You’ve always been intrigued by the real estate business. You love fighting for your clients to get the best offer on their house, staging a home so that it looks picture-perfect, and of course, collecting those fat commission checks.
Now, you’re thinking about opening a real estate company on your own. Maybe you’re tired of working for other people, or perhaps you want to begin your career this way.
You know it’s the right move for your skill set and even personality.
However, you need help understanding how to start a real estate business that makes some serious money.
We can help.
Read on to learn how to make it happen.
1. Write a Detailed Business Plan
The first thing you should do when starting a real estate company?
Make sure you write a detailed business plan. Should you need any investors, the plan will help to show them you’re serious and that you’ve taken the time to do the research on your market, operating expenses, and when you can expect to turn a profit.
Your business plan will also help to keep you accountable.
Define your specific market niche, discuss your competitors, and bring up your past employment and how it will help you to succeed in real estate.
You also need to consider the legal structure of your company.
For example, are you interested in running a sole proprietorship, where you’re the only person in charge of debts, profits, and the day-to-day aspects of running your business?
Or, would you rather have a partnership, where you and another real estate professional will go into business together? Maybe you’d like a Limited Liability Corporation (LLC) or a strict corporation.
The choice is entirely up to you.
2. Check Licensing Requirements
It’s impossible to discuss how to start a real estate business without going over the licensing requirements you need.
First, you’ll need to get your real estate license (at least, if you’re entering the real estate business for the first time.)
To get the license, you’ll need to take a course to learn both the federal and state-specific laws surrounding real estate and more. You’ll need to pass your exam, and then submit your application.
If you already have your real estate license, you may also want to get your broker’s license. To earn this, however, you’ll need to have about 2-4 years of experience working in real estate. In some cases, you may also need to have a certain amount of sales under your belt.
Now is also the time to start studying up on the kinds of business insurance your real estate company will need.
3. Develop Your Brand
Next, start thinking about how you plan to develop your specific brand.
To do this, you need to think back to why you deciding starting a real estate business was the right move for you. You need to think about your marketing niche and your ideal client, and why that demographic appeals to you.
Getting personal and vulnerable here is key. You want your market to feel like you “get” them. Now is the time to have professional headshots taken, as well.
You should also create your own logo to serve as the foundation of your branding strategy.
Make sure that you use the logo on all of your print and marketing materials. Consistency is the secret to branding recognition success.
4. Focus on Digital Marketing
Make sure that you list your properties online, too (this website gives you a great example of how your digital listings should look.)
In addition to these digital listings and featuring available properties on your website, embrace virtual tours. You can host live video walk-throughs on social media, so that buyers from all over the country — or the world — can view your properties.
Knowing that other people are interested in the property also makes those watching much more likely to make a quick offer.
Remember that understanding how to start a real estate company that makes a huge profit is all about finding ways to shorten your sales cycle.
Finally, remember that starting a real estate business that goes on to be successful is all about who you know.
Once you’ve established and opened your firm — or even in the months before you do — you need to start networking. Remember that, in today’s world, networking takes place both digitally and in person.
Follow other local real estate agents and property managers on Instagram. Meet up with interior designers and even architects to expand your business network. Get to know local home decor shops.
You should also consider joining real estate guilds and clubs, like the NAR or the NARPM. Attend and speak at local conferences, as well. This helps you to get your voice out in your community.
How to Start a Real Estate Business: Wrapping Up
Learning how to start a real estate business that rakes in the profits isn’t always easy, but it is incredibly rewarding.
Especially if you have a competitive nature, strong networking skills, and a detailed business plan to help you stay on track, you can make it happen.
You also need to make sure you have the right forms and documentation in place.
Whether you need to get an estimate from a contractor, write a buy/sell agreement, or even write a real estate appraisal checklist, our database has all the forms you need.
Keep checking back with our blog as well, which is full of invaluable marketing and networking advice.