Becoming a real estate broker is challenging but achievable. The hardest parts are the upfront costs, unstable income, building clients from scratch, and passing exams. With the right plan, mentorship, and brokerage fit, brokers can thrive and keep 100% commission.
Even after years of success as an agent, transitioning to a broker role introduces entirely new challenges: from increased legal responsibilities and regulatory compliance to leadership demands and business oversight.
What many don’t realize is that this journey can become significantly smoother with the right business model. At Realty Hub, we’ve eliminated excessive fees, cut through unnecessary bureaucracy, and replaced outdated systems with a streamlined structure that empowers agents and brokers to focus on growth and success.
If you’re looking for a straightforward, no-nonsense breakdown of what it takes, and how to make it work for you, keep reading.
What Does It Take to Become a Real Estate Broker?
Licensing: The Technical Hurdles
Every state sets its own requirements to become a licensed broker, but the process follows a similar track across the country. Before you even think about opening your own brokerage or managing agents, you must first complete your state’s mandatory pre-licensing education. Depending on where you’re located, this means committing to anywhere from 60 to 270 classroom hours. In Florida, Georgia, and Alabama, where we operate, these hours are very achievable but require discipline and planning.
Beyond the coursework, applicants undergo background checks and fingerprinting. While a college degree isn’t required, some educational credits may count toward your hours. The state licensing exam that follows is where many stumble.
Even those familiar with real estate principles often fail on their first attempt. Passing requires not just knowledge, but dedicated preparation.
And even once licensed, you’re not immediately eligible to become a broker. Most states require two to five years of full-time agent experience before you can apply for broker status. That’s years spent learning the business from the inside, working deals, building a client base, and understanding the transaction process from end to end.
The Cost Breakdown
There’s no way around it, getting licensed costs money upfront. Between pre-licensing education, exam prep courses, application fees, fingerprints, background checks, and your eventual broker licensing process, most aspiring brokers should expect to invest at least $1,000 before seeing a single dollar of income.
You need a financial cushion. Smart agents come in with 6-12 months of living expenses saved before fully committing, knowing that real estate income arrives in waves, not paychecks.
The Hardest Parts No One Tells You About
Unpredictable Commission Income
Unlike salaried jobs, brokers earn only when deals close. And closings don’t happen overnight. From securing a client to finalizing a sale, you may wait 30, 60, or even 90 days for your first check to arrive. In real estate, cash flow is not linear, it’s spiky. You can go months with nothing, then close multiple deals in one quarter. Managing these swings requires financial discipline from the start. This is why so many agents fail before they ever see consistent income.
Building Your First Client Base
Real estate doesn’t hand you clients. There’s no “assigned leads” once you get licensed. You are building a business from the ground up. Agents without a strong sphere of influence, friends, family, past clients, often struggle to find their first buyer or seller. This naturally raises one of the most frequent concerns we hear: “How do you find your first buyer?”
The truth? You hustle. You network relentlessly. You attend events, build relationships, market yourself, and most of all, stay visible. The first clients often come from personal circles or referrals, but you must actively cultivate them.
Market Saturation & Competition
In many metro areas, the market is crowded. You’ll be competing with thousands of other agents, many of whom have been doing this for years. Luxury clients, high-ticket listings, and well-established referral networks aren’t easy to break into. It takes creativity and relentless consistency to differentiate yourself.
Emotional Toll and Burnout Risk
As many seasoned brokers will tell you: real estate is the “easiest low-paying job and the hardest high-paying job.” The barrier to entry is low, but staying in long enough to succeed is where most fail.
Nearly 90% of agents exit the business within the first five years. The combination of financial stress, unpredictable income, long hours, client demands, and stiff competition takes a toll. Without the right systems, mentorship, and brokerage support, burnout is common.
