I have been an agent for 9 years and started doing BPO's last summer. I am wondering what kind of split most agents have with their Brokers for BPO's. I feel like mine is to low and would like to re-negotiate or find a new broker. Thanks!

The split with my broker for BPO's is 75/25, and I can live with that.

No split on my BPO money....it's all mine.

none

123--What is your split?

I split 60/40 with broker (broker=40). I have always thought that was low.

I don't know how you guys can split the bpo's and still make much money. By the time your broker takes 40% of $50 which leaves you $30, it doesn't leave much after $0.50 per miles, camera, computer, internet, etc. expenses. I would have to only take close in locations, bpo's where there are a number in the same general area, or take those that are on my routes for other work.

I think that it sure is short sighted for the broker to take anything out of BPO's as they bring in listings of you also do REO's. I get more than 30 listings a year from my bpo work. That's where the broker can make his money.

95%

I keep all of mine. I just pay my monthly fee and keep 100% of bpo's and comission.

Thanks for all the replys! My spilt is 75/25. It looks like it is low. I feel that if my Broker has to process my checks, he can keep a little for his time. I would like 90/10 or 95/5. It looks like that is not unreasonable. Hopefully some more people will reply so I can get a better idea of the "norm".

Gig em...
You mentioned that you get about 30 listings a year from doing BPO's. Did they just start coming in after you started doing BPO's? Or did you do something special to market yourself?
Thanks!

90/10 on bpos. Gig em, If I make between 4000-5000 a month. I don't see a big deal on the 10%. If I have a listing he would only get $325 on every transaction regardless to the property amount.

I have heard that in some states you can be paid directly using your SS# instead of TIN# and not split it with your broker. I is my understanding that it is against the law in some states. Some companys will not pay that way even if it is legal. I also have a 60/40 split and some BPOs are not worth doing because of the split.

No split here. I use my SSN instead of their EIN and the check comes directly to me.

I am in Missouri and have read on this forum that yes, I can get checks directly, and also, no I can't! I even checked with my local RE Commission and the guy I talked to told me that he did not know, and I should consult an Attorney!
So who knows!!!!!!!

My Broker says that the checks have to go through him. BPO's can be a lot of work, but in this latest market, I guess the Broker wants to make something if you're not out selling.

none. I pay my monthly fee, and then I have a yearly cap on listings and sales. i don't even think that my broker knows that i am doing BPO's.

How could your broker not know that you are doing BPOs? Your payments have to made to your broker. Don't you think he/she should know since their E&O would be paying for anything you do wrong?

No split for me. My broker said to have the checks sent directly to me so he did not have to worry about cutting a $50 check.

Here, too, all payments have to go thru the broker. It's in our contract.

It is my understanding that in New York compensation to the agent must be paid by the broker, it is illegal to be paid directly. This would apply to agents licensed as sales people or associate brokers (that is brokers who choose to work under another broker). Certainly it is up to negotiation to achieve an agreement on the split, if any, between the agent and the broker. Many brokers will pass through the entire amount in hopes that it will generate a listing that will give him a commission split.

It is also permissable in New York for an agent to have their own broker license in addition to whatever license they have with their sponsoring broker. This opens the channel to be paid directly and legally. I would encourage anyone using this option to fully disclose to their sponsoring broker that they are doing this. Avoid raising any suspicions that you are doing something behind his back and do not use the personal broker license to run competion with your sponsor in the listing and sales activity.

I keep all of mine too. I just pay my monthly fee and keep 100% of bpo's and comission.

Get a contract. I did not. I learned the hard way that my former managing broker, was skimming BPO money from me and that he was taking a kickback from vendor suppliers to do business with him. I told him I could not live with it and I didn't figure he would stop either, so I gave him notice.

When I left, many clients, BPO and REO told him they keep agents not companies. That was 2 years ago...doin fine making twice the money and doing 1/2 the work as before but still adding lots of work to the schedule and more sales than before.

Watch out though, my former broker was so full of himself - he sued me and after 1.5 years in litigation, I guess he realized he could not win and all the money he skimmed from me $32K went to his attorney....ah duh. Upon settlement I got a check from him and a check from the Employing Broker. Big heads get big ideas so good riddance to Lawrence Volbrecht.

I don't know what our law says about payment, but my contract says every payment has to go thru broker.

I do not have a split, all checks are made to the company and they cut me a check back for the same amount.

I keep 100% of all BPO money too. I pay my monthly fees to my broker and keep everything. My checks are made out to my broker and then they cut me a check, no questions or problems.

My Broker takes it all..... and that is fine with me.

And you're your own broker, right?
Mine gets 35%. Okay with me because he pays the DSL bill and it's most often his computer/office/etc that I use to complete them. He also pays for all the copies of public records I need, so his expenses add up for my work.

yep

no split for me---he gets his part of the listings i get from these. When he starts taking a cut, I will leave.

Are you an agent or a broker?

I think that it sure is short sighted for the broker to take anything out of BPO's as they bring in listings of you also do REO's. I get more than 30 listings a year from my bpo work. That's where the broker can make his money - Gigem.

I could not agree with you more Gigem.

