Starting a Real Estate Business
Steps to Starting a Real Estate Business
If you’ve chosen to be starting a real estate business in this economy, let me start by saying: you’re brave..and very smart. While the real estate market may be crashing everyday, there is actually vast opportunities in this. Just like the stock market, we buy low and sell high. Because of this concept, there are many real estate investors and savy buyers profiting in the real estate business.
Starting a real estate business can be complicated, and I hope to simplify it in these basic steps to starting a real estate business, speaking from my own experience in real estate. Here we go!
Step 1: What Type of Real Estate Business are you Starting?
The first of my steps is deciding what type of real estate business you’ll be starting. There is quite a few options here, and I suggest you align it with what market you work better with. You can, of course, choose to be a full service real estate business as well. So don’t feel obligated to limit your real estate practice to just one.
Residental Real Estate Business
In residential real estate, you’re likely to assisting average people in their home buying and selling needs.
Commercial Real Estate Business
In commercial real estate, you’ll be assisting business owners purchase properties for their business. Like residential, location is often key. Starting a commercial real estate business also requires you to have a general working knowledge of a new business’s needs.
Investment Real Estate Business
If you’re opening a real estate investment business, you’ll be working with savvy investors who’ll want the most bang for their buck. You’ll likely be tromping through run down houses, and roofs may be caving in. You’ll also need creativity to spot hidden potential for your clients.
Property Management Real Estate Business
Many investment real estate businesses will also offer property management since most real estate investors rent out their properties after rehab. If you add this service to your offering, you’ll easily secure clients. You can also, just be starting a property management business. These are in high demand due to the foreclosures.
Or..Full Service Real Estate Business
When starting a real estate business, don’t be afraid to combine one or more of above services. You also, however, have to be careful not to dilute your “expertise” in a certain field.
Step 2: File for Starting Your Real Estate Business License & Get a Broker’s License
Most real estate businesses will begin as an LLC (Limited Liability Company) or LP (Limited Partnership). If you have questions regarding which will be better for your real estate business, you can see the general Q&A’s steps on filing a business.
When starting a real estate business, it has to follow by certain laws and steps specific to your state’s real estate commission. Check with your state’s commission to learn more about their steps. They should be very clear on requirements. Generally, you have to get a Broker’s license.
Step 3: Choosing Your Office and Hiring Agents for Starting a Real Estate Business
Choose your office space carefully, and try to strategically place it in a location where your target market will be. If you’re starting a commercial real estate business, try staying in a business district where companies may be sourcing new locations. Likewise, if you’re starting a residential real estate business, choose office space on the outskirts of a major residential area where homebuyers may pass when looking at homes. You can also work out of your home, but if you’ll be hiring other real estate agents they must work from there as well.
Hiring real estate agents for your business allows you to manage the business, and not do the leg work. That’s just one of the benefits of starting your own real estate business. To find real estate agents, simply place ads in the employment section of Craigslist or your local newspaper.
Step 4: Marketing When Starting a Real Estate Business
This is likely the most tedious, and challenging of the steps to starting. Many people get stumped here and drop off. It doesn’t have to be that way. There’s many cost effective resources for a real estate business to market themselves.
3 of the most effective steps to marketing a real estate business
Relationship marketing through mortgage brokers, and referrals from other real estate businesses.
Print Direct Mail.
Real Estate Blogging. You can make your own website pretty cheap nowadays, and have it double as a website and a blog. Get hosting, then go to wordpress.com and install it on your own domain. Get a premium WordPress theme so you look professional. It gives you all the flexibility to integrate your own real estate logo and visually customize it, without touching code. Focus on giving value in your blog, such as reviewing local restraints and attractions in your area.