I need advice on which real estate brokerage to choose

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I need advice on which real estate brokerage to choose

Conway Morgan
Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes

I need advice on which brokerage is best for a new real estate agent. Thank you.

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
7y

Generally 2 types of firms. 50/50 split for residential that focus on taking on new agents and intensively training them (agent mills). They know agents want to split for higher returns eventually so make 50/50 4 to 5 times on them. Most agents make a few sales and then leave the business once their sphere runs out. About 80 to 90% of new agents do not last the first year.

Per transaction firms. Generally you cannot get one of those as a new agent. They want to see 1 year or more of experience so they do not have to babysit you as much on the transaction since they are taking a low fee. Those firms you are more of a number and it's all about volume to them of deals closed. Those firms tend to be caretakers for lot's of agents rather than focused on selling much real estate themselves.

I won't sugar coat it. Whatever firm you choose isn't going to make you this magical success. It is going to be your personal truth of waking up every morning to learn something new and be your best. That desire that drives you to be in the top 10% nationally. There are plenty of agents that make maybe 40k a year and eek by. The top echelon can make millions in commission.

In commercial real estate I wake up everyday looking to learn more and more. It becomes something just like brushing your teeth daily or tying your shoes.

If you go into commercial plan on maybe making 30% and brokerage 70% in the beginning and over time 50/50 and eventually if you make it a long time then maybe getting 70% of the team earnings after the brokerage gets their 50% cut.

So commercial example 100,000 commission on a transaction. 50,000 to brokerage. 50,000 remaining on team of 3 agents. Senior gets 28k, middle 14k, junior 8k.

New agents miss the part about knowledge and experience COSTS MONEY. I have spent thousands of hours of 15 years learning the commercial trade and owning my company. That is not given away for a per transaction fee to brokerage. I simply keep working with my clients directly one on one and my own investments and have no agents. The problem with agents is they have not earned their stripes but think they are a gift to brokerages.

Again if you get a per transaction no frills residential company expect to usually just be a number and very little training. It's a volume and growth game for the brokerage to eventually get bought out by one of the larger companies.

Good Luck

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  • Brian D. Beatty
    Real Estate Agent · Clearwater, FL · Member since 2017 · 99 posts · 66 votes
    7y

    Make sure you interview them. Make sure what is important to you, is available.  Make sure you ask as many questions and you understand what their business model is. If you are brand new, I would make sure there is a good training program ad does it cost anything? Do they offer a Mentor program? Is the Broker/Manager competing? What is your initial commission split and what does it take to keep it there? What type of technology do they provide? Are there any monthly costs? Any other costs to walk in the door? Are you allowed to be Part-time (if this applies)? Do you receive any leads, if so at what costs? 

    These are some, that will get you started, it is really what is important to you?

    Brian Beatty

    1Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Brian D. Beatty Thank you very much for your response.

    I’m planning on being full time. I have gotten multiple mailers from specific companies like JBGOODWIN and Berkshire Hathaway home services. These two have been particularly interested in me. Not sure why?

    1Reply
  • Brian D. Beatty
    Real Estate Agent · Clearwater, FL · Member since 2017 · 99 posts · 66 votes
    7y

    Just realize that a competing broker, is actively selling, so good leads rarely make it to newer agents. If the broker/manager is not competing, make sure their spouse or family don't work in the office, otherwise they will get the leads. Hope this helps.

    Brian Beatty

    1Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Brian D. Beatty absolutely. Thank you.

    0Reply
  • Anthony Katsonis
    Realtor and Investor · Placerville, CA · Member since 2013 · 130 posts · 59 votes
    7y

    @Conway Morgan

    Look into being a buyer's agent on a top producing team. I did that and it worked out good for me. It really put some experience under my belt and helped me develop more knowledge of the real estate sales industry. 

    Granted, it was expensive... 50/50 split and then some, but I closed 12 deals in ~9 months. I almost certainly would not have closed that many deals that year had I not been on a team with my broker giving me leads. I learned a ton, made some money, and eventually decided it was time to part ways with the knowledge and skills I had acquired and go build my own brand and get a much better split on my own.

    Hope that helps!

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    Generally 2 types of firms. 50/50 split for residential that focus on taking on new agents and intensively training them (agent mills). They know agents want to split for higher returns eventually so make 50/50 4 to 5 times on them. Most agents make a few sales and then leave the business once their sphere runs out. About 80 to 90% of new agents do not last the first year.

    Per transaction firms. Generally you cannot get one of those as a new agent. They want to see 1 year or more of experience so they do not have to babysit you as much on the transaction since they are taking a low fee. Those firms you are more of a number and it's all about volume to them of deals closed. Those firms tend to be caretakers for lot's of agents rather than focused on selling much real estate themselves.

    I won't sugar coat it. Whatever firm you choose isn't going to make you this magical success. It is going to be your personal truth of waking up every morning to learn something new and be your best. That desire that drives you to be in the top 10% nationally. There are plenty of agents that make maybe 40k a year and eek by. The top echelon can make millions in commission.

    In commercial real estate I wake up everyday looking to learn more and more. It becomes something just like brushing your teeth daily or tying your shoes.

