There are currently over 17,000 people in Texas employed as real estate agents. If you want to stand out in the crowd, one of the ways to do that is to start your own real estate brokerage firm.
However, before you start, there are some things you have to do to have the best chance at succeeding. We’ve gathered a list of seven tips that’ll help you start your own business, be your own boss, and make more money doing so.
Keep reading to learn more about how to start a real estate business.
1. Get the Right License First
The first thing you have to do before jumping into opening your own business is to make sure you have the right license. If you don’t already have a real estate license, you’ll need one of these.
Your business will also need to have a brokerage license. However, this can be difficult and expensive to obtain on your own.
For that reason, we recommend learning more about how our company works. By acting as your sponsoring broker, you don’t need to obtain any additional licenses and you still gain all the advantages of being your own boss.
2. Check out the Competition
Once you have the legalities in place, it’s important to start looking at who you’re going to be competing with. If you live in a large city where there aren’t a lot of real estate brokerages, you may not have to worry about competition.
You may also consider looking for a niche audience to target. This can help you create a specialization that future and current homeowners will appreciate. For example, you may specialize in luxury homes, large properties, or a certain area.
Finding a gap in the market is a great way to set yourself apart and attract a certain type of client you can get great results for.
3. Talk to Other Brokers
You’ll also want to talk to other brokers before you get started. Pick their brains about what they’ve learned along the way and be certain this is the right path for you.
Another advantage of contacting other brokers is you can create a network of people in your industry that can help you grow your business through referrals and shared clients.
4. Set up a Business Plan
One of the most important things you’ll need to do beforehand is to create a business plan that includes a budget.
As you’re starting your own brokerage, you’re going to become more than an independent real estate agent. Instead, you’ll be able to create a brand name and image for yourself.
Creating that brand image and your website should both be included with your budget, as well as how much you plan to spend on marketing. Be sure to have a startup budget and an ongoing monthly budget for all expenses.
Here are some other things a business plan should include:
- Plan of business operations
- Market analysis
- Financial plan
- Projected income statistics
- Anticipated employees needed
Having a business plan will also allow you to set goals and know exactly how much money you have to make on a monthly basis to meet them. As you go, you can check back often to make sure you’re on track.
5. Pick a Brokerage Model
There are two brokerage models you can follow. Let’s take a closer look at each of these so you can decide which is best for you.
Franchise
With a franchise, you work under the name of an existing company and have full access to their training and marketing materials.
However, these often still require a portion of your sales and are more expensive to join because of everything they offer you.
Independent
As an independent brokerage, you won’t have the assistance of a franchise, but your business is completely your own.
This is what we offer to individuals looking to start their own brokerage. However, we do offer support and do whatever we can to help you succeed as an independent broker.
6. Have an Office
Having a dedicated space to be your office will go a long way in building your business. This could be an unused room in your home or a rented location outside of your home.
There are several advantages to having an office that we’ll go over quickly.
Better Concentration
When you have a location that you use only for work, it’s much easier to get yourself into the right mindset. This can help you be far more productive than if you use the same space for other things.
For example, if you’ve ever tried setting up shop at your kitchen table, you know how often you end up wasting time snacking because you’re in a part of your home where you normally eat rather than work.
Streamline Processes
In addition to being able to concentrate better, it’s far easier to work when everything is already where it should be. Having your own office space means you can leave often-used items out so they’re always at your fingertips.
Tax Deductions
The final advantage of having a dedicated office space is you’ll be able to use this area as a tax deduction. This is particularly important when working from home, as you can’t count a multi-purpose area as a business expense.
7. Get Registered
The final thing you have to do to start your own real estate business is register as a Limited Liability Company (LLC). This will help you keep your business and personal finances separate and will get your company off the ground.
With us, it’s as easy as registering. We’ll help you set up an LLC and get the right license for it so you can focus on building your brand and selling more homes.
Ready to Start a Real Estate Brokerage?
With these seven tips, you’ll be on your way to starting a successful real estate brokerage. Since you won’t have to share your commission, you can quickly start earning more money by doing what you’re already doing.
If you’re ready to take advantage of the many perks of being your own real estate broker, contact us today. We make it easy for you to pursue your dreams to have your own real estate business.