Why would I want to have a real estate license?
Besides complying with the law, your license diversifies your sources of income: You can be compensated for arranging real estate leases and sales of real property.
What are the steps to get a real estate license?
Not necessarily in this order because of differing procedures among the states: Complete the educational requirements your state mandates; prepare documentation to submit to your state; pass your state’s licensing examination; apply for a license; obtain whatever insurance your state may require; associate yourself with a licensed, supervisory, real estate or business brokerage.
Research online for more information from organizations in your state that train students to pass their state’s real estate examination.
Why would a real estate or business brokerage want to associate with me?
Look for a real estate or business brokerage firm (perhaps a sole practitioner) that is amenable to associating with you when you explain your intent to try to handle the real estate purchase/sale and premises lease part of business buy/sell transactions, and if you get involved in residential purchases and sales. You will split your commissions with the brokerage. Plus, if you diversify your professional services into business brokerage, you’ll share the commission you earn from sellers or buyers on the business opportunity portion of the transaction. It may not be necessary to share any of your consulting income. You may further sweeten the pie if you name the brokerage as an additional insured on the liability insurance policy you obtain for the legal entity you form from which you operate your consulting practice. Independent contractor status is the legal relationship between some brokerages and their agents.
Another source of income and image enhancement:
The dealmaking capability you bring to the table, from the business buyer’s perspective, enables a business brokerage to showcase the diversity of their scope of client services. If, instead of associating with a business brokerage, you hang your license with a real estate brokerage, you enable it to diversify into business brokerage.
Building relationships; avoiding conflict of interest:
We think some of the savviest real estate and business brokerages team up with people who are self-employed in specific practice areas – such as a Business Buyer Advocate – so they don’t have to turn away or refer out (without being paid) prospective clients. For a brokerage having a relationship with you means they don’t have to spend their time and money showing you how to advise business buyers. Your expertise comes with the information included in our proprietary client reference manuals, data collection and analysis forms and other materials that few, if any, typical brokerages possess. Some agencies, if properly approached, might be amenable to having an association with you if it does not involve the kinds of conflicts of Interest that can arise when a broker serving sellers provides guidance for buyers on the same transaction (i.e., working both sides of the deal). Somewhat related to this, in the residential real estate field, are offices whose agents either represent sellers or represent buyers, but not both, on the same buy/sell transaction.
It may not be a long-term relationship:
If your ultimate plan is to include brokerage into your business after you satisfy your state’s work experience, continuing education and licensing requirements, your association with a third-party brokerage may be temporary.
Ted J. Leverette
The Original Business Buyer Advocate ®
“Partner” On-Call Network, LLC
Each office and/or consultant using the tradename(s) “Partner” On-Call Network and/or Business Buyer Advocate is independently owned and operated (and is a separate legal entity from “Partner” On-Call Network, LLC). Business Buyer Advocate ®, “Partner” On-Call ® and “Partner” On-Call Network ® are registered trademarks of Ted J. Leverette.