What do you think about this broker company in florida called GRAND REALTY of America?

www.grandrealtyofamerica.com

The website for agents is this one:

www.grandrealtyagents.com

They offer:

-100% on all sales and listings.
-The fee they only charge is $395 per deal. NO DESK FEE, no hidden costs, no surprises.E&O included.
-Free training.
-Great meeting rooms. 24 hour access.
-NO sales meetings to attend.
-No floor time required.

And more other things.

So what do you think? I am right now with Keller Williams, and getting all the personalized training I can get, also at the Miami Board of Realtors (they offer great training). When I feel I'm ready, that I know all what I have to know to start working and performing a good, knowledgeable and competent service to my clients, do I really need to work in a recognized company like Keller Williams? I mean, what are the REAL benefits by working with a company like KW, Century21, so its worth it giving them 30-35% of my commission? plus insurance, plus desk fees?

Please, need your thoughts about this! thanks!!

That sound too good to be true!

That's actually right about what I charge...Only differences are that my operations are 100% virtual so I don't have meeting rooms, but I find that clients like it better that I come to them anyway. My training would also be limited since I wouldn't hire a new agent. (You could get whatever type of training you want on your own with your commission savings.)

Once you hit a certain economy of scale, you can offer everything they offer no problem. They've got 600+ agents working for them, so clearly they can afford more than what I could offer as a broker. However, with that many agents, I would have to wonder how much personalized attention I'd get from my broker or manager on the more difficult transactions.

As to your second question...Some people like having the security of a large firm, but it's really local market-based and you're going to get the vast majority of your leads through your own personal efforts no matter who you're working for. I've never worked for a brokerage with large-scale name recognition, so I can't really comment on that. I, for one, prefer the independence and flexibility that come with being a very small operation.

Perkins, I like the way you work > virtually.

This company I mention here, they have several offices and they are going to open many more offices. At the actual offices, they have broker available 7 days a week, and they say that the most of their agents work from home. They have mortgage brokers to assist all agents. Clients chooses where to close: his office, at home, club, company's office or anywhere the customer decides. Kind of the same way you work.

And I agree 100% with your philosophy, that if agents have more money on their pockets, they are willing to negotiate their commission. But you can't do it if you are giving 30% to 50% of your commission to your broker!

And agree also what you said: "...you're going to get the vast majority of your leads through your own personal efforts no matter who you're working for". That's exactly what I'm talking about! I have to do all the work, getting all the leads on my own, paying my own advertising and I still have to give them 35% of my commission just because I'm using their name? I consider this is very exaggerated!

People will hire me, because of me not because I'm with "this or that company". They will hire me because I'm honest, because I have integrity, because I'm competent, because I will do a good work and take care of them, giving them what they deserve: a good service.

So why lots of agents work for these big companies for years? if they already have good experience, why they still with them if they can work with other companies and get better splits? what exactly are they getting from them that its "so valuable"?
I just don't get it yet.

Thanks Perkins for your input.

[quote=RealBoots]That sound too good to be true! [/quote]

And when it's too good to be true it probably isn't. There must be something that they are not offering for that sort of savings.

How long have they been in business? How long will they be around?
That is one that would nag at me...

I can tell you from my years in the business that hopping from company to company no matter the split will not give you the silver bullet to succeed.

I would put much more weight on a mentor.Say a top 5% nationally broker or agent closes 40 million a year for example you could learn a ton from that person.

I am not talking about a person with a 100 teams and 100 assistants.I am talking brokers or agents who do massive volume and have maybe one secretary and one assistant.

I have seen agents hop from company to company and split to split and it does no good.

I don't even take on agents anymore at my company because I don't have time for them. Between my own deals and my investments I lose money by having agents and giving time to them.

My initial goal 3 years ago was to build up a 100% company real big and then have the competitors or a national company buy it out.Once I reached about 50 agents though it became a huge headache.

If one agent has a fire in their belly and you train them extensively on good split to the broker such as 70/30 then that one agent will outpace 30 so-so to crappy agents.

imho, there is no "one size fit's all" agency model. $395 per closing sounds great for the agent and a potential nightmare for the broker/owner. one bad deal or rouge agent can wipe out profits and cause massive headaches.

i do beleive that consumers care what company you are with - but not to the extent as some franchises would have you beleive. in many respects, franchises are more for attracting agents than consumers.

in the end it's the person/people you work for/with and you have to be comfortable knowing they have your back and can support you if needed.

