I am a licensed agent in Colorado and regularly flip houses, in fact it is the primary focus of my business. My current brokerage wants to take a split of my commissions on deals that I wholesale (on market). For instance, if I find a deal that is listed on the MLS for a $10K commission and I wholesale it to another investor, the brokerage wants to take a 30% split on that commission ($3K).
I am not okay with this since I am the one making that deal happen, it just happens to be listed on the MLS. I have an option to go with a cheap brokerage ($250 or $300 per transaction), but I really do like my current brokerage except for this new issue.
I am looking for advice on what other arrangements active rehabbers that are also licensed have as part of a deal with their brokerage...
Sounds like a pretty simple decision: If you can't get your broker to change his policies, you either need to pay the commission or move to a different brokerage.
We have always worked under a broker that charges a flat fee (or no fee) per transaction.
I'm not understanding the issue.....if you are making a "commission" on a listed property in your role as an agent, they get whatever part of your commission your agreement with them states. Or, is it something different, as you mentioned wholesaling but you said a $10k commission thru MLS agreement.
I don’t understand what the issue is, pay or move. It seems like very straight to me. I only negotiate once, or twice if i’ll be hungry without it.
@Jake Adams , you gotta ask yourself: do ya feel "lucky" (or "good") at negotiating? Well, do ya?...
If you’re looking for cheaper options I’m with Broker’s Guild and they allow their agents to transact their own deals for $0/per. I only pay a very small flat rate transaction fee if I buy or sell for a client.