I just thought of this:  You may want to check out discount brokers.  The ones where you don't pay any fees.  You could just work from home and never have to use any of their equipment, etc.

@Victoria Winters  Thanks, I'm still doing the classes but will be done in about 5 weeks then i'll take the test.  I don't want to approach them to early, thought I would wait until I was at least done with my classes.

@Darrie Bennett I have a BS and a Doctorate so yes I could be a Broker. I've thought about that, I think I read that you have to be an Agent for a couple of years first though? Not sure it would work out cost wise either with all the MLS fees etc if i'm only listing the occasional home to sale.

@David Hunter I've thought about this also, my main need is to have MLS access in all the areas i'm planning to farm and also be able to list houses in these areas on the MLS. I"m not sure how the discount brokers work. I'm in the foothills in Norcal (smaller town) so I don't have a huge number of choices. We have Century 21, Berkshire, a few others but there won't be a huge selection for me.

@ Lee -

    You only need the two years experience if you don't have a degree. Read that book I mentioned and you will realize it is well worth the fees.

Good Luck

Originally posted by :

@David Hunter I've thought about this also, my main need is to have MLS access in all the areas i'm planning to farm and also be able to list houses in these areas on the MLS. I"m not sure how the discount brokers work. I'm in the foothills in Norcal (smaller town) so I don't have a huge number of choices. We have Century 21, Berkshire, a few others but there won't be a huge selection for me.

Even if they don't get a lot of listings there are probably discount brokers that work in your area. They may look like FSBO, but list them in the MLS. This would likely align with just wanting to quietly use your license for your investments.

Not sure about CA but in FL you do have to be an active agent for 2 years before enrolling in Broker classes.

Originally posted by @Bobby Sommers :

Not sure about CA but in FL you do have to be an active agent for 2 years before enrolling in Broker classes.

 I knew I had read it somewhere and it is the same in California:

http://www.dre.ca.gov/examinees/RequirementsBroker...

I think the only way around it is if you have a degree that was in Real Estate of some form, which I do not have.

Here, if you have a 4 year in RE then you can skip the agent class and go straight to state test, but if i remember correctly you still have season for 2 years as an agent before being a  broker.

To me, at least at this stage, there's no big gain in dealing with the broker headaches for a few bucks extra.

I wanted to report back and give an update on my progress.  I met with the Broker that I know and I will be hanging my license with her once I pass the state test.  I'll be done with my classes by Monday.  This Broker has other investors working for her and she is an investor as well so it's a perfect fit, no issues with anything I want to do.

Originally posted by @Lee S. :

I wanted to report back and give an update on my progress.  I met with the Broker that I know and I will be hanging my license with her once I pass the state test.  I'll be done with my classes by Monday.  This Broker has other investors working for her and she is an investor as well so it's a perfect fit, no issues with anything I want to do.

 What is your arrangement for splits/fees?

Originally posted by @Jesse T. :
Originally posted by @Lee S.:

I wanted to report back and give an update on my progress.  I met with the Broker that I know and I will be hanging my license with her once I pass the state test.  I'll be done with my classes by Monday.  This Broker has other investors working for her and she is an investor as well so it's a perfect fit, no issues with anything I want to do.

 What is your arrangement for splits/fees?

 60-80% depending on volume.  Not sure if that is great or not but I was assuming 50% so I'm fine with it.  

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