Super Realtor:

It would be great to work with a person that closes 40 million year and learn from him, the problem is to find that person that has only one assistant and don't have a lots of agents working under him. Very idealistic. I prefer being realistic.

And how you said: "I don't even take on agents anymore at my company because I don't have time for them". That's EXACTLY what the 40million-annually-maker is thinking. A person/broker making that money don't want and have the time to train other agents.

You don't need someone who closes 40 million a year to learn how to sell enough to make a decent living.

I still don't understand: what are these big companies offering that its worth for giving them 30%-35% of our commission?
Really, I still don't see yet the value of giving them so high cut. I have to get on my own all the leads, I have to pay the advertisement, I have to pay them separately for desk fees and insurance.

Why I see here, is that Agents join this big companies and give them high cuts because of the name. That's it.
The same like people prefer using a Calvin Klein or Ralph Laurent Shirt instead of one unknown brand. Even if its made with exactly the same fabric, the same style, the same color and complies the same function. People prefer paying more just because has a famous name.

So I see this very funny, that the public prefer a Realtor of recognized broker company than another Realtor with X company, even though they can perform EXACTLY the same service? And maybe the Realtor with X company can perform a better service?

Before I was into Real Estate, I didn't care about big companies or small realty companies, what I look is the personality and the good service the Realtor can give me and what that Realtor can do for me. I think a lot of people think the same as me.

In my experience you need your name, reputation and experience to get business (luck helps a little too). If you do not have that you'd do well to have a popular name behind you so someone will have some reason to call you. And that is worth something. How much is debatable and negotiable.

Well yes Perky you are correct in that you don't need someone like that if you just want to "make a living".

I know I don't want to just make a living.I want to make as much as I possibly can to fund more investing so that I can eventually retire and do investments full time except for some core clients that have been with me awhile.

To the Original Poster the reason brokerages charge those rates is they know about 90 percent will be gone by the end of the year.

So the big brokerages it's "churn and burn" and how many agents can the recruiters get signed up so we make a fat split off of the 1 to 2 deals from their sphere of influence before they quit.

It takes money and time to train you and create systems and put in place.For that the brokerage wants a big chunk of change when you have your closings.

You've got to stop being so negative. Look at the converse . . . . they're allowing you to earn 65 to 70% !

Having spent the better part of November being so discontented, did you have time to pick up any Listings or put anything under Contract ?

I think you'll be much happier AFTER you put some deals together and produce some Commissions - regardless of the split. Let's see how much support you get once you've proven you can bring home the bacon. This sulky disgruntled attitude can become contagious and will be reflected in your general demeanor. I'm sensing it from 1500 miles away. Think positive.

@Vermont,

You are completely missing the point here. This has NOTHING to do with being positive or negative. Your "the secret" speech is irrelevant here.

They are "ALLOWING ME"? So they are not giving me anything free, I pay them a monthly fee to be able to use the office, (something I really don't use because I work from home and use eFax/MongoFax), I have to get ALL the leads on my own, I have to pay for ALL my advertisement, I have to do all the hard work and you say they "are allowing me" to earn 65%? HAHA!

Why do you think all these broker's companies send postcards, letters, call the new licensees inviting them to work in their offices? Why do you think we are the ones who choose the broker and not otherwise? Because we give them money! not the opposite! So you are completely wrong when you say "they are allowing me to earn 65%!"

If you feel very happy and positive to put in your broker's pocket money that should be yours, that's up to you. You can feel very happy about it and that's respectable but many people feel different and kind of exploited.

I just want to know what are exactly the real benefits of working with these big companies that its worth GIVING THEM (not the opposite) a high cut of MY commission. I haven't read or heard anything different than "be able to use their name". And I think that giving them 35% of my commission just to use their brand name, is VERY exaggerated. And that's has nothing to do with being negative or positive, IS BEING FAIR AND REALISTIC.

@Super Realtor, what you said makes lot of sense. Now I understand one of the reasons why they ask for a high cut. And because of the "training" they give. The problem is that the most of the "training" they give is in PROSPECTING and giving motivation using "The Secret" method. That's how it is in my office. The real good training I'm getting it from my Realtor's Board and my mentor (that doesn't belong to that office). At the office, they don't train you in how to do a good listing presentation, how to do great CMA's, how to do a lot of things in order to perform a quality service. They just focus on prospecting through cold calling and door knocking! Is this the training you are talking about?