TRAINING FORBUSINESS SUCCESSMy Digital Broker Coach Checklist ToolkitBrought to you by the Arizona REALTORS Broker University Workgroup.Thinking about becoming a Broker or opening your own office? We hope this checklist toolkit will helpprovide you with resources and a general idea of what would be involved.Setting Up a Brokerage Checklist:Broker License Requirements: Licensing Brochure.pdfHave at least three years active experience as a licensed salesperson or broker in Arizona or anotherstate within the last five years.Submit a Verification of Employing Broker form (LI-226), completed and signed by your employingdesignated broker confirming active license experience for three of the last five years. If yoursalesperson license is held in another state, ADRE requires a Certified License History in addition tothe employing broker form.Complete a 90-hour broker pre-licensing education course.Pass the school’s final examination.Pass the Arizona State Real Estate examination.Attend 9 hours of Broker Management Clinic (BMC) prior to license activation.Provide proof of legal presence in the United States.Obtain a Criminal Clearance Card from the Department of Public Safety(Note: processing may take 5-8 weeks).Resources:ADRE: www.azre.govBest Practice Tip:Set up a PLLC for your license.Page 1 of 9

Setting Up Your Company:To understand the steps of setting up a new real estate office in Arizona.Identify anticipated cash flow needed to open an office: Start-Up Investment Define your vision and mission statement for your company (sample: I will plan, budget, and set up acompany that sells residential real estate in Surprise, Arizona):Determine if you want your firm to be a sole proprietor or have agents under the brokerage?Download the LI-213 Entity/Employer Broker Name Reservation Request from ADRE (note: will takeapproximately 7 days for processing from ADRE): LI-213 Entity Employing Broker Name Reservation Req.pdfReserve your company name on the Arizona Corporation Commission Website (ACC will hold namefor up to 120 days): http://ecorp.azcc.govIdentify the type of entity (tip: talk to your CPA regarding the type of entity, i.e., corporation, LLC, orpartnership) on ADRE Form LI-231: LI-231 App for Lic as Pro Corp or Pro Form LI-231 App for Lic as Pro Corp or Pro LLC.pdfFile your paperwork with the ACC.Complete LI-212 Entity/Employing Broker Licensure Application (takes approximately 24-48 hours): LI-212 Entity Employing Broker License App.pdfApply for your EIN number from the IRS (caution: never use social security cation-number-ein-onlineIdentify business accounts you want/need (tip: talk with your bank representative).Find eduledCourses.aspx) and attend a BMC (1, 2 and 3)(tip: consider taking these while you are waiting the 7 day period for ADRE response to your etermine if your company will have a logo? Who will design it?Determine if your company will have a website?Research and reserve your website URL?Determine if your company will have a presence on social media (Facebook, Instagram, LinkedIn)?Choose which local association will be your primary association?Set up IDX on your website (make arrangements with your MLS for your IDX feed)Resources:Arizona Law Book Order Form: Book Order Form.pdfArizona Law Book PDF version: Revised.pdfArizona Real Estate: A Professional’s Guide to Law and e-book/AAR Legal Hotline Sign 16/02/Legal-Hotline-Memorandum-2016-02-11.pdfPage 2 of 9

Resources Continued from Page 2.RPR Broker Dashboard/Tools: Choose Your Business Structure: business-structureNAR Article Starting a Brokerage: What To rk/article/2017/03/starting-brokerage-what-doFind a BMC Class Near You: duledCourses.aspxADRE Trust Account Requirements: Account Requirements.pdfADRE Trust Account Basics: t Practice Tips:Talk to your CPA and/or banker before you do anything.Financial (Business Planning):To understand the steps to successful business planning for the success of your company.Fail to plan–plan to fail.Determine how much money you will need to operate each month: Trust Account: Do you need it ( Account Requirements.pdf)?Commissions: Who will disburse checks (you, title company)?Understand the 1099 and W-2 Forms (employee vs. subcontractor).Determine what commission structure you will offer.Establish your expense budget:Office space, tech requirements, business software, marketing, recruiting, staffing, insurance(E&O and G&L, cyber security), agent expenses, advertising/promotions, education, professionalfees (accounting/consulting/legal), dues and memberships, travel/entertainment, salaries/wages,communications, franchise fees.Establish revenue projections depending on your area of specialty (new homes, resale, land,commercial, etc) (# of agents, average income, number of sales, number of listings).Establish profit margins.Determine which bookkeeping systems you will use (software or accounting firm).Transaction management: Research and determine what platform you will use?Resources:Drexanne Evers Sample Financial Standards Budgets: Article Determining Employee oyment/article/determining-employee-statusNAR Article 20 Common-Law loyment/article/20-common-law-factorsPage 3 of 9

