If you’re looking to start your own successful real estate business instead of just thinking about real estate as a career while working for someone else, there’s a lot to consider. Here’s everything you need to know to plan, start and grow a successful real estate business – we cover all the basic ideas and steps to get you started.
How to Start a Real Estate Business: The Ultimate Guide (2022)
Is real estate profitable?
The real estate market is huge. For example, here are the relevant statistics you need to buy real estate:
- According to the National Association of Brokers, 5.34 million existing homes and 667,000 new homes were sold in 2018.
- The Association of Real Estate Licensing Officers (ARELO) estimates there are approximately 2 million real estate licensees in the United States. About 1,400,000 of them are active members of the National Association of Brokers (NAR).
- According to NAR, the typical Realtor is a 54-year-old white woman who goes to college and owns a home.
- According to NAR, the median gross income of a homeowner in 2018 was $41,800 (an increase of several thousand compared to 2017).
- We have more than 86,000 real estate agents operating in the United States (based on the most recent inventory figures from 2012 and 2007 financial inventories).
- According to the National Association of Brokers, annual sales have been increasing for more than a decade. While 2020 and the global pandemic have put a lot of pressure on the real estate market, the end of 2020 saw a strong recovery in real estate sales across the country.
But don’t be afraid of competition. A career in real estate can be a lucrative small business in the long term.
How to Start a Real Estate Business
People interested in how to start a successful real estate project often ask:
- How do you start a real estate company?
- Is real estate profitable?
- How much does it cost to open a real estate project?
- How Much Money Do Business Owners Make?
- How successful is the property business?
- How do brokers get customers?
- Do I need a license to work as a real estate broker or a broker?
- What do I call my real estate company?
- What do real estate companies do?
So, if you have a real estate business idea, let’s take a look at each step you need to take to start a real estate business:
To grow and improve your business idea, you need to be very familiar with the area in which you want to start your real estate business.
Knowing the cities and surrounding areas where you can help people buy real estate is an important part of running a real estate business. However, it can also influence how you decide to market yourself.
The Ultimate Guide (2022)
To choose your physical business location, look at real estate and other real estate companies in the area to determine what your competitors are doing in the market and evaluate the performance of these existing companies.
How does your physical strength set you apart from other real estate companies in the area?
Consider the following questions when starting your real estate business and improving your business idea. It might be helpful to get an outside opinion on some of them – don’t be afraid to ask someone you trust for the following for your answers:
- What are my skills?
- What is the purpose of my work?
- Who do I offer my service or product?
- What is the maximum amount I can safely spend on this real estate business?
- Do I need external capital? How much does it cost?
- What kind of work-life balance do I want to achieve?
- What are my hopes for starting a real estate business?
Find a place for your real estate business
When starting a real estate business, think about the right location to compete with your real estate company.
You can have many business ideas, but it is important to limit your ideas.
Do you want to sell to a specific group or segment of the population? Or do you want to focus on a particular area of the city or specialize in buying and selling apartments?
Maybe you want to become an expert in short selling, focusing solely on rental property management, or maybe you just have resources on owner/tenant law.
You will have a better chance of success if you start with a specific target audience.
Be sure to set up your own real estate business to cater to specific niche needs to avoid overspending and exposing all your potential clients.