Looking for broker accepting PT agents in King County WA area
Just to be clear, I don't have my license yet, but am about to start the process. My main concern right now is that I will only be able to do RE part time as I already have a full-time job, and I've heard that many brokers don't really want PT agents (which makes sense since their deal volume would be lower).
So, to my question, does anyone know of and/or had experience with a broker in the King County, WA area who is willing to accept PT agents? I'm pretty new to RE so please excuse my lack of knowledge.
Most Popular Reply
Hi Jonathan,
I work for Skyline Properties in Bellevue and really like it because the fees/commission split is low and we don't have a minimum amount of deals we need to reach per year like some other brokerages. If you're interested PM me and I can set up an appointment with my managing broker for you. I would recommend interviewing with many different brokerages until you find the right fit for you.
With that being said, are you sure you want to get your RE license since you're only working part time? Are you planning on doing your own transactions only or are you going to help other people buy and sell also?
If you're only going to use your license for your own deals it will be cheaper and easier to hire a broker when you need one. Here are some things to keep in mind before you get your license:
1. It's expensive! Every brokerage requires different things but some expenses to be on the lookout for are: monthly desk fees, commission splits, franchise fees, transaction fees, E&O coverage fees, and REALTOR fees. Most of these fees are dues every month regardless of if you sell a property or not and even if you're only buying and selling your own houses your brokerage will still expect their cut so you won't be buying/selling for free. The MLS also charges a significant fee and then there's marketing costs including a key box, business cards, signs, flyers, photos, and finally CPE's which range in price. The list of expenses for brokers is never ending and ads up fast.
2. As a part time agent you won't get to take advantage of the tax breaks of a "real estate professional". According to the IRS a real estate professional spends at least 750 hours a year and more than half of their working hours in real estate activities and you may have to pay self employment tax in addition. Be sure to talk with your CPA before you get started.
3. You will be held to a higher standard once you get your license meaning you're expected to know all the real estate laws about buying, selling and renting properties and if you accidentally break a law there are big financial consequences. This limits what you're able to do as an investor. Some examples are that wholesaling and buying from distressed owners becomes risky business and when renting you need to follow fair housing laws. Fannie May and Freddie Mac also limit brokers from buying their homes.
If you're got any other questions let me know, and good luck out there!