Resources Continued from Page 3.NAR Article 7 Items Every Independent Contractor Agreement Should agreement-should-haveArticle From REALTOR to Broker: Determining the m-realtor-to-broker-determining-the-model/NAR Field Guide to Franchises vs. Independent uide-to-franchises-vs-independent-firmsUS Small Business Administration: SBA Creating Your Business our-business-planCRB Class Building a Business Plan That Gets crb/business-planning/IRS Form 1099-Misc & Independent Contractors: isc-independent-contractorsNAR Book Real Estate Office arch:To understand the environment to help you identify your desired office location.Determine Virtual or Bricks & Mortar.Identify your desired market area and specialty.Identify number of sales and competition in your target area/specialty.Brick & Mortar building:Identify desired office location.Determine who will handle tenant improvements.Determine who will negotiate leases.Determine if you will need staff (if so, how many/what functions)?Determine if purchase or lease equipment.Virtual building:Determine where main office will be (caution: if in an HOA area, check HOA CC&Rs).Determine if you need virtual staff.Purchase or lease equipment.Read ADRE SPS 2005.15: Documents/SPS 2005.15 Broker Home Office.pdfDesign and order signage.Page 4 of 9

Resources:NAR Article Virtual Offices: Remote trolNAR Article Beyond Bricks & tandouts/article/2009/09/beyond-bricks-mortarADRE Signage: Signage.pdfStaffing (anticipated budget ):To learn how to hire the right people for your firm.Determine how many staff will you need/want?What functions will staff perform: licensed vs. unlicensed? (ADRE SPS S Documents/SPS 2005.04 Unlicensed Assistants.pdfObtain or develop job descriptions.Determine salaries.Identify what kind of training you will require/provide.Develop and set expectations.Determine what staff benefits you will offer.Payroll who will be handling paychecks and tax reporting?Obtain Independent Contractor Forms (real estate agents) resource: NAR.Determine commission structure options for your real estate agents.Resources:NAR Field Guide to Compensation Plans for Real Estate NAR Article Creating a Good Job riptionNAR Article Tax Requirements for loyeesNAR Article Understand Your Salespeople’s Worker espeoples-worker-classificationNAR Article Tax Requirements for loyeesNAR Article Employment aw/article/2005/01/employment-lawNAR Article Types of Personal tsADRE Licensed vs. Unlicensed Assistants (read PS Documents/SPS 2005.04 Unlicensed Assistants.pdfPage 5 of 9

Resources Continued from Page 5.CRB Course Show Me The Money – Compensation /crb/compensation-planning/Policy Manual:To understand the regulatory requirements for running an office and setting up company expectations foryour agents.Remember that your manual should be a living document and should be reviewed and updatedyearly, especially if laws or practices change.Download the ADRE Model Policy Manual: Office Policies Manual.pdfCustomize the manual template for your firm.Resources:NAR Checklist: Policy Manual ustsNAR Field Guide to Real Estate Office Policy -guide-to-real-estate-office-policy-manualsADRE Model Broker’s Policy and Procedure Manual: Office Policies Manual.pdfNAR Book Real Estate Office eld-guide-to-real-estate-office-policy-manualsOpen for Business Checklist:File Management:To determine how you are going to handle the file paperwork; i.e., paperwork or electronic.Research and select a transaction management platform.Determine and develop company developed forms (i.e., wire fraud disclosure form, etc).Set up file logs.Page 6 of 9

