Quite a few people are considering entering the real estate sector these days. After all, it’s an in-demand field that offers numerous opportunities and rewards. As a real estate agent, you’ll be able to connect people with their dream homes and aid current property owners in moving on to the next phase of their lives. This is your guide to starting a real estate business in Phoenix.
At the same time, starting a real estate business gives you the power to work for yourself. You’ll have the advantage of creating your own schedule and potentially working your way to financial freedom. Of course, you’ll also have the satisfaction of knowing you worked hard to make your dream of owning a successful real estate business come true.
Getting into the Phoenix Real Estate Market
All it takes is a brief look at the Phoenix real estate market to see that it’s excelling. It’s one of the nation’s top markets in this sector right now, and if trends hold steady, it’s only going to grow from here. Property values are soaring, and demand from both ends of the real estate spectrum is on the rise. If you’re interested in getting in on this market and starting your own real estate business, you’ll need to take the following measures.
Become a Licensed Real Estate Agent
First and foremost, building a successful real estate business in Phoenix means becoming a licensed real estate agent. Doing so is a legal requirement for those who want to sell real estate in Arizona, and it gives you a head start on strengthening your integrity in the industry. To become a licensed agent, you must be at least 18 years old.
From there, anyone who wishes to obtain a real estate license must enroll in one of Arizona’s accredited real estate schools and complete 96 hours of relevant education within six months of signing up for the program. After completing the course, you’ll have to take and pass a proctored exam with a final score of at least 75 percent.
Then, it’s time to gather up some paperwork. Those trying to obtain their real estate licenses are required to submit proof of their course credits and final exam scores, a fingerprint clearance card from the Arizona Department of Public Safety, a Disciplinary Actions Disclosure Form, and other background documentation. With all the necessary paperwork in place, you’ll need to pass the Arizona Real Estate Licensing Exam.
Within a year after passing the Real Estate Licensing Exam, an application must be submitted to the Arizona Department of Real Estate either online, by mail, or in person. Accompanying fees of $75 and $60 for a first-time license will apply. It could take anywhere from a few weeks to a couple of months for your application to be processed and your license approved.
If you want to take matters a step further, you could become a certified Realtor. That will give you even more credibility in the field, but it’s not necessarily a requirement. Becoming a Realtor takes a few additional steps and fees.
Whether you practice with a basic real estate license or join the National Association of Realtors, you’ll need to be sponsored by a real estate broker. It’s important to choose a broker that deals in the type of real estate you want to specialize in. For example, if you want to be known for business sales, you’ll need to be associated with one of the top Phoenix business brokers.
Moving on to the Next Phase
All that brings us to the next phase of your business venture: actually starting your own real estate business. Start off by putting a great deal of thought into your company and developing a well-rounded business plan. Those with an effective plan in place set themselves up for success from the beginning.
Start Off on the Right Foot
Experts generally recommend setting up a real estate LLC. This is typically the simplest and least costly route for start-ups. To create an LLC, you’ll need a unique name that includes the term “limited liability company” or its abbreviations. The Arizona Corporation Commission provides a list of additional naming requirements on its website.
It’s also a good idea to find out if the name you chose for your business is available as a web domain. This will foster your credibility and benefit your online presence in many ways. It’ll also help with establishing your place in the real estate sector in the eyes of the search engines and consumers.
Find a Statutory Agent for Your LLC
Statutory agents are the people or companies who handle legal documents for your business. Though you can act as your own agent, many authorities advise against doing so unless you have a thorough understanding of the law and other relevant matters. You can choose an individual who does have this type of knowledge or go through a registered agent service.
File Your Articles of Organization
Further building your LLC requires filing its Articles of Organization. Proper forms for this phase are available on the ACC’s website as are resources for filling them out correctly. Again, this can be done online, by mail, or in person.
Publish a Notice of LLC Formation
After filing the Articles of Organization, Arizona LLCs are required to publish a Notice of LLC Formation in an approved local newspaper. This must be done within 60 days of creating your company, and the notification should run for three consecutive weeks. These requirements may vary based on the county you’re operating in.
Develop an LLC Operating Agreement
An LLC operating agreement speaks to the ownership of your company and the duties of all owners and partners. It should cover the responsibilities of owners, the guidelines for bringing in new ones or terminating existing ones, distribution of profits, and other legal details. The ACC website offers information and resources for this step as well.
Moving Forward with Your Real Estate Business
Those are the basic steps of creating a real estate business in the state of Arizona. Keep in mind, numerous additional measures are also required after establishing your company, such as acquiring an Employer Identification Number through the IRS and setting up a business bank account. If you owned properties before opening your business, consider transferring those to the company as well.
Phoenix is a prime area in which to start a real estate business due to its impressive growth and demand. Becoming part of the real estate industry can certainly be a rewarding and lucrative venture. Making the most of an opportunity like this requires getting off to a good start and having the right connections to help you reach the top in this guide to starting a real estate business in Phoenix.