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Updated over 13 years ago on . Most recent reply

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Dean C.
  • Investor
  • Rockford, IL
3
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Licensed agents: Investor or agent first?

Dean C.
  • Investor
  • Rockford, IL
Posted

I've made the decision and am working toward getting licensed as an agent (well, it's "broker") here in Illinois. And yet, I'm doing so to break out of the corporate world so I can devote 100% of my time to real estate. My primary impetus for becoming licensed is to not become a full-time agent but to help me as a real estate investor.

Before this turns into another "should I get licensed or not" thread that has already been discussed here ad infintum, I've already made the decision to become licensed. Envisioning what that would be like in the near future, I'm wondering about potential conflicts with the sponsoring broker as an investor while licensed and expectations as an agent that will undoubtedly be placed on me by my managing broker.

So I ask the good folks here at BP whom are currently licensed agents (but are also active investors). How do you reconcile the two? Do you ever encounter issues/conflicts with your managing broker when you are out doing your own deals? How do you allay any concerns your managing broker may have about your investing activities? Do you cut them in on every deal? Or is your broker very hands off as long as you make a sale every now and then?

I realize these are probably questions I should ask when I interview a potential managing broker with whom I will work, but wanted to get your experiences and perspective on the subject.

Thanks in advance!

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J Scott
  • Investor
  • Sarasota, FL
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J Scott
  • Investor
  • Sarasota, FL
ModeratorReplied

Dean -

It really depends on the broker you go with. If you go with one of the big names (Re/Max, Coldwell Banker, Century 21, etc), they'll likely require office hours, likely require you to handle leads they're getting, etc. They will have extensive overhead, and if you're not producing, they won't be able to pay the bills.

On the other hand, smaller brokerages probably won't have fancy offices (may not have offices at all for the agents) and won't have much overhead. In addition, you'll likely be paying a monthly fee (regardless of the brokerage) that will offset what the smaller brokerages spend to keep you on-board -- so everything they're getting off your commissions is gravy/profit.

Interview brokerages just like you'd interview potential employers, but remember -- they need you more than you need them. Tell them what you'll be doing, and they'll tell you if they're okay with that. Many of the smaller ones will be (in my experience)...

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