With the ever-growing commercial real estate market, the scope and need for commercial real estate investors are also expanding. More people are willing to enter the commercial real estate investing space, and they’re constantly looking for help.
Gone are the days when the industry dominated by a classified network of commercial real estate investors. With new laws and regulations of real estate investing, it’s become effortless and easy for people from various backgrounds to enter into commercial real estate investing.
New schemes like Real Estate Investment Trusts have made it super simple for beginners to try their hands with real estate investing.
That said, it is apparent that the need for commercial real estate brokers is skyrocketing.
Why’s it a good idea to become a commercial real estate broker? because it has huge demand in the market and will continue to increase in the years to come.
Besides, being a commercial real estate broker means that you can be involved in the real estate game without having to burn your own pockets.
That’s significant leverage for you, and the knowledge and experience you get while being a broker is something that’ll equip you to become a great investor yourself at a later date!
The pros of being a commercial real estate broker are many! If you’ve decided to become a commercial real estate broker but aren’t sure about the best way of going about it – this blog is for you.
Use this guide as a beginner’s guide to becoming a commercial real estate broker. We’ve broken down the process of becoming a commercial real estate broker in simple steps. Let us walk you through the process! Read on.
Simple steps to become a successful commercial real estate broker
Step #1 – Familiarise yourself with State-specific Commercial real estate licensing requirements
To become a commercial real estate broker, most states require you first to have a commercial salesperson’s license and will also demand an experience of at least two years as a licensed agent.
These requirements vary from one state to another, and you must check the needs of the country you want to live. The best way to do this would be to visit authorized government department of commercial real estate. Familiarise yourself with their specific requirements like exams you need to take up, agent experience, and real estate education that various states expect you to have. On a general note, here are some standard requirements that every state would need you to adhere to.
The minimum age requirement for most states is 18 years. There are some states which require you to be much older than 18 too. So, checking individual state-specific needs is essential here.
The majority of the states require commercial real estate brokers to be the citizens of the state where they are applying for a license. However, this is no hard rule. There are states which only require you to be a citizen of the United States.
You must have completed a specific number of state-specific real estate courses and examinations (the written tests covering contract laws, and general real estate laws specific to various states)
Applicants of commercial real estate broker’s licenses must also take up broker’s license exams that cover multiple topics, including agency laws and regulations, broker’s ethics and code of conduct, contract laws, and so on.
Step #2 – Take up commercial real estate courses
The next step would be to educate yourself about the commercial real estate markets, investing, and financing.
Even if you already have adequate knowledge about real estate, the state authority will require you to take few licensed real estate courses and submit your certificates of completion before you get your broker’s license.
Typically, you’ll need 60 to 150 hours of course study time, covering various areas of a subject like – contract laws, real estate laws, property laws, financing laws, builder contract laws, investment laws, agency laws, and so on.
You can choose from an array of online and in-person courses that are available in the market out there. Go by the reviews and the recommendations from friends and families to choose the best one for you.
Step #3 – Pass the commercial real estate agent exam and apply for a license
After completing various certification courses on commercial real estate education, the next step would be to implement and pass the state’s commercial real estate exam, which is conducted by various states before you apply for your license.
These tests vary from state to another, and the general format of such exams is the simple Multiple Choice Questions.
The topics covered would be ranging from state laws to national laws on everything that concerns commercial real estate investing.
If you’ve made a good pick on the courses you’ve chosen or the institution you chose for completing your certification course, that’ll be a cakewalk for you.
Most states provide your results almost immediately, while some of them might take a couple of hours. Once you’ve cleared this exam, your path is clear for applying for a license.
Step #4 – Choose your commercial real estate market
While you prepare for your commercial real estate agent state exams, you’ll have plenty of time to decide upon the type of Commercial real estate market you want to invest in.
Furthermore, you must also choose the type of commercial real estate properties you wish to sell – from office buildings, retail outlets, shops and complexes, multi-family properties, and so on.
Making a choice based on your line of interest and passion will work out the best because you’ll never be bored to research more about such properties, continue to acquire knowledge, and be in a better position to explain such features to your clients.
Imagine a scenario where you’re required to talk all about retail spaces when you just loathe about how it works. It looks scary, right? You’ll not enjoy doing it as much as you would if you’ve picked a market and a property type that you’re genuinely interested in.
So, go ahead, explore, and make a pick!
Step #5 – Gain your experience as an agent first, before you become a broker
After zeroing down on the type of commercial real estate market and the property you wish to deal with and sell, the next step is to gain your experience as an agent.
It is mandatory by all states, and you are required by the state laws to first gain at least one year of experience as a real estate agent before you become a commercial real estate broker.
States like South Carolina require you to have three years of experience as an agent! Many other states’ requirement is much lesser, ranging somewhere between 1 to 2 years.
Step #6 – Complete commercial brokers’ license exam courses
After having gained a fair amount of experience as a real estate agent and are ready to become a commercial real estate broker, you must sign up for commercial brokers’ license exam courses conducted by various institutions.
Just like commercial salesperson’s license courses, you must complete commercial brokers’ license exam courses to take up commercial real estate broker’s license exam next and finally obtain your license of commercial real estate broker.
Different institutions offer varied curriculums, and it’s important to choose an institution that best covers most of the subjects that are required by the law. Visit your state commercial real estate board before you choose any institution or online classes.
Step #7 – Pass the commercial real estate broker’s exam and apply for a license
After having completed a bunch of commercial broker’s license exam courses, apply for a real estate broker’s exam, pass the exam and move ahead with applying for your license to work as a commercial real estate broker in a particular state.
Bear in your mind that commercial real estate broker exams are extremely state-specific. So, you have to be well equipped with the curriculum and the examination patterns.
Log onto your state’s respective commercial real estate boards to familiarise yourself with everything that you’ll need to know.
Step #8 – Start your commercial real estate broker career by being an independent broker and move on with creating your brand and clientele
After having obtained your license, the next step is to kick start your commercial real estate broker career.
You may also start your service as an agency by partnering up with a couple of other commercial real estate brokers like yourself with the same backgrounds and experience or also choose to start your career as an independent, stand-alone broker, whichever suits best for you.
Create your brand and start building your clientele. Focus on the quality of service that you’re offering over the number of clients you’ve acquired over time to gain the best possible traction.
Remember that mouth-to-mouth marketing works the best when it comes to availing the service of a commercial real estate broker, and that’s what is going to put you ahead of your competition.
Step #9 – Continue with networking and keep up with acquiring more knowledge
That’s the thing with commercial real estate investing space – the trends keep changing, and you must be a constant learner to pick up new things to learn.
It’s not a process that ends, and we believe that learning and acquiring new knowledge pretty much becomes an inseparable part of a commercial real estate broker’s life.
Alongside, it is also important that you build your network – from property owners to other commercial real estate agents and brokers, to government body officials and everybody in between – the stronger your network is, the better it is for you to provide the best service to your clients!