Realtors of RDP, I have questions

[pronstar]

So I’m going to join my mentor’s brokerage, it’s gonna help me scale-up my RE investing business.

Are these good numbers?
- They pay all of my fees (licensing etc)
- 80/20 split commissions
- 100% commissions are mine after $2.5M in sales in a 12 month period, just a $100 transaction fee to the broker
- make my own schedule, come to the office as much or as little as I want
- sell my own flips/retain commissions
- waives my mentorship fee (it’s not a small number)
- freedom to market myself any way I want

Seems pretty good at a glance, but I don’t know how other brokerages are setup.




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[Havasu blue label]

I would have him pay a percentage of your marketing

 

[lakemadness]

I would say that’s good for a new realtor. My wife has a similar deal. She was new this past January.

 

[Turnup]

Seems like a fair deal for a newb for sure. Make sure you know of any tech or promo fee that could surprise you, and make sure there's no minimum commish they expect ea deal of yours to be..this way you can sandbag a deal here and there as needed. If there's an in house escrow and title co and you can guarantee you will marry those services you should be able to ask for a couple more perks if you need to.

 

[pronstar]

Cool thanks guys.
Sounds like par for the course.

I can just sell my flips if I want to...but if I’m gonna do this, I’m gonna aim higher than the floor LOL


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[Havoc Powesports]

Do you have your license now? Have a couple places where you can hang cheap. I use my dads license to buy with, and sell all my deals with a good friend that's a realtor. He charges me 5% to sell and gives me a "gift" back..

 

[pronstar]

Do you have your license now? Have a couple places where you can hang cheap. I use my dads license to buy with, and sell all my deals with a good friend that's a realtor. He charges me 5% to sell and gives me a "gift" back..

Thanks!

I just started working on the coursework to get my license. I’m definitely going to work at me mentor’s brokerage...I get all the perks plus bigger profits on my flips [emoji106]


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[Machally]

My wife is a district director at Fathom Realty and they have a great mentor program, 100% commission, and equity with each closing, (IPO was last July). if you would like to talk to her to compare let me know.

 

[Mandelon]

That's a great deal for starting out. If you get to the point where you are selling one a week and are a serious asset to him they can do better on the split. But you'll be making so much money you won't care! LOL

You can wholesale deals that you come across that don't pencil out for you. Try to get your flipper customers agree to use you for the resale.

 

[Jefftowz]

Who pays E&O insurance?

 

[Runs2rch]

They should pay E&O, marketing materials, and mailing as well.

That is the deal we had before going out on our own.

 

[TITTIES AND BEER]

Who and where ?

 

[pronstar]

Who pays E&O insurance?

They should pay E&O, marketing materials, and mailing as well.

That is the deal we had before going out on our own.

Yeah they pay all of that [emoji106]

Edit: typo

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[pronstar]

Who and where ?

Me...in Texas [emoji106][emoji4]


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[Englewood]

So I’m going to join my mentor’s brokerage, it’s gonna help me scale-up my RE investing business.

Are these good numbers?
- They pay all of my fees (licensing etc)
- 80/20 split commissions
- 100% commissions are mine after $2.5M in sales in a 12 month period, just a $100 transaction fee to the broker
- make my own schedule, come to the office as much or as little as I want
- sell my own flips/retain commissions
- waives my mentorship fee (it’s not a small number)
- freedom to market myself any way I want

Seems pretty good at a glance, but I don’t know how other brokerages are setup.




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I own one of the largest independent brokerages in SoCal...We are $99/mo + $149/closing. $100/yr for EO. However, we do not hire new agents.

Those are VERY fair numbers for a new agent. It sounds like you only need to sell 2.5m to get 100%, which is a very low cap.

In regards to selling your own flips, make sure your broker has that endorsement on his insurance policy. MOST companies will not allow you to sell a flip property that you own. If they do, it will have additional fees. We pay for the added coverage on our E&O insurance renewal and it is significant.

Some people mention that the broker should pay for your marketing. That doesn't happen. If it did, you'd still personally be paying for it in the form of a 50/50 split or worse.

FYI - The Traditional Brokers (C21,Coldwell Banker,Etc.) will start you at 50/50 if you're lucky and fee you to death.

Good luck, its a ruthless business. People will run their own mother over for $5.

 

[pronstar]

I own one of the largest independent brokerages in SoCal...We are $99/mo + $149/closing. $100/yr for EO. However, we do not hire new agents.

Those are VERY fair numbers for a new agent. It sounds like you only need to sell 2.5m to get 100%, which is a very low cap.

In regards to selling your own flips, make sure your broker has that endorsement on his insurance policy. MOST companies will not allow you to sell a flip property that you own. If they do, it will have additional fees. We pay for the added coverage on our E&O insurance renewal and it is significant.

