Starting a brokerage can be an exciting step forward for many REALTORS®. You may have a goal to oversee a team of real estate agents or strike out on your own as a solo broker. But there may also be trepidation in that decision. Maybe you wonder if it is the right time to branch out on your own. Or perhaps you question what kind of brokerage you want to establish. As you consider this move, you may find value in the experience of others who have already gone through the experience. Texas REALTOR® magazine asked brokerage owners to share their advice for REALTORS® interested in starting their own brokerage one day. Here’s what they had to say.

Comments compiled and edited by Joe Fisher, Texas REALTORS® Marketing Specialist. Answers have been edited for space and clarity.

AJ Abrams
Supreme 1 Realty, Austin
Became a broker in 2018
Number of agents at firm: 27

Have a solid CRM system where you can connect with recruits, current clients, and your agents. If you have that in place, it makes it a lot easier, but a lot of people look past that and try to do everything on social media, or just try to go get an office space right away. If we didn’t have that CRM in place, we wouldn’t be here.

One of the biggest things you have to do is maintain the budget. It’s not just a free-for-all hiring people who have a real estate license. That can get you in trouble.

If you want to start a brokerage, you have to have thick skin. Because you’re new, you’re going to get told no a lot more than what you get told from buyers and sellers. But believe in what you’ve set up. Then when you have agents jump on board, show them that you can help their business grow. Then use that to show what you can do to help other agents who are potentially a good fit for your company.

Cesar Amezcua
CA & Company, REALTORS®, San Antonio
Became a broker in 2013
Number of agents at firm: 8

The first thing I did was figure out what type of brokerage I was going to have, and how it was going to be structured. We meticulously set up the type of brokerage that we wanted it to be: something that I could handle and manage day-to-day operations of the brokerage. Take care of yourself as you set up the brokerage. You want to be able to serve your agents but also accomplish whatever else you’re trying to accomplish.

Have a solid business model. It won’t be perfect the first go around, but if you just jump in without a plan, that is not going to last very long. If you’re not ready to train and mentor your agents, then you’re just going to become a babysitter. That is exhausting and dangerous. Also have all the tools in place before you open the doors: a good CRM, a good digital signing platform, your errors and omissions, and an umbrella policy over everything.

As a new broker, be ready to mentor agents, not just train. They’re opening their own business just like you did at one point. You need to be ready to show them the ropes: how to write a contract, how to do a market analysis, how to treat people, what is acceptable to your standards, and what is not acceptable to your standards. I could just tell agents to go to all these classes as training, but that’s not going to create a good agent. Mentoring creates good agents.

Alisha Austin
Homes in Heels Realty, Round Rock
Became a broker in 2018
Number of agents at firm: 0

Laying the foundation for your brokerage is imperative for your future success. Get all the required compliance items registered with TREC, Texas REALTORS®, the secretary of state, banking, and your associations. It can take a bit of time.

Avoid recruiting too quickly. Figure out what you are supposed to be doing before you are responsible for others. I’m close to bringing on my first agent, but I take very seriously the use of my name and all the years I’ve built creating a reputation for myself. Personally, I think it is difficult to be both a producing broker and properly oversee multiple agents. I truly love selling—I’m not ready to give that up to spend all my time reviewing contracts, supervising lots of agents, and lose all the interaction and relationships I’ve built over the last 17 years with my buyers and sellers.

Network with other brokers. Find your tribe—no one knows everything—and these people will be priceless when you need a second opinion or want to bounce a scenario off another broker.

Lori Keebaugh
Keebaugh & Company, Longview
Became a broker in 2017
Number of agents at firm: 12

Dig deep and understand what your core values are and what you are looking for in growing your business. There are many brokerage models to choose from. Some brokerage models rely strictly on numbers—the more agents, the better—but if you are looking for a smaller, more-intimate approach, then a smaller office that offers more one-on-one contact with the broker might be a better fit. Knowing up front what you want in a brokerage will help in the long run for you and your agents.

You need a lot of experience under your belt. Not just real estate experience, either. Being the managing broker of a company comes with a lot of hats to wear. Be sure you are stable in your personal life as well as your business.

Invest in having qualified people on your team who share your vision. Spend the money on tools that help you and your agents be successful. Receive and provide support to others. This is a hard business. We all need all the support we can get from one another. Get advice from other professionals (attorneys, CPAs, etc.). Doing it right from the beginning means less mistakes to clean up later.

Matthew Tate
House Brokerage, Denton
Became a broker in 2022
Number of agents at firm: 50

At House Brokerage, we recognized early on that building a family culture and assembling a talented leadership team were paramount. We sought out individuals who shared our vision and values and possessed the expertise to excel in their respective roles. This approach allowed us to establish a solid foundation for growth and success while fostering a supportive and dynamic work environment.

It’s easy to get caught up in day-to-day operations and various challenges, causing important aspects of building the business to be overlooked. However, it is crucial to recognize that focusing on culture, support, training, and technology is fundamental to long-term success.

For anyone thinking of opening a brokerage, keep in mind that it’s a significant undertaking that may not be suitable for everyone. It requires careful consideration and a strong commitment to succeed. Some of the necessary qualities needed to succeed include passion and commitment, long-term vision, resilience and sacrifice, realistic expectations, mentorship, adaptability, and the ability to stay true to your values.

Jennifer Tucker
Bridgeway Realty, Fort Worth
Became a broker in 2021
Number of agents at firm: 15

An undervalued/overlooked asset of creating a brokerage is that it doesn’t stop with the feeling of accomplishment. The connections made and the value you bring to everyone associated with your brokerage–from the staff to the agents and then passed along to their clients–is invaluable!

I started my own brokerage because I enjoy helping other REALTORS® succeed in their businesses. I felt I could offer benefits to REALTORS® more as an independent broker and, in turn, that would pass on to their clients.

When opening your own brokerage, be sure not to fall into the pitfall of overcommitting yourself and trying to please everyone. You cannot be everything to every person. Also, just like when you decided to get into real estate, determine your why.

Jonathan Wolf
Realty One Group Rose, Tyler
Became a broker in 2021
Number of agents at firm: 39

I carefully prioritized the selection of my business partners, strategically assessing their suitability. Moreover, I aimed to establish a brand that would cultivate a distinctive culture, which I perceived as absent within my market. By doing this, I aligned myself with individuals who possessed the necessary skills, expertise, and shared vision to contribute effectively to the success of the venture.

I recognized a gap in the market where the prevailing business landscape lacked a distinct identity and values. I aimed to differentiate my business from competitors and attract a target audience that resonates with those values. This strategic approach not only enhances brand recognition but also fosters customer loyalty and engagement, ultimately contributing to the long-term sustainability and growth of the business.

Engaging in indiscriminate agent recruitment solely to fill positions is a potential pitfall that must be carefully sidestepped. Prudent discernment is vital when assembling the team that surrounds the brokerage, as the quality and compatibility of individuals greatly influence its overall success.