I completely agree, the licensing classes don’t teach you anything about selling real estate. Almost everything they teach you can be googled, I hope they update it soon. KW has ignite to get you ready to sell and earn a living and additional classes to help you grow. That’s the main reason I love being a KW agent, they continue to give me tools to be better every year!

Yea, I'm really thankful for KZfaq and channels like these. Currently doing my pre-licensing in SC. Most of what I've covered so far is rehashing that Real Estate Law class I had many years ago.... I am glad I didnt create that new instagram page stating I was already a realtor however lol

That's awesome, you are very welcome!

Hey Erica, congrats on passing your State Exam! Each KW Market Center sets their own cap and the Pensacola Market Center is actually still $21,000 total($18k local/ $3k to corporate). The good news is that your average price in NJ is probably much higher than ours so hopefully you'll cap in no time and start getting 100%!

@@RealtorMattJ Thanks Matt! Ah ok got it, every cap is different. Good to know!

@@RealtorMattJ is there a mentorship fee too?

@@jwm66 I think this probably depends on which market center you work with. In Pensacola if you join as a new agent or unexperienced agent they pair you with a very experienced agent to help walk you through your first 4 deals. Some people choose to do more but at least for the first 4 you have someone showing you how to do the paperwork, how to serve your client and answer all of your questions. People are always willing to help but this way guarantees that you have a specific contact available to you, I think it's a great idea. I believe the cost for this is 10% of your gross commission on your first 4 sales.

@@mattjones580 Thank you Matt

That's awesome, welcome to KWRGC!

How are you liking Keller Williams?

How are you liking KW so far?

Best of luck!

Congrats on your first sale! Does the split work any differently in MX than I explained in the video for the USA? Keep selling and soon you’ll cap and get to keep 100% if it works like it does here.

Glad it was helpful!

I definitely recommend doing your research prior to choosing a brokerage! I actually made a blog post about "How to choose the best brokerage for you" and you can find it at: www.realtormattj.com/real-estate-agents-here-is-how-to-choose-your-broker In addition, I always tell friends when they get into real estate to remember that as the new agent you are in demand so I recommend that you interview the broker at least as much as they are interviewing you. Ask good questions and don't hesitate to interview with multiple firms. To directly answer your question, why choose KW when they are not the cheapest option.. If a broker has low to no fees but doesn't help you sell any/much real estate you get 100% of nothing. If a broker trains you, gives you tools, models and a platform to help you sell $10 million in real estate you might get, for example, 90% of $300k. I'm happy to connect you with the leader at your local KW office so they can answer your questions and give you examples specific to where you live and would be working. Just shoot me an email at matthewajones@kw.com

I agree, that is a good question to ask them. 👍🏽

It could vary by office but this is the way the split works where I hang my license. There are cost to selling real estate other than the split, for example I pay fee's to my local MLS & a small office bill for technology and such but those will vary by location and individual.

I am an agent at Keller Williams in Pensacola. I had several friends and acquaintances ask me how the split worked and how it compared to the more traditional brokerage I left to move to KW so I made this video.

In my area you are on the split mentioned in the video until you cap and after you cap you receive 100% of your commission. I track my gross commission income and how much I have paid to KW. This year I have kept 94% of my gross commission income because I capped early in the year and have received 100% for the bulk of the year.

@@mattjones580 Why do people complain about the Cap commission when you’re able to make up to 100% of your commissions? Am I missing something? Oh and what are the disadvantages of the cap structure?

Jordan Anderson you keep 100% after you have hit the cap and I can see why the cap doesn’t help someone who doesn’t sell much real estate. For anyone selling a solid amount of real estate the cap is amazing to have. The other cool thing about KW is that you can earn profit share which can pay for some or all of your cap.. or much more. There are profit share millionaires which is wild to think about.

@@RealtorMattJ Ahh I see now. How difficult is it to hit that cap as a beginner? Thanks for the quick response by the way!

@@oaoskey6051 I would have passed it my first year but I was with a different brokerage at the time. That brokerage offered me a whole 5% more of my commissions after I passed a threshold that was even higher than where KW gives me 100% because I have capped. The new agents that come in and are successful would typically cap in their first year, some of them even sell double what it takes to cap.

You need to hit your CAP each year. What KW provides to the agent is excellent training plus the technology, tools and resources you need to compete in your market. KW also has a great culture, a profit share program, and the leadership of Gary Keller.

@@RealtorMattJ the scary is, what if you can’t not reach your cap by the end of the year? What happens then? Not everyone is looking to buy a house and not every new agent start up with leads right away. There’s so new agents saying that their first year the most they’ve done is 3-4 closing.

That won't make your Corolla payment...@@RealtorMattJ

Yes

A third(or less depending on your tax bracket) of your net income/profit after expenses goes to taxes so it isn't quite that bad but definitely you need to factor in Uncle Sam's cut when budgeting. W2 employees also pay taxes of course so the only real difference is self employment taxes.

@@RealtorMattJ I’m very new to all this, but do you know if registering as an llc could offset some of the self employed tax hikes ?

@@Hidalgoes I'm not a tax expert by any means so I'd recommend talking to a CPA. Even if you are not in a place where you want to pay someone to prepare your taxes each year it's worth a short consultation with a tax pro so they can help you set up your business to be tax efficient. My CPA recommended that I set up an LLC with an S Corp election for taxes and told me to pay myself a salary but I don't know your situation so you may receive different advice.

@@mattjones580 thank you for your reply!

Your broker will issue you a 1099 for the portion of the commission that you were actually paid(your share) not the entire amount.

The cap amount is annual so if you don’t hit it in a year you just start over from 0 the next year. You never pay more than your split amount and you don’t have to pay anything extra if you don’t reach the cap. Honestly, if you are full time in real estate and you utilize some of the amazing training available(and follow through by implementing what you learn) there is no reason you can’t cap in 1-6 months and enjoy the rest of the year taking home 100% of your commissions. If you are a KW agent lean into the trainings and they will help you so much! If you aren’t licensed yet but want to be send me an e-mail. KW now has free real estate pre-licensing courses available in many states.

@@RealtorMattJ Thank you, I’m in Real Estate classes now. Trying research brokerage companies and requirements. Thank you for the quick reply.

Yes, absolutely! Only a portion of your check goes to pay the cap and once you have hit your cap you get to keep 100% of your future checks until your cap resets on your next anniversary date. This year I capped in about 5 weeks so any sales the other 47 weeks of the year I get to keep 100%.

$5k was just a round number to use as an example but Pensacola is a fairly affordable market so up until the last year or two $5k would have been around the average buy side GCI for a median priced home.

Sorry, I do not currently have this in Spanish but I will see if I can get it translated.

Umm pretty much lol because that not enough money im going to do it for 3-4 years and open a brokerage

You can email me at reiroadmap@gmail.com