Starting a real estate business is not for the faint of heart. What other industries require you to reach dozens of potential customers every day – just to order about five deals in your first year (if you’re lucky)?
It is a common saying that 3 out of 4 real estate agents fail within the first 5 years. But for those who do, starting your own real estate business can offer you the seven-figure job of your dreams.
Resource: Real Estate Strategy Template For Free
Check out how to start a real estate business, as well as our top tips for avoiding the wrong steps that get in your way.
For many new agents, real estate is their second, third or fourth career. I love the idea of ”being your own boss” while earning more than your previous job, but independence means very different things to an employee than it does to an employer.
The question is… who are you?
The first thing you need to know about starting a real estate business is, yes, it is a business. Whether you’re an individual agent or a newcomer to the team, if you dream of exceeding the average real estate agent salary ($41,289/year), you need to start thinking like an employer – and that means planning.
How Do You Start a Real Estate Business?
- Get CRM.
- Create your perfect personal design.
- Align your business plan.
- Develop a coherent marketing plan.
- Get a website.
- permanent possibility.
- feeds.
- Good time management.
1. Get a CRM.
In the end, work is a system.
Barry Jenkins is a real estate broker and owner of #2 Better Homes & Gardens in the United States. He is also a man who hates impotence. “For mistakes, I like to overcome them easily. The reason my business is successful is that it is based on the basic principle of leverage.”
To achieve this principle, Barry uses his CRM as a real conversion engine. CRM is a CRM system that helps you organize contacts and find useful information. With this, you can follow relevant promotions by primary source or automate the entire transaction process.
This is especially beneficial in real estate because the home-buying process is very lengthy with many different steps multiplied by many dealers and even more potential clients and customers.
Using CRM to achieve presidential-level regulation follows the way Barry and his team sold 240 homes in 2017. It also has nothing to do with the front. Barry also uses his CRM to send automated installations to new team members and keeps business managers organized so that nothing important is missed.
2. Build your perfect personal plan.
Before setting the right financial goals for your business, you must have clear financial goals for your life.
The inventory is great, but – let’s face it – we all got into this business wanting something bigger and better than what we have now. Whether it’s the 187-foot yacht of your dreams or the ability to leave the office at 2 p.m. To be able to pick up your kids from school, take some time to think about what your ideal life would be like.
Questions to consider:
- What time do you want to start work?
- What time do you want to finish?
- How do you feel every day?
- How much money do you want to make?
Do you want to retire at 65? Are you paying your child’s tuition fees in full? Calculate how much money you will have to spend each month to make it happen. It’s easy to keep picking up the phone when you know where your profits and commissions are going.
3. Align your business plan.
Now that you have a pen to paper about what your biggest and hardest-paying life would be like, it’s time to talk about work.
Start writing your business plan, paying close attention to the things that set you apart from other real estate companies in your area. Think about it a bit really. Here your personal and professional identities can be combined into a profitable miracle.
Questions to consider:
- How does selling real estate make a real difference to you, your prospects, and even the world?
- What are the values and principles that drive your real estate business?
- How is it different from neighboring real estate?
- Which three to five things in business do you really own?
- Who will take care of the rest?
Even if you want to end administrative work when you hire your first virtual assistant, it’s important to create this big-picture vision to keep your team motivated and avoid repeating counterproductive patterns.
4. Create a coherent marketing plan.
In the beginning, the problem is to pass the licensing exam, choose the most suitable broker for you and create your database without appearing as a “sale” to friends and relatives in your sphere of influence (SOI).
But regression and fees as soon as referrals start showing up are one of the biggest mistakes developers make. Whether you dream of becoming the next Facebook advertising guru or Zillow conversion expert, the only thing you need to know about marketing is that it’s the only part of your business that never sleeps.
Train your brain to think strategically about what’s happening in your market and be prepared to offer something of value to your potential customers, no matter where they are from.
Questions to consider:
- What brings your unique style and personality to the table for your prospects?
- What can you offer that no one else can?
- What are the latest buying, selling, and pricing trends in your market?
- What are some creative ways to discuss these trends (including numbers) with candidates?
First, define your unique value proposition. This will give you all the marketing you need in the future.
5. Get a website.
For 44% of all buyers, the first step in finding their home is searching the internet.
No matter how local your marketing is, you need an online presence to attract and engage potential customers online. This can cost you a lot of money upfront, but a solid SEO-focused website that allows you to integrate IDX listings and drive those customers to your CRM is an essential cornerstone of any successful real estate business.
Once you have these advantages, you can start moving towards a consistent blogging and social media strategy to generate more potential customers.
6. Possibility of continuous.
Shiny object syndrome is a major real estate problem. But the most consistent agent is always the winner, so choose the search mode and stick to it.
In the early days, SOI optimization was never a bad idea. In fact, Atlanta-based Graham CB Group turned a list of 279 contacts into a $90 million home sale in just four years through ongoing marketing to former clients and areas.
See how co-founder Justin Sippy said:
“We focused on the Mets in our database and the volume of transactions we started doing outside the portal was incredible! For example, we made $2 million in sales from a partner I hadn’t spoken to in 13 years. I sent them postcards because I was afraid to pick up their phone and call them. I didn’t know they were going to know who I was. And when they got the postcard, they called me and I spent $1.2 million on it. A new house and an $800,000 house for sale.”
Justin’s search strategy is based on a simple program of emails, emails, and phone calls. The winning system doesn’t have to be complicated, but it has to be really consistent.
7. Lead.
If someone in charge contacts you, they are waiting to hear from you.
Mike Bunnell is the developer and principal director behind Nu Home Source Realty. According to Mike, the monitoring system is critical to the long-term conversion of potential customers. “I told my agent that 70% of people won’t buy for 180.5 days. If you wait to buy this new customer, you will only keep 3%. And that will give you a chance to survive.” But your goal is six months and more. You have to keep approaching them. “You have to build this pipeline to reach these people.”
Apart from liking blogging and website optimization, Mike also monitors the competition to see what is happening in the field in terms of continuity. “I’m registered on a lot of different sites out there. I don’t give them real names, but I give them real phone numbers. And I can tell you I don’t get a lot of calls.”
Become an ever-present customer and you will automatically beat the herd.
8. You have good time management.
If you’re like most of us, a big part of the dream is to find more time and energy for the things that really enlighten you.
But most realtors who start building real estate companies don’t include it in the plans. They end up in a revolving door with team members who have to roll up their sleeves and try to solve a professional problem. But this is not necessarily the case.
For automation experts, the motivation is to save time. By eliminating manual labor through automation, you can spend time focusing on activities that actually increase your income. The ability to automate marketing further emphasizes your need for a CRM, which acts as the backbone of your efforts.