Mom and pop brokerage
Recently passed the CA broker exam with no experience in R.E. Thinking of diving right in and opening a mom and pop brokerage, as I have been given an office space at no charge. Maybe finding agents by giving 100% commission or low commission rates and or starting solo and hiring a transaction coordinator to help put with the paperwork together
@Jessica Jaboor - I'm an owner broker of a small brokerage in Michigan. I can speak from experience that being a broker will only make you broker.
Working an associate broker with another local brokerage can be more profitable and MUCH smaller headache. Growing a team (not a brokerage) seems to be the future of real estate. It's faster, cheaper, more commonly successful, and has way less overhead.
If you want to be a mentor, talk to your current principle broker and see how you might be able to help him/her. There are so many ways to grow your business without taking on the risk of opening your own brokerage.
Please don't open a brokerage just because you can. It's a bad idea for 98% of people.
@Jessica Jaboor @Kase Knochenhauer is offering some real wisdom here. I know because I did the same thing.
I spent 3 years trying to get a brokerage off the ground. We were up to 10 agents, but none were producing anywhere near as much as I was.
I ended up spending so much time recruiting, coaching and training agents who weren't producing that my own numbers took a big hit. On top of that, I was paying for CRMs, websites, E&O, lead generation, marketing, etc.
Lots of extra money going out + my own diminished production + non-performing agents = me being exhausted, discouraged and broke. I ended up cleaning house and signing on with a regular brokerage.
Think about your recruiting strategy.
What are you going to offer someone like me? I'm on an 80% split with low fees and a phenomenal amount of tech (outstanding CRM, lead gen tools, transaction management, training, etc) provided. How are you going to entice me?
Will a strong agent leave a big brokerage where they're making very good money to sign on with a mom & pop startup where the managing broker doesn't even have experience in real estate?
The only hope you have is to give away the store, which, of course, leaves you broke.
It's a nice ego rub to have your own brokerage, but ego doesn't pay the bills.
Definitely not in it for the title or ego. Just that If I go that route I know a few people around me who are investors and willing to link up with me. I'm just wondering if I take the transaction coordinator course on CAR as well as higher a transaction coordinator, would I be able to make deals and jump right in instead of working with a mentor