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Are you ready to start your own real estate firm? Here's how!

By
Real Estate Broker/Owner with LKN Realty, LLC 242267

Figure of Realtor leaving the crowd behind

 

I know what you are thinking.  Who in their right mind would start a new real estate firm in THIS terrible market?  Well, ah, that would be me.  Am I crazy?  Maybe.  But I am also excited, invigorated and happier than I have been in a long time.  It's as if I have been released from a burden I didn't know existed.  I am free.  My new firm was official less than one week ago. 

When I wrote a brief post about my new firm I got some amazing calls and comments of support from my ActiveRain friends.  Some expressed interest in knowing exactly what goes in to creating a real estate firm.  I found out by trial and error but I am happy to share what I learned.  So, here is part 1 of a series on how to start a real estate firm according to Diane:)

This series will include:

  • Why do you want to start your own company?
  • Solo/Team or office?
  • Mission, Vision, Goals and Objectives
  • Foundation, Strengths, Specialty niches
  • Choosing a name
  • Your exit strategy:  Have a plan!
  • The Licensing Process
  • Branding/Logo/Colors/Marketing materials
  • Blog/Web Design/IDX
  • Logistics and Timing of going live: Local Board/NAR/State/MLS/Online forms
  • Updating logos and firm informaton online
  • Public Relations:  Chamber of Commerce, Local Home Builders Association,
  • Press Releases/print and online
  • Notify SOI, send new business cards
  • Enjoy the fruits of your labor!

Why are you considering opening you own company?

To be completely honest with you, I didn't even think about starting my own real estate company until recently.  For me it was the perfect storm of 18+ years of experience (Including 5 as Director of Business Development for a privately owned real estate company), a passion for branding and marketing, a realization that no firm here completely suited my ethics, standards and vision, and the fact that I had reached a point in my career where I honestly didn't feel I needed a firm for anything, not even leads. I already worked from home and had all my own systems and marketing.

So, I started asking my current and past clients if they would have used me and will they continue to use me if I am not with a big firm.  The overwhelming response was yes.  They hired me, not RE/MAX.  One person did say that perhaps some sellers may feel they need that big-name sign in front of their property which I think is a valid point.  But the reality is that we can compete on just about every level with the big guys thanks to the Internet, IDX, blogging and Web 2.0. The playing field has been leveled.  We just need to make sure to be able to prove this to sellers in our marketing presentations.

The bottom line for me as to why I decided to start my own firm was:

  1. Financial:  I did a budget and found I would be much better off on my own
  2. Personal:  I really want to practice real estate my way and I was frustrated with the philosophical differences between myself and my brokers
  3. Excitement:  A chance to be creative and innovative and have fun doing so!
  4. Timing:  Our area has lost a lot of Realtors.  This market is asking for quality, not quantity.  The economy is changing and it is a great time to design a business model that will seize the opportunities rather than defend past practices. 

Realtors who continue to do business as usual are being left behind.  Web 2.0 has changed the way our industry does business to such an extent that for the first time, in my opinion,  we don't need the clout and marketing of the giants.  We can do it not even just as well, we can do it better on our own...or at least, that is what I believe!

Solo/Team or Office?

For me this was a no brainer.  I have absolutely no desire to oversee other agents let alone have a physical office to manage.  I have never been on a team nor have any desire to be on one as I would rather do fewer transactions and maintain the personal contact with all of my clients.  That is what I enjoy about real estate.  If, however, you want to build a "Triiibe" as Seth Godin has, then I would encourage you to do that as well.

Part 2 coming soon!

 

Mike & Kathleen Kelly
Better Homes and Gardens Real Estate Foothills - Hickory, NC
Hickory NC REALTORS

Bold Move!!  I wish you nothing but the best and I will be looking forward to you progress.

Jul 24, 2009 08:45 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Tom:  Good luck to you, how exciting!

Deanna:  It is great to hear you are succeeding!

