Hello! My name is Casimiro Yulfo and I recently completed all necessary requirements for Licensing in NYS. I'm starting this discussion to help myself as well as other Newbies educate themselves on when picking a Brokerage to hang your license what their business structure actually is without all of the fluff. From my own due diligence and interviewing with different brokerages I've come to realize that the business structures and profit splits along with the different fee's can either make or break your reserves(depending if you decide to make this a full time career), drive and Brand that you will be building. As commission splits, marketing assistance, training courses, desk fee's and the list goes on differs from one Brokerage to the next. I'd like to hear the beginning of everyone's story on why they started out becoming a agent, their focus when choosing a brokerage and the experiences while working there. i'd also like to hear what were your biggest challenges when starting out. I'd like this post to help myself as well as other make a decision on the different factors as these decisions are life changing. We all deserve the best opportunity to succeed! I myself am deciding to make Real Estate a full time career and eventually start investing myself. Thank you everyone in advance for your time and input.
Do you currently have a w2 job? Agent jobs are 1099 and make investing tough for 2 years or so. It may be worth starting part time and building up your business.
@Jordan Moorhead Thank you for the reply. I have 2 other 1099 sources of earned income. I also have 6 months of reserves and my thinking is to invest full time to get over the learning curb a lot quicker also to have more time networking in the real estate space. Jordan which brokerage do you work for and do you care to elaborate on your experience there?
If you have a W2 job suggest hold on to it and try PT for a year. If you do not have a 6 months reserve wanting to force start you are heading for a head wind.
Should focus on training and brokerage with lots of new agents to network.
@Casimiro Yulfo I'm at Keller Williams and like it quite a bit. They have a lot of training, resources and the commission structure is fair.
I’ve heard the same about KW, but upon reading reviews from others I’ve noticed people stating that some of the trainings have to come out of the agents pockets. Can you please shed some more light on this @Jordan Moorhead ? Thank you.
Low training low flat transaction fee, with a modest monthly fee independent offices work better for some than going to name brands that are going to take 1/2 of the commission. Others chose a hybrid, training plus no brand name, and probably inbetwen commission splits. Just depends on what of those 3 matches your marketing plan best.
KW is probably OK to start. As for commission it is hard to ask better split because you are not proven. KW has a cap limit beyond you keep all of it. To reach there first year it is unheard of.
Each type and size of Brokerage have their own pros and cons. A large Brokerage like KW, can provide a new agent lots of training, support, and shorten your learning curve but they will also take a larger commission split. Smaller brokerages will give you lower monthly fees and better splits but less guidance and training. 90% of agents leave the business within 2 years because they do not have the client base that provides 65% of most Realtors income and the biggest factor is that being a Realtor is for most their first "self employment" job and there usually is no one telling you what time to work and what to do. My best advice is to interview with several brokerages in your area, get a feel for what suits your needs and then try to join a team where a senior agent will allow you to train under them and give you leads, training, and allow you to free up their time for more income generating items. 90% of what Realtors do is clerical or time consuming like inputting data, sitting Open Houses, and keeping up with paperwork.
I would say it has a lot to do with your goals. Are you looking for high end listings? working with investors? a place to just hang you license? corporate feel or independent feel?
If you want to invest, it would be wise to do so when you have a w2. You can also start out part time, and make a transition plan to full time.
If you do go full time, you will want reserves and at least 6-12 months living expenses.
@Casimiro Yulfo there is both paid training and free training. Being that they're all independently owned this could vary quite a bit!
Thank you everyone for taking the time to reply, and helping one another to succeed.
Going through this right now. Such a struggle.