Hey BP family, so i know you dont need your real estate license to be a real estate investor however getting it wouldnt hurt etthier. I just finised my real estate state exam in NJ and now i have to make a decision where to hang my license. So far im down to 3 brokerages. Keller williams, Provdient legacy (small brokerage), and Remax. Im having trouble on what i should do, i just wanted to see what you guys have to say if you were in my position when you first started. im looking to do this for the long run and the money i make as an agent will go to my investment properties. what are some key points you guys look for when choosing a brokerrage, or when you chose yours, your advice will be highly appreciated.
sincerly, Steven Betancurth
I believe you will get all the trainings with Keller Williams. I believe they are friendly investors and will work with you. You need to talk with the Broker managers of each firms and decide what is best for you.
Choosing a brokerage is an incredibly important step which should not be taken lightly. The reason is that real estate brokerage is all about your network. Once you start brokering, you will inform everyone in your personal network that you are now an agent and can help them buy and sell real estate. If the next thing they hear from you is "And now I'm switching brokerages", that is going to undermine your credibility and make growing your business much more difficult.
So, making the right choice up-front is critical. But how do you do that?
The answer is that you need to figure out what kind of an agent you want to be. There is a huge difference between residential brokerage, where you specialize in selling homes and investment brokerage, where you work with investors. Within the broad category of investment brokerage, you can specialize in 2-4 unit deals, larger multifamily, office, retail, etc.
If I were you, I would want to work with investors. Rich people who own investment property tend not to own just one. They transact a lot, and their deals tend to be larger in size (so the commissions are larger). Also, working with investors is a very good way to learn about how deals are structured, where the equity and debt come from, etc. Finally, rich people who invest in real estate are EXACTLY the type of people you will need to back you in your own deals.
Once you decide which type of business you want to do, then you should identify the brokerages that lead in that area. Meet with all of them and try to find the place that is going to offer you the best (1) training / mentoring; and (2) leads. It's reasonably likely this will be a smaller brokerage, because bringing along new agents is how smaller brokerages grow.
Hope this helps!
@Steven Betancurth ...I got my license last month in IL and I agree with @James Enright and @Moses Kagan . I choose mine because I knew my main goal was to be an investor for the long haul. I choose one that gave me 100% commission with low monthly fees, that didn't require a lot, if any, face or office time, no pressure to do anything but did offer training in all aspects of being broker if you wanted. I also choose mine because the owner is an investor and willing to answer questions and give guidance about investing. They are very hands off but have no problem diving in with you and giving any support or training you need and want it. Decide what you want in a brokerage and interview them and make an informed choice.
Steven Betancurth where are you located and did you make a decision?
Congrats on getting your license! Rather than looking at fees and splits, a large broker with networking and training capacity are huge for your first year. Your first brokerage is not a forever marriage. I suggest going where you can get the most training and exposure to the market. A small firm that gives you 100% splits, if giving you just that - zero. Think about your first year as education, training and an overall, "internship". Suck up as much knowledge as you can and then move to a more specialized firm.
Side note - I spent my first year at Keller Williams. It was a great environment to learn the business but I've since moved on to a niche brokerage specializing in property management and investment acquisition.
You've got to start somewhere.
I've worked for three firms since 1996 and it wasn't until I joined Keller Williams in 2003ish that my business really took off. If you follow Gary Keller's model, it will fuel your entrepreneurial spirit. This company and its agents share their knowledge. Nothing is a secret. The fire for my company was lit by what I learned and the people I met at Keller Williams.
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