Looking into opening my own brokerage, what are some of the biggest hurdles?
I'm in a bit of a weird spot career wise. I started working in CRE while in college, I graduated 2 years ago and got my brokers license last year. To explain things better I'll give some background. My grandfather started his own brokerage back in the 1970s. He turned into a developer and was locally well known until he exited the brokerage world sometime in the 1990s. I grew up around the property management side. CRE was not my fathers choice career, he was kind of forced into. He's grown to hate it now but cant retire as all the business is owned by my grandmother. He basically handed me all the leasing responsibility as soon as I got my real estate license. (My grandfather died when I started college, so I got my license to help out.)
We currently manage 9 commercial strip centers of about 98 units. Everyone assumes that I get paid well and have a cushy job, but thats not the case. I made $40k last year including commissions. I'm not inheriting any property anytime soon. I get a 3% raise every year. I usually get 1-3 commissions a year which are all small retail. However, this year I've made none. I've been working over the past year on a 10 year lease with a national bank for an out parcel. This was a bit of learning curve. Especially when it comes to negotiating TI for a deal like that. My father never did a deal that big as it was always my grandfather. And that property was never vacant.
I realized in the spring that I should consider working part time for another brokerage. I reached out to a few local boutique brokerages. I met with one that was willing to take me on while letting me still handle my family's listings completely separate. They were the only brokerage that didn't expect me to bring the listings with me. I told them I wanted to join but needed some time to talk with my family (who was not going to take it well) and just get towards the end of this bank deal. (It's been very project management heavy at this point meeting with contractors and such, it's an old building with asbestos). They told me there was no rush and take as much time as I needed. Well that was 3 months ago and they brought on 2 new agents. They don't have the space for me anymore. But they want me to stay in touch for when they do.
I've had a few opportunities to act as tenant rep and landlord rep broker over the past few years. I always passed on it as my family's business is antiquated and is not set up for this. My family name still has some local recognition so I've been considering opening my own brokerage. Just something to work under so I can work on outside landlord rep and occasional tenant rep. A friend of mine just expressed interest in having me list a property they're developing.
Growing up around the business, I have a good understanding of the accounting side. My biggest concerns are more around the paperwork side of brokerage with things like landlord rep agreements and processes around that. What other hurdles might I run into with this?