Note: This 7 part blog series is directed towards all those stay-at-home moms out there who always thought a career in real estate would have to wait until the kids were grown, and to the women Realtors out there struggling with finding the balance between their "ideal of success" versus what truly makes you happy. It's not a business model for everyone, but is something that has been on my heart to share for some time now. Take from it what you will, and know that everyone's journey in life and in real estate isn't and shouldn't be the same for it to be a SUCCESS...

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Part 4: Choosing Your Brokerage - All about Commission Splits, Training & Corporate Culture

By now you've read about why it's never too early to begin a career in real estate, how to partner with another mom to make a "dream team" and finally HOW to make it all legal and become licensed (at least for the state of Texas - check with your state's real estate board)!

Now that you've got that fancy schmancy license, you need to decide WHERE TO HANG IT!!

As I think about describing the process of choosing your new brokerage, a good analogy is shopping for a loan. Why? Well, since we're in the real estate industry, I thought it would be a good analogy. But seriously, it's like you always hear - you've got to "compare apples to apples".

You can't go out and interview 3 lenders and just take the one with the lowest interest rate that was given on your good faith estimate, right? There are so many more other factors to consider: fees, buy-down points, customer service of the lender, good looks (just kidding - making sure you are reading), reliability on actually getting your loan closed, etc. It's like that for brokerages too.

So let's look at the factors to consider when shopping for your new brokerage. When going on your interviews make a list and number it 1 - 6 and make notes about all of the following:

1. COMMISSION SPLITS.

Let's just get this one out of the way, because I know you are all were going to skip around my post to find it and read first anyway, so I'll just cut to the chase and discuss it first. Many of you may be thinking that this is the most important piece of the puzzle. It IS an important one, but by itself is not the most important.

There are several schools of thought on commission splits & income. The most commonly seen are: Percentage Splits (50/50, 70/30 etc) where your split increases as your production increases, Flat Percentage Splits (the same split regardless of production), 100% Commissions or even Salary.

• Tip: Ask if there are different splits for teams. This can save you & your partner money!

The split is important, but unless you combine this number with the other expenses involved, you aren't getting a true picture.

You also MUST factor in fees for the following...

2. LEADS. 

• How are these distributed?
  
• Do they cost money or are they free?
  
• What are the quality of these leads?
  

Tip: Some large franchises offer all their agents free leads through their local or national websites. Go out to lunch with some of their agents and talk to them about quality of leads and what percentage of their business they get from these leads. Ask very candid questions and make notes!

3. MONTHLY OFFICE BILLS - Exactly what fees will show up on your monthly office bill? Things like:

• copies
• Realtor.com upgrade subscriptions
• showing service fees
• E & O insurance (are these monthly or per transaction?)
• local Chamber membership dues
  
• office newspaper ad fees
• monthly franchise fees
• desk fees
• phone/fax fees
• office website fees and the list can go on....

Tip: Ask to see if the office manager or broker can draw up an example of what your first month's office bill would look like. Find out what is mandatory and what is optional.

Tip: If a large portion of your office bill is devoted to advertising, find out how much of the business that agents are bringing in is associated with these fees. It doesn't make sense to pay for old-school or ineffective marketing if it doesn't bring in results.

4. TRAINING -

• Beyond the state required continuing education that everyone needs, what kind of training is offered to the agents? You will find that there are offices who place a large emphasis on training, and those that don't.
  
• Is this training MANDATORY or OPTIONAL?
• Is there a FEE for this training?
  
• Ask to see a calendar of training courses they offer. 
• Ask WHO does the training - agents, the broker, office manager, in-house trainer or industry experts?

5. OFFICE POLICIES & PROCEDURES -

• By this I mean find out about things like Floor Time - a designated time where agents have to man the phone or front door. Are you REQUIRED to do this, and if so how frequently?
  
• Find out about the office support staff - do you have a receptionist, office manager or transaction coordinator?
• Is there a sales production requirement? Do you have to maintain a certain sales volume in order to keep your license active at that office?
  
• Does this office prefer that agents work out of the office or do they embrace having the agents work out of their home?

The traditional "bricks & mortar" stores/offices have a tendency to prefer that agents rent space, thus taking some of the financial burden off of the business owner. Virtual offices or a mix of the two are becoming popular, as these don't bring along with it the high overhead cost of conducting business that is passed on to the agents.

6. CORPORATE CULTURE -

• What I mean by this, is when you look at the mix of agents in the office, do you get a sense that there is teamwork?
•  A family environment? Or do you feel like a minnow thrown in with some big sharks?
  
• Is there a good mix of veterans and rookies, or are they all narrow-minded old-schooled agents that frown upon a new agent as "competition"?
  
• Ask how long agents in your office have been there. If there is rapid turnover, find out WHY!
• Is technology embraced?
• Heck - just look to the company mission statement. Does it strike a chord with you?
  
• What about things outside of business - like a social calendar? I'm not saying each company needs to have a mixer schedule like back in sorority/fraternity days, but is there a lot of "all work and no play"? Or vice versa? FIND OUT!
  

Tip: Sometimes these things aren't evident right up front. It can take some time to get a feel for this and where you might need to get creative. Ask to attend an office meeting or social event in order to talk to more of the agents. If a broker is proud of the environment that the office has, then they should embrace having you ask!

7. NATIONAL FRANCHISE VS INDEPENDENT BROKERAGE -

Ahh, the age old question. Big name national brokerage vs. local independent. Here's my schpeal...

I've been on both sides for this great debate, so I can speak with some experience on the topic. I've been with 3 national brokerages, ultimately leading to the opening of my own independent office. I've also been on the other end of a transaction opposite agents of all kinds of brokerages. From this experience, here is what I've learned:

• BOTH options have good agents AND bad agents...great agents AND horrible agents.
  
• BOTH options provide training for their agents, however I've learned that no matter how great the training is that is offered, it's always up to the agent to take advantage of what is offered. Great training does not a great brokerage make...
• ..Nor does national advertising, an expensive website, big office or little office, lists of million dollar luxury listings or $100,000 starter homes...

The success of an agent has to do with the AGENT - either they have the drive or they don't. Don't make the mistake of seeking out a brokerage to MAKE you successful. Look for one that can support you, guide you and encourage you to the top. Don't rely on someone else doing that FOR you. It won't happen. Find a place that can support you financially, professionally and personally.

Do this one step right, and your real estate career (and your happiness) is beginning MILES ahead of your competition!

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In this Series I’ll cover:

• Introduction - Why you should begin a career in real estate before the age of 50. Why you should BREAK the stereotype!
  

• Forming your Dream Team – Partnering with another like-minded Mom creates the BASIS of this Business model

• The Basics – How to Become a Licensed Texas Realtor. What fees are involved.

• Choosing Your Brokerage – Training, Commission Splits & Corporate Culture

• Breaking Down the Workload – Time Blocking! This is how you get the part of "eating your cake too".

• Free and Inexpensive ways of Marketing Your Business – with an emphasis on Blogging & Social Networking

• Setting Yourself Up for Success in the Future – When the kids are older, and when your friends just start to think about a career in real estate...you're already on your way!