Hi,
A 70-30 split is very, very good, considering that the big big co’s usually work off of a 50-50 split. I started out with one of the big co’s, then moved to Re/max, where my monthly fee was close to $1000 a month, counting everything, then when I was eligible got my broker’s license. Getting your broker’s license is truly the best way to go. For the last 4 yrs I’ve been on my own as a one man show. It’s defenitley better than having to answer to someone.
Every big broker has their pro’s & con’s, best to try to find small, flexible broker. You’ll face the same problem finding a broker as people looking for an agent to do biz with. There seem to be some really unique personalities in every aspect of this biz. Good Luck!
Vic
I thought I would add to the growing body of “amazing Realtor stories” now available at this site.
My wife and I are helping my daughter buy her first house. The other day, my daughter gave us the address of a house that she was interested in taking a look at. I called the listing agent.
The listing agent informed me that PRIOR to looking at the house, that we would be REQUIRED to submit a “pre-approval letter” from lender (not a letter of prequalification, but a pre-approval letter). No letter, no look.
By way of explanation the Realtor explained that the seller was quite busy, and didn’t have time for “looky-lou’s” to be traipsing through his house. He only wanted “serious” buyers to look.
I told the Realtor to give the Seller a little feedback…none of which will be repeated here in deference to those of you who might be of a kinder and gentler persuasion.
By the way, I’m a proud Pop when it comes to the way my daughter has handled her credit. Here FICO score is around 713. Guess that’s no longer good enough to look at some people’s houses. Oh well…she bought a different house yesterday. So much for “looky lou’s”.
Re: Another Amazing Realtor Story… - Posted by GregNorman
Posted by GregNorman on April 03, 2000 at 19:08:51:
Jim,
I may have to agree with the Realtor on this one (with a little twist of course). I haven’t heard of a seller’s agent saying they wouldn’t show the place, but Betsy (my wife) won’t show people homes as a buyer’s agent unless they are pre-approved (or at least pre-qualified knowing how much cash they need in the bank at this moment).
Just like in the real estate investment business, it comes down to dealing with ‘motivated people’. And I guess the seller has decided what level of motivation he wants to deal with!
Of course, a good agent would have tried to pick up your wonderful daughter as a client.
As a Remax realtor, I think they’ve got a good game going, but each office is different. However, rather than pay the full fee as a realtor, you may check with the broker to see if any of the agents would like a part-time licensed assistant. The desk fees for this are usually in the couple of hundred dollars a month range (or so), and you keep 100% of commissions. you should make it clear to the agent you work for and the broker just what you plan to do. you could put in 10-20 hours a week helping the agent, and the rest of the time you do your own thing. The money you make as anassistant could pay your freight.
Over the years as being an agent investor, I have developed a bag full of realtor stories.
One thing I have really observed over the years is how once an agent gets a listing how that agent becomes the decision maker of that seller. It is really amazing how they dont even have a clue of there situation. If some of these sellers knew what there agents were saying to potential buyers and buyer agents, I think the sellers would go balistic.
No wonder realtors and the industry has such a bad rap.
Just today I was promoting a house of mine with flyers to the neighbors and as an agent, I used my letter head and at the door step this guy about threw me off the porch and said he hated realtors and I was upset because I didnt even get a chance to tell him I felt the same way.
And just how do you think I feel as an investor who only got her license so that I could act as my own agent. Let me tell you the road I have travelled by…
Last month I took a vacation. My broker (office manager) and I were already on bad terms due to my lack of frequent appearances at the office. Although he was quite informed from the beginning that I had no interest in being a “traditional agent” who sits at the office and only waits on buyers and sellers at some point I guess he felt that he could steer me in that direction. Well no dice. After working with him for 3 months he calls me on my vacation and tells me he needs to talk. I informed that we would talk when I got Off my vacation.
Well I get back into town and see a letter from him stating that he could no longer work with me and that he had sent my license back to the commission. After giving him a nice piece of my mind, I am now in the process of locating another broker to work under. By law all agents have to work under a broker.
