Can You Own A Franchise Without A Broker's License?

One of the most common questions we get at 1st Class Real Estate is whether you can own a brokerage without a license. The real estate market is hot right now, and the brokerage model offers huge potential for financial growth. It makes sense why so many people are gravitating towards this brokerage model. But is it possible to get started without being a realtor or a broker?

The answer is yes! With the right business model and a strong team on your side, you can set up a brokerage even if you haven’t worked as a realtor in the past. Here’s what to keep in mind if you decide to go this route for setting up your brokerage. 

Choose Your Business Model

Before you get started with your brokerage, you’ll need to determine how much it is going to cost to get started and what business model you want to use. Starting your own brokerage is a long-term investment. You’ll need to put in money upfront before you start seeing results. 

This is why it is so important to have a defined business model ahead of time. You’ll be able to use this business model to plan ahead and determine how quickly you can scale. Take a look at other successful brokerages to get an idea of the type of commission models you want to use. You’ll need to find a model that will attract talented agents and keep them happy while still generating a profit for the business overall.  

Find The Right Team

The next step is to find the right team to bring your brokerage to life. If you don’t have a real estate license, you’re going to need experienced real estate professionals by your side to handle some of the day-to-day operations. 

You’ll need at least one person on your team who does have a broker’s license to get started. This person will handle your deals and can help you build out a great team of agents. You’ll also need administrative staff on your team to handle aspects of day-to-day operations, such as accounting, marketing, and agent support.

Determine Your Investment Level

There are different ways to invest in a brokerage without a license. Some people choose to be very involved with their brokerage and even handle aspects of the day-to-day operations like marketing and accounting. Others choose to work as an investment partner with a successful broker, but remain more hands-off when it comes to the daily operations. This can be a win-win for both parties when executed well. The broker gets to keep more of their money and has more control over their work, while the investment partner reaps the financial rewards of a successful brokerage without having to run it themselves. 

Your brokerage can still be very successful regardless of which approach you take. However, it’s important to determine your involvement level before you get started. This will help you and your team plan strategically as you grow. 

Scale Your Business

Once you have your brokerage set up, it’s important to prevent it from getting stagnant. As you add more agents and start finalizing more sales, you can expand your operations with further lines of business. At 1st Class Real Estate, we’ve added mortgage companies and title companies to our operations, which help us draw in more money with each deal. As with starting a brokerage in the first place, you don’t have to be an expert to add these extra lines of business - you just need to be savvy and seek out the right resources. 

Be Willing To Learn

So, the answer to the question - can you own a brokerage without a license - yes, and you don’t need to be a guru or an expert - you just need to be ready to learn. With the right resources and a solid business model, you can get your brokerage off the ground even without a real estate license.