The real estate market has its ups and downs but can never completely disappear. People will always need a place to live. People will also always want to own property. With these two things in mind, it’s clear that there’ll always be a demand.
Still, how do you get in on the action? How do you start your own real estate business? Here are a few tips that should help you out!
1. Define your business model and find your niche
Determine what type of real estate you will deal with as a first order of business. Just saying that you want to be in the real estate industry is as revealing as saying that you want to make a career in sports… which one?
You can enter:
- Residential real estate
- Commercial real estate
- Property management
- Real estate development
- Real estate consulting
Each of these drastically changes your line of work, as well as all of your plans.
Next, you want to write a business plan but be ready for deviations. You need to write an executive summary, do market research, assess the risk, and develop an exit strategy.
Remember that you can never get it all. Still, you want to consider as many aspects as possible. Helmut von Moltke, a famous Prussian general, once said that no business plan ever survives the first contact with the enemy. Does this mean that you shouldn’t make plans?
Try to look at the business from as many angles as possible. We’ve already mentioned having an exit strategy. Having a contingency plan is not the same as not believing yourself to be pessimistic.
2. Build a team
You want to start by describing your business and all the roles and responsibilities. Once you have a list, try to prioritize. Which tasks must be done by you and no one else? Then, when it comes to the rest of the list, how many tasks could a single employee (not as driven and committed as you) tackle? This way, you’ll have a rough idea of how many people you need and which roles they’ll take.
Next, make a job opening and wait for the applicants. Make sure that you try and figure out who’s the right fit for you, not just who could potentially do the job in a vacuum.
Remember, in 2023, you don’t have to take the old-school approach to hiring. According to specialists from Rocket Station, virtual teammates are the quickest modern solution to adapt to the fast-paced world of real estate.
You’re not necessarily hiring experts, meaning you need to look at the potential of each hire. Ensure that onboarding, training, and mentorship are up to the task and that you have nothing to worry about.
3. Get a license and certification
This part heavily depends on your current location (state and municipality).
At the very least, you’ll need a real estate broker’s or agent’s license. Depending on the career path that you decide to pursue, you may need to get one or both of these licenses. We’ve also mentioned (on the type of business list) the possibility of becoming a property manager. This is a line of work that requires a special type of license.
Keep in mind that you can’t just apply and buy. It sometimes requires an extensive education, so you must plan ahead.
You also need a general business license. After all, you are running a business. You must register to operate in your state legally, get your tax number, and start running things legitimately.
When it comes to certification, it depends on the local laws, but they’re also a matter of prestige. Leveraging your personal brand and academic accomplishments is huge in this field.
4. Develop a strong marketing plan
While this is something you must consider as early as writing a business plan, it also requires additional, in-depth thinking.
You need to start by identifying your target audience. Are you looking for tenants, luxury property buyers, businesses, retailers, or industrialists? Knowing who you’re dealing with is the first step to handling your marketing right.
Second, this is a field that heavily revolves around visual mediums. People want to see the property before they come to see it in person (possibly even before they read anything about it). This is why high-quality photography and visuals-first platforms like Instagram are great for realtors.
Because location is the most important factor when selling/buying real estate, you must double down on your local marketing (especially your local SEO).
People love to read about real estate. They want to know how to improve the value of their property, recognize a potential fixer-upper, etc. As an industry veteran, you have so much valuable experience to offer. Why not leverage these interesting topics to get to the top of your content marketing game?
5. Look for the leads
Without leads, you have no work. So, go out there and start making money.
You can start by establishing a strong online presence. This way, people will know about your business and come to you with proposals. This is the most scalable of all methods, but you can’t just stop there.
You also want to utilize lead generation tools and platforms. Look around for suitable clients and reach out to them. Looking for a specialized agency or paying a license for a lead generation tool that your assistant will use can greatly help you. Remember that targeting is everything, which is exactly what these platforms deliver.
Meeting people in person will never get outdated. You need to attend industry-relevant events and hang out at real estate conventions. This way, you’ll get to practice networking (an essential tool for anyone in the real estate business) and generate leads.
A real estate business is lucrative if you can do it correctly. However, you need to start on the right foot. You need to have a plan and sort things out before the launch. You need to clearly define your place on the market and start generating leads as soon as possible. With these three things out of the way, there are no boundaries to what you can achieve.