Hello World! Welcome Friends! Starting a business is tough. You aren’t only taking full ownership of the business, along with a number of inevitable challenges, but you are also challenging currently existing businesses. It’s not for the faint-hearted.
While most businesses come with some level of difficulty, real estate is a different game entirely. The rate of failure is high, very high. About 75% of real estate agents fail within the first five years. Dark statistics. This is not meant to scare you. It’s to inform you of the reality of the industry so you can be adequately prepared. After all, to be forewarned is to be forearmed.
This post is intended to ‘arm’ you with all you need to know to start your own successful real estate business.
The Appeal of the Real Estate Industry
Real estate business has many benefits. For one, it can be very lucrative. A successful business can rake in 6 or 7-figure income. In truth, you have unlimited earning potential. There is also the flexible schedule. You have no real “business hours”. Bye-bye to 9 to 5 jobs. You work when you need to. After all, you are the boss.
There is also the satisfaction of helping families find their dream home and the fulfillment of being a steady hand for individuals or families through a lengthy sale process. It’s more than a business as you’ll be contributing to society.
But Are You Real Estate Material?
Steely determination, passion, and enthusiasm are just some of the qualities you need to thrive in the real estate business. Self motivation, strong communication skills, and ability to network are also important. So the burning question is, “are you real estate material?”
Building a solid client list isn’t a walk in the park and while your schedule may be flexible, they are tied to your client’s schedule. You need to have or develop a winning personality before you start your real estate business. Being a goal-oriented individual is key to succeeding in this industry.
If you think you don’t have the qualities to thrive in the real estate business, good news is that you can acquire them if you are dedicated or motivated enough. We human beings are very adaptable and it comes down to having the passion to learn.
9 Steps to Start Your Own Real Estate Business
1. Get a Real Estate License
A real estate license is your ticket to working in the industry. Research the requirements for becoming a real estate agent and obtaining a license in your area. Usually, you’ll need to apply for a pre-license course and learn about the different types of property ownership, real estate laws, contracts, deeds, titles, fair housing laws, and so on. You’ll also learn about state and federal laws pertaining to real estate.
After the completion of the course, you’ll have to write an exam and pass it. The pass mark is usually 70 or 75%. Once you clear your exam, you can apply for a real estate business license. The state will award you the license after passing the exam and a background check.
If you want to be independent, your work isn’t over as you need to become a broker. You’ll need to work as a real estate agent under a broker for two to five years. The exact period depends on your location. You may also need to complete a number of real estate transactions.
Once you meet the requirements, you can apply to take a state-approved broker course, sit for the exam, and get your license when you pass.
“Over here in the UK, you do not need to get a license, but there are a number regulatory bodies that serve to provide overall guidance on professional conduct,” comments Ruban Selvayagam of auction house + financial referrer Property Solvers.
2. Pick a Specific Real Estate Niche
You don’t get to be a jack of all trades when starting your real estate business. A startup can’t be everything to everyone. You need a niche, something you are or can become a specialist at. As your business grows, you can then consider entering other niches.
The real estate sector is vast. Some of the main niches in the industry include property management, rental property, residential real estate, resort and vacation homes, condos, and so on. Choose one or two niches you like or have experience with.
3. Create a Business Plan
The saying “when you fail to plan, you plan to fail” may sound so cliche but it’s true nevertheless. It’s not enough to want to make a living or get rich through your real estate business. You need a road map to achieve your goals.
A business plan forces you to be realistic. Many people start their real estate business hoping to close million-dollar deals during their first year. It most likely won’t happen but you’ll get there if you persevere.
A good business plan will highlight the steps, resources — think utilizing technology like property management software, using RDS (remote desktop services), and employing virtual reality — and strategies needed to achieve short and long-term goals. One of the most important components of a business plan is market analysis and competition where you analyze the current market’s condition. Ownership and legal structure, operating plan, financial plan, sales, and marketing plans are also important parts of a business plan.
Starting any business without a written, well-thought plan is a recipe for failure. Don’t make that mistake.
4. Organize Your Finances
Financial management is of utmost importance to a real business owner. Unless you get lucky, it will most likely take a while before your first transaction. This means no income from your business and you’ve got bills to pay. So, you either need to have enough savings, get a loan, or get a part time job. Getting a loan isn’t the best option though unless you aren’t depending on income from your startup to pay it back.
5. Get a Website
Did you remember the last time you needed something or information about something? I bet you went online and typed what you need in Google. The same applies to your prospective clients. Welcome to the digital age.
According to the 2020 report by the National Association of Realtors, about 51 percent of homebuyers found their home on the internet. This clearly shows that more and more people are searching for homes online and as a business owner, you have to be where your prospective customers can find you. Hence, the need for an online presence.
It all starts with having a well-designed and professional website; which you can source resources for online, such as tutorials, templates, and more. Then, you need to start blogging and developing strategies for popular social media websites. It’s important that your website is SEO-focused. SEO (Search Engine Optimization) is the process of increasing your visibility by having your site ranked high in search results.
6. Work on Brand Building
Branding is the soul of your business and what sets your business apart from the many in the industry. It’s your reputation and the perception of your brand. If you are going to make it in the competitive real estate sector, you have to build a brand.
Business name, logo, slogan, and business colors are all components of your brand. They must be chosen after some thought and should be consistent across all channels. Done right, brand building will build trust and credibility with your target audience and ultimately grow your business.
7. Prospect Consistently and Nurture Leads
Real estate agents don’t just sit and wait for the phone to ring. You reach out to potential clients through active outreach and outbound communication. Prospecting includes phone calls, letters, blog posts, maintaining your ad campaigns, and emails. You have to prospect consistently. It’s not something you do once and forget about it. You can set aside time every day or week to prospect.
When a lead contacts you, they expect a reply. Having a follow-up system is important to ultimately convert the lead into a client. It’s worth mentioning that most people that contact may not be ready to buy or sell a home immediately or even in the nearest future. If you think following leads is frustrating, then you are in the wrong business.
8. Get a CRM
Keeping up with leads can be a very daunting task. But it’s something you have to do. Thankfully, there is a way you can follow up with every lead and it involves using a Customer Relationship Management (CRM) software. With CRM, organizing your contacts is super easy. In fact, you can automate the entire lead conversion process. As previously mentioned, you have to consistently nurture leads. And CRM will make life a lot easier for you.
9. Don’t Be Afraid to Make Mistakes
It’s impossible not to make any mistake as a new business owner and this applies to the real estate industry. You’ll make mistakes. However, the most important thing is that you learn from them. See every error as a learning moment. And it is, since you are learning what doesn’t work and what not to do. Also, don’t be afraid of trying new things.
Conclusion
Starting a real estate business isn’t easy. But with proper planning and motivation, you can start a successful business. Good time management is also something you have to learn. People have been getting into real estate and making it. And there’s no reason why you can’t be among the success stories with the right information and mindset.
©2022 The Dedicated House. All rights reserved. No part of this blog post may be used or reproduced without the written consent of the copyright owner.
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