Erica Silva, Negosentro | A real estate business has become a great option for newly emerging entrepreneurs. It’s known for having both feasibility and profitability for the founder. ‘With hard work comes great success’ is a saying that’s very much applicable in this case.
It requires a great deal of hard work and planning to establish a successful business and maintain its pillars as concrete. There are different types of real estate, and each type constitutes a different system.
The four types of real estate are:
- Commercial real estate
- Residential real estate
- Industrial real estate
- Vacant land real estate
So basically here is exactly how you get started:
The first and most important thing is choosing the type that you are most drawn to. Now this can be done in terms of convenience and the amount of knowledge you acquire in that type. For e.g., if you opt for commercial then you are naturally dealing with hospitals, offices, educational buildings and etc. so it’s important to be well equipped with the prerequisites of it. It’s important to discover the market demand for whatever you choose. Once you are done assessing market demand, it’s important to mark profitability. One very important factor in examining both the market demand and profitability is talking to businessmen and peers around you. People who’ve been through this process and are now working their own line or working real estate agents who have a great deal of idea about what is leading to the most success.
After you have selected a type and addressed its profitability and market demand, you need to make a business plan. The business plan needs to be effectively written with a lot of thought put into it. It should basically include an executive summary and what your plans are. It should list down the real estate services and how your business is unique in comparison to every other business out there. You should explain how you expect to make money and what your organization and management is going to be like. To make it easier you can get a software for property management to help you plan and organize according to your needs. Be sure to include your marketing strategies, financial projections and a forecast of growth in both income and expenses.
Next comes the most important and difficult of all the steps and that is financing your brokerage. Develop a finance plan. Learn more about what the startup cost is going to be. You will need a certain sum of money for leasing your office as well as equipping it, and not to mention the licenses and every other expense. Once you get an estimate of what your cost is going to be like, you need to decide how to finance it. If you have your savings that amount to the total cost then it’s always preferable to support the program yourself however most people starting this business have only recently emerged as businessmen and may need some form of support to finance it. There are certain ways to go about it:
- Get a business partner: A business partner will co-invest with you but that also means that they have a share in your opinions, views, decisions and profits. Be sure to create a memorandum of understanding beforehand to avoid any conflicts or problems whatsoever that may arise later on.
- Get a sleeping partner: A sleeping partner doesn’t actively participate in your business but he invests a certain proportion of the total amount and is responsible for a ratio of the profits generated via the business.
- Bank loan: Banks sometimes provide programs that give out loans to deserving candidates for small startup businesses. This eliminates the hassle of getting a partner if you’re not too fond of the idea.
- Obtain a small business administration loan: These loans are based on the effectiveness of your business plan and how you plan on repaying them. This needs to be proven through the forecast of growth in incomes and revenues generated over the course of this business.
Now you have one thing to worry about and that’s finally launching your brokerage. Launching has a few tricky but straightforward aspects to it:
- Getting all required licenses.
- Leasing an office that’s most suitable for you and one that’s located in the midst of your real estate properties. It should be easily accessible and should be spacious to allow expansion, and accommodation.
- Your office should be well-equipped with stuff like computers, fax machines, printers, account logbooks and obviously furniture.
- Establish broker trust accounts at your bank, it’s legally required for all brokers to use it to deposit the money they receive from clients.
- Website: This needs to be done to allow you to market your properties for clients browsing online. Most clients browse for properties online and then approach the agency they most relate with. In accordance with a study conducted, 90 percent of buyers start their search online. Hence, it’s important that your website is presentable and promises easy accessibility. You need to look out for your competitors and maintain uniqueness. It needs to be updated regularly and you should have an efficient search engine operation.
- Growth and advertisement: Now your business has begun and it’s very important to make contacts that are relevant to your business. Maintaining healthy relationships is the key to a prosperous business. Advertisement is necessary for a newly emergent business. You can either start out by sending flyers and hosting a charity event. In this era of technology, social media plays an essential role in bringing it to light. You can use social media as an efficient market strategy. Marketing is a necessity and it is what drives your business in the right direction and towards a greater good, in the end.
Therefore, it’s you what drives your cause and how determined you are to achieving what this has to inevitably provide. Once you’ve begun it’s highly recommended to stay persistent because no success comes without its challenges. But you will become a success if you persist.
ABOUT Erica Silva
Erica Silva is a blogger who loves to discover and explore the world around her. She writes on everything from marketing to technology, science and brain health. She enjoys sharing her discoveries and experiences with readers and believes her blogs can make the world a better place.
Find her on Twitter: @ericadsilva1