Some people mention that the broker should pay for your marketing. That doesn't happen. If it did, you'd still personally be paying for it in the form of a 50/50 split or worse.

FYI - The Traditional Brokers (C21,Coldwell Banker,Etc.) will start you at 50/50 if you're lucky and fee you to death.

Good luck, its a ruthless business. People will run their own mother over for $5.

'
Thanks for this.

The good thing is, this will not be my only job/source of income...I'm not looking for another job.
I see it as another tool in my RE-Investing tool belt.

And once I ramp-up, I'll hit my cap by just selling my own flips.



Any thoughts on a few niches that I'm exploring?

• Relocation specialist for homes (not the moving your crap part) - especially SoCal to DFW
• Turn-key rental properties - rehabbing distressed homes with built-in equity positions to sell to investors. This is extremely hot right now.
• "Custom flips" - buyers work with me to ID a distressed home, and can choose the finishes they want for homes that I'm renovating

 

[Englewood]

'
Thanks for this.

The good thing is, this will not be my only job/source of income...I'm not looking for another job.
I see it as another tool in my RE-Investing tool belt.

And once I ramp-up, I'll hit my cap by just selling my own flips.



Any thoughts on a few niches that I'm exploring?

• Relocation specialist for homes (not the moving your crap part) - especially SoCal to DFW
• Turn-key rental properties - rehabbing distressed homes with built-in equity positions to sell to investors. This is extremely hot right now.
• "Custom flips" - buyers work with me to ID a distressed home, and can choose the finishes they want for homes that I'm renovating

I would purchase a list of all Realtors in SoCal and email and mail them a letter. Offer 30% referral fees.

 

[copterzach]

That seems pretty much what we do. I get 90/10 now. I pay out of pocket for an MLS membership. Not even sure what city/area it’s in. I only sell ranches. Have helped a couple friends buy houses. And turned down listing houses. No time for that shit.


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[copterzach]

What online program you using? I used Trainagents.com.
It was easy and only took about 3 month for my license here in Tx


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[wzuber]

Custom flips,.....you gunna give chip and joanna a run for their $$$... haha
Some day we'll see pronstar and significant other on t.v

 

[RiverDave]

That is a great deal especially for a new agent!

 

[pronstar]

What online program you using? I used Trainagents.com.
It was easy and only took about 3 month for my license here in Tx


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I’m using Champion School of Real Estate.
It’s pricey, but they’re paying for it.

I can work at my own pace. My mentor’s daughter knocked it out in 3 weeks by basically binge-studying.



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[pronstar]

Custom flips,.....you gunna give chip and joanna a run for their $$$... haha
Some day we'll see pronstar and significant other on t.v

I want to have all of this offer-up to my area of expertise, while I create new areas of expertise.

Relocate folks into a distressed home that I’m rehabbing for them give a sense of a custom home, at a fraction of the cost.

But I think turn-key rentals is going to be great. A renovation with renters in mind, so we can rehab the house with durable fixtures. Give the investor positive equity from day 1. Taking care of expensive items in the renovation (roof, HVAC) also means no CAP X expectations for a good 5-10 years.


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[copterzach]

I’m using Champion School of Real Estate.
It’s pricey, but they’re paying for it.

I can work at my own pace. My mentor’s daughter knocked it out in 3 weeks by basically binge-studying.



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PM sent. Give me a call


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[JM21]

Thats a good deal for a new agent. But if you don't do it full time, good luck. I tried to do RE and another job and it was a fail all around. You have to be available within hours notice if you are a busy agent, and the only way to get to be busy is to do it 7 days a week. Before covid, when I was new, I would open house both Saturday and Sunday, all day long, hoping to catch a buyer with no agent etc, and pound the phones all week with call lists from my title reps. As any business you get out of it what you put into it. Covid has changed the business drastically, especially for new agents like yourself. Very hard to meet qualified buyers without spending money. It took me 5 years to start getting a solid client base, successful referrals, and repeat buyers/sellers. I am on year 7 and had the best year of my career year over year over year with this year being no exception. Hard work! I did a total of 18 deals for a tick over $14,000,000 this year. I have no employees and I am responsible for every penny of every sale.

I work for HomeSmart and pay $49 a month, $695 for deals under $1,000,000 and $995 for deals over 1 mill. E & O is $1500 out of your first deal for the year and that covers you for the calendar year.

Good luck! Reach out again if you need more advice. There are some great agents, loan officers, and real estate investors on the board. Happy selling!

 

[boatpi]

Good luck, it is a tough business and can own you
Like car sales.
I took the entire course in Cali 10 years ago, a great education that has benefited me in life.