How Much Money Does it REALLY Take To Open Your Own Real Estate Brokerage?
More than half of the real estate brokerages in the United States are independently owned, and for good reason. Not only is the autonomy and agency that comes with starting your own brokerage personally and professionally fulfilling, but going independent can be quite profitable as well. As always, though, you have to spend money to make money, so the natural question is: how much money does it take to get your own real estate brokerage up and running? The answer might be a happy surprise for many.
Starting Cost
The short answer is $2000-3000. This is for two important reasons. First, take a look at this budget planning worksheet. The worksheet lays out three different initial investment amounts depending on what your budget might look like. The entry-level layout, sort of the “bare bones” plan, puts together the bare minimum expenses necessary to get your brokerage up and running, totaling $2,215. Everyone and every brokerage will have unique and varying needs, however, so this exact number should be taken with a grain of salt. For example, this amount does not take into account any print marketing expenses, but print marketing can be an incredibly important medium to target certain client profiles. In much the same way, there are plenty of expenses that might be tagged on simply because they make sense for you and your market positioning.
The other important reason that the $2000-3000 number pops up is just as a sign of stability and consistency. If you don’t have that amount of money tucked away in savings ready to invest in this project, that’s likely a sign that your leads and sales aren’t as consistent as they need to be. This isn’t the end of the world, but it is a sign and a good opportunity to focus on your education, on your experience, on your skill sets, and on getting yourself ready to take this first step in the near future. Take a look at what the best Colorado real estate school options are for you!
An Important Warning
That $2000-3000 was sort of a minimum amount. You can definitely spend much, much more money on an initial investment for your independent brokerage. The same budget planning worksheet offers the “Full Force” option that comes in at $11,870—certainly less affordable than the “Entry Level” option. If you’re somebody who has an unlimited budget at your disposal, you can certainly go with this high-tier option and set your brokerage a cut above the rest right away. If you need to stick to a midway or entry-level tier, however, don’t panic!
Remember, your career is a marathon, not a sprint. And your brokerage should be more about results and hard work than it is about fancy toys. Especially at the beginning, the bells and whistles can be distracting and tempting, but they can lead to over-investing in the wrong things. Getting started on a budget is absolutely possible, but it requires that you be both careful and clever about your budgeting.
Distractions and temptations aside, however, the important takeaway is that the initial investment into your independent brokerage can be quite affordable. With $2000-3000, you’re well on your way towards professional independence that is very much worth the trouble!
