Is there any problem with me doing this?

I combed over all of the forms on the CA dre website and couldn't find anything that would stop me from being the broker of record for two companies.

A friend of mine (despite my many attempts to entice him to join my company) wants to start his own brokerage. He's studying for his brokers exam but wants me to be on record so he can begin ASAP. I don't mind. I made it clear to him that I would have to review deals and truly be the broker. That agents would have to contact me with questions and I would ultimately crack the whip because it's my license on the line.

I don't think there will be any problems... just so long as there's no CA DRE limitations that anyone knows of.

Thanks everyone

Can't do it in CO- I don't know about CA. I wanted to have 2 different companies, one a Realtor member company and the other not. The one that was not would run our property management. But here you can only have your license with one company- even if it's as managing broker.

I did a quick search and cannot find a reason why you could not do this either.

However, I would call the CAR reallegal hotline and ask them just to make sure.

Here is their number: 213.739.8282

You will have to provide all your member info to get any help as it is a member only service.

R

CAR hotline says that there is nothing preventing me from being the broker of record for 2 separate companies in CA

Just a little fun fact for everyone!

you can do it, honestly though without sounding mean, you should definately know this. And if you want to run two separate brokerages you should know the DRE rules inside and out. I would start off reading their publications they relase. Bottom line, you can do this, but each company you are a member of puts the other company in jeopardy if something happens. Its not a good idea to do it, but if you have to, just know the risks

woah....I had no idea that I should know what I'm doing before I do it

That changes everything

Graysqwrl, You can be broker of record in California for as many entities you choose which require a broker's license to conduct real estate and real estates related businesses. The question is can you supervise them all and still remain sane. I remember years ago an unlicensed loan originator, who had a sizeable office, asked me to broker their business. I did some investigation since he was so desperate and hot to trot and found out his previous broker retired suddenly, whatever you can read into that.

To make it a short story, when I declined his request, he was sore and told me I did not know just how much money I would have made. I easily told him that I did not miss some thing I never had in the first place, and besides that my license was worth much more to me and my own earning potential than risking it for "lots of money".

Just remember the risk involved and supervision of the files, is most important.

We've known each other for quite a while. And, I've been very clear, that if it's my license....it's my policies. He's well aware of how strict I am on compliance with my agents. I would truly be the broker of his company until the time comes when he earns his license. At which point, we also have a contract for him to buy me out of my position.

As a soon to be CA Broker..test in May...is Broker of Record
a good way to generate income. Is there a salary or a piece
of the gross?

Thanks!

Yes & No

The broker's license is a bit of a commodity, and with it comes a certain amount of compensation. However, it does take a certain amount of legal understanding and a certain amount of work to be a broker. Let's not forget that if something happens under your watch...your license might go away and you have to find a new profession.

So..yes. You can make a decent amount of money.

But...NO. As in, no way would I be involved with someone that I hadn't known for a long time unless they were sitting in my office being trained or mentored. Even then, I still monitor overall activities.

hope that helps

Can i be a Broker of Record AND still hang my salesperson lic. at
my current Brokers office?
I would do this as I have listings with him and close
to a 100% split.
Thanks!

You will no longer have a salesperson license once you are a broker. Your old state salesperson license number becomes your brokers license number.

However, that leads to another interesting question.

Can you be the broker of record for a corporation AND still operate your brokers license under another broker?


R

Hmmm...Ok...So w/my Brokers License do I just stay at my
current Brokerage (Bankers Realty) with no change?

Thanks!

T

There shouldn't be any need to inform your broker that you are now a broker. Unless you intend to put it on marketing materials that he's going to see. In which case, you may want to give him the head's up.

Your broker's license number will be the same as your salesperson one. If you become the broker of record for a corporation, then you get a "broker officer" (or "corporate broker" i'll have to go look at my wall )license for the company and a lovely new number to remember.

Can you be the broker of record for one company and hang your brokers license with another. I'm going to go out on a limb and say probably... but cal the CAR legal hotline. This seems like one of those questions that comes up even less than my original one.

You gotta love those questions that take us off in to the sqwingy corners!