Personnel Management:To develop a program of recruiting, hiring and training of your independent contractors and employees.Attend a class on recruiting (suggestion: CRB Recruiting for /crb/recruiting/Set up personnel agent folders (ICA, new hire application, etc.).Identify what you expect from your agents.Determine what new agent application form your firm will use.Identify profile of ideal agent you want in your firm (new agent, experienced agent, full time,part time, etc.).Determine recruiting efforts: where and how.Develop checklist of questions to be answered by potential recruits.Determine if you will offer coaching/mentoring programs.Identify standard productivity expectations for your agents.Require agents to list company as co-insured on agent’s car insurance.If virtual – where will your agents meet with clients.Resources:ADRE Required Files: Agreement Requirements: Article Best Tips For Brokers Helping 15/12/31/best-tips-for-brokers-helping-agentsNAR Article Recruitment ng:To determine how or who will train your independent contractors and employees.Will you offer in-house training? Purpose of training? How often?Will you have regular office meetings? Timing?Will you offer a reimbursement program for your agents’ training?Have you included information about your training expectations in your office policy manual?How will you communicate with your agents? Print? Digital? Intranet? Frequency?Resources:CRB: 7 of 9

Resources Continued from Page 7.GRI: http://azgri.comrCRMS: fied-risk-management-specialist-rcrms/NAR Prepackaged Sales Meetings: ngsNAR Article One Fantastic Year of Sales meetingsNAR Field Guide to Sales d-guide-to-sales-meetingsRisk Management Checklist:AAR Legal Hotline:To advance your company with legal advice through AAR’s Legal Hotline.Sign up: /Incorporate Legal Hotline Q&A into your office meetings/communications to hotline/Manage Risk:To determine how to reduce risk to your company.Review all your agents’ social media websites.Set up social media alerts on your agents.Review your Office Policy manual annually.Provide ongoing training on Office Policy with your agents.Be familiar with ADRE’s Supervision requirements.Who will handle issues if you are unable to (vacation, illness, etc.)?Establish a safety protocol/review with agents quarterly.Advanced Training:To be knowledgeable about advanced training for you and your agents.Earn the CRB designation (or take sone CRB classes): gn up for CRB digital publication (it is free): default.aspxWatch some of the CRB Webinars: 8 of 9

Checklist Continued from Page 8.Sign up for CRB Accelerate (on-demand video ining/Dashboard.aspx?TrainingType ManagersConsider earning the AAR rCRMS certification ider earning the AAR CRPM certification program (if involved in property wledge/crpm/Consider attending the AAR Industry Partners Conference (September).Bookmark NAR Window to the Law Video Series: okmark AAR Legal Hotline Articles: e/Attend the AAR Convention (March).Attend the NAR Convention (September).Join Broker Mastermind groups in your area.Stay Current:To become aware of current issues that affect your brokerageRead the Voice (AAR’s weekly digital d/arizona-realtor-voice/Read the ADRE Bulletin: the Commissioner’s Advisories: the monthly AAR Mack In a Minute video ute/Incorporate AAR’s Contract Conversation video series into your office meetings.Sign up for the NAR Broker Involvement Program: rollment.htmlRegister to vote.Become a RAPAC Major Investor: ac/Attend AAR’s REALTOR Day at the Capitol.Resources:NAR Window to the Law video series: R Legal Case Summaries: Legal Pulse: R Risk Management Forms and Documents: E. Osborn Rd., Suite 200 Phoenix, AZ 85012Telephone: 602.248.7787 Toll-free in AZ: 800.426.7274 Fax: 602.351.2474www.aaronline.comPage 9 of 9

Thinking about becoming a Broker or opening your own office? We hope this checklist toolkit will help provide you with resources and a general idea of what would be involved. My Digital Broker Coach Checklist Toolkit Brought to you by the Arizona REALTORS Broker University Workgroup.