Starting a real estate business takes more than just having an eye for property and good sales skills â€" almost 75% of real estate agents fail within their first five years. Those that succeed, however, can soon find themselves running very profitable companies.
Do Your Market Research
Real estate is by no means a new or emerging industry. Before you decide where you set up your business, it is vital that you conduct your market research
Your location will make a big impact on your profitability (location, location, location) and therefore will require a different strategy. For example, if you are planning on operating in Boston, then your market research will show you that students make up 1/4 population of the city â€" therefore, there is a big rental market with 1-year leases and houses come on and off the market at similar times every year. You should also look at how many other businesses there are operating in the area, as well as what types of properties they are selling. Your market research should inform your business plan, so it is vital that you start it early
Create a Business Plan
Your next step is to create a business plan. You should outline the logistics of your business, as well as what your vision is and how this is going to be achieved. It is vital that you have a clear and comprehensive business plan as it allows you to better understand your business, as well as how you are going to actualize the goals you want to achieve. Periodically you will need to refer back to your business plan to make sure that everything is on track.
Create a Website
Research has found that 44% of buyers find their new home by looking online. In 2021, having a good website is essential for your sales and future success. Having a good website can also help you become more discoverable. You should look up and use SEO (even if it is just DIY), as well as other digital marketing practices to ensure that you are visible to potential new clients looking in local area.
Incorporate the Business
Your next step is to make sure that the legal side of your business is in order. For this you will need to:
Get a real estate license
Join the National Association of Realtors (NAR) â€" you need this to be entitled to call yourself a realtor. It also gives you access to a range of valuable research and statistics.
Get a business license
Get an employee identification number
Once you have completed the above tasks and legally set up your real estate business then you can focus on finding properties and clients.
Begin Marketing
Connecting with landlords and homeowners requires marketing, but so does finding prospective buyers. Therefore, it is important that you begin marketing as soon as possible. You will want to establish a clear brand identity that appeals to your selected target market.
There you are, a step-by-step to achieving your dream to be a real estate executive. Good luck!
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