Costs of starting a real estate brokerage

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Costs of starting a real estate brokerage

Michael White
Real Estate Agent · Los Angeles, CA · Member since 2016 · 19 posts · 2 votes

Hi guys

Does anyone have a rough idea of the costs associated with starting a real estate brokerage (in California).

Also, another question - what are the legalities of having a business partner/investor who is not licensed, provide the start up funding and continued marketing support, in return for claiming some of the commission. Would they have to be licensed also?

Many thanks in advance

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y

This could really run the gammit depending on the type of brokerage you want to run. Single person owner/operator run out of your home could be done for probably under  under $20k.  Keller Williams or Remax Franchise, probably need $150-$250k.

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  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 644 votes
    9y

    @Michael White You can really start on a shoestring if you want - all you need is your broker's license and MLS access, which isn't too expensive. You'll also want to join CAR for access to all of the contracts, if you're not already a member. If you want to rent office space, hire agents, start advertising, etc. then it all depends on what you want to spend...

     Not sure on your other question, that would be a good question for the CAR legal hotline.

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  • Michael White
    OP
    Real Estate Agent · Los Angeles, CA · Member since 2016 · 19 posts · 2 votes
    9y

    Great - thanks Stephanie. Yes, the second question is a little trickier!

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  • Brett Wehn
    Idyllwild, CA · Member since 2014 · 5 posts · 6 votes
    9y

    Also might want to think about Errors and Omissions insurance. Runs about $1,000-$1,500 a year if you don't have any other agents.

    1Reply
  • Michael White
    OP
    Real Estate Agent · Los Angeles, CA · Member since 2016 · 19 posts · 2 votes
    9y

    thanks @Brett Wehn, although I already have to pay that as an agent myself!

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    This could really run the gammit depending on the type of brokerage you want to run. Single person owner/operator run out of your home could be done for probably under  under $20k.  Keller Williams or Remax Franchise, probably need $150-$250k.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    1Reply
  • Account Closed
    Rental Property Investor · OAKLAND, CA · Member since 2015 · 21 posts · 5 votes
    7y

    @Michael White, long shot but curious as to how it turned out? I'm kind of in a similar boat. 

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