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Affiliate Broker’s REO Career Destroyed by Their Managing Broker

Posted by Jesus (Jesse) Gonzalez on February 22, 2010 at 11:07am

As amazing as the headline sounds, as crazy as it would seem, it has happened. Let me explain…..

Affiliate Broker Jane Doe has been a REO agent in her local market for 17 years. She is an extraordinary REO agent and her longevity is a testament to that fact. She trusted her broker, she believed in their partnership and knew that their commitment to each other was steadfast…………..until, the economy took a nose dive and, the broker’s business dried up!

You see, Jane Doe had always worked under her broker as the REO Team Leader for her broker’s firm, managing a small team of 5 people. She was completely and utterly responsible for all the REO business that ever came in to this firm. She traveled to all the conferences, went to all the parties, wrote some amazing blogs and even was on television a couple times being interviewed by Fox News, CNN Money and Fox Business. She was and is the face of REO for this brokerage. In fact, her broker often jokes that without her, his business would have failed because all they do now is REO.

Jane Doe called me today in horror. Her Broker took over her role as Team Lead, confiscated all her files and called all her Asset Management companies and told them she had been fired due to unlawful business practices while convincing these Asset Management companies that they had nothing to worry about with their listings because he was in charge and working the files.

Yes, you heard me correctly. This Broker, destroyed Jane’s career, took over her listings and thwarted her ability to start over from crash in less than 4 hours.

Her attorney is telling her, she has no real recourse because she is an “Affiliate Broker” and these listings, contacts, relationship don’t belong to her, they belong to her Broker.

So, why would a Broker do this, why would a Broker turn on their money maker?

Well, they are in a highly competitive market and just this last year, sales are down 72%. The Broker was going to have to close his doors and shut up shop so, he got rid of her and took it over himself to reduce cost.

Make no mistake my friends, you best make sure you got your relationships squared away in writing and you better make sure you now that as an Affiliate Broker, your business isn’t your own.

Just to add insult to injury. This Broker contacted Equator and RES.NET and was able to reset her passwords and accounts and locked her out.

Tags: affiliate, broker, broker’s, career, destroyed, managing, reo, their, by
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Posted by Jesus (Jesse) Gonzalez

Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • Joy Jackson February 23, 2010 at 11:16am
    At my former company, I was the first to learn about and do BPOs. After seeing how I was bringing in extra money, the company started giving out the names of the companies I did work for to other agents, plus charging me $10 per check for "paperwork and administrative fees". I moved to a new company where the BIC said he doesn't even want to see the checks. By the way, my former company has since closed their doors.
  • David Secrest February 23, 2010 at 6:32am
    This is happening more often then it has been blogged about, I know this happened to a really good agent in the Northern California market about a year ago, I personal left a company because I feared they were using my client information when I was turning in all my required paperwork in order to get paid. I had an agent take all my client contacts and started to call a couple years ago before REO was where it is today, the company did nothing about it, I knew it was time to leave. Unfortunately as agents and broker associates if you don't own the business or the company you work for, you run the risk of being taken advantage of, especially in tough times, because the Owner/Broker of reconds needs to pay there bills first, then the may care about the perople that work for them.
  • Jim Godwin, NRBA, RDCPro February 22, 2010 at 6:32pm
    Maybe there is something the REOPro community can do to help? The internet is a very powerfull tool. These are the exact reasons why unions were formed in the first place. This group of 4000+ should be abee to come up with something.
  • Sally February 22, 2010 at 6:20pm
    What a terrible thing to do to an agent? That is too bad. I'm just wondering what happened to her team? Did they not support her when she saw an attorney? Did they leave or got fired also? It seems to me if her reputation was on the line, there should of been some recourse for slandering and firing her to take over her clients which she built. I thought it was unethical to steal another agent's client(s).
  • Cynthia McKenna February 22, 2010 at 4:40pm
    Wow! Good thing they don't know who my contacts are....as a BA, they own my listings, but I do not believe that even if they found out exactly who my AM are, that they would be able to convince them I had done something wrong...
  • Richard Lawler February 22, 2010 at 3:01pm
    This may be off point yet I would take him to court to show the unlawful business practices.
  • Cindy Billman, SRES ®, SFR®, CDPE February 22, 2010 at 2:32pm
    Sure makes me glad I work from home and ALL of my files are here with me. My Broker does not know anything about my contacts, etc and I plan to keep it that way!
  • Jose Rivas (DGRA) CDPE, SFR February 22, 2010 at 12:27pm
    WOW, I am having a hard time keeping my response PG13 here. that is some messed up way to do business. That broker deserves to loose his business, and he provably will, because what goes around comes around. He could've cut some expenses to keep his doors open, and continue to nurture her REO business which should help him grow his business.

    I am not a broker but I am partner in my company, and we invest time and money training our agents and making sure we give them the tools and the right environment for them to be successful, because if they are making money and bringing clients then my company will grow and I will get more agents, the broker business should be to increase the agent's roster with strong agents not to list and sell properties, that is why agents pay a percentage of the commission, or a desk fee and or administrative fees to cover the expenses.

    For Jane Doe, I don't think her career is completely destroyed, maybe it took a hit, but I am sure with her contacts, experience, etc, she might be able to start over again, it might be hard, but it is doable, there are new companies, new opportunities, actually short sales have a bigger payoff with less investment. She might have to re-invent her business, and I am sure if she build a great REO business, she can do it again.
  • Denise Stovall February 22, 2010 at 12:11pm
    Horrible truth about greed and unfair business pratice...

    Always do great paperwork and guard those things that are of great value...hoping that this person will recover better and stronger she sounds as if your talents are enormous and would be highly sought after.
  • Tony Linton February 22, 2010 at 12:06pm
    Wow! doesn't really surprise me though. Hopefully she can convince the AM's to folloe her to what ever brokerage she chooses, I have a hard time beleiving an AM would scrap a long term relationship with her because her broker said so. We all know this is a relationship business...I hope hers were strong.

    JD, think again......it went to 2 years now to become a broker in Florida. I think that change took affect sometime around May 2009
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