Anyone in a franchise office? My broker sends the 6% franchise fee to the company from the Bpo checks before writing out my check. Anyone one else in a franchine having this happen?

When my co went with Prudential, they did send the franchise fee to them to cover themselves while questioning the issue. They talked with the powers that be, and don't need to send the franchise fee to them for BPOs.

It only took a week or so to figure it out, just locating the correct person to speak with took the time.

What position/title was the decision maker at Prudential, maybe I can direct my broker and keep more money. Thank you

Wow, I couldn't tell you who it was. I think what happened was one of the girls that worked with the transition talked w/the transition guy, who called someone, that called someone else kind of a thing.

Thank you for the reply. Something to discuss with my broker.

I'm in a franchise. I keep 100% of the BPO money, no franchise fees.

I'm looking into changing brokers right now. My current broker is taking 30% from my BPO's so this is an important issue for me when deciding on a new broker.

Would any of you that are getting more than a 90% split on your BPO's share which company you are with?

I am in a Crye*Leike franchise office and the broker was told she has to send the 6% franchise fee to corp. She chooses to not to take any of the money from BPO's except what corp. requires of her. I think the split is a brokers choice. So when interviewing brokers and deciding where YOU want to be, ask the question about how they treat BPO's. It is the only way you can make an informed decision. Good Luck!

My broker is required to send a 6% franchise fee out of everything, even BPO's. She keeps nothing for herself. She make her money when we get the REO listings. In TN everything is suppose to go through the broker. Check to see if your local board has an attorney to help. Good Luck!

I'm the broker/owner of my office. The office takes a flat 7.00 on each BPO. I don't feel that is unreasonable at all. Especially since I find all the BPO work for the agents, not one of them has ever brought a company to the office. I've done all that. I keep track of what is paid and is not, I make the phone calls to get the payments, I write the checks, and I pay for those checks. No one has ever complained to me and believe me they would if they felt I was being unfair. I would look at it differently if the agents were out there drumming up new BPO's or new REO's. But they don't. I personally do not make any money off the BPO's completed by any of the agents. I've always kept this money in a BPO account and used the office portion for "special advertising" that the office would not normally have done.

And in KY, all monies have to flow through the broker, no matter where it originates from.

I am on a 50/50 split on BPO's (but I plan to talk to the Principal Broker after the 1st of the year to get that adjusted).

I need to find out about Virginia and using the SSN vs the EIN - I thought only commissions had to be paid through the broker. Maybe I am wrong. I need to look at the Real Estate "rule book"...

Yeah, I am in a Franchise, too - there goes another 6%!

50/50 on BPOs sucks. I'm sorry, but it does. I went through that, when I first started doing them. At the end of the year, when everything was said & done, I almost fell off my chair when I saw how much cash went to my broker. Even this year, I renegotiated with the co, but still, they made a ton of bucks off me, for not doing a thing but writing the checks. I know for a fact their cut of my BPO money was more than what some agents brought in for closed deals all year. Now I'm in the process of switching brokers (what a PIA that's turning out to be) and will get to keep it all.

I'm my own broker in my office of one but I think your $7 cut sounds fair.

my broker used to get 10% when i first started doing bpo's. now he makes his money on the listing's i get from the bpo's. next month I'll be going 100%..................YES......LOL

I have brought all the companies I work with to the office. My broker does not research or solicate for BPO or REO business, so the agents in this office doing this work (3 out of 13) have earned the business. With that said, the broker is still doing bookkeeping, writting checks and other support systems I'm sure I do not even realize to help me and I would not object to some amount being kept by the broker for her time and expenses.

Mary- You are right, in Virginia all money received for anything related to your real estate license must go through your broker. It does include BPO's/
We absolutely could not and would not do BPO's for a 50/50 split UNLESS we were in an apprenticeship situation, or a situation where we were learning the BPO/REO ropes directly from our broker. As soon as that cord was cut though, that would have to end. Prudential takes a 6% franchise fee, and we are not complaining at all. The rest is ours. I am surprised to hear other Prudential agents aren't required to do that, but I still do not feel like we are being ripped off.

Thanks Andrea - Like I said, I plan on talking to my broker after the holidays. I dont have time to do it until then (you know, the whole family and holiday thing....)

Happy Holidays everyone!

When I break-away and open my own office, the office will keep $10 from every BPO done, whether my own or those of other agents. That should cover administrative fees (check-writing, record-keeping, etc). But I won't give out my client-list. I'll expect each agent to do their own legwork and research and be responsible for their own successes and failures. God, it sounds like I'm gonna "mother" them, too!

I am the only one in my office doing REO, pre-foreclosure and BPO work. I have brought all the clients, will give no one my client list even though many have been bold enough to ask. In my humble opinion as a broker if I have an agent who is such a go getter, I would encourage that agent to keep their BPO money as long as we can share the spoils of the listing.
I want to encourage growth and entreprenural activity, they could become my partner in the future, I would keep options open.

I have the same horrible deal with my broker.

100%.I am the broker. What would it be if I had associates working for me? I would probably let them keep most of it, probably 80% I would do this so they can have money to survive.

I split 75/25 with my current broker. My last broker was 50/50.