R

I've done it in NY, in full compliance with the Department of State (our real estate licensing authority) and the full knowledge of the sponsoring broker for my other license. Each license had a different number (two of the characters indicate the type of license so my broker license had different characters there than my associate brokers license (and would have been different yet if the second license was as a salesperson).

Thomas, you can stay at your current office after obtaining your broker's license and you would then be called a broker associate, but why would you???? You are now a bona fide broker....take the next step and branch out on your own.

While hanging around as a broker associate, you can be a broker of record for others (also known as rent a broker) without jeopardizing the broker's license of the office you are associating with, just in case some thing goes sideways.

I would, in all fairness, let your resident broker know what you are doing and make sure he is comfortable with it.

I started thinking of getting my BL about a year ago
when I had a miserable split (70%) with my former Broker. I watched my money evaporate and thought this is CRAZY!

Soon after, I moved to my current Broker at Bankers Realty
where my split more than 90%. So, now that I am getting some
good money the pressure is off a bit.

However, there is alot of pride in going out on my own. I have targeted a great luxury area in Pacific Palisades,CA and door knock there very effectively.

My company name will be L.A. Exclusive Property and will cater to the high end luxury home market.

Thanks for the input!
T

Would you like me to be your broker of record while you prepare for your broker's test

In my case, being able to work under another brokers license while being the broker of record for my own brokerage has some benefits.

First, as I have mentioned before, I am coming off of 2 years of sabbatical. So I don't have the funds in reserve that I would like to start my own brokerage.

Second, the reality is that it has been two years. I have kept up with the all the real estate activity in my area, but lots of the day to day stuff has probably changed. Many of the agents I used to know are gone, the "good" title companies may have changed, lots of my old go-to people for fix-ups, inspections, etc. are likely to be gone.

Finally, I need to re-establish my reputation in the local market. Just hitting the ground and starting a brokerage is fine, but I want to be able to draw in some of the best in the area. The only way to do that is to get known for what I do.

So basically, working under another broker for some period lets me build up the cash for my own company, network, get all the business start-up chores done and get re-acquainted with the professional landscape.

Whats funny is that when you add it all up, I am likely to actually make more (for a while at least) working under another broker than for myself.

Working for another broker, I will make about 90%+ on my commissions. If I was on my own, I would have to be paying for my own E&O insurance instead of just supplementing what my office provides, paying for office space, phones, accounting and all the other things the office normally pays for or has to worry about.

Once I get a few agents in the office, that equation changes of course.

R

Wish it would work here. I would love to have a seperate company that is not a member of the association of Realtors for licensed assistants, property managers, etc to hang their licenses with. The dues are pretty heafty for those who aren't precticing Realtors. But, can't do it in Colorado.
Thomas, the word "exclusive" is one that the fair housing... people... say we should steer clear from in our marketing. I would consider that when choosing a name. By definition, it means you are excluding something or someone... Just thought I would point that out.

I like the idea of high end properties. I've moved my average sales price up to a little over $400K (our average is under $250K), but I would like to start listing properties only $500K and up- maybe even only custom builder specs. I don't want to do much because I want to spend most of my efforts on the brokerage. I was planning to be non-competing, but the company in general has suffered by me deciding to step back from sales. I thnk I need to keep something up to keep bringing in good leads for my agents.
Sorry for the total highjack!

Great discussion!

If I wanted to be a broker of record for another company, how would I go about it? That is, how do I find people that need my license in CA?

Thomas, I think Carla may be right about that word Exclusive. I would stay away from it. You may also have to include either Real Estate or Realty in your company name. It used to be that way with DRE and not sure if it is still so.

Carla, you might want to try something I saw a broker in Washington do. She was the broker of record and just had an insane following of loyal clients.

She wanted to focus on being the broker rather than handling clients. So she might do one transaction every few months, but she handed of just about all her business to agents in her brokerage. Of course, there was a referral compensation deal worked out for things like that, but it really kept the agents loyal to her office.

This is the office I have mentioned in passing in other posts. Looked like an amazing place to work - very positive atmosphere.

Dunno if your in the same situation, thought it might help.

R