thanks for the insight! i am always wondering why others make the choices that they make as they could have insight that i do not have. learning why others have moved to the places that they move is something that i take in. I like to always keep all of my options very open because we never know what the future holds.

It's not bad at Solid Source it was about 275 a year for E and O. Fmls was free and Gamls was 17 a month.

Now with my own brokerage my E and O is about 800.00 a year because I carry 1 million to do Reo's for banks.The FMLS has a minimum sales fee of 1,000 a year so if you sell enough property to pay them 1,000 in fees in a year you are good.They bas it on a certain percentage of sales price times .0012 on each transaction.

Gamls you have to pay about 150.00 a month. I don't have any agents and don't really want any. I usually partner up on commercial deals with developers and other commercial brokers.

what made you ecide to go to your own brokerage if you could have donet it at Solid Source for less money? not that i am questioning you, because i have a friend who did kind of the same thing here in my market and loves his move. hte more i learn, the more i think that i might want to do it someday. though i must admit it would be pretty much just me and maybee an agent or 2 at the most (my assistant and buyers agent). i will probably be taking the classes for my brokers this coming winter. to me that is a pretty hefty "designation" <--for lack of better terms. my market has over 59000 licensed agents with only around 3000 holding a broker or associate brokers license. so for me to be able to sell that on listing presentations and in my marketing will be a big plus in my opinion.

I liked the fact that I wouldn't have to be scrambling if something happened to there brokerage. I liked the fact that if they saw something they percieved as too risky I can go for it because it's MY company and I get the last say.I liked the fact that it is my name and phone number on each listing sign and not someone else's.

More money expenses isn't everything. In fact my business has increased since I started my own company. The total control and freedom at the end of the day is priceless.

You cannot have a real estate brokerage in California that is an LLC. In other words, if you want to represent clients as a brokerage, it cannot be an LLC. If you want to buy your OWN properties and own them via an LLC, that is fine.

You can check with California DRE if you like, the info is hidden deep in their website somewhere, calling them is easier. If you're a member of CAR, you can just call their legal helpline.

Place I found that explains Californias laws regarding LLCs and Brokerages:

http://www.lawinc.com/form_an_llc/en_forming_llc_01.html

My decision just made money sense. The desk fees I was paying would more than cover my self employed expenses. So I just got rid of the desk fees. I am now saving about $200 a month that I can now put toward other things.

I am currently just working out of my house, but I am looking at a shared executive suite where you share a secretary, conference room and break room with other suits and just pay about $250 a month. That includes water, power, internet, janitorial, the works. I won't need something like that till I get some agents tho, so they can have a place to make copies, get mail, etc.

I am also a control freak. I like running things and I have what I think is a unique business model that links agent compensation with performance in REAL client centric numbers (days on market, how close sold to list price, etc.) instead of just volume and total sales.

Finally, when you open your own shop, you can have the cash flow from their work supporting the business. You pay a $250 desk fee. Would it not be nice to have a couple of dozen agents paying YOU that $250 desk fee?

R

I am a captive agent for a new home builder in central California. I sit in a model home alone 6 hours a day. I have been at this 9 years since i got my license. I have never sold resale. I have been in sales for 35 years, but only 9 in real estate. I want to get my brokers license and go solo working out of my home office. I was very well known in the community before selling real estate. I also have a large referal base.
I don't know the process of a sale from meet to close other than that of a new home. I don't know what insurance or legal protection i need. My daughter in law has a masters in bussines managment, so she will help me. I'm just tired of no weekends off and missing family events. My living expense in only $2,500/Month. I'm 59, i could retire, but i don't want to. What would you do in my place.

Gallo - Assuming you no longer want to work weekends, you definitely don't want to work with buyers (since the majority of their activity is on evenings & weekends.)

I suggest looking at some Craig Proctor stuff at quantumleapsystem.com Even what he gives away for free will give you some ideas on how to start marketing to sellers.

Good luck!

Thanks Joel. Yes i will work weekends, evenings ,holidays, but i will do it as i live a life for myself. Now i have to be in one spot on weekends from 10 am to 6pm or unitl the last shopper leaves. I have to call for permission to go get a burger. I have the best closing ratio in the company, so they want me on. $150,000 to $200,000 a year is enough for me, but don't want a boss anymore. I just found this site yesterday, i will read daily and ask questions. I need to become familiar with the routines and experiences of varios experienced agents. I will appreciate all advice.

That sounds worse than wearing one of those ankle bracelets; or being on a leash. Here's hoping you can make good an escape !

Congrats. I broke loose two weeks ago. I'm primarily my own client as I do investment type work but would love to get more involved with buyers. I hope this site helps.

My experience is that office talk can lead to sales that otherwise may not happen because of sharing ideas. I would miss that working from home.
Clay Branyon
North Beach Realty
800-274-1105
www.northbeach.com

I found it to be the exact opposite. Too many agents wasted my time chatting about office politics and then the sharing of info went away as the company started to grow. So it was a good time to leave.

The $40,000 a year feemax fees for the wife and I were a good motivator too. Plus the owner used the shared expenses money to build and advertise a website and wanted us to pay a 20% referral fee for leads.

There is nothing wrong with wanting refferal fees from your agents. I can see using the shared expenses as a problem to fuel that though in agents eyes.

At least with me they don't pay unless it closes and I will help them close it because we both have a vested interest to get to the goal.

Unlike the lead resellers who will suck agents dry whether it closes or not. Now if you are a self-starter and want to do your own thing without leads I just give them to someone else in my company.

The reality is even if you show agents how to generate leads many don't want to do it. They are happy paying a 30 to 40 percent refferal and just working with clients. So I show them both ways and let them decide how they want to do business.

My main reason for opening my own brokerage was to have more control over my business.

With my last broker I had to chase them down for signatures, earnest money for closings, and my own commission checks. I did'nt have time for that.

When I left they had the nerve to ask "Why are you leaving?" LOL!

Now my checks are written directly out to my company...It feels great!