Updated over 7 years ago on . Most recent reply
New Broker - How to do learn Brokerage Operations
@jay hinrichs
Well, I find myself in a bit of a dilemma.
I decided to get my Broker's License and start a Brokerage Firm. I now have my NY Real Estate BROKER's License (Note, Broker's License, not Salesperson's License) under my own Brokerage. I even have my Broker's Pocket Card! haha!
I qualified based on personal experience which means buying, selling, renting, mortgaging, etc. of my own Properties.
I opened my Firm and will probably purchase a property sometime this year in the $2 Million range which should give me a 3% Commission or around $60k.
HOWEVER, I am also thinking that I would like to offer friends and family my service as well and to give them a discount on my commission... at least in the beginning few years until I really understand all the things a Broker really needs to know.
I'll probably just concentrate on being a Buyer Broker rather than listing as I don't have experience YET at selling.
I won't take on an Agent just yet either until I fully learn all the normal operations of a Residential Brokerage Firm.
The dilemma I am having is that because I have not worked as an Agent, I am now tasked with understanding how to run a Brokerage firm from scratch.
So even simple things are unfamiliar to me including:
1) Associating/Disassociating Agents. File Agent's Licenses until they disassociate.
2) Insurances like General Liability and E&O
3) Forms such as co-Broke for Listed MLS Properties
4) Which Disclosures are needed for what circumstances... ie. Lead Paint Disclosure for Properties build before 1978
5) Keep all documents for 3 years.
6) How to conduct a proper CMA
7) How to conduct a proper BPO
etc.
I have both the Salesperson and Broker's License Study Guides which gives me a lot of information. However, to be honest, a lot of the material references are pre-2008. I don't trust that the Official Study Guides and Exam Questions and Answers are actually up to date.
I tried looking for Real Estate Office Management Books... there are several but I don't know which would be detailed enough for me to actually pick up the business processes and steps needed to run a Brokerage Office so that I conform to NYS/NYC laws.
I am planning on joining our local board, the Real Estate Board of NY (REBNY) and to have a NAR membership.
I will be asking them about education on how to run the Brokerage.
I want to keep it as a one man Brokerage until I understand exactly what I need to know.
Any suggestions would certainly be welcomed.
Most Popular Reply
@Llewelyn A. I strongly recommend working at another firm for a while. There are far too many scenarios and details to learn from a book or even here on BP.
If you go out on your own with zero experience, you're going to get hurt - and you'll end up hurting your clients too.
In MA, we're required to work under a broker for 3 years before we can even take the broker's test. There's a very good reason for that.
In a similar situation, my solution was to retain an attorney to be my broker of record. It worked out so well that I've kept him on, even though I can now get my broker's license.