Lenn:   It was great fun chatting with you! 

Stewart: Thank you so very much!

David: Wow, news travels fast!  I had no idea, I'll have to check out Dawn on Facebook. Thanks!

Jo: Well, focus on something local, not personal, perhaps that will help.  Good luck!

Sun State: I love hearing success stories like yours.   Thank you!

Missy:  Sorry, we had a great chat but I don't chat and tell:)

Crystal:  Thank you!

Jeani: That is great to hear.  I made it through the 90's but not the 80's.  Let me know how you are doing as we go along!

Lana:  Thank you, the pressure is on to write the next post!

Nevin:  You make me blush...I'm not trying to be a mega broker...just a happy one!

Jul 24, 2009 08:47 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Cat: That is wonderful.  Thank you for sharing your positive experiences with us!

Antoinette:  Hi Stranger! I always listen to Lenn:)

Karen: At this point I really don't plan to hire any agents but I guess you never know.  Great for you!

Carole:  You are too sweet.  Will you fly down here and analyze the energy in my office?

Jean: Exactly, it took me a while to realize it, but we really don't need them once we are experienced enough to be on our own!

Candice:  Indeed...a true moment of clarity:)

Janice: You are too kind, thank you!

Jennifer:  Well, my friend...you have been an inspiration to so many of us.  I just may take you up on the help if something comes up!

Terry:  I had no idea that you and Bonnie went out on your own so recently.  Thank you for sharing and your best wishes!

BB:  Wow, coming from you I am truly humbled! Thank you for the offer to help.  After 13 years on your own I know I could learn a lot from you and will be taking you up on that when needed!  Give my best to TLW.

Darrin:  In NC they are mandating that all agents become brokers so it is a moot point and possible not as hard as other states but I did have to take 90 hours of classes.  Best of luck to you!

Renee:  :blech: indeed!  Good luck to you!

Bill: Thank you, I will indeed!

Kay: Oh, your efforts are harder than mine as you have other REALTORS. I am solo.  Thank you!

 

Jul 24, 2009 08:59 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Charles: Thank you!  I will try to write great things:)

Gary:  It has been too long.  Thank you for stopping by and for the kind wordsl

Bob:  I am exciited...and it has been too long!

Lane:  Yep, I do believe the playing fields have been leveled...pretty exciting!  Thanks for stopping by.

Irene: If you follow my serious it really isn't bad, but lots of fun and invigorating too!

Sherry:  I truly hope I can help you and others!

Kate: When you do, feel free to call or email me and I'll let you know what I have learned!

Kevin and Monica:  How are you doing on your own?  I hope you are happy as well!

Elizabeth: I usually meet my clients at Starbucks or even their hotels/rental homes if they are relocating here which many are.  I rarely used my RE/MAX office and clients seem quite comfortable at Starbucks.  Plus, I do so much by email too.  Good luck!

Stacey: I think so too, thank you!

Mike: I understand, I had a management position in CA and it was nice to have a paycheck and sell.  But, I don't think print advertising is an issue any more here or in most places.  I don't even offer to do print advertising for my listings any more.  And, they get it!

Bob and Carolin: That is great to hear!

William: You were my inspiration!  When you told me you were thinking about it I decide it might be helpful to outline the process that I went through.  Thank you!

Marc:  I made a firm decision not to have a trust account and have an agreement with a local real estate attorney if I need one.  Regarding taxes etc, my husband is a CPA so I have that covered...kind of cheating isn't it?

Michael:  I think my start-up budget was about $10,000 but remember, I don't have an office.  But, I do have awesome cards, folders and signs:)

Carol: Thank you!  I have placed several families from Tennessee to Lake Norman.  We should keep in touch!

Sandy: Yes, I think you and I have totally different niches so it may not make sense for you as it does for me. But that is a good thing!

Kathleen: Thank you for sharing about your company.  I think #30 is great.  Congratulations and thank you for the offer of help too!

