Question

Topic: Strategy

How Do I Form A Fair Real Estate Team Of Brokers?

Posted by Anonymous on 7/29/2005 at 7:46 PM ET 250 Points
The top broker in my office has asked me to form a team with him (I am also very successful though not as successful as he). How does this work? I dont wish to lose my identity, and the questions of how I get compensated for work on others' listings- and exactly how such a team concept works-are some areas I would love to see discussed. I would be very grateful if someone with experience in real estate teams could answer these questions for me. Thank you!
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  • Posted on 7/29/2005 at 9:57 PM Member
    Susan:

    Ah the prospect of partnering! Yes, broker make for strange bedfellows, but it's been done before, I'm sure there's a formula to fit your group. A few questions:

    - what is the division of the financial contributions (percentage only)?

    - what is the division of labor?

    - what is the division of expenses?

    Once you've answered those three, you should have a good idea about equitably split the proceeds. In a true partnership (as in law firms), the above answers will provide you a partnership percentage. Say that he is part of the funding is twice yours, labor is half and expenses are split equally. My assessment would be a 40-40 split of proceeds after expenses for the partners, with the remaining 20% going back into the partnership for improvements and mutual benefits to the partnership itself. Just an idea, of course.
    Check out the following link to FindLaw for an example you may want to use if you choose to arrange your partnership as an LLC:
    https://contracts.corporate.findlaw.com/agreements/eop/zell.contrib.1997.04...

    As I am not an attorney and do not give legal advice, please seek one to finalize your agreement, regardless of what direction you decide to take.

    Good Luck, Debi Brady
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