If you’ve decided to open up your own real estate business, then the path ahead of you is filled with hard work, training, and long hours. While laws vary in each state, there are three general steps that everyone must take when pursuing this career that can take up to two years.
Before jumping head first into starting your own company, you’ll need to become a licensed broker. Before you do that, you have to be a licensed sales agent. Here’s everything you need to know about starting you real estate business.
Becoming An Agent
Each state has specific requirements involved to obtain a real estate sales license. Typically, you only have to be 18 years old and show criminal charges on your record. Several states also require anyone interested to complete a college level course of roughly 180 hours.
This course covers the principles, laws, and finances pertaining to the real estate industry. To complete the class, you will need to pass the state exam. Afterwards, you have one year to apply the state’s Commission for your license and any necessary sponsorship.
Becoming a Broker
Next, you need to spend some time actively working as a real estate sales agent before you can become a broker. This also varies widely by state, taking up to four years in states like Texas. While working as an agent, you should also avidly pursue additional education pertaining to the field.
These courses should be college level, and will usually consist of around 200 to 300 hours. Once it's all said and done, you’ll be able to call yourself a licensed broker.
Starting the Business
This is where the fun can finally begin. Head over to the UT Secretary of State business search to see if the name you’ve chosen for your business is available. Simply type it in via the search box, hit enter, and you’ll immediately see if another business has claimed that name.
The next step is to start building your identity as a limited liability company (LLC) and hire on a staff of licensed agents. Before that, don’t forget to register your business with the IRS and state tax office.
At this point in your career, you should have a steady client base from your time as an agent. This will help potential employees find you, as well as expand your business and its bottom line.
Once you have a solid team of agents assembled, the two most important aspects to keep an eye on are their time management and contribution to the company. Keeping track of their time is as simple as downloading software, which you can find more details about here.
Ensuring that they contribute to the company in a healthy way means you’ll need to promote ethical conduct, positive customer experiences with A+ service, and teach them how to market the business. The more time you invest in your agents, the more successful your company will be.