I recently passed the real estate sales test. I have been interviewing with companies like c21 and remax. The only problem is I dont have the starting cost. Is their any companies that allow new agents to start for free? Or is it possible to pay later with your first commission?

Everyone will tell you that you should have had some money saved up to get into the business with. This is not a cheap business. There are things that will cost you money all the time. If you have nothing getting into this business, then you will probably have to do some hard hunting for a company that will allow you to start without any capitol. Most companies charge you to start because they know it will take you a while to get your first commission. When I switched to the company I am presently at, I negotiated my commission for a higher split and told them that I would pay some of the start up fees when my first 2 commission checks came in. They wanted me on board so it worked out ok.

You need to wait until you have startup capital. this is not a job, it is starting a sole proprietorship business.

ilrealtor, what costs are you referring to? advertisement, promotion, etc? well you are starting your own business. you should be able to afford these things at least on a small scale basis or you will not be getting many clients.

if you are talking about broker costs, there are many brokers that will not charge you a penny to hang your license with them, but that's pretty much where their support will end.

He's probably referring to E&O, MLS, etc. I also have a brand new license and after interviewing for the first time with two brokers yesterday, I found out that it will cost me about $1,800 upfront just to participate in their sales training program ($180 for six months MLS, $1,125 for a year E&O and $500 for their in-house training). This does not include the various other costs, such as desk fees, advertising, business cards, office supplies, software, etc. It seems a very steep price to pay just for entry, especially when, as a new agent, I don't really have enough esperience to judge which brokerages are good choices for me. There must be a better way.
I hope someone experienced here will kindly point out which specific companies offer a reasonable entry in the business for the new, inexperienced Real Estate agent. TIA to those will make a meaningful contribution here.

Starting a new business is never cheap, that's why the majority of new agents don't last much over a year. Some of the expenses you mentioned have to be paid to be in this business, if you can't pay those right now, get an 8 to 5 job until you have the funds.
There might be some companies that provide free in-house training and start the agents on a 50/50 split. You need to talk to other agents and brokers and find out.

I guess the only thing I can say is that you need to keep looking for other brokers. My startup cost was around $300 for Association/MLS fees and $17/month for the key. That's it. No desk fees, nothing. My split is about 90/10 so I really can't complain. Training provided by the company is free. Now that doesn't include any of the marketing or advertising costs, but that's part of running my own business.

Zhenya, you're God-sent, now we are talking!
I hope you don't just happen to have a perverse sense of humor and are just BSing us all...
If what you said is true, that's exactly the type of setup I'm looking for.
You wouldn't happen to be willing to volunteer also the name/type of company you're associated with? (If you like to keep it this conversation private, for whatever reason, please send me a private message)

I'd be ecstatic to start with a company such as that. You're saying that with $300 plus $17/month they let you in and gave you free training and you get to keep 90% of your commissions? This isn't RE/Max, is it? (I was advised that they are very difficult for a beginning agent to start with: no training and no support) How about E&O insurance, how do they handle that? Was this your first company, or do they require you to have previous experience in order to join them?

Zhenya, help me on this one and you'll be in my prayers for a very long time to come, and I'll look out for you should we ever get to do business together. You'll have made a friend for life.

I smell desperation. Whatever you do, don't let your clients smell it. I have learned that's one of the biggest things as a new agent to get over.

Just be careful joining with a smaller company that pays you 90% commission and probably has little training. It's usually best for most new agents to start with a larger company that has world reknown training and a great support system. I just don't want to see you jump the gun and join with a company that will bring you even deeper in the hole. Advertising/marketing costs are sometimes necessary fees that can bring your business to a hault if you don't have the money.

Nice try, Len, but you are wrong. It's not desperation, but *elation* at finally coming across a glimpse of a situation that makes sense - businesswise - to me. I've run my own businesses for over 20 years. I am looking for a situation in which I am in control of my own expenses and the direction they take, including those related to training, insurance, etc. It just feels uneasy to me to join a company that pushes to me a prepackaged plan and is probably making a handsome profit on it. As I explained before at length in the other thread I originated yesterday, I'd rather work with a company that will make its profit, as far as our association is concerned, on my performance (and it is thus motivated to establish it) than by the prepackaged deal it is selling me. Just my view and my preference, based on my business experience.

I checked your website and you seem to be very young, and have probably gone recently through all this brainwashing from whatever company you work for about all the wonderful needs they are taking care for you - for a fee. I encourage you to do your own thinking and be your own man rather than parrot what you have been spoonfed. It will help you greatly in the long run. But you are still green, and I am sure that experience will take care of that.

r. e. deeds, thanks for your prayers.

I don't know why Len assumed I am with a smaller company. In fact I am with C21. Yes it's not the largest office you can find but it still comes with all the benefits of being associated with the largest real estate firm in the United States.

My split is as follows: 8% Franchise Fee + $500 Broker Fee + $100 E&O. On a $500,000 transaction at 2.5% commission it comes up to 87/13 split. There are no desk fees, or any other fees. You are responsible for all your marketing and advertising expenses. They do have desks with computers and phones that you can use. Also there are printers and copiers. I work from my home office so I very rarely go to the office.

They have regular training classes for new agents in their office. Also the broker and staff are very helpful and will answer any of questions.

As an added bonus they also have a mortgage company and their own escrow. If you choose to sell mortgages you can make money that way as well.

MLS access comes with your Southland Regional Association of Realtors membership. You can find more information on their site at http://www.srar.com That's also the place where you get your key and MLS software. WinForms software also comes with your membership.

I will PM you their web site and name since I don't want to be another KW agent recruiting people.

Thanks a lot. The situation you describe would definitely work out for me, as I have a fully equipped home office. I look forward to hear from you by PM.

In your PM you did not mention the name you go by at the office (or email address). We are just a few miles away. Thanks again, I'll look into C21 first thing tomorrow morning.

You're too funny. I tried to give you good advice being that I am a professional already in the business and I have been doing it a little bit longer than you have. You don't have to take advice from me though. You will learn it on your own. I am just trying to give you a head start. I have been with the 2 largest companies in real estate already and I can tell you that it's worth losing a little bit of dough on the split. Like I said, there will be costs that will come along and you will either need to pay them in full, or have your brokerage chip in. Many companies do not cover any costs for you. Some of the larger ones do.

As far as my age goes, nothing to do with this conversation. I am not "brand" new out of the box like you will be. I am in my second year. I was never brainwashed by any company. I have always kept my options open. I do truly believe that sometimes you have to give a little to receive some better benefits. That's why I am where I am. Yes, my company takes a hit off my checks. But my structure is made so my split will increase over time. I can wait. I think it's worth it. I like how you try to bash me because I am young. You automatically assume that I don't know much and I haven't had any business. I definitely don't know everything there is to know in this business, but I have learned a lot. You will get there someday.

P.S. Your post to Zhenya sounded like massive desperation to just put your hands on money instead of the other important factors.

I am in my twentyfourth year as a businessman.

You are mixing up things I wrote. My actual view is that I'd rather join a company with even a 40/60 split (40% for me, 60% for the company) and the lowest possible or no initial fees, than a situation where I get more commission share but steep fixed fees, for the reasons I've already explained.

It might have sounded, but my view is exactly the opposite, as I've just clarified above. Now, pal, thanks for your contribution, I know you mean well. My best wishes for a great career in Real Estate. I'm not interested in fueling further this particular aspect of the thread at hand, though.

Thanks,