How do I start a RE Brokerage?

Question

Hey Bigger Pockets family!I'm looking for some advice and guidance on the process involved in forming a RE brokerage firm? I currently work on the land acquisition and commercial development side of a growing restaurant group. My employer also owns a handful of Class C CRE investments and intends to continue to make further RE investments. Our intention with starting a brokerage would largely be to keep all of our RE dealings "in house," though as we expand taking on a few agents and growing that side of the business would likely be in the cards as well.Has anyone out there started their own brokerage firm? Any advice? Pro's/Con's? Etc.Thanks in advance!

Jay Thomas · Answer

Hi Alex!

My initial question is are you a RE Agent yourself? if not, then I would research your state's requirements for a brokerage firm. I believe that you have to be a broker yourself in order to open a brokerage firm. That requires a license 1st, and then a few years of experience and knowledge and then a brokerage license exam. I could be wrong for the state of Tennessee.

Opening your own Brokerage firm can have many benefits. Like you said, you would be able to keep the deals more in house and it would save some of the fees for you. Your agents need to still be paid commission and pay fees for the office. There is a lot of work that goes into the firm though. In order to attract agents to come to your brokerage, you have to set in place training, resources, connections, lead generation, and organized team skills.

Maybe go to a local brokerage and speak to the owner of the brokerage and pick their brain a little. That may help!

Good Luck!