Inscrit le: 24 Mar 2016
|Posté le: Lun 10 Avr - 13:58 (2017) Sujet du message: Should I make the jump to broker?
|Should I make the jump to broker?
So my situation is I have been an agent for three years, full time for about a year. I started by getting my license because I was (and am) buying a lot of investment homes and wanted to remove the middleman. Now I am I guess what you would call "full service" where I do my own investments and sell residential real estate. I like doing both because it adds some variety. Some days I am in the office, some days in the field, sometimes swinging a hammer.
Anyway, the broker I work for is extraordinarily nice and helpful. He has about twenty years experience and runs what I would call an "investment brokerage", mostly employing agents who do their own thing and don't require a lot of guidance/resources. It's a small, efficient outfit, not REMAX or Keller Williams or anything. I negotiated a deal when I started full time last year where there would be a $30,000 cap on his commission (basically my first $60k would be taxed and then I am home free). I thought that was a good deal at the time, but now I am thinking that is still way too much.
The services he provides are:
1) Obviously taking care of the licensing stuff, absorbing the liability, etc
2) Occasionally providing me with advice on ethical standards, salesmanship, etc
What I pay for and do myself:
1) Paying for postcards, advertising, etc
2) Use my own office
3) Do my own paperwork, listings, photos
4) Generate all my own leads
5) Pay my own E and O insurance
6) Buy all of my own signs, lockboxes, other equipment
The company has moderate name recognition in the area but I don't get any leads from it. So I guess my question is two fold..one, does it make sense to get my broker's license and go out on my own and, two, what costs are associated with being a broker? I know MLS membership costs more as a broker, plus E and O insurance, etc but not sure what else I need to prepare for.
One thing I thought of was renegotiating the deal and offering $10k a year commission. I think that would be worth it because I really like him and the other colleagues, what he has done for me schooling me so far, and it would forgo the hassle of me taking the required broker's education and the administrative headache of functioning as a broker. I don't think that is worth much more than that.