The real estate industry is a goldmine that has enriched many successful entrepreneurs over the past decades till today. However, many upcoming entrepreneurs who do not know how to start a real estate business are finding it difficult to tap from this wealthy sector.
There is no doubt that the real estate industry will always remain a milk source for developers, investors and real estate agents.
Smart entrepreneurs are building a fortunate career from the real estate industry and cashing out heavily.
People are always in need of a house to stay, land to build or cultivate, warehouse facilities, factories and other landed properties.
In addition, the world population is growing and the need for real estate services are still on the increase.
Most people want to lease a property, others want to sell their properties and some categories of people want to buy.
Hence this sector will always be productive even for hundreds of years to come.
Definition of Real Estate:
According to Wikipedia, real estate are properties such as lands, buildings and natural resources like crops, minerals or water.
They are immovable property in nature, which holds immerse monetary value to man.
Here are some basic real estate quotes.
Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.Franklin D. Roosevelt, U.S. president
The best time to buy a house is always five years ago.Ray Brown
What Is A Real Estate Business?
A real estate business is a business that deals with the leasing, buying and selling of properties.
These include lands, buildings, factories, and warehouses along with natural resources like minerals, crops and water.
They are controlled by real estate brokers or real estate agencies.
These are the people who help individuals known as clients lease, buy or sell any real estate property of their choice in return for an agreed commission.
It could be 5 or 10% of the total sales depending on their business agreement
ALSO READ THIS ARTICLE: 14 Reasons You Need A Business Partnership Agreement.
How To Start A Real Estate Business (16 Steps):
If you must start a real estate business then take note of the following steps below.
1. Design A Business Plan:
Planning is winning. Hence the first set to setting up a successful real estate business is drafting out a good business plan.
Your business plan will reveal which aspect of the real estate business you intend to focus on.
Do you want to focus on leasing properties like accommodations to people in need of shelter?
On the other hand, you might want to pay attention to buying and selling of properties.
Someone else might want to focus on those who want to buy undeveloped lands or finished building.
All this must be stated in your real estate business plan.
Therefore, do proper planning because lack of good planning is one of the 8 major reasons why entrepreneurs fail in business.
2. Do Your Market Findings, Research And Feasibility Studies:
How do you intend to penetrate the real estate industry market?
What strategies will you implement to make your business unique and outstanding?
Who are your competitors and what are they already doing?
How can you improve on the current market solutions and deliver value to your potential clients.
Hence, do a proper research if you must penetrate the real estate market in a short period of time.
3. Brand Your Real Estate Business:
How do you intend to let people know you just launched a business?
This is where branding comes into play.
You must distinguish your business from the other existing real estate agents in the market.
Branding builds reputation; it adds creativity to your business and presents you as an expert in the industry.
It could be a logo, websites, adverts, fliers and banners.
If your business is not a brand, it’s a commodity.Donald Trump, Formal US president and billionaire entrepreneur.
In addition, branding helps to create awareness and inform your prospective clients about your new real estate business.
Having a business card as a real estate broker is also very important.
4. Learn the Rules (Do’s And Don’ts Of A Real Estate Business):
Every business has its own rules and regulations, its binding laws and what it takes to run it successfully.
A research shows that many businesses fail within their first 3 years of operation.
This is simply because the founders and developers of those business didn’t take time to learn the do’s and don’t before starting out.
A crash is inevitable if you don’t know how it works.
Hence, before you start a real estate business, you can get a mentor to guide you as you launch your new career.
ALSO CHECK THESE ARTICLES:
5. Get Your Finance Ready (How Much Will It Cost To Set Up A Real Estate Business):
What will it cost you to start up the real estate business of your dreams. Financing is so important.
You must get a list of the entire cost to know if your financial capacity can handle it.
If possible, try to know the cost of starting and running it successfully for the first 1 year.
Hence, if you can’t handle the expenses, seek for partners and investors who can support your business mission.
Here are 12 fantastic ways of getting money to startup a business, why not try any of them.
6. Register Your Real Estate Business:
Don’t play your business local else you might not fully exploit the potentials of the business.
Hence get ready to go pro, get your business registered legally through the legal authorities of your country.
Registering your business has a lot of advantages.
It builds trust and credibility to you when dealing with your clients and also helps you avoid government fines and penalties.
Depending on your country, find out the real estate governing body of your country and get registered legally.
Hence, get a basic registration first before the need of a limited liability company registration.
7. Create Your Business Website:
Modern businesses today have tapped into the power of the internet.
Hence, you need to take your business off the ground and also get it online.
A website will help you create online visibility and allow people reach you from far and near.
Ensure your website is interactive allowing clients to see photos, videos and make enquiries about your business offers.
Most people today first go online before contacting an agent or a real estate broker; this is why you need to get a website for your real estate business.
Property buyers and sellers would first interact with your website to see if you’re competent enough for them to do business with you.
You can consider a website like Word Press which is user friendly because your website would be your first point of contact with your client.
