Dividing Profits with Real Estate Brokers

Video Transcript

Okay, you didn't get in this just to be a cheerleader and say I'm a realtor, money we all need to feed our kids and buy some dog food from time to time. Okay I hear you. Let's talk about the money. Every broker is going to have a different, what they call, split. And we're not talking about split pea soup, we're talking about a split. Okay, you're a new agent, you're thinking oh, money, what am I, I'm going to have to buy this, I'm going to have to buy that. When you go to interview that broker, talk to them about their split. Say I'm coming in as a new agent, I've been an engineer for fifteen years, what is, where is my, where's my money going to go, what is going to come out of me? And there's so many different type of splits out there. Most companies will put you on, and I'm going to just give you an example, this is my split a seventy thirty split. So if I sell a property, I've got a house listed, and I sell it for three percent, my brokerage is going to take about thirty percent of my seventy percent. Now when I've started my calendar year, let's say I start June 2nd, from June 2nd to June 2nd, I have the time period to bring in about two million dollars, it sounds like a hard thing to do, and my broker is going to take about thirty percent out of that, meaning about $18,000 a year. Oh gosh, can you believe they would do that, that just sounds terrible. No you guys, it's so doable and it works because it's it's a good income. Seventy percent of three percent but if you cap to two million right away, let's say you have a couple houses here, a couple of houses there, and I get a hundred percent of three percent. And we'll talk again about that percentages and let's continue with the money talk.

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