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Old 08-27-2009, 06:10 PM
 
1 posts, read 3,640 times
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I have recently passed the state examination for NYC salesperson. I have several questions and welcome any suggestions.

1) How to get a sponsoring broker: I have been searching for investment properties for myself for weeks now. I have met many brokers in the process, but have not yet found a suitable broker who I feel comfortable to work for in the future. I hope this person will both find me a few investment properties and also sponsor my salesperson license.

I understand that if a broker holds my license, he gets a share in what I earn. But what if the BROKER brings in a client, do I get a cut? What I've learned is that most agents from major brokerage firms such as Corcoran and Elliman do not have that many sales listings anyway. I find most brokers in general only have 4-5 listings in the range of a $1 million to $6 million (if they are lucky), as anything pricier will go to a few star brokers. This is to say, other than the selective few, most brokers in the city do not have enough income or workload to share his commission with a salesperson. So what would be the incentive for these brokers to want to hire a salesperson? Or, does it mean that I have to approach only the star brokers of a particular "group" at one of the major firms?

2) What to do if I get employed as a salesperson and still want to
buy: After getting signed by a brokerage firm, how does the commission
structure work if I want to purchase properties? I know it depends but I'd like to get a general idea. Here, I want to point out that I do not intend to "promise" any potential sponsoring brokers that I will buy just so they can hire me. But the truth is that I probably will do -- so if I do get a share of the commission, I will buy AFTER getting a sponsoring broker.

3) In a "typical" contract between a sponsoring broker and a salesperson, how much can the salesperson earn in commission if the sponsoring broker brings in the client? I know contracts vary, but I am eager to find out how much is considered as a reasonable and acceptable split. Also, in a standard contract, is health insurance and other benefits included?

4) To obtain a sponsoring broker, should I approach individual brokers or the companies directly? In the past, I have only approached individual brokers, since I need their help in purchasing some investment properties. But now that I am looking for employment, I wonder if ANY broker can sponsor me?

Thank you so much for taking the time to answer my many questions!
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Old 08-28-2009, 12:35 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,106,208 times
Reputation: 2200
Quote:
Originally Posted by peninsula101 View Post
...
I understand that if a broker holds my license, he gets a share in what I earn. But what if the BROKER brings in a client, do I get a cut? ...
Normally, you do not get a cut of the Broker's client commissions. I've never heard of such an arrangement, but I'm not that familiar with how things are done in NY. The broker gets a cut of your commission (or whatever fee arrangement you agree to) so he can cover the brokerage operating costs and make some profit. I happen to work in a 100% brokerage where I pay a small monthly fee plus a fixed amount per transaction.

I'm also able to purchase my own properties and keep the commission or otherwise apply towards closing costs, etc. But it will depend on the brokerage and their policies.
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Old 08-28-2009, 08:40 PM
 
Location: Barrington
63,948 posts, read 44,122,552 times
Reputation: 20647
What's the purpose of your license? Do you plan to work for clients or use it to find investment properties for yourself?
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