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.
- Research your Competitors
- Write a Business Plan
- How much Startup Cost is needed
- Competing Broker v.s. Non-Competing Broker
- Will you be funding your Business or obtaining a Business Loan
- Open your own Brokerage v.s choosing a Franchise
- Brick and Mortar Brokerages v.s. Virtual Brokerages
- Choose a Business Structure
- Research your Business Name and Domain Name
- Register your Business Name with the State
- Get Federal and State Tax IDs
- Apply for Licenses and Permits
- Open a Business Bank Account & Escrow Account
- Obtain Municipality Licenses in the areas you plan on doing Business
- Get General Liability and Errors and Omission Insurance
- Advertising Budget
- Marketing Plan
- Research Accounting, CRM, Transaction Management Software Companies
- Hire an Attorney for Independent Contractor Agreement and Office Policy
- Hire Employees
- Recruit New Agents
- Hire a Developer to Build Website
- IDX Listing System
- Create a Company Logo, Business Card, Signs, Etc