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#281757 - 03/17/09 03:17 AM independent contract
babmukja Offline
Member

Registered: 09/24/07
Posts: 105
Loc: california, U.S.
in case something happened that i have to go to court, how much of protection do i have?
I am a broker and working for this guy who owns a prudential franchise. i have about one year of experience in commercial real state. i pay about $1000.00 e&o insurance.

I'm paying huge chunk of my commission to him and some to the prudential corp. i just want to find out if i'm better off strike out on my own since im going to take the ccim courses or stay with the name brand company to cover myself?

the reason i'm staying with the current company is the brand recognition, training since i'm just the starter in the business and protection.

can anyone tell me if this is always the case? "no matter who you work for, you are pretty much on your own"

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#281795 - 03/17/09 11:41 AM Re: independent contract [Re: babmukja]
StarkRealEstate Offline
Member

Registered: 01/04/08
Posts: 65
Loc: Nevada, USA, Reno
I would build my client base up to where being independent doesn't affect my upcoming deals. With only one year behind you, I don't know how sustainable you will be.

The alternative to having a big brand means that you won't get referrals from the other ends of the business (out of state referrals or calls from general marketing). The overhead that you pay may be more than the net business you receive and then it might be a reasonable move out on your own. But keep in mind that getting the exposure (calls & leads) requires considerable expertiese in marketing. Signage goes so far, but the internet and prior business experience (in another business facet for Prudential)is where a lot of new business comes from (and that can be very expensive too).

The last thing to consider is the cost of running your own business (i.e. leasing a property, insuring your business, setting up the infrastructure etc.). If you have enough capital (two to three years without making anything is a rule of thumb) to do all of this and the business too, then it would probably be okay. Otherwise, it might make more sense to talk to other companies to see what you get and what you pay for their brand.
_________________________
Earl Peterson
Stark & Associates
Commercial Real Estate
Office, Industrial,
Retail & Investment Properties
Reno, Sparks & Northern Nevada
www.starktcn.com

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