How Much Does it cost to start a Real Estate BROKERAGE (insurance etc)?

Question

I have been in the RE business for over 7 years now and just obtained my CA DRE Broker's license. I'd like to actually start my own brokerage though. I've already incorporated and will be applying for a new DBA/corporate broker's license soon. 

My question is: How much does it cost (aside from office rental fees) to start my own brokerage? If I hired new agents, how much does each real estate agent cost me in terms of insurance? How much is E&O insurance etc?

Thanks!

glenn · Accepted Answer

NAR and your state organization can help you with very detailed information on this.  There are fixed costs and variable costs.  You need to look at this pretty close.  You can set your brokerage up dozens of different ways.

ASK88 · Answer

Interesting article n How To Run A Real Estate Brokerage: Costs

http://www.forbes.com/2007/07/11/real-estate-commission-ent-fin-cx_mf_0711fundrealestatecosts.html

I started a real estate brokerage years ago . At that time it cost me $18,000 Startup cost. I started out running out of a small office with 4 Realtors with a commission split of 60-40 split (40% for brokerage). It covered all management fee ,cost and advertising. Later on as I increased the number of realtors I added a desk-fee structure. Realtors in our area paid for their own EO insurance through our real estate board fees.

kemperk · Answer

NOT SURE why you incorporated but it can't hurt either.

DID my training in Sacramento!

With your background, i suggest you [if you have the resources,
do not lease but instead, buy a fix up bldg and create a biz
incubator for the other spaces; you will get rich in 120 days
if you scan biz plans!

I suggest NOT being a generalist agency but instead,
deal in buyer's agency only==and offer to JV with those
who want to buy commercial anything!

"EVERYONE" does residential; few agencies buy commercial.

If you have the $--try an experiment; hire them/by hiring them
with the specificity to find commercial in decent locations and
they are to negotiate with the sellers as YOUR agent.

Keep in mind the difference between an agent's normal commission
and your broker's commission and buying bldgs and
owning 1/2 or more of each biz that wants a space!

I will partner with you at a distance.

? · Answer

each time is a robust time to start a occupation in genuine components. the main needed element is to align your self with a real components broking provider that has the main suitable training and help. no count what the marketplace says, each and every physique continues to be buying and advertising; all you're able to do is be knowledgeable to discover those clientele and grant the main suitable accessible provider. additionally, the summer season months statistically the main suitable months of the three hundred and sixty 5 days for domicile sales. solid success on your new occupation!

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How Much Does it cost to start a Real Estate BROKERAGE (insurance etc)?

4 Answers