I am tired of my current broker trying "to go around me" and applying directly to Fannie Mae. I have an asset management company who has requested the broker/owner sign and review the master listing agreement. Everytime I give the master listing agreement to my managing broker, they send it directly to Fannie Mae and from my perspective they are trying to keep me out of the loop but I have the contacts. I have built my contacts up from the past nine years and I am not going to had them over.

Any thoughts on creating your own LLC/office and being your own managing broker to protect contacts and continue to build your business?

Do it.

I was on my own prior to getting into REOs. Then I foolishly moved to a RE/MAX franchise for a year. I got tired of having the broker look into everything I was doing with regard to REOs so I went back on my own.

I'm with ColoBroker. I went on my own a few years ago and have loved every minute of it! I'll never go back to working for someone.

Thanks for the advice. I understand the risks because of the market conditions but I think this is the best time to start a "clean slate" and estabish my business in the new market environment.

I went out on my own a few years ago and would never go back to working for another broker. At least in my area several offices have closed, ones that were perceived as being solid offices financially. Since working for myself, I don’t have to worry about whether the rent is being paid, whether the office will be going out of business leaving me high and dry or having anyone snooping in my files trying to get my contacts. The most important thing is that all my master listing agreements are between me and my clients, not between the broker and my clients. Do it and good luck.

You guys have other agents working for you?

Awesome . . . ever since the clients started requesting signatures by the managing broker this has been an issue. I have lost business as a result of not submitting master listing agreements and later I found out the managing broker had submitted it using the information on the master listing agreement. My managing broker(s) do not understand the process and has made it clear they are trying to capture my contacts.

After all, what is an agent/realtor without contacts?

I did have a broker associate a couple of years ago. None now. My wife will be joining at some point soon though. Then I will cease to be the boss.

LOL

My wife is also majority owner in our little company. That way I can put that my company is minority and woman majority owned. And I agree neighborpro about having to have the managing broker sign everything. Thats one of the reasons I left after one year at RE/MAX. It's easier if you are the broker/owner. I think it also is more impressive to the clients. I think that's how I got my foot in the door a few years ago. Was being broker/owner. Even though I didn't know anything they thought I might.

Thanks for the insight ColoBroker!!

I am a female minority as well. When I first started in real estate I thought being associated with a large brokerage like RE/MAX, etc. was desirable by clients. In my opinion, now, it is all about customer service and market knowledge and you don't need a large brokerage name to provide that.

I had the pleasure of being able to test right into a Broker position due to educational exemption. I talked to a C21 office. They told me of the split. And it did not seem appealing. I represented a few friends a few years later. I took the commission check to the bank. I began to wonder what would be the advantage to working for another broker. No agent could give me a good reason for preferring to work for a broker. And no one who I have spoken with regretted going out on their own. I think its a security thing. After going out on their own, I think many agents realize that the brokers were not giving them as much support as they perceive. But, I have always been on my own. So, I can not give any other perspective. I know that I love being independent.

Thanks reolady123

Yes, when I first started I did like the "security" of the association with my broker's office. In retrospect, I did need some guidance at the beginning, but all of the prospecting I did on my own, the programs my broker recommended to build my business did not work on the other hand my broker did have some good contacts for vendors.

I am a seasoned REO/BPO agent and it appears it is time to cut the strings now that the market has changed and it is the time to build a business for my own goals and objectives.

Do it! I would advise anyone who is a broker to go on their own. I made the transition from REMAX 5 years ago and I love it! You'll be in 'love' too when you get the 'closing' check first! And you will work hard to get more! Good Luck!

RELady4u, Hi Five to the check.

Before I started working as an agent, I heard an agent state that they had to take it to the broker, wiat a few days and then only get part of it.

And when my husband and I were buying our house right out of college, I had no license. But we referred to the whole thing as a pyramid scheme.

RE Lady4u, I would also suggest that salespersons RUN to get the broker's license and leave ASAP.

This thread inspired me to pursue the broker license. I bought all the materials over a year ago but haven't made time for it. Now I am.

I guess we have an advantage in Colorado. We are all brokers right out of the gate after passing the test. After two years any agent can start their own company without doing anything, but to employ others you have to take a 24 hour employing broker course.

Cool Guy I am happy for you. I have 3 children nder 12. but i am taking the time to expand to other states and get appraisor license. i like real estate and dont want to get booted out for lack of a license.

ColoBroker, that is interesting. good for you guys

Illinois just transitioned over to all brokers and no salesperson licensing . . . for me it seems the "stars are lining up." I got my brokers six years ago.

I am in the process of determining my startup costs: E&O insurance and forming the LLC.

Do you work out of your home or do you rent office space?

For showing appointments do you have agents call or text your cell or do you use a service?

