Broker at a career crossroads in terms of which path to follow next or pursue time into. Creating Brokerage / Creating Investment Fund
I’ve been brokering for a few years now and have become skilled and proficient enough at it which coupled with my client base have set me up to pursue other avenues of interest in real estate. I’ve down two syndications and have really had a knack and passion for being the investor and owner of the real estate versus the person selling it. Right now I’m at a point where I’ve outgrown my boutique brokerage and don’t really have a massive amount of value coming in from splitting my commission with them and staying. The flexibility I have presently in my life and to pursue deals and other things of that nature wouldn’t be possible at a Institutional or National Firm. That being said I don’t mind biting the bullet if necessary. I have great financial acumen, the ability to source deals, and have great relationships from brokering established. As someone who views themselves as being in real estate for a long time to come, Am I better suited hanging my license somewhere where my production doesn’t matter (KW, exp, etc), and starting my fund. Or pushing my investment fund idea down the road, and creating a brokerage where i take successful young brokers and show them a few ways to make more money and train them along with providing them better splits etc. I figure a brokerage company annual overhead is about 500k and and an investment fund around a million. Accounting for office, staff, software, technology, etc.
[{"id": "hzmpe7y", "text": "Syndication and ownership is a more direct path to wealth, and it fits my personality way more than brokering deals. That said, I own a brokerage and also do smaller syndications with a core group of investors, so you don\u2019t necessarily have to choose.", "replies": [{"id": "hzmttgj", "text": "Couldn\u2019t have said it better myself. Also what I do", "replies": [], "depth": 2}, {"id": "hzpv0sy", "text": "Goals", "replies": [], "depth": 2}], "depth": 1}, {"id": "hzmupvb", "text": "It sounds like you prefer investing. My question for you would be if you start a fund, are the types of deals you can feasibly do with the network of capital you have access to the type of deals you\u2019d find satisfying to work on long term (I.e. if you won\u2019t be able to take down institutional size deals will it bother you)?\n\nIf you think you\u2019d be better served by expanding your network further first then do that.", "replies": [], "depth": 1}, {"id": "hzn5s8e", "text": "Could you renegotiate your split? Continue to do deals while also putting together syndications on the side?", "replies": [], "depth": 1}, {"id": "hzo227y", "text": "Start the fund now. Left brokerage after a few years and started syndicating deals, doing redevelopment projects and ground up development. Money is slower but it is personally more fulfilling for me as it is what I wanted to do. Risk feels higher as well as you\u2019re putting money on the line. I wouldn\u2019t change my decision at all. Earlier you can get going the better.", "replies": [], "depth": 1}, {"id": "hzpmwbw", "text": "Continue your day job until you buy enough properties to support yourself through waterfall / distributions.\n\nIt may not seem like it now, but once you unplug your lose access to some vital data, presentations, and discussion points that make you better at equity.", "replies": [], "depth": 1}]