Make sure your website is professional, offers value and can sell your ideas to your clients in your absence.
Keep updating your website with relevant, timely and valuable contents that would help you drive massive traffic to your site.
Furthermore, ensure to have your website URL on all your branding materials.
8. Have An Active Marketing Campaign:
Use handbills, newspaper, magazines, radio, television and all kinds of online and social media marketing according to you marketing budget.
Your marketing campaign must cover your target audience.
Do you care to know that the biggest brand in various industries today still set out yearly budget for intense marketing?
Coca-cola has spent billions of dollars in marketing for the past 10 year’s in-spite of being the leader in the soft-drink industry.
The business world is highly competitive today; hence you must keep marketing your business to remind your clients you’re still in business.
Do online marketing by engaging social media marketing like Facebook ads, online Google ads and other marketing streams available.
Similarly, you can also do offline marketing like t-shirts, face-caps, jotters and other strategic ways to plant your business in the minds of your clients and potential customers.
9. Follow Up Your Leads:
Most of your real estate clients are likely not to purchase or sell from the first time they contacted you.
Either through a meeting or through your website just make sure you follow up your leads.
Send them emails and messages occasionally letting them see the benefits of working with you.
Hence, follow up on leads to secure good sales results.
In addition, when following up on leads ensure not to be too desperate else you turn off your potential clients.
Do it as a real estate professional.
10. Build Good Customers Service:
Every business that must stand the test of time must be customer cautious.
Even big names like Amazon, Tesla and Microsoft still pay prompt attention to customer’s service.
The best customer’s service is if the customer doesn’t need to call you, doesn’t need to talk to you, it just works.Jeff Bezos, American entrepreneur, media proprietor, investor, and computer engineer. He is the founder and executive chairman of Amazon
Therefore, a good customer relationship attitude will be an added advantage if your business must do well.
Furthermore, when you treat your customers well, they will refer their friends and families who might need the same services to you.
Here is an article on how to build a great customer service for free.
11. Build A Sales Plan (Apply Real Estate Business Promo Offers):
A sales plan is important if you must remain in business for a long period of time.
What strategies do you have in place to convert your leads to sales?
For instance, I once saw a real estate company that promised a 50% sales discount of every client buying from them within the next 30 days.
This potentially boosted their sales as clients saw the 50% discount offer as an advantage.
Hence most clients turned in to buy before the promo season was off.
12. Maintain Good Online Presence:
A good online presence is vital for your business; hence you can launch campaigns occasionally to boost your brand awareness.
Cultivate visibility because attention is currency.Chris Brogan
Launch social media contest, organize a show to give price winners a gift on your real estate business.
In addition, use direct mails, email campaigns, social media, networking, bandit signs to maintain your visibility.
13. Get A Physical Location:
A physical location will be necessary as you go on in your real estate business.
However, many successful real estate agents started from home before they grew to own an office.
This will help you save cost of rental apartment before you start getting clients with which you can pay rents at ease.
Hence you can start building your business from home.
However, an office is very important because some clients might seek to see you at your office before making their real estate investments.
This is why you also need a physical office as you go on.
ALSO READ THESE ARTICLES:
14. Keep Record Of Your Results After 12 Months To Make Improvements:
Check your result after a period of 12 months, how did you get your leads and how many sales were you able to make?
You must have a record of your failures, progress and how you run the business for the first 1 year.
Above all, a good record will help you know areas you need to make improvements for successive years ahead.
If you must start a real estate business that will stand the test of time then you must keep track of your failures and turn them to success.
This is because most successful businesses today look at their weaknesses to harness growth.
15. Insure Your Business As It Grows:
You might not actually need this when you’re starting out, but as your real estate business grow, I advise you insure your business.
A unique sense for insurance is one of the differences between the rich and the poor.
Insurance will save you from bankruptcy and sudden financial losses that might result from troubled properties.
For instance, in cases when a wrong person poses to be the owners of a property by stealing the documents and selling them through you.
Therefore, consider insuring your business.
Here is an article showing the cost of business insurance for small business owners.
16. Keep Working On Your Business:
No matter what your results might be, you have to keep working on your business.
It’s not enough to start a real estate business, you must keep working.
Never stop pushing more and more if you must be successful in your real estate business.
Real estate investing has created more millionaires than any other form of investing.Robert Kiyosaki, best selling financial author of rich dad poor dad.
Therefore, always show up to meetings with clients, reply messages and comment from clients, take time to respond to emails and you’re on your way to the top.
The real estate industry is open to all. You can tap from the wealth in this sector for free.
Someone is sitting in the shade today because someone planted a tree a long time agoWarren Edward Buffett is an American business magnate, investor, and philanthropist. He is the chairman and CEO of Berkshire Hathaway
Thanks for your time, hope this article was helpful, why not share your experience with me on the tips you learnt here on how to start a real estate business of your choice.
I would be glad to hear from you, kindly share this article to educate a friend out there.
I look forward to seeing you as one of the biggest real estate professionals in business.
Share your contributions with me at the comment section.