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#339804 - 06/02/10 02:02 AM
How to Open Small Brokerage?
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Junior Member
Registered: 06/02/10
Posts: 1
Loc: CA
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Currently, I am a Broker Associate for one of the large corporate real estate brokerages. However, I am interested with opening my own small, private brokerage office in the bay area, but not too sure with the steps I need to proceed with in doing so.
Any recommendations with the first steps I need to take toward setting up the business?
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#339815 - 06/02/10 09:13 AM
Re: How to Open Small Brokerage?
[Re: jlim]
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Major Contributor
Registered: 11/03/07
Posts: 2335
Loc: Northern Colorado
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1. Consult with accountant/attorney on the best kind of company to open for your situation 2. Find out what it takes to become a Broker in your state. In mine it just took a 24 credit hour managing broker class. 3. Find out how register your company with your state's real estate commission. 4. Figure out your company name/logo 5. Open your company and continue to do the same kinds of things you were before to attract clients. 6. Prepare to spend more time on paperwork and take more responibility for that paper work. 7. Prepare for receiving 100% of your commissions but spending more of it on company expenses.
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#343147 - 07/06/10 04:32 PM
Re: How to Open Small Brokerage?
[Re: jlim]
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Junior Member
Registered: 07/06/10
Posts: 3
Loc: Central Gulf Coast of Florida
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I agree with ColoBroker. Since you are already a Broker Associate, you probably just have to file paperwork with the state. As someone who has opened their own office this year, I have some insight. You also have to look into the expense of:
- Your own E&O insurance - liability insurance - property insurance (at least the coverage of your FF&E - furniture, fixtures and equipment in case of fire, theft, etc.) - up front cost of acquiring an office - is it just first, last & security to the landlord? - how much does it cost to acquire desks, conference room furniture, file cabinets, computers, office supplies? - Signage - If you're in a stand-alone site (not in a center) do you have a free-standing pylon sign out front that just needs the panels changed out? Or do you need a whole new one because there isn't one at all? If you're in a strip center, they probably have the pylon - they probably also allow signage on your windows, and maybe above your store-front. You need to get some quotes from folks who do vinyl signs on windows. What does that fabrication cost? Does the center restrict your signage colors? (this can be bad if your chosen logo colors don't fit their requirements - I've worked for international restaurant chains and had to deal with this issue for them when we went into strip centers) - What is the cost of signs for your listings? Are you having the sign panels screen-printed or using vinyl over the panel? Here, a vinyl over aluminum panel runs about $35. I have a plotter/cutter that I bought when I was with someone else, and I do my own signage for cheaper. I will definately outsource it when I'm busier and earning more money. But I can whip out a sign in no time (now that I'm past the learning curve) and it's easy to do a rider that fits the home whether it's a price rider or a "3/2/2 w/Pool", etc. Are you using the wood posts where you "rent" and only pay for installation, or are you using metal frame signs that you can just shove in the ground that you have to buy. In my area I can buy 2 metal frames for every one wood post I "rent", but the metal ones tend to get stolen and don't give as good visibility. - How much are the deposits for power, water, sewer, phone, internet? What will the first month's bills for these be - the phone/internet can be a whopper the first month as they will often let you lump everything onto that first bill instead of requiring a deposit. - How much money do you have available - after all of your planned expenses - that you can set aside for your "rainy day fund"? Believe me, you need it because you never know when that printer/fax/whatever decides it wants to die on you and has to be replaced. Or you come across some advertising opportunity you hadn't planned on but would like to do.
I hope that list helps. It's definately great being on your own, but it can be very stressful. You really need to look at everything and consider how well equiped you are to handle the stress of owning your own business, and how self-actualized you are. In other words, do you show up at the office every day because you want to or because you are scheduled to be there? Good luck!
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#349843 - 08/30/10 04:32 AM
Re: How to Open Small Brokerage?
[Re: Rhonda Patterson]
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Member
Registered: 08/26/10
Posts: 24
Loc: UK
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Broker when you pay http://www.bayut.com at the end of the summary of the package and discover all taxes. Purchased separately as part of their you're going to have to carry and store all the information to trade with you for many years before selling and have make math, and I just want to explode on paper was a files.I car accident and I'm getting a solution, I want to spend only part of it ... $ 10,000 - $ 15,000, but I do not know how to invest in it. I want something simple, but high interest rates. I would prefer something that can not cover at least 5 years and can not be trusted.
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#349879 - 08/30/10 12:40 PM
Re: How to Open Small Brokerage?
[Re: dubai property]
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Veteran Member
Registered: 03/20/07
Posts: 1090
Loc: South Carolina
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Broker when you pay http://www.bayut.com at the end of the summary of the package and discover all taxes. Purchased separately as part of their you're going to have to carry and store all the information to trade with you for many years before selling and have make math, and I just want to explode on paper was a files.I car accident and I'm getting a solution, I want to spend only part of it ... $ 10,000 - $ 15,000, but I do not know how to invest in it. I want something simple, but high interest rates. I would prefer something that can not cover at least 5 years and can not be trusted. ...loser
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Realtor Extraordinaire, ABR, E-Pro
Keller Williams Realty Upstate South Carolina
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