New Broker - How to do learn Brokerage Operations

[Llewelyn A.]

@Russell Brazil

@James Wise

@Joel Owens

@Darren Sager

@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.

[Charlie MacPherson]

@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.