I often hear other agents brag that their broker doesn't require them to join the Realtor association. Can anyone share some advice on how I can transition into a company solely for personal investing? That means I can keep my real estate tools (MLS access, contracts, lock box access) without being pressured to produce for my company or maintain Realtor status.
I'm aware of EXP realty but who else is out there? I'm in the state of Virginia.
@Rhonnie Smith as an agent you are an independent contractor. Also eXp Realty requires their agents to be a Realtor®.
@Rhonnie Smith like David said, you do have to be a REALTOR® with eXp Realty. However, production is completely up to you at eXp. You can use your license just for your own investments or become a top producer, whatever you want.
For investors, the big perks are three exempt personal transactions per year (100% commission for your personal/investment properties), the favorable commission split, low cap, and the flexibity to access training, tools, and support from anywhere.
Best of luck in your search!
@Rhonnie Smith The contracts are copyrighted materials to the Realtor Boards/Associations. So if you withdrew from the board, you would lose your license to use those contracts. So be aware of that.
Also, most MLS systems has 2 different subscription prices. As a Realtor board member, you are typically paying a discounted rate. If you withdraw, then you will have to pay the full amount. So keep that in mind for your calculation. Also Sentrilock and Supra typically have lower fees for realtors as well.
Throughout the midtaltnic, you will actually be pretty hard pressed to find a brokerage that is not an NAR/Board member. Realistically, the only way to do so is to become a solo broker. Then like I mentioned earlier you have those increased subscription costs, but then you will also have to purchase things like your e&o insurance yourself.
Originally posted by :@Charlie Cameron
For investors, the big perks are three exempt personal transactions per year (100% commission for your personal/investment properties)
As a side note, I don’t consider that much of a perk unless you only do 3-5 deals a year as I want to cap and then do 20 more to become an icon agent, plus at cap, I am at 100% split anyways less a few minor fees so the 3 personal freebies as investor does not help me.
@Rhonnie Smith as others have said, you'll be hard pressed to find a brokerage that doesn't require NAR/MLS membership. However, if all you're doing is your own deals, I don't think there's a big benefit to joining EXP or any other big name national brokerage. I know quite a few investors around me that hang their licenses at a flat rate brokerage, Sand Dollar Realty (and in all honesty I may go that route at some point). The broker is an investor and very involved in the local REI groups. I don't think they are national but I'm sure you've got something similar near you. They do require you to be a Realtor and join MLS so there's no avoiding that cost, but they don't take a big split regardless of how many deals you do. And as long as you stay within the guidelines of state law. There's very little oversight, unlike exp (and I'm sure most other national brokerages) where they've got a long list of guidelines to follow barring many things that are legal in the state. With Sand Dollar, I believe they have a $0 per month and 90/10% split plan or $200/ month, 100% commission and a $100/transaction fee. If you do enough deals to justify the $200/mo, then every one you close is just $100 to the brokerage. They don't hold your hand, offer training, etc, but there is a local broker to answer questions, sign off on forms, etc. I'd look for something like that and interview a few brokers.
I've gotten a lot out of EXP training and support since I was starting as a newbie, but it wouldn't be my first choice if jumping in for my own deals only.
Thanks guys for the clarification on eXp. I suppose you can't avoid the NAR. Don't get me wrong, I understand Brokers wanting agents to join. It holds us to a high standard of integrity in our business dealings. But jeez it feels like robbery!
If anyone else is wondering the same question - I’ll add that I counted the cost of my Real Estate fees against the number of deals I’d like to do in the next year. For me, it will be cheaper to pay my colleague to hunt for homes and write the deals for me. I also stand to receive a small referral fee through my old broker.
So maybe I’m better off to stay inactive. At least I know the mechanics of the business.