So I interviewed with Century 21 on Friday. Well the manager made it quite clear that she was only interested in "real " agents and that she didn’t approve of investors who are always looking to get bargains. After I informed her of the monetary value of her lossess, she quickly had a change in heart and developed an interest in me. Too late, I excused myself from that interview and canceled all of my interviews with Century 21. Today, I am going for offices that have established investor/agents.
A hard lesson learned about agents makes me wonder if I should start hiding out from their asinine practices.
If I were a Realtor I would qualify my buyer before I drove them all over town looking for properties. And in fact, in this case my wife (the Realtor representing my daughter) did not show houses until a trusted lender (Ed Garcia) had received a 1003, and had pulled credit. If I were a Realtor I would also want to assure myself as to where the funds to close were coming from.
It?s important to note though, that none of the above is sufficient for the so-called ?pre-approval letter?. A ?preapproval letter? is not issued until such time as the information on the 1003 is formally verified?perhaps source of funds and employment. So in my daughter?s case she had been ?pre-qualified? but not ?pre-approved?, and had a letter. That was not good enough to view this particular house.
In this particular case what the seller and listing agent accomplished was to not expose the property to ALL the buyers, to include at least one who was highly qualified. Unfortunate for the seller, because in the case of my daughter she had spotted his house driving by?.but afterall, his house was not the ONLY house she was interested in. She might have liked this seller?s house?.who knows? She was ruled out however, and in fact, thrown into the category of ?looky lou? by the listing agent. That may have cost this particular seller a sale.
If I were wanting to sell my property through a Realtor, I would generally want to expose the property to all the buyers out there. All the buyers have not necessarily reached the part of the process in which they would have a ?pre-approval letter??.that takes a little while. But that doesn?t mean they aren?t qualified. What I wouldn?t do is to accept an offer without a strong letter of approval. But to limit your buyers only accomplishes what it accomplished here. Buyers out in the market are in varying stages of the process at any particular moment, and I would say that these days most agents do have a lender take a look before showing property. But they aren?t all at the point of pre-approval?.and to the extent they aren?t, that doesn?t mean they aren?t looking, and won?t buy.
I have never seen this particular tactic in my entire real estate career. I think it?s a symptom of a hot seller?s market. Personally I wouldn?t hire any agent who suggested this type of tactic?and would fire any agent who used it without my authorization.
You are assuming the agent made up this requirement by himself. I have run into sellers who say they want to sell yet don’t want to be bothered by people coming to the house.
If the seller wants only pre-qualified prospects the agent is stuck with that. He can agree to it or walk away the the listing. And if he says he will pre qualify and doesn’t the seller thinks he’s one of those lousy real estate agents. If he does what the seller wants the buyer thinks he’s one of those lousy real estate agents. Dned if he does, dned if he doesn’t. What a business.
Re: Another Amazing Realtor Story…Should I start hiding? - Posted by Andy in MI
Posted by Andy in MI on April 03, 2000 at 22:56:28:
I really want to respond to this post, but don’t know where to start. Here goes:
A few weeks ago, while a RE/MAX agent was showing me 2 potential renatl props to add to my collection, he suggested that I work for him as a licensed assistant. His last one just became a licensed realtor, and made $52k last year under him. This subject came up after I told him that I am growing very weary of my prison career (sorry folks-I’m one of the “good guys”).
Obviously, I would be doing some grunt work for him, which is one of the reasons I want out of the joint: working for others. I want freedom - weekends off (?), holidays with my family instead of criminals, not having to call in sick when I am really sick.
Sorry to ramble. Any assistants have any experiences they would like to share with me on this, or does anyone else have some suggestions?
I know that my $48k per year “secure” job is a lot to walk away from. I would appreciate ANYONE"S input.
Iam interested in how you approached a broker and told them that you wanted to be an agent with their co., and would still see that the got a commission off your investments. This is of interest to me because I too want to work for an agency but, only do investments. I then would be able to use the MLS.