Jeff:  Thank you.  You and William inspired me to write this series.  Enjoy the beach this weekend!

Lissa:  Thank you for sharing...I hear you.  No, 3 years is probably not enough unless you have someone to turn to for questions etc.  Good luck!

Jul 24, 2009 09:19 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Jodi:  I would be happy to talk to you, call any time.  Although, I've only been on my own for one week so I'm not exactly an expert:)

Kim:  Good idea!

Betsy: Wow, that is great to hear.  Congratulations!  I don't know anyone in Pinehurst so we should definitely exchange cards.

Holly: How reassuring.  Thank you so much!

Jay: Oh, I did that re-branding for a private firm I worked for in CA.  It's fun!  No, I only tried the big names because I was new to Lake Norman but now that I have been here for 4 years I think I'm ready.

Pam:  Thank you!

Tim:  That is so great to hear.  If you read the comments on this post it's amazing how many are saying the same thing!

Sheryl:  Thank you for sharing about your experience.  It is great to hear success stories like yours. 

Mirian: Thanks!

Ron and Alexandra: Thank you so very much!

Pat and Wayne: Oh, the pressure is on now...but thank you!

Elizabeth: Yes, I honestly didn't think about going out on my own until this  past year.  Good for you!

Frank: Thank you for sharing your thoughts and your experiences!

Bob: Yes, I still like to run things by other agents and I have been at this a long time.  Right now, you are where you belong.

Gene: Please feel free to ask!

Scott: Congratulations, that is great!

Brad: Oh, I do have my niches...but I appreciate your suggestions and comment.  Yours sounds like a tremendous service, good for you!

AJ:  How weird, why would you have to remove your blog.  I hope you are back soon!

Amy: If I had a good boutique firm here I would probably be there but since we don't I decided to go solo.  Good luck!

Broker-Granny:  Thank you so much for your thoughtful comment and best wishes.  I wish you all the best as well!

Joe: Okay, I better get to it!

Tim:  I'm glad to hear your positive thoughts!

Jul 24, 2009 09:37 AM
Maryann Kepreos
Realty Executives Home Towne - Shelby Township, MI
The Key to All Your Real Estate Needs

Hi Diane-

Congrats! to your new adventure!  I have always toyed with the idea, and I will be reading every word you write.  It is true, that sometimes Realtors are not sheep, but can think outside of the box. 

Jul 24, 2009 10:03 AM
Anonymous
LaShawn Porter-818 International

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Jul 24, 2009 11:10 AM
#86
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

I have been thinking about becoming a broker and going out on my own for about 8 years now. It is appealing for all the reason everybody stated that I agree with.  However, when I look at it carefully, although applealing, I decide it is not Really worth it.  I did about $150k last year and I paid Century 21 (including every possible fee) a total of $17k.  One of the agents in this feed said that it cost her $20k on her own to do $200k in business.  Not much difference really.  My broker lets me do anything I want.  Really. (as long as it is legal, of course)  So I wind up with less responsibility for hardlly any more money.  And yes, almost all of my clients would have worked with me anyways. 

I would think that the ones that might not would be the ones that relocated from another part of the country, or maybe even another country.  If I get even one deal because of the C21 name, then I am ahead. And, I am sure I have gotten more then 1 extra deal every year. 

I hope this sheds a little different light on the situation.  Diane, I am very happy for you and maybe your situation was a lot more expensive and you had a lot less control over your business then I do.

Good luck to you! 

Jul 24, 2009 05:12 PM
Stacie Colclasure
Gateway Holding and Referral Company - Bethalto, IL
Realtor, Bethalto, IL

I am looking forward to reading the rest of this series.  I have been thinking a lot about this myself for the same reasons as your number 1 - 3. However, the time is not right for me yet. 

Congratulations!

