How to become a real estate broker & launch a brokerage — Advice from a KW mega broker by Sean Moudry, Meghan Thibault for HousingWire

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When I started my first brokerage in my late twenties, I was full of ambition but had no idea what to expect. While I would like to say I knocked it out of the park on my first try, I had to make many mistakes before considering myself an expert. Despite the learning curve, becoming a broker has been one of the most fulfilling decisions of my career. It’s about more than just earning a title — it’s an opportunity to create a business that reflects your vision, mentor a team, and make an impact.

If your dream is to own your own brokerage and manage a team of top-performing agents, leading your team to success means much more than hanging a new license on your wall. To excel, you must enter the industry with four main elements: a clear vision, a recognizable brand, an inspired team, and the systems to support them. Before you take the leap, I’ll share with you what I wish my young self knew when I launched my own brokerage.

1. Obtain a real estate broker license

Your new chapter begins with ensuring you meet all legal requirements to operate as a broker. The steps may seem daunting at first, but with a plan in place, you’ll move through them with ease.

Educational prerequisites

Most states mandate completing 60 to 150 hours of real estate coursework to become a broker. In Colorado, where I live, you are required to complete an additional 168 hours of coursework in order to qualify for a broker license. Check out our education page for more state-specific information. Be sure to find a real estate school that aligns with your learning style and career goals, and determine whether in-person or online courses are better for your schedule. Once you have completed your education, you can move on to the testing.

Pass your state licensing exam

The real estate broker exam is comprehensive, covering real estate law, ethics, and management. I’ve found that practice tests are invaluable for building confidence and for passing the first time.

Typically, we recommend giving yourself two to three months to complete the education and prepare for the exam. Once you have passed your exam, it’s time to set up your brokerage!

A note about terminology

In some states, an entry-level real estate salesperson is called a broker instead of an agent. If you live in one those states, leveling up your career might mean studying to become a Managing Broker or Principal Broker. The terms used vary by state.

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2. Set up your brokerage

Congratulations on passing your exam! Now you have to do some tedious stuff. This includes legal, tax, and state requirements. While this may seem like a basic step, the attention to detail taken here may save you from catastrophe later!

Select a business structure

The first step is to select a business structure. You may wish to form an LLC or another type of business structure. These legal structures offer some liability protection for you and, in most cases, tax benefits as well. Begin by contacting an attorney and a CPA to determine the structure that best suits your specific needs.

Obtain insurance

Most states will require you to carry both liability insurance and errors and omissions (E&O) insurance for your brokerage. Check with your state and attorney to determine the right coverage for you.

Register your business

Once you have selected the right structure, you’ll need to register it with both the Secretary of State (or other business registry) and apply for your Brokerage License with the regulatory body that oversees brokerages in your state. In most cases, your registered business name does not need to be the name of the brokerage. This detail can come later.

Open bank and trust accounts

Next, you’ll need to set up all the necessary business banking accounts and Trust accounts. Trust accounts are typically required if you are planning on holding rental deposits or earnest monies. These monies are not considered the brokerage’s, so they must be held in special accounts to protect them from collectors.

Once this is accomplished, you can move to the exciting part… coming up with your brokerage’s mission!

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3. Identify the mission, vision & values of your brokerage

FI-How to Become a Real Estate Broker and Level-Up Your Career

When I first launched my business, I didn’t fully appreciate how critical having a clear mission would be. Without a clear mission to guide you, it’s easy to feel overwhelmed when things get difficult or distracted when things are going well.

Like the rutter on a sailboat, a strong mission statement serves as the rutter for your brokerage. Guiding you and your team through the shark-infested waters to your dream destination.

A mission, vision and values statement (MVV) also serves as a filter for all your important goals and decisions. Your mission illustrates why you are making the decision, your vision shows what success will look like, and your values delegate what ideas, standards and rules you’ll follow to achieve it.

Mission

If your mission in becoming a broker is simply to make money, I have bad news for you: money alone is not a mission. Not a sustainable one, at least. In order to be resilient in your career and attract others who are equally as committed, you need to dig deeper into your “why.” You can do this in 3 steps:

What do you stand for? Identify a common problem for your customers or industry that you can no longer put up with.
Who do you stand for? Who is being impacted most by this problem and why do you care about them specifically?
What will you do for them? This is the specific impact or changes you’ll make for your people or industry.

