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Questions to Ask a Texas Sponsoring Broker

Posted by Carlo A on Tuesday, September 15th, 2020 at 9:50am.

If you are planning to serve as a Real Estate Sales Agent, a usual requirement is the assistance of a sponsoring broker. When looking for a real estate sponsoring broker, it is vital to ask certain questions which will determine the chemistry between you and your potential sponsor. The following are 10 questions that you can ask a sponsoring broker.

  1. What types of training do you provide?

    Those who serve as real estate agents, whether new or old, require consistent training and education in order to stay updated with the latest news in the real estate industry. A good sponsoring broker offers mentorship programs that combine with extensive series of new agent training. This is often considered as the most effective way of providing a well-rounded and quality education.
  1. What expenses can I expect?

    Establishing a new business can turn out to be a challenge. Determining the costs involved is important in order to see whether the business is viable or not. One of the essential elements involved in analyzing the expenses include errors and omissions insurance.

    This is important since you would definitely want to get the right insurance so as to provide protection to your assets as you continue to maximize the capital-output. This also involves understanding the complete coverage that is offered by the brokerage and the needed steps to consider in order to keep your business safe and protected.
  1. What is the business entity formation structure considered typical?

    Even though real estate agents mostly act as sole proprietors, they may not be in the best position for tax reduction and lawsuit protection. The best type of business structure is an LLC operating as an agent. The LLC will establish a contract with the sponsoring broker.
  1. Do you use a policy manual for your company?

    These policy manuals are naturally dry and boring. However, most of these manuals are prepared to protect the company legally. As such, it is very important to read and understand the policy manual of a firm. It is not a good indication of the possible sponsoring broker cannot provide you with a policy manual.
  1. How are the commissions split?

    Take note that since this is your business, you definitely need to understand how much money you need to expect in a sale. This is true since you cannot expect paychecks on a certain date with this kind of business. Commission splits have to be within the standards of the industry and reasonable enough. It will not hurt you to check out the commission splits offered by other sponsoring brokers as well.
  1. Do you prepare an independent contractor agreement?

    Having an independent contractor agreement is very important. Along with this, it is very important that everything is in writing. Before signing anything, it is also a good habit to read the entire agreement. If needed, you may also want to seek legal assistance and counsel in order to make sure that the bargaining power that you have is almost equal, while making sure that your interests are well-protected.
  1. What marketing materials do you have available?

    Agents consider marketing is their top game. As such, the marketing materials that your potential sponsoring broker may be different from one that comes from a different firm. As a general rule of thumb, it is best to be wary of the guidelines of use for every marketing medium. Most often, the firm will determine the images and words that are best for the promotion of your properties while giving you protection against litigation.

  2. What technology solutions are offered by your sponsoring broker?

    Technology has become more of a need in the real estate industry. You surely would want to understand what the company has invested in terms of technology solutions, including the ones that they have already set in place for their own practices, and the solutions that they can also provide you.
  1. Do you offer a mentorship program?

    There is no doubt that starting on your own can prove to be daunting – even intimidating. With a mentor by your side to guide you through the process, you can take that first step towards success as a real estate agent.

  2. Do you impose restrictions on self-promotion?

    What rules do they offer in marketing themselves? Are agents allowed to have their own website? Are they tolerant of the use of signage and a business card? It is often better if a sponsoring broker will allow and encourage you to represent yourself accordingly on promotional materials and that there are not many major restrictions that they impose. It is often good to look for a company that offers a good amount of flexibility and trust to their partners.

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