A lot of people want to get into the real estate game. For some people, this means making real estate investments. But some want to get a bit more involved. You could say that some people will want to make a business out of it!
Interested in developing a real estate startup? Read on.
Considering the startup costs
Where else were we going to start? The startup costs are the first thing you’ll have to worry about when you start any business. You’re certainly not escaping it when you start a real estate business! We have, of course, tackled the issue of startup costs quite extensively before.
So we’ll stick to what you need to think about specifically when you’re starting a real estate business. The costs are going to need to cover a lot of things. You’re entering a very high-stakes market, and the competition are all extremely professional. Doing this from home using the cloud isn’t really an option. You need to consider your office from the get-go. Brand design and insurance costs also have to be considered.
Get licensed
You’re probably not going to go very far in this business if you don’t have what we call a brokerage license. It’s the pass that allows you to sell real estate as a business.
Of course, the precise process for this is going to be different from state to state. What the government will require from you depends on where you live. But, in general, there are some fairly consistent requirements for anyone wanting to get this license. Most states will require you to have worked as a salesperson in real estate for at least two years. Many more will require you to take a course. And I can’t think of a state that doesn’t require you to be at least 21 years old!
Look into franchising
It can be extremely tough to make it as a new real estate business. As I mentioned earlier, the competition is stiff and professional. Many of them are going to have several years of experience under the belts. Some will have overseen hundreds of millions of dollars worth of sales. That kind of thing is tough to compete against. But you could give yourself an early boost by looking into real estate franchising. This will allow you to use helpful trademarks and business processes granted to you by a successful franchiser. It can work as an effective badge of honor when you’re starting out in real estate.
Hire the right talent
Want to know the big mistake that a lot of startups make? They often hire people who are completely inexperienced; people who are “startups” themselves! They think that this gives them an informal, young and cool edge. But a new real estate business shouldn’t take a chance on new real estate agents. When you’re starting out, your priority should be on getting some experienced real estate agents. Perhaps someone from your previous agency is looking for a new job? Find a good agent resource and look for agents who even you could learn a thing or two from. It’s not just their expertise that will come in handy. They’re also bound to have a bunch of helpful contacts!
This article was provided by ellie jo