    If you go into commercial plan on maybe making 30% and brokerage 70% in the beginning and over time 50/50 and eventually if you make it a long time then maybe getting 70% of the team earnings after the brokerage gets their 50% cut.

    So commercial example 100,000 commission on a transaction. 50,000 to brokerage. 50,000 remaining on team of 3 agents. Senior gets 28k, middle 14k, junior 8k.

    New agents miss the part about knowledge and experience COSTS MONEY. I have spent thousands of hours of 15 years learning the commercial trade and owning my company. That is not given away for a per transaction fee to brokerage. I simply keep working with my clients directly one on one and my own investments and have no agents. The problem with agents is they have not earned their stripes but think they are a gift to brokerages.

    Again if you get a per transaction no frills residential company expect to usually just be a number and very little training. It's a volume and growth game for the brokerage to eventually get bought out by one of the larger companies.

    Good Luck

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    2Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Anthony Katsonis Thank you for your response and a great idea.

    Do you know if this works with any of the brokerages?

    Thanks again.

    0Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Joel Owens great advice. Thank you very much for great detail and not sugar coating for me.

    So which would you say gives the best and most training for new agents.

    Im Retired from the military so I’m open to plenty of training and learning.

    Im in it to sale and to invest.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    Residential or commercial?

    If residential and you want to cater to investors versus regular homeowners than you need to find a firm that has a principal broker that mainly focuses on investing. You can usually find a few at your local real estate investor association meetups or in the directory.

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    NNN Invest53 Reviews
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    1Reply
  • Anthony Katsonis
    Realtor and Investor · Placerville, CA · Member since 2013 · 130 posts · 59 votes
    7y

    @Conway Morgan

    It would work with any brokerage that has a top producing agent that is running a team.

    I would google "Austin Texas Realtor", see what names come up, then go on Zillow, and look up their name. It will tell you how many deals they have done in the past 12 months. Pick the top producers, and call them and ask them if they have a team and if they are in need of a buyers agent. Let them know your situation, and see if they would have time to meet for coffee.

    Chances are if they have a team, and are doing a lot of business, they would love to have another buyers agent to handle the buyer leads that they can't get to.

    1Reply
  • Anthony Katsonis
    Realtor and Investor · Placerville, CA · Member since 2013 · 130 posts · 59 votes
    7y

    Another word of advise though if you go this route... Carefully read the contract if they make you sign one to be a part of their team. A lot of times they'll try to put all kinds of stuff in there about non-compete, minimum time commitment, ownership of all leads, etc. Just be careful before you sign anything is all.

    1Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Anthony Katsonis Great. Thank you.

    I will definitely put this into action.

    0Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Joel Owens well I am looking into sales and to invest in rental properties for my own passive income.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    Then residential investor broker that owns rentals in your area might be a good fit. You can see how they built their portfolio and also work with investors. Home owner sales is a whole different dynamic just like commercial is. Have to get focused and work the plan.

    Sometimes it takes new agents trying multiple things the first year before they gravitate to something they like more than the other things they have tried.

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    NNN Invest53 Reviews
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    1Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Joel Owens I certainly hope to learn as many areas as I can. So much to learn but I’m excited to know as much as I can.

    Thank you

    0Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    7y

    @Conway Morgan Keller Williams

    [email protected]512-888-9122
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    1Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Jordan Moorhead thank you.

    1Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    7y

    Hi Conway, congrats on getting your license! Since you are a new agent here in Austin, I recommend you come and speak with our team leaders at our Keller Williams Southwest Market Center. We are the #1 real estate office in town by sales volume and agents where you will find dozens of different opportunities to join a top-performing team if that is the direction you prefer. You can also be a solo agent and get trained by top agents. If you like consistent learning opportunities and the option to work next to countless heavy hitters, shoot me a DM and I'll connect you with our leadership.

    [email protected]512-674-5478
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    1Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Ryan Kelly Thank you very much for the opportunity to work with top performers.

    I am mainly looking to work in the Round Rock/Georgetown area.

    So any information you may have for that area would greatly be appreciated.

    0Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    7y

    @Conway Morgan Absolutely, we have a stellar KW office up there as well. Shoot me a DM and I’ll be happy to introduce you to the leadership in the Round Rock Office.

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5110 Reviews
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    0Reply
  • Derek Jones
    Real Estate Agent · Sacramento, CA · Member since 2015 · 338 posts · 135 votes
    7y
    Originally posted by @Conway Morgan:

    @Brian D. Beatty Thank you very much for your response.

    I’m planning on being full time. I have gotten multiple mailers from specific companies like JBGOODWIN and Berkshire Hathaway home services. These two have been particularly interested in me. Not sure why?

     They want you because you are another source of income for them. Plain and simple. They may all seem like they truly care but in the end it's about their bottom line.

    You can be successful just about anywhere.  Interview a few brokerages and get everything they say in writing. If this is going to be your only source of income you may want to start with one with lower monthly or startup fees, decent split and one that provides you the tools to be successful. 

    2Reply
  • Conway Morgan
    OP
    Realtor · San Antonio, TX · Member since 2019 · 29 posts · 4 votes
    7y

    @Derek Jones Thank you for the advice. I am in complete agreement with you too.

    That will most likely be the hardest part is figuring which brokerage will be best for me.

    0Reply
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