I don't know much about the transition yet. I just confirmed that I have to take some test and saved the website to my favorites for future reference. I will probably get to that after summer break for my children.

I use showing assist for showing requests. What MLS do you use? I have an office. But I do most work at home.

Insurance for a new company with no agents is just under $1000. Illinois does not require incorporation. Indiana does.

Are you in northern, southern or central Illinois; or near an eastern or western border state?

I use centralized showings for setting up my showings. It's so much better then trying to set them up on your own and verifying agents identities. Some people say they don't like showing services, but I like them better then leaving a message on some agents voice mail and hoping they will return the call

Thanks reolady123!!

I am part of MRED northern mls. Thanks for the insurance info.

Is a separate office required least for mailing purposes?

i really like showing services too. But we have a service built into our MLS that is FREE, [well included in our MLS fees] and works as well as centralized showing.

the last time i read the rules every office has to have a place of business with a sign. no restriction to it being a home. But as a broker, i would get accustomed to looking into the rules myself.

You may also have an issue with running a business out of your home due to zoning.

Thanks everyone and thanks reolady123

Currently spending a lot of time on the idfpr website, reviewing the necessary applications and fees.

This time I am getting the "ball rolling" for myself.

not everyone can go it alone. here are some things to think about.
1. can you work by yourself and make money and do all of the paperwork and keep up all your paperwork and legal stuff?
2. can you multi task?
3. do you have support if you go it alone?

i went on my own because i has pretty much used my brokers for all i could and was really not getting anything new from them. After I left I was not doing full service real estate. i have run, owned and managed business for several years. i have other people i can talk to if i have a question.
as I have said, i think anyone in real estate who is serious needs a brokers license. i also think anyone who wants to make over $50k a year needs help. the good thing about working with an office is the people you have access to. you have access to leads and information. the bad thing about an office is the people you must deal with. the petty backstabbing and bothering can be a problem. i was great at my offices when i first came and then when i owned 1/2 the listings--i became very unpopular.
to work alone takes discipline. it is hard and if you want to pay your bills--keep the tv off and keep your goals in place.
i will never work for anyone again if i can help it. but there are times when things get slow and i get worried. I never know when my ‘last’ bpo will be my LAST bpo—if you catch my drift?
but after 48 years on this planet--i have seen a lot. one thing i know--as long as i wake up--i have just as good a chance as anyone else to make through the day~
good luck...

BPOJoe

The last paragraph in your post is excellent.

Management sets the tone for the business. If you don't trust your broker/manager, move on.

In the last big corporate office I belonged to, I had an in-house transaction with an agent who I believed was near illiterate. That was the key to my moving on! IMO, your office is only as good as it's worst agent!

Being on your own is not always easy, but you'll have peace-of-mind in other respects.

Good luck!

Thanks so much Alexandra and bpojoe!!

Yes there is an issue of trust with my current broker.

When I first joined the brokerage, it was a name brand franchise. About two years ago the brokerage did not renew the franchise for some unknown reason and assumed another name. At that point I felt I was better on my own because I did not have the leverage of using a brand name on listing presentations, etc.
My managing broker also recommended that I form a LLC but wanted me to continue to be an associate broker and of course split the commission - which did not make any sense to me. I process all of my closing and keep up with the paperwork because my managing broker does not want to process REO's. I feel can call on my broker for support if I left and I have a good list of preservation people.

The market changes are creating a new environment in real estate sales - short sales, property management and social media are prime examples. Also the need for affordable housing will become an issue.

I feel this is the best time to cut the strings.

BPOJoe,

Excellent post. We have been with Coldwell Banker since we started. My wife has a brokers license and we have made the decision to stay with them for several reasons. One is that they have excellent support and put our listings on 350 different websites without us having to do anything.

C/B has the best lead capture system that I have seen from any brokerage. We farm out the leads and farmed out leads provide us with about 17-20% of our income with no work other than an email.

They also have a GREAT legal staff who is there for us if we need it. We get a very good split and our manager looks to us as his ONLY REO agents and has sent us work and contact info from any AM company that inquires. He used to have one other part time REO agent but they fell by the wayside quickly.

So, our situation is unique as we do not compete with our broker he actually helps us any way he can and it does go both ways as our number of transactions helped him become the #1 CB office in our area.

I appreciate your alternative point of view and the clear way it was presented. I look forward to your continued input in the future. You have helped people that you will never know that you helped but, please rest assured that you have helped others with this post.

I understand that this is not best for all but it works well for us.

Thank you and best wishes.

Nicely said Grampa regarding bpojoe's post and thanks for sharing the benefits of being with a broker.

From my perspective I have been on my own but still with a broker. I do not have the support of a broker as described by Grampa and the brokerage does not have the exposure because they cut the ties with the franchise.