Choosing the Right Brokerage: The Make-or-Break Factor
Red Flags to Watch Out For
Not all brokerages are created equal. In fact, many prey on new licensees who are eager, and vulnerable. If a brokerage is actively begging you to join, promising the world without asking much in return, that’s a warning sign. Many operate on models where they make money simply by having your license hanging under their banner, whether you sell or not.
Hidden fees are another trap. Desk fees, franchise fees, technology fees, marketing subscriptions, they all chip away at your income long before your first sale closes.
Why Brokerage Fit Matters More Than You Think
The brokerage you choose directly affects your odds of long-term success. Beyond just hanging your license somewhere, you need real mentorship, active broker support, and a model that doesn’t bleed your commissions dry.
At Realty Hub, we intentionally designed a structure that flips the old model on its head. We charge a simple flat fee, $100 per year, $100 per transaction, and you keep 100% of your commission. There are no franchise fees, desk fees, or mandatory association memberships.
Can You Succeed as a Part-Time or Referral-Only Broker?
The Myths About Part-Time Real Estate
One of the biggest myths in this business is the idea that you must go full-time to succeed. It’s true that full-time agents often ramp up faster because they can dedicate more hours to client acquisition. But it’s equally true that many agents simply want to maintain a license without being tied to rigid production quotas or high overhead.
The “Referral Only” Controversy Explained
The industry loves labels. One of the most misleading is the term “Referral Only,” often used by associations to suggest that agents who aren’t full-time must somehow downgrade their license or options. That’s simply not accurate.
At Realty Hub, you hold a fully active license whether you’re closing deals personally or simply referring clients to other agents. You’re free to build your business at your pace, without unnecessary association fees or forced MLS memberships. We remove the barriers, you decide your level of involvement.
Tips & Tricks to Make It Easier (Even If It’s Hard)
Start with a Realistic Business Plan
The first year is where most fail, not because they can’t sell, but because they didn’t plan for inconsistent income. Come in with financial reserves that cover at least 6-12 months of living expenses. Assume zero income early on, and anything earned becomes positive cash flow.
Invest in Quality Mentorship
Not all brokerages provide true support. Look for brokerages that offer real mentorship from brokers who actively engage with agents, not just recruiters who disappear after you sign. Early guidance on transaction management, negotiations, and lead generation is what shortens the learning curve dramatically.
Build Your Sphere Early and Actively
Your first clients rarely find you, you find them. Leverage personal networks, join local groups, attend events, and stay active in your community. Use early client wins as social proof to build credibility. Relationships compound; the sooner you start, the faster they grow.
Control Overhead, Keep What You Earn
High commission splits and endless fees can quickly erode your earnings. At Realty Hub, we operate lean by design. Our agents pay just $100 per year and $100 per transaction. Everything else, your marketing, your brand, your pace, stays in your control. That’s how you maximize net income from day one.
Is It Hard to Become a Real Estate Broker?
Yes, it’s hard. But it’s also highly rewarding for those willing to approach it with the right mindset. This is a business that demands financial preparation, careful broker selection, ongoing mentorship, and consistent client-building efforts.
The good news? The hardest part is the beginning. With the right structure behind you, you not only survive, you thrive. Realty Hub exists to remove the traditional obstacles, eliminate unnecessary costs, and give brokers the freedom to scale at their own pace while keeping 100% of their commission.
Ready to Build Your Real Estate Business Without the Usual Roadblocks?
Most brokers struggle not because they lack skill, but because outdated brokerage models chip away at their earnings, restrict their independence, and offer limited real support.
At Realty Hub, we’ve flipped that model:
- Flat $100/year membership and $100 per transaction. No commission splits.
- Real-time broker support when you need it.
- No franchise fees, desk fees, or mandatory association dues.
If you’re serious about building your real estate business, whether full-time, part-time, or referral-only, Realty Hub offers the structure to keep more of what you earn and the freedom to grow on your terms.
Your license is yours. Your business is yours.
👉Join RealtyHub now if you’re ready to take control.
