go straight to 100% comission broker?

Question

If you were only getting your real estate license for your own deals and maybe close friends and family, is there any reason not to go straight to a 100% broker with no training. Im not looking to learn all about farming for clients and working my sphere so what do you think?

Seems like most brokers only want to offer 50% comission to new agents.

Melissa Kirchhoff · Answer

My question is why wouldn't you *want* the training? (and other general experience)

To me, that's the most powerful part of it. Learning the real side of your market - working with tenants, working with real buyers in your area, working with sellers, negotiating, learning ins and outs of the contracts and hearing other people's stories is an amazing way to learn lessons on other people's time and money, no matter what your investment strategy. Maybe you are past this point, but I think that's very useful. Every day I learn new things as an agent that helps me learn more about the investing world (not to mention most agents I work with are also REI that aren't going to these get togethers and on these forums but have been doing it forever and it's great to pick their brains and network!)

Also, a side note, agents will show any brokerage's properties because we have to. But honestly, there's ones that are better to work with than others. In my area, working with a lot of these small ones can be a complete transactional nightmare! So I do try to promote to my buyers listings that are with agencies and brokers that I know are smooth and good so my buyers have a better experience (as well as myself since that's all part of it!)

@Vladimir K. - Yes! That's an excellent idea and the search is the same for me but we are both likely in MRED.

Vladimir K. · Answer

In my opinion, you should go to 100% broker, as long as monthly fees are reasonable.  You can always pay for the training if needed.

As an example, if you need hand holding at first, consider splitting the commission with a knowledgeable agent from your office.  You can always negotiate your split this way.

Also, i'd recommend that you contact agents who sell their own homes (search Agent Owned/Agent Interest) to find out what their opinion of the brokerage is.

Andy Chu · Answer

Defintitely take the no name one. I've never heard of anyone not showing a listing because it was listed by Mom&Pop Realty. Most of the time, the no one names have less agents and can give the one on one if needed.

Rich Weese · Answer

Dave- if you're only doing your own deals, take the no name, especially if you don't need help. No one will care who the listing office is- only if it is a good deal or property the client is interested in. Good luck. Rich

J Scott · Answer

I don't know what they splits look like in NY, but in Atlanta, I'm paying $68/month plus $300 per transaction.  The broker has about 3500 agents, so there is a good training and support infrastructure.  I see no reason to give away a substantial part of your commission when you don't need the brand, the office, the desk, the phone or the team.

Steve L. · Answer

I'd go to 100% commission... or small fee brokerage.  You don't need an office, name brand recognition, etc.

Jonathan Greene · Answer

@Dave Charron - if you don't want training or need an office mentor (which you will need a mentor of some kind just to make sure you are doing everything correctly on the contract side working your own deal), don't go somewhere like KW. They will get you on monthly tech fees, training requirements, etc. If you don't need the branding of the big agency (which is really only relevant for higher end listings), find the best deal.

My best advice for this is to do what most of us do as investors - drive for signs instead of dollars. When you are driving for dollars looking for properties, see what agency is listing investment properties. When you see the sign three times and the same name on it, that might be your agency and mentor right there. Hope this helps.

Kelly Wali · Answer

The following article is from the National Association of Realtors, It completely makes sense it is the agents knowledge, work ethics and personality that makes the deal not the name of the company.

Article from NAR;

you know the names, even if you're only a casual observer of the real estate market. Coldwell Banker, Re/Max, Century 21. The list goes on. And so do the ads, because national real estate brands blast away at consumers with marketing that ranges from TV spots and local signage to search engine optimization and social media. Clearly, competition is fierce for those brands. But if you're a buyer or a seller, does the brand name really matter?

The choice

Of factors that go into picking a real estate agent, some evidence suggests that brand name isn't important. According to data from the National Association of Realtors, only about 3 percent of buyers and 4 percent of sellers report considering an agent's association with a particular firm to be an important factor in hiring that agent

Read more:  http://www.bankrate.com/finance/real-estate/does-brand-matter-pick-agent.aspx#ixzz3oSoensEf Follow us: @Bankrate on Twitter | Bankrate on Facebook

Vladimir K. · Answer

Hi Sonia, in my area, there is an option (only for Agents) where you can select Agent Interest as YES.  You may have luck with text search "Agent Owned" too.

go straight to 100% comission broker?

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