With the right drive and determination, Commercial Real Estate Broker is a great career choice. Brokers work independently, helping clients buy, sell, or lease commercial properties. They act as mediators between buyers and sellers in this competitive but highly rewarding industry.
As such, a career as a Commercial Real Estate Broker is perfectly suited to individuals with the confidence, communication skills, and love of the industry to create opportunities and close the deal. But how can you get your first step onto the career ladder? Here are our top tips to help you succeed as a Commercial Real Estate Broker:
1. Do Your Research
Before you decide to hand in your resignation, make sure you’re suited for a career as a Commercial Real Estate Broker. Follow this link to see if you have the six attributes every broker needs.
You also need to make sure you understand the financial implications. Your salary will be based on commissions. While some larger firms may offer you a small supplementary salary when you initially work as an agent, your commissions will most likely form the majority of your income.
A Commercial Real Estate Broker usually retains around 3% on all sales and leasing transactions, with the brokerage firm receiving around one-third of that fee.
Also bear in mind that it can take months to close a deal. So don’t assume you’ll be earning the big bucks from day one.
2. Understand The Licensing Requirements
You need to get a commercial salesperson’s license before you can start work. This is state-specific so you’ll need to do a bit more research to find out what’s required in your location.
In general, broker licensing requirements usually include:
- Minimum age and residency: usually brokers need to be at least 18 years old and be a resident in the state where applying for a license.
- Experience: prospective brokers will need at least one year’s experience as a licensed Real Estate Agent in the state in which they want to operate. Some states require two years of experience or more.
- Education: you may need to take state-specific educational courses in real estate prior to taking the licensing exam.
- Exam: you will also need to take a broker’s licensing exam that will cover topics including contracts, financing, and agency law. This is a big step. Here are our tips to help you pass your licensing exam.
While you’re gaining experience as a real estate agent, use this as an opportunity to identify your preferred commercial real estate market. Additionally, start to build your personal brand and network so you can hit the ground running when you do qualify.
3. Apply for a Commercial Real Estate Broker License
Once you have met all state-specific licensing requirements and passed your broker’s exam, you can apply for your license.
However, you may still need to jump through a few more hoops. See if there are any other additional requirements or forms that need completing once you have passed your exams to speed up the licensing process. Your state licensing board website is usually the best place to check.
Technically, this means you can now operate as a Commercial Real Estate Broker. But the story doesn’t end there.
4. Set up as an Independent Commercial Real Estate Market
You are now legally allowed to start a brokerage or begin work as an independent broker.
Before you do either of these steps, familiarize yourself with the different processes and laws that govern different types of real estate, such as zoning laws and use laws. You may also want to continue your education to make sure you’re ready to face the complexities of commercial real estate. In fact, continued personal development and training is a necessity throughout your career as a broker.
Now you’re ready to start work as a Commercial Real Estate Broker. The sky’s the limit!