Vision

If your mission is your “why,” your vision is your “what.” It gives your team a shared goal. Dream big here. Your vision should be audacious and aspirational. Your vision statement should be 1-2 sentences and should include what you and your team want to achieve for your clients. This will be used in your marketing and branding, so be sure it’s polished.

Envision your brokerage in 3-5 years.
Ask yourself: If all factors worked in your favor, what would you and your team be able to accomplish for your clients?
Jot it down and refine it.

Values

The last step is to create rules and structures your team agrees to abide by, also known as “core values.” While your team will be singing on to these, they need to be created by you. Having too much input from others in this stage can muddy the waters and can make your core values seem unclear.

Choose 10 core values you adhere to. Examples of these could be honesty, communication, or efficiency.
Write a few words about what each core value means to you and why it’s important.
Narrow the list to remove any synonyms or redundancy.

Keep your list of core values to under 10, as any more can be hard for your team to retain.

Once your MVV is complete and you know what message you want to communicate to your team and clients, you’re ready to shape your brand.

4. Craft a noteworthy real estate brand and logo

Your brand is how people perceive your brokerage. It’s not just about aesthetics—it’s a tool to differentiate yourself in the market.

A good brand will set you apart from other brokerages. It includes and can serve as a guide for many of your marketing strategies.

Create a customer avatar

I live by the Ricky Gervais quote, “If you try to please everyone, you’ll please no one.” When it comes to finding a target audience, aim for quality over quantity. Do this by creating an “avatar” of your perfect customer. Determine their demographics, values, needs and desires and how you can meet them where they are.

Choose a name

Make sure it’s both original and memorable. Keeping it short -limit it to 1-2 words.

Brainstorm by coming up with keywords that would resonate with your customer avatar. These are limitless: mountain, family, ocean, whatever! Next, list words affiliated specifically with real estate. Create 2 columns: one with your four favorite general keywords, and another with four of your favorite real estate ones. Play with these to see what combinations you can come up with. Try adding them to ChatGPT for some ideas.

Establish a visual identity

Your logo, colors, and marketing materials should consistently reflect your brokerage’s personality. When we rebranded, we invested in professional design to ensure our messaging stood out. With my brokerage we used colors not commonly seen in the industry, and clear, bold fonts to show we were friendly, accessible, and straightforward.

IMPORTANT

Be sure to check the domain, state, and national registries for similar or conflicting names and logos. It is a massive hassle to have to change your trade name or logo after you have spent thousands of dollars on building brand recognition in your market.

Now that your path is clear, it’s time to recruit a top-notch team of agents to join in your journey!

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5. Build your dream team

The Fleet Homes team group photo — Fleet Homes Real Estate Team – Keller Williams

Early on, I assumed agents would just find my brokerage organically. Unfortunately, this was not the case. Recruiting turned out to require a lot of intentionality and effort.

Recruiting the right agents is critical to your brokerage’s success. After all, you don’t want to sign on just anyone. Hiring for quantity over quality was a mistake I made early on. Misaligned and non-productive agents disrupted the dynamic I was trying to create.

The solution is to focus on hiring real estate agents who bring complementary strengths to the team. Here’s how I did it.

The 5-step recruiting plan:

Identify your ideal agents. These agents should be driven by your MVV you previously established.
Introduce the value. Find out what local agents want from a broker, and what you can offer them to help them achieve their unique visions.
Get a meeting. Utilize your in-person and digital networks to approach potential agents.
Nail the interview. Have a professional clear presentation of your MVV, the services your brokerage provides, and the agents compensation plan.
Create a transition plan with them. Have them share with you what an ideal transition from their brokerage to yours would look like.

Finally, you’ll need to ensure your new agents are set up for success with supportive systems, clear expectations, and high standards.

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6. Establish systems that support and drive success

A thriving brokerage needs more than talented agents — it requires efficient systems that support operations, increase revenue, and allow for agent growth. A solid plan should include:

Compliance: One of the main requirements of your brokerage license is agent supervision and compliance. There are many software tools to help you easily manage all the files your agents will be managing.
Training: New and seasoned agent training programs: This must also include onboarding programs to ensure new agents are equipped to succeed quickly.
Marketing: Providing branded marketing materials helps agents promote themselves and their listings with confidence.
Leads: Investing in lead-generation tools keeps your team consistently focused and busy. If you are not providing leads then you must provide clear prospecting training and accountability to sustain their focus, production, and growth.

Systems like these not only streamline daily tasks but also position your brokerage as a place where agents can thrive.