Hi
I have been involved in REO for well over 10 years. Fairly successful at it. I currently do not own my own brokerage but run a Team under a major franchise. Need a change. I dont think the area I am in is where I would like to continue raising my kids as they near high school age.

I am seriously considering opening up my own brokerage in a completely different area many miles(3 time zones ) away from where I am .

I dont want to completely throw my current buisness into the trash can and would like to use it as a base to keep going while I start up the new brokerage.

The questions are :

1-obviously there is probably about 1 year to get things going. what is the possibilty of keeping your REO accounts in your old location and adding the new location to your profile?

2-what would you say is the best way to handle switching over your accounts to the new location? what pitfalls can we expect?

3-any advice or personal experiances and expectations would be greatly appreciated


thank you

Why not do both? Train an agent to run your business and keep a cut of everything that comes in, or just pay them a salary. Keep a close eye on things until you feel comfortable that they can handle everything then back it off a little bit.

Work all of your contacts to give you business in your new area. If it were me I would start opening accounts in your new area and partner with someone to get things going. I would never just drop a successful business and move somewhere. I would at least sell it to give you some income until you get things going. Reo and bpos are very tough to break into now. I think it's going to be tough getting business in the new area unless you have made some really good contacts at the companies you work for.

If your currently in my area I will take care of it with a split and you do not have to train me in!
PM me if you would like. I do have my own office which is VERY EASY to expand right now (as far as space wise if need be).

thanks For the replys

I definately do not want to throw away my buisness from where I am now (western) .

I am concerned with how easy it would be to switch or add my possible new areas in the systems I am already in .

Such as PAS , B of A, LPS, Ahmsi,old republic and many more.
Just not sure the best way to attack it without disrupting the current buisness.

Why not ask each company?

Why not say - I will be adding an office in midamerica to conduct business in the surrounding area.

I will continue to work my current area while adding the new office.

I have enjoyed and valued our business relationship with your company and sincerely look forward to serving bestreo-bpo through my new office as well.

Is there a risk - sure - without a doubt - but being upfront from the beginning may be helpful.

However my first plan would be to just add the new zip codes and area to my profile, then tweak it from there

I have two licenses three time zones apart and let me tell you, this is not an easy task. You may be able to swing it but keep in mind you can only be in one place at one time. No company I'm aware of will allow the setting up of two separate profiles so far apart.

Don't mean to burst your bubble; anything is possible with the right strategy. Just keep in mind you will need to maintain two brokers licenses, two insurance policies, phone numbers, basically two of everything.

I think that you have to really look at your business structure and how it helps you accomplish your goals.
I assume that you are on the east coast looking to move to the west. Well I am in California and it is not a business friendly state. Tax payers are leaving not a place to start a business. As an example, our energy costs will increase 40% to 2020 due to Arnold's Green folly. That leaves Oregon, Nevada, Arizona and Washington. Orgeon is another anti business state so we have Nevada and Washington due to low income taxes.
What you have to do is get your broker's license in one of those states. Moving across country to work for someone else is not a move up.
You may also want to get your broker's license in your present state. Cover all bases.

I would then incorporate an S Corporation in your future state. There are tax benefits from doing this. For one thing your E & O would be for the corporation not the state and would cover both states if you put both licenses into the S Corporation.

You need two licenses, one corporation, one E&O, good accounting system to make the transition. You can do all this in place. Then you can tell the REO companies that you are also doing business in the new state. See if they will start to migrate business to you. It can be done. Take your time, research the problems and solve them. Difficult, yes. Impossible, no.

Wow - I have no idea what type of corporation he should have - I don't know the circumstances well enough to say anything about that.

You are also saying for him to open 2 brokerages - right now he just wants to move and open 1, he is an associate right now.

You may be spot on - Not sure if E&O would work that way either -across state lines and all - but good luck.

I would have thought he meant her was moving East and South, by what was said about raising his children in a better place :P

He should have an S Corporation. There are tax benefits for a stockholder to realize if they have one rather than working as a sole propertior. It is also a legal shield from lawsuits for your personal assets like a home. In another life time I had a telecommunication equipment resale company, an employee got into an accident off site at lunch and didn't have insurance. I was sued since I did not have alunch room for th eemployee and forced him to leave the site. The attorney was a jerk, aren't they all? I finally told him I was signing over the corporation to the guy. He said he would sue me. Told him it couldn't be done as the lawsuit was with the corporation not me. He disappeared.

I think that he wants to transfer business to the west coast. I feel that just moving to the west coast and being an agent is not the right way to go. Think through the problem, there are better answers.

I have asked my E & O about multiple state brokerages. They told me, it is with the corporation not the preson as I have my license inside my corporation. I can do two, three, four states and be covered by one E & O policy.

He might be anassociate, howevr why not take this step and be a broker? Better long term.

thanks again for your replys guys.

Actually I will doing the rare west to east move. ( I am originally from the east).

I am a associate here- which I dont plan on changing its in my LLC. The company( a large franchise) has the e and o and other stuff. The one I am planning on opening would be a newer franchise type deal(different from the one I am in) where I am the broker owner( you know how much I always hated having to put down the other brokers info and stuff on applications as well as the fact that it has hurt me trying to get Fannie direct).

I will probably do a S corp -though not sure.

So ... one of the other problems I am seeing is that If I am with :

big name franchisee as a associate in western USA
and trying to open small name franchisee under different name in eastern usa- it would lead me to believe that I would have to probably switch the accounts over to new brokerage(if they even let me ). Have to try to figure a easier way around this without having to open up a brokerage in my current locale.

In California I could not put my broker's license in an LLC it had to be a corporation structure. Check with the DRE and Sec of State you are moving to.
Since your present license is held by a broker in the state you now practice, you can hang your new license in another state. There is no conflict. Keep your businesses apart from a legal, insurance and accounting basis. The issue you bring forward is the two different brokerages and is there a conflict? I would say no. Under your present structure you are an independent contractor. As long as you operate that way you have not harmed that relationship, you should be good to go.
In the case of New Corp you are a shareholder of a new entity that is not in conflict with the first. Think of it as one of the old mega car dealerships of the past, the owners had Ford, Honda, Buick dealerships all together. You are the same.
If you have doubts go to the state associations of realtors and ask for their legal options.
If you are really in a corner, ask the present brokerage if you can affliate with a different brokerage in the new state? I can already think of restraint of trade and interstate commerce concerns that would lead the present broker to say okay. After they agree, get it in writing.