The idea of working with a sponsoring broker might have already crossed your mind, but the task of finding one may overwhelm you. The primary reason why it could easily overwhelm you is because there are so many choices and options. It’s safe to bet that you already have a few names on your list, courtesy of friends’ recommendations or from the research you made online just recently. Nevertheless, the first thing you must understand is that there is more work to be done if you want to work with the best real estate broker sponsor.
Work with a Legitimate Company
We strongly advice against working with an independent broker for your first real estate broker sponsorship. Although they have a license, the fact that they try to offer you outrageously high commission splits is a sign that something isn’t right. Since you are planning to join a firm, it is best that you focus on joining a company with excellent reputation and great track record. Avoid working with brokers who you know nothing about and those who seemingly not have an online presence.
Figuring out the Red Flags
When you start your search for a sponsoring broker, never work with a firm that refuses to reveal or itemize the fees they charge. What some firms do is promise you high commission splits as a form of distraction. But the truth is they do an offset by imposing a bunch of hidden charges. There is also another scam in which they impose alternative splits on the new agents. You do not want to end up signing up with a sponsorship broker that charges you for software and desk fees, technology fees, start-up fees, transaction fees, and many other fees.
Be sure you emphasize in working with sponsoring brokers who willingly discloses all fees and charges for the sake of honesty and transparency. In reality, there are numerous firms out there that do not charge you with useless start-up and desk fees. The most reasonable offer is the one wherein they tell you to pay for an all-inclusive overhead contribution per month for the commission split plan.
How You Do Business with the Sponsoring Broker
Keep in mind that majority of sponsoring brokers expect you to generate your own leads and referrals. Many new real estate agents do not realize that a high commission split offer will be useless if you do not have anything to work on. The tough industry in real estate entails that you never will succeed if you limit your reach to friends and acquaintances. Now this is why it is crucial to work with a reliable real estate broker sponsor. Work with a firm that offers you the room to work on vetted buyers and sellers instead of just handing out cold leads and phone numbers.