Jul 24, 2009 06:01 PM
Todd & Devona Garrigus
Garrigus Real Estate - Beaumont, CA
Broker / REALTORS®

I think your point about timing is spot on! This market has "trimmed the fat". Good luck, not that you need it. You seem to have your bases covered!

Jul 24, 2009 07:19 PM
Dolores "Dee" Mauriello
Keller Willaims - Wayne, NJ
Realtor, Homes For Sale Wayne NJ

Diane, very interesting topic. In the near future the ban on buyer kick-backs on real estate commissions may be lifted in New Jersey. This makes me wonder if this alone could be motivation for licensed brokers to become independent. Would like to know your opinion and that of others.  Looking forward to your future post.

Jul 25, 2009 01:40 AM
Dianne Hicks
Realty ONE Group - Poway, CA

Best of Luck, can't wait to read more. I hope you definitely include highs and lows to give the full pic.

Jul 25, 2009 04:25 AM
Anonymous
Jill Klunk

Congratulations!

More Entrepreurs are created during a Recession and what a great time to break out. I thoroughly agree that quality is more important than quantity. The client is number 1 in my book and excellent service will bring them back twofold.

Jul 25, 2009 10:34 AM
#92
Tonda & Steve Hoagland
Keller Williams Realty - Greenwood, IN
Real Estate - Greenwood Homes for Sale - Central I

Congratulations on taking the plunge.  We've also been considering our options.

Thank you for your willingness to share what you've learned through the process. 

Best wishes to your success!

Jul 29, 2009 02:01 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

This is a great post and well thought out.  Thanks for putting it down on paper and online.  You have given alot of us alot to think about...

Jul 30, 2009 03:58 PM
Dallas Jensen
Adamsville, NT

You know how certain articles or stories just happen to pop up at the right time? This series is great. Thanks for posting it. I have thought about taking the leap, but not quite prepared yet. But it is a great time.

Aug 07, 2009 08:35 AM
Anonymous
Kelly Fisher

Hoorah For you!I also went out on my own recently.  After 20+ years of working for somebody else.  I worked for one broker for almost 17 years, then another for 4 years before he suddenly commit suicide last fall.  For a few months, I helped a firend with her business just to keep busy, took a college course and seriously contemplated getting out of this crazy business, but, when I found the piggy bank empty and sat down and tried to figure out what I should be when I grow up, I realized that after doing one thing for so long, I may not be qualified to do anything else.  Besides that, I was getting calls and emails from a lot of previous clients asking me to help them out.  What else could I do?

So, here I am, just trying to get things off the ground -- I figured that I would have plenty of time to get my business structure into place, but instead, I found that I was busier than I planned.  I have been working 7 days a week and a lot of nights since March.  Some days, I'm physically exhausted, but I am invigorated too and more optimistic than I've been in years.  It's all on me now -- every day, every call, every lead, I have something to prove. 

Best of luck to you and to me and all of those others who jumped in when all of the signs told us to run for the hills ---     

 

Aug 07, 2009 01:32 PM
#96
Tim Ludemann
Ochopee, FL

Great Blog my associate is opening a Firm in Florida but I believe the same applies so thanks for the help...looking forward to reading more.

Aug 17, 2009 04:03 AM
michelangelo vasco
mvp realty inc. - Manhattan, NY

It's so much more than the money, there is a certain pride in ownership, once you have been an owner/broker it will be hard to go back to being another brokers agent even if you can make more money it just is not the same

Aug 18, 2009 05:04 PM
Ginger S
Wilkinson & Associates, Wilmington NC - Wilmington, NC
Wilmington NC Real Estate & Relocation~

Diane, Congratualtions!!!! You have all the ingredients it takes to be a huge success flying free & solo!  With your experience, creativity, cutting edge marketing, top notch organizational skills, & utmost integrity & genuiness, The skys the limit! We wish you much success & happiness in your new venture!  

I am late to this thread, now have a lot of catch-up reading to do! 

You rock, my friend! 

Aug 20, 2009 04:10 AM