How to Build Your Real Estate Business From Scratch
Table of Contents
Entering the real estate market can be a bit intimidating. Educational aspects aside, it can be quite a challenge to get everything together and build a successful real estate business from scratch.
The shorter timeline is a plus. Depending on the area you’re going to be working with, you can typically become a real estate agent in as little as four to six months. Real estate classes can usually be taken online, and the licensing requirements will follow the educational ones.
So now that you’re licensed and ready to go, what should your next step be? Here are a few suggestions on how to build your real estate business from the ground up.
Researching Your State’s Requirements
First things first, a critical step of being ready to start a real estate business is having the right license. Each state typically has specific requirements and some states have reciprocal licensing agreements with other states, which means you can get your license in one state and use it in another without having to take an additional license examination.
One of the first steps you’ll need to take is to get financing for your real estate business. You could go a traditional route and apply for a Small Business Administration (SBA) or banking loan. Microloans are also an option; these are loans geared towards startups or new businesses.
You could also look into hard money lending options or perhaps real estate crowdfunding. Real estate crowdfunding is a relatively newer business-lending option. Realtors can now attract investors by building a profile on various crowdsourcing platforms.
Alternative business loans are an excellent alternative for real estate business owners to get the funding they need. So when deciding what kind of finance solution is the right fit for your real estate business, you will have to consider all of your financing options.
Not all of these options may work for you, or perhaps a combination does. Do your research.
Finding Quality Properties
It’s important to realize as a realtor that some people will be disinclined towards a real estate agent. Let folks know that they may be at a disadvantage shopping on their own. While you can look for a home by yourself, an agent may be able to find you a better deal.
Make sure that you as a real estate agent take the time to get a good read on your prospective clients. Focus on what they want, their budget range, their location preferences. This will help you find quality properties and good deals that your clients will find acceptable.
Real Estate Networking and Marketing
One of the most important ways to build your business as a real estate agent is to focus heavily on your networking and marketing efforts. Good realtors tend to think long-term. The connections you’re making today may not yield a sale in the next month, but keeping in front of your contacts for years will yield referrals and maybe their own business.
Partnering with overlapping industry figures, like home improvement contractors, can also be a good idea.
Starting out as a real estate agent is tough because you’re basically building your own business from scratch. But smart strategies and a can-do attitude will go a long way in making you successful.
Read this next: Is Your Business Ready for Franchising?