So far, I got an attorney to start the corp papers, spoke with my accountant, found an office space and will file for a FEIN, get quotes for E&O, take the broker management class, file papers with idfpr and set my own "closing" starting my business.

I had started typing the question to ask for benefits of being with a broker, because you guys were making me curious. I do see the benefits for some.

I just saw too many agents working under brokers and were so misguided that I would actually get mad. I would just help them out and shake my head.

Well like everything in life, it takes different strokes for different folks. ;-)

reolady123,

Did you post the question about the benefits of being a broker?

I know the number one benefit is not splitting the commission and number two protection of your contacts especially REO and BPO clients. Recently asset management companies have required the broker owner to sign master listing agreements. As broker/owner you can sign and not share your contacts.

At C/B we have a LOT of training available and get new opportunities for education all the time. However, I have seen some dumb agents as well. The training is not mandatory and they did not take it. They also do not perform or even make desk cost. My wife was Asst. Mgr. over 5 offices and was responsible for training. Some agents came to training sessions but some did not. The ones that came are still around. Many who did not are gone.

I would not work with a small brokerage but, like the large one we are with. Everyone's path, desires, and needs are personal and each individual has to decide what they want and why. For those who go out on thier own, may the rewards be equal to the challenges.

Words of wisdom well spoken . . .

I will keep in mind and in my business best practices the initiative to keep up with current training. Our local associations offer excellent FREE training.

Considering doing this myself. I've been in REMAX over 10 years now. I have an awesome managing broker owner who is retiring soon. I want out but I have stuck with him based out of a sense of loyalty. He gave me the nod recently he was close to taking the exit step. I told him I would hang on a while longer for his replaceement but I felt I had to leave. I think he benefits if some solid performers stay and wanted a commitment from me he could pass on to the buyer, but I can't offer that.

My main reason is financial.

He has provided the most awesome environment for me, totally hands off, but a resource if I called on him.

I was a bit fearful of plunging on my own but when I looked at the numbers, it makes little sense to stay with the balloon. I provide all of my own leads now.

I am with you Doin' bpose! I have generated all of my leads and processed all of my closings. I have learned from my mistakes and I am ready to take the plunge to be on my own.

The market is much different from what it was 10 years ago. In my opinion, now is the time to find your next niche.

Doin' BPOS and neighborhoodpro - Heavens - take the plunge! I was with a C21 office for 2.5 yrs, then switch to KW for 2 yrs, but immediately was working on my broker's license when I switched. I hoped KW would give a seasonsed agent higher education but that didn't happen. I was finding answers to my own questions and thought "what the heck do I need a broker for?"

I'm not going to deny when the market is down, money is much tighter. I recently eliminated my office phone since I use my cell phone all the time (savings $50/mo.) and eliminated my second home phone line for the same reason (savings $36/mo). I don't use a call service b/c I want to hear from those agents out there who want to show my listings.

I managed to obtain a contract with a gov't entity for the few listings they may have (small entity) since inception in 2007. I am also doing HUD-owned property listings. You can't do all that in Virginia as an agent b/c the "broker owns all the listings" here.

I've had two agents call me who wanted to go out on their own. One agent was with a large franchise (won't name it). She was doing REOs with an asset manager. When she left that franchise, the broker KEPT the REOs and her master listing agreement. So, I think no matter WHAT a broker tells you, they're out for themselves in the end. We do rattle each other's brain once in awhile for problems we're having, although I think I'm the one they always call.

I don't think your previous broker will REALLY help you b/c once you go out on your own - you are their COMPETITION - so don't count on help from them. I'd be leery of any of their recommendations.

I see enough independently owned companies with listings in our MLS that's it's more than obvious alot of people don't care whether you're small or large - just give the same service, but do it BETTER.

If I took on any agents, they'd have to have their associate broker's license. I can't understand ANY company taking on agents just don't get how to do transactions, do them well, and NOT get into trouble. That would be my greatest fear - bumbling agents causing me pain.

And, YES, I remember that first commission check - all mine, all mine. I calculated what KW would have received. BEST feeling in the world.

Another good feeling is when YOU make the decisions, YOU make the connections, and there's NO broker to take it away from you!

I have started the process. Just waiting for two closings under current broker.

I am feeling better about it each and everyday!

Thanks for the words of encourgement VABroker!!

Looking forward to the first "full" no split commission check.

You will have a lot of people watching to see how you do.

Please keep everyone posted on your progress as I am sure your experience will be very important to others who are not posting but watching for info to help them make a similar decision.

I wish you all the best going forward and will also watch with baited anticipation to see how it works out for you.

When you do it just be sure to watch your cost and don't try to hire a bunch of dead weight agents, just concentrate on your business get a good assistant and go for it.

Awesome advice . . . I will keep everyone posted . . . I love this forum!!