Posted by John Merchant on September 20, 2006 at 18:35:17:
2 ways for agent to profit from a “flip”.
First, for an agent who is not a principal in the deal, or have any ownership interest in it & the deal really belongs to a client, would be a RE commission…and yes, if that’s what it is, then it would belong to the Broker and he can pay his agent whatever he’s agreed to.
Second, for that person who is a principal, and does have ownership interest in the deal, if he’s just selling what he owns, and NOT taking a RE commission, then the broker would own none of that.
So it appears that what you’d want to do would be the 2d method where there’d be clients, no RE commission and no broker involvement.
I am a new licensed real estate agent here in Maryland and a new investor. Do I need to use my broker’s contracts to buy my properties? My broker said I have to. Does anyone else think differently?
Broker can control his agents - Posted by John Merchant
Posted by John Merchant on September 20, 2006 at 14:18:30:
The Broker has the right to direct or dictate how his agents do RE transactions, and if you don’t like it, it’s your choice but you’ll need to find a broker who lets you do things your way, if possible.
It’s sure not your right to tell your RE Broker how you’re going to do REI if it’s against his wishes and directions.
As a new investor, don’t you think maybe your broker might just possibly know some things you don’t?
Thank you for the response. Dutch also recommended a few things to me by email as to how I can go about doing my business without my broker tagging along. The question is: if I just decided to flip a “possible deal” to another investor for a fee, does that mean whatever commission I get, my broker will get half of it too? (since my split as a new agent is 50/50)In essence I did put two parties together. What’s your take on this?
Re: Broker can control his agents - Posted by Natalie-VA
Posted by Natalie-VA on September 21, 2006 at 10:57:26:
Jean,
To add to what John said, your Broker may require you to do your deals under that brokerage. If this is the case, and you intend to invest regularly, you might consider finding an investor friendly brokerage.