How To Open A Real Estate Brokerage Firm

by | Nov 15, 2018 | New Brokerage

Opening your own Real Estate Brokerage Firm isn’t as intimidating as you might think. First and foremost, if you are reading this article I am assuming that you currently have a Broker’s license and you are looking for information on how to open a Real Estate Brokerage Firm. If you do not have a Broker’s license, you’ll need to apply for a Broker’s license before you are able to pursue your dream of owning your very own Brokerage Firm.  

Now regarding the Real Estate Commission, every State has different requirements on what is needed to obtain a Broker’s license. Most States require you to have a Sales Associate license for about 2-3 years before you are able to obtain a Broker’s license. Some States require a certain amount of experience or a certain amount of closed transactions before being able to apply for a Broker’s license. If you are looking for more information, please visit your State’s Real Estate Commission website by clicking here.

 

Planning is the key to success

The first essential step is writing out a Business Plan that lays out a detailed plan describing all of the fundamentals of what is required to open and run a Real Estate Brokerage. How much capital is needed to start, market and maintain the business opened for about 1-2 years? Most importantly, the dedication that is required to build a solid foundation to succeed in the business.

Below is an itemized list of a few topics that we will be discussing in our future posts. 

  1. Research your Competitors
  2. Write a Business Plan
  3. How much Startup Cost is needed
  4. Competing Broker v.s. Non-Competing Broker
  5. Will you be funding your Business or obtaining a Business Loan
  6. Open your own Brokerage v.s choosing a Franchise
  7. Brick and Mortar Brokerages v.s. Virtual Brokerages
  8. Choose a Business Structure
  9. Research your Business Name and Domain Name
  10. Register your Business Name with the State
  11. Get Federal and State Tax IDs
  12. Apply for Licenses and Permits
  13. Open a Business Bank Account & Escrow Account  
  14. Obtain Municipality Licenses in the areas you plan on doing Business
  15. Get General Liability and  Errors and Omission Insurance
  16. Advertising Budget
  17. Marketing Plan
  18. Research Accounting, CRM, Transaction Management Software Companies
  19. Hire an Attorney for Independent Contractor Agreement and Office Policy
  20. Hire Employees
  21. Recruit New Agents
  22. Hire a Developer to Build Website
  23. IDX Listing System
  24. Create a Company Logo, Business Card, Signs, Etc
MENU
SEARCH
RealtyBackOffice