Should I join a commercial real estate brokerage or stay with Keler Williams?
Hi everyone, I appreciate your input on this. I’ve been licensed for about nine years and I am currently an associate broker in two states with Keller Williams. I’m getting tired of residential sales and want to get into commercial. I have a business degree with a focus in finance and I really enjoy the numbers. I also plan on starting the CCIM classes this year. Im debating if I should leave Keller Williams to join a commercial brokerage. I sold $9mil in volume last year and have steady deals coming in. My fear is that I would take a huge cut in income if join a commercial brokerage and lose my residential deals. However, I also want to be around high level commercial agents. If you were in my shoes what would you do?
[{"id": "htu9jid", "text": "I think ot depends on your brokerage.  I was in a KW brokerage with a really strong commercial division.  Our team moved to another KW office where there's less focus on commercial overall.  How many agents in your office are active in commercial right now?", "replies": [{"id": "htuc3p3", "text": "2 consistently", "replies": [], "depth": 2}], "depth": 1}, {"id": "htu9jp3", "text": "As a KW Commercial broker I will tell you this as I have experience on both sides of the isle. If you leave to a commercial only firm, you will not be able to do any of the residential deals; although you will be able to refer those deals out to other residential agents and collect a referral fee when they close.\n\nIt is going to take you anywhere from 12-18 months to get established on the commercial side....where you are actually able to close a deal and make some money....unless you already have a client based established.\n\nThe other thing for you to consider is your out of pocket costs and split will be much different at a commercial firm versus Keller Williams. At Keller Williams, your worst case scenario is being on a 70/30 split and a cap of $20k with an additional cap of $3k on royalty. At a commercial firm, you are looking at a 50/50 split and no cap.", "replies": [{"id": "htumcbs", "text": "Amazing how the 12-18 month ramp up is true. I\u2019m 15 months in and first real \u201cHoly shit this business is awesome\u201d deal is closing in 30-45 days. Year 2 is looking good!", "replies": [{"id": "htwmv6d", "text": "Awesome! I\u2019m 1 month in (interned for 5 months) and working as a support guy for a huge producer in the company. It\u2019s a lot of fun and the environment is great.  Good thing about my firm is that I\u2019ll get on the phone soon so I still will be able to build my pipeline while getting paid on my seniors deals", "replies": [], "depth": 3}, {"id": "htxpsho", "text": "congratulations for sticking it out and reaping the rewards of your hard work.", "replies": [], "depth": 3}, {"id": "hu0ycle", "text": "Nice! What do you think is the catalyst for your early success?", "replies": [{"id": "huor9rj", "text": "It\u2019s not early. This business weeds out the poor and those without savings. Friends have helped. Cold calls. And prior relationships.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "htuax9s", "text": "It really depends on where you are at and what asset class you want to go in.  Also if you want to work with a team or try and do it yourself.  I am sure you will get great feedback but I will be glad to answer any questions for you privately if you want, just private message me.  I run a regional CRE brokerage.\n\nCRE is a completely different world.  Literally nothing is the same from paperwork, negotiating, marketing and especially the pay.  You seem to have the perfect background to transition to it.  It is way more lucrative but it requires work and lots of cold calling until you build a repeat client base.  I had brand new brokers that worked hard net 50-100k in their first year.  Experienced non partner brokers netted 100k- 800k this past year in low-mid cost of living states.\n\nIf I were you, I would make the move and transition into it.", "replies": [{"id": "htuc1d6", "text": "I would love to chat for sure", "replies": [], "depth": 2}, {"id": "htucz50", "text": "Cold calling isn\u2019t an issue for me and I believe I have clients already in commercial.", "replies": [], "depth": 2}, {"id": "htueltk", "text": "Work on the buy side of CRE and in my opinion the most important thing for a broker is what value can they provide. Nothing is more annoying than brokers that pitch deals to you without taking 5 mins to go on your shops website to see what your actually invested in. It\u2019s very much a people oriented business that you have to cold call your way to build a book, but also be a student to your potential clients needs.", "replies": [], "depth": 2}], "depth": 1}, {"id": "htum98l", "text": "Kw is surprisingly strong in the life science sector in the Bay Area, so there are pockets where they are in the top three. \n\nAnd it is harder to carve a niche especially when you get older. If you are under 35 it may make sense to jump ship, start at the bottom and try to build a book of business under a better respected team, if you are in a major metro. But if you are working two states this probably does not apply to you. Think what kind of commercial agent you want to be, look at where you existing connections are, and figure out how to marry the two. Where you go is based on who you know,", "replies": [{"id": "htumfo5", "text": "I\u2019m not in a major metro area. The closest thing is New Orleans", "replies": [{"id": "htun7c0", "text": "Ew. I did a demand analysis for office space and New Orleans was number one, for absolute worst place to invest in. International trade mart is the tallest building and they converted it to apartments after it being vacant for like 10 years. So if you are in it for the money and you are unwilling to move, you may be in the best position.", "replies": [{"id": "htunfg3", "text": "I may be in the best position?", "replies": [{"id": "htvtjul", "text": "Yeah I don\u2019t think joining a commercial only shop is going to help where you are at. I would stay with kw, figure out a way to do more commercial while still doing residential.", "replies": [], "depth": 5}, {"id": "htw67dw", "text": "Biggest fish in any pond still can eat rather well", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "htvt97s", "text": "Definitely depends on the brokerage!", "replies": [], "depth": 1}, {"id": "htwdgw1", "text": "Let\u2019s talk more about this. I have 21 years experience as a real estate developer/investor/operator. In those years I have experience as a broker, commercial broker, and national investment sales broker. All are very different! Don\u2019t let it fool you. Yes same license, but different approach and pay outs. Already mentioned above \ud83d\udc46. KW commercial has its benefits and a true investment sales brokerage has others. What support you get? Database systems to scrub data? Strip LLCs? The math you must know, the language, and the mindset are also different. DM me I will gladly help", "replies": [], "depth": 1}, {"id": "htx6yoi", "text": "As somebody who works on institutional deals from the buy side, you will never consistently bring in large commercial deals working for Keller Williams. We don\u2019t even speak to KW agents and I can\u2019t remember the last time we\u2019ve underwritten a KW deal.\n\nIf you are all in on commercial, make the switch. You will learn a lot more than just the sales side at a true commercial brokerage. If you are just dipping your toes in and not sure you will stick with it, stick it out at KW for now (or if you\u2019re happy trading $1-3M small commercial deals forever).\n\nIf you switch you\u2019re going to take a haircut on pay until you get established, it\u2019s the risk you take, but in your scenario you could likely pretty easily switch back to residential if you fail.", "replies": [], "depth": 1}]