Re: Another Amazing Realtor Story… - Posted by GregNorman
Posted by GregNorman on April 04, 2000 at 15:31:30:
Jim,
I have to agree that asking for a preapproval letter could be a high hurdle to get over (if I’m not mistaken, don’t most mortgage brokers charge to get pre-approved and isn’t there also a short timeline on how long the actual pre-approval lasts). I believe most brokers frown upon giving those things out and steer buyers toward a pre-qual and a little HUD-1 like form to tell you what to expect. Actually, most won’t give a pre-approval unless you have an exact home/dollar figure in mind which would be difficult if your looking at multiple homes/price ranges. Sorry, I’m rambling…
But like you said, it’s a ‘symptom of a hot seller’s market’.
Andy,
It is good to see a “Brother” coming into this business.
I too used to work in Law Enforcement/Corrections.
I served my last few years supervising a shift in the crossbar hotel. (I worked for the county Sheriff where Deputies did double duty as “cops” and “C.O.'s”.)
Let me tell you, leaving that secure enviroment, in all forms of the statement, was scary at best.
But, it sure is nice to have weekends off when I chose, not mandatory O.T., and a uniform of MY CHOOSING! (not too mention not too many people try to fight with investors, or call them names constantly.)
The freedom I felt that glorious day I quit is a feeling I will treaure forever.
That day I walked into roll call, handed the Sgt. my badge and a letter of resignation, I promptly got on my motorcycle and raced home, yelling at the top of my lungs that I was free. I am sure I looked like an idiot raising my arms into the air as I yelled on my bike.
And sure, after leaving I felt a certain sense of loss.
The Badge is a lifestyle, not just a JOB as you know, better than those who have not walked the walk.
And, certain things will ALWAYS be in your personality.
Your constant sense of needing to observe EVERYTHING around you, and watching your back.
But, I have found that my experience inside has helped me develope problem solving skills far greater and faster than most. It is easy to not be afraid or experience fear of a deal when you are used to fighting and facing home made knives daily.
(Yes daily, I worked in a typically understaffed , over crowded max county jail.)
After all, negotiating a home sale is way easier than getting some banger to drop his shank in a fight, right?
So, go for it, and good luck.
Welcome to life on the “outside” my brother.
Sometime when your in chat here in CRE we can swap “War stories” and De-brief a bit about the J.O.B., and I’ll show you the ways I have correlated my inside ecperience to this world in R.E.I.
Licensed Assistants is a good way to generate income, but you are right, you would definitely be working for someone else. The trick is that you would be able to negotiate your schedule and put in around 10 to 20 hours per week. So I can’t see you needing a whole lot of sick days for that.
At any rate take a look at Steve’s post. He is giving good advice. If I had to go in as a licensed assistant, I would go for ReMax. But develop a plan to replace your monthly income and get some investment properties that would help you do that.
Then you can comfortably leave the grunt work behind you.
You may want to go around to differnt companies and talk to brokers. Some times the one man bands are the best or non franchises. I have my license at re/max and they promote you doing deals and rolling commissions, though you do have to pay a monthly fee which is high if you are not doing much business. It works great for me because I get refearrls from friends and family which covers all of my living and desk expence.
Some of these smaller offices you will find the brokers to be investors. Open your phone book and start making some calls and tell these brokers straight up what you are doing and I bet some will welcome you.
The bigger franchise companies seem to only be interesed in commission producing agents, one reason to be is recognition on a state and national level to get awards each year. If you are not focused on getting listings and selling houses, you may get shunned away.
You also need a situation where you can negotiate comm. into and out of deals. If you are on a split, it really screws things up sometime. Go for a 100% program in my opinion.
A couple deals pays my whole years desk fee and the rest of the year, any investment deals or comm. deals are 100% mine with no questions ask.
Eventually I want to go to ReMax, but I had the same problem that you discussed about franchises shunning away non-traditional agents. At any rate, how much are the fees for holding a desk etc. at ReMax?
Just curious because I am in the process of accepting an offer from a company but the split is only 70% for me and 30% for the broker.
