Can someone give me their thoughts on these 100% commission online brokerages companies for agents? It breaks down to where you pay a transaction fee and e/o fee per transaction versus a percentage unless the gross commission is too low, in which case it's 10%. Some offer online servers with access to MLS and all forms for transactions, support services, and still some have actual offices for use (limited). Can anyone tell me pros/cons/ things to look out for in regard to these? Here are a few I had found and was looking in to.

Thanks!!


http://thebrokerofrecord.com/

http://www.earnit-keepit.com/

http://reebroker.com/home.aspx

http://www.shorecapital.net/

http://summitrealtygrp.com/

http://www.trustsalerealty.com/Home.aspx

Why would you go with one of these places when you could become a broker and own your own company? And shore capitals $600 transaction fee is much higher then many splits you can get at nearly any of my areas traditional brokers based on the average sales price here.

Well two things, I just have my salesperson license and am not incredibly experienced and 2, I live in Southern California. Needless to say, our sale prices are high enough to substantiate moving in this direction based on even a 90-10% commission split.

Have you talked to any of the local RE/MAX offices close to you?

I've been with RE/MAX since 2003 and it's a great fit for me. At least talk to them and see how it compares.

Thanks,

Mario

I have been looking into online brokerages as well.However, for a new agent how do you get training?Also there doesnt seem to be a local office,at times you need an office to meet clients.I am new too,just passed the exam and am in the san diego north county area.

North San Diego area as well! I've found that a lot of them offer different training programs, some of which are "One-on-one" over the phone or internet from what I understand, but they give you detailed description of how to fill out forms, marketing etc. And they always have brokers available if help is needed. Some of these companies have central offices in the area, only 1 or 2 that I've found so far. Other than that, you are in charge of any office equipment you may need (which most of it is online anyway, so not too extensive) and they have contacts in which you can rent out a conference room or something if need be. I think a lot of agents meet clients at their houses to sign papers most of the time, otherwise it can be done electronically through docusign and such.

that would be great if they have access to an office. Sometimes its awkward where to meet clients....I sure wouldnt want to meet in Denny's!

Yes, I agree, an office would be great, but I think the two places I've found have one in San Diego city area and the other El Cajon. I found one in Vista but the guy said that office is for their "traditional" employees. Maybe we should scope a good company together and feed ideas back and forth upon picking one? Kind of learn together? I have an interesting chart of the basic facts for each of these online companies that I've found.

sounds great. I did find one company in Rancho Bernardo that has a transaction fee only,and they have an office!Its called Abacus. Quite a few Chinese agents,some of the info is in Chinese too!

Keep in mind that cheap is not necessarily better. A lot of these virtual companies are just that, virtual, and one day the DRE will come knocking at their doors if there is one. The office could be just a mail drop at the local UPS store or similar type mailbox service.

You must do your homework on this new trend as it is highly possible they are operated by none-licensees with a rent-a-broker who is content with the volume commission splits they receive and with no responsibility for supervision or regard for liability.

Be sure to find out who the broker of record is and whether or not they have registered their dba business with the DRE. The commission check is paid to the broker and if you don't know who the broker is and you have not been paid, I'll let you think about that.

New licensees cutting corners and expecting training at the same time are expecting way too much.

We're definitely not trying to cut corners. Personally I love the idea of a company being entirely virtual because I am very computer oriented and I believe it's helpful for the environment if they use programs to make most of the work paperless. I've been looking for company's that offer training as well as consistent broker support, which is why I posted here for any suggestions for reputable companies. Also, every company that I have been more interested in, I have looked up on the DRE website to check for any issues.
If you have any suggestions please guide us :)

I am not trying to dissuade you from going into real estate sales, but saying that you are very computer oriented causes me alarm. real estate is not a computer job. successful sales agents are out in the field all day long, making personal contacts. sales is a fact to face, people oriented skill. it cannot be done successfully sitting behind a computer...unless you plan to do BPO's, or property management, office assistant, etc.

so, when you are interviewing with a broker, I suggest that you NOT say you are very computer-oriented. that is an instant red flag. you might say that you have good computer skills. good luck.

Paris, I found this on sd craigslist; www.100split.com. They have an office in san diego.You might want to check them out.

I am not in Southern California, and I am also new to this, but there are a few red flags that immediately stood out to me:

Full Broker Support every business day from 9 to 5
What happens when you have trouble with that offer you're writing up at 5:30? Or on a Saturday? Can your clients wait until Monday to get their offer squared away? Seems lazy on the broker's part.

Get paid directly from escrow
If the escrow is not being administered by YOUR broker, is this even legal?

Lifetime income for recruiting new agents
I know there are a bunch of traditional brokers with programs like this now, but I personally would be wary about an online only "broker" like this.

Also, in the examples given for the financial comparison: The desk fees of $2400 seem a bit high (most for a 90-10 split or better around here seem to be closer to $1000-$1500) and if you're paying that much for a desk, doesn't that include E&O most places? AND, are you still paying 6% franchise fees at that level?

For me, having the support system of fellow agents and a broker truly invested in my success is more attractive as a new agent then keeping (almost) 100% of the money I make. It means nothing if I don't know what I'm doing and don't have the support necessary to learn, grow and succeed.

I'm in CA and when I worked for a broker, she instructed escrow to pay our agent splits directly to us. Escrow sends out a commission instructions form to the listing office. The broker can instruct escrow to pay whatever amount to anyone.

No escrow co ever had a problem with it over the years, so I'm guessing it's fine.