The real estate business is one of the most tricky but succeeding businesses in the land and housing business field. When it comes to learning about how to start a real estate business from scratch, you need to understand what real estate business is and how it works to earn money with the correct input.
There are many successful real estate agent stories around the world and this article will guide you from scratch to know all those stories along with how to start in the real estate business and how to start a real estate agency.
[lwptoc]This article is not only about learning how to start a real estate business from scratch but to know the value of learning why this business has a huge portion in the real estate market.
What is the Real Estate Business?
A real estate business is the core of all operations including the buying, selling, investment and management of land or property.
It is all that is included in the land: anything above the land and anything below the land such as crops, minerals or water.
If anyone is interested in dealing with a transaction with the land; we call it a Real Estate Business.
There are thousands of real estate businesses around the world and they have been such a success as there will not be a stopping sign to land businesses anywhere in the world.
So if you are thinking of how to start a real estate business from scratch then you need to know how to hit the dart at the right place!
Types of Real Estate Businesses
Real estate businesses can be divided into four types. When you are learning how to start a real estate business from scratch you also need to select which type of real estate business you want to start, whether you have the capital to proceed and how you will be proceeding.
- Residential Real Estate:
This includes residential property operations. Which can be either new construction of a residential house or a resale of the already constructed house.
Any residential real estate cannot be used for commercial or industrial purposes. This real estate business should only be focused on single-storey houses, condos, duplexes, triple-deckers, quadplexes, vacation homes, townhouses and all other private dwellings.
Most of the newly established construction-related companies are starting with residential real estate businesses as it is the perfect place to start the real estate journey. If you are looking for a way on how to start a real estate business from scratch this is one of the best ways to start your real estate business!
- Commercial Real Estate:
This real estate focused on producing profits to another by constructing or re-selling the commercial-related property.
Commercial real estate can be divided into three subcategories: Retail, Office and Industrial.
These include shopping centers, malls, office buildings, apartments and business-related operational land spaces.
The difference between residential real estate and commercial real estate is that while residential real estate is created for residential purposes and commercial real estate is exclusively used for business-related properties.
- Industrial Real Estate:
This type of real estate is used for industrial purposes only which can be divided into three segments according to the size of the business: Small, Large and Enormous.
Small industrial real estate includes single or double-storey buildings which are easy on the interior and space allocations such as warehouses, research labs and start-up businesses.
Large industrial real estates are the property used for medium to large warehouses and factories which manufacture products or store goods. These include third-party logistics companies.
The enormous industrial real estate deals with properties related to logistics and distribution centers such as Amazon warehouse.
- Land Real Estate:
Any vacant land, ranch or working farms fall under land real estate. Land real estate can be done by anyone as it does not include labor unless you wish to develop the land before the business transaction.
This is the easiest and profitable real estate if you are learning how to start a real estate business from scratch.
Learning how land real estate works will provide you with the exact idea of how land is made for business, the current land prices and the easiest ways to sell it.
The Real Estate Business: Is It Profitable?
When researching how to start a real estate business from scratch your next question would be “is it profitable?”.
If the answer is NO you would not be even searching on how to start in the real estate business!
Real estate businesses are incredibly fast-growing and there is one main reason behind it!
It is because real estate businesses are profitable if you do it the correct way!
There are many ways you can profit through real estate businesses and it is not only about constructing, re-selling or brokering vacant land. These are some other ways you can profit through real estate businesses:
- Real estate agent
- Become a property manager
- Become a real estate bird dog
- Start a real estate appraisal service
- Become a real estate photographer
- Start a construction company
- Become a real estate broker
- Start a real estate investment club
- Become a real estate investor
- Start a real estate marketing agency
- Start a real estate blog
If you are thinking about how to start in the real estate business then there are many ways to start with. Since the real estate industry has a very broad business field learning how to start a real estate business from scratch is easy!
How do the Real Estate Industry works?
The real estate industry acts as a huge income portion for the nation’s economic growth. Before you check how to start in the real estate business it is vital to know how the real estate industry works!
- New building constructions: This is a fundamental component of gross domestic product which includes all residential, commercial, and industrial building constructions.
- New house building/constructions: When a person builds a home, it also contributes to the nation’s economy. Getting bank housing loans and financial support from financial institutes helps to grow the real estate industry.
- Real Estate Agents: These are the people who support investment in the real estate industry, buying and selling of land or property. Their contribution is essential to maintain a healthy relationship between the buyer and seller!
If you want to know how to start a real estate business from scratch then it depends on how much you know how this industry works!
There are two ways you can join the real estate industry. That is either as a real estate business or as a real estate investment/investor.
Real estate businesses earn through commission-based profits while an investor buys land or property then resells at a revised price. This price depends on whether the land or property has been developed or changed.
Most successful real estate agent stories start with investing in the real estate business. This allows you to understand the buying and selling process of land and property.
How to start a Real Estate Business from scratch: A step by step guide
Step 1: Research your real estate business area
As mentioned above there are many ways to learn how to start in the real estate business. Reading and researching about all the real estate business types will guide you to choose the most suitable real estate business to start with.
Your research should also include successful real estate agent stories that will motivate you to learn how to start a real estate business from scratch.
Step 2: Create a business plan
As an initial step for beginners in the real estate business, you need to create a business plan. A business plan will help you to identify your purpose in the real estate business.
A business plan is also a starting point on how to start a real estate business from scratch.
If you are planning on how to start a real estate agency, creating a business plan at the initial stage is important.
This business plan should include a summary of your real estate business, current real estate overview in the country, market research and analysis, competitive advantage, management plan, operating plan, financial plan and marketing guide.
Step 3: Create a Marketing guide
Your marketing guide should include the ways you will be achieving sales. To know how to start a real estate business from scratch you also need to know how to use marketing strategies to achieve sales.
The most affordable and profitable way to get easy sales is through online marketing. This is mainly because real estate businesses are expanding online and your availability on the internet makes a big difference to your business.
Many successful real estate agent stories always start with an online presence. So having your real estate website and social media to promote your real estate business will surely help you to get the sales you need without a hassle!
Step 4: Check the legal requirements
To start your own business you need to get a business registration. Business registration is a legal requirement if you are starting your real estate business.
You also need an experienced attorney to draft your agreements and so on. Legal requirements is a must when learning how to start in the real estate business as it plays a vital role in your business.
Step 5: Manage your finance and investments
The next step is to manage your finances and investments. When you research how to start a real estate business from scratch you need to research the ways to manage your business finances as well.
You need a finance plan to organize how you will be investing in your new real estate business. This includes how much capital you will invest in all the setting up processes and other operations.
Step 6: Check your team
If you are the sole owner of your real estate company, then you get to make all the decisions according to your knowledge.
However, if you have other members joining your team, you need to mention this in your business plan/proposal.
Also, many hands are always better than two! Having a team is important to grow in the field and to accompany your success story together. Having a team will also provide you with a diverse skill set which is an advantage to your business.
Step 7: Promote
Once you have established your real estate business, you need to promote your brand to inform your target market that you are open for business.
There are many ways you can promote your business. Newspaper and television advertisements are the traditional ways but being present online is the new promoting platform.
Getting your business name across social media and having a good SEO Specialist for your website is the trick to promoting your business easily.
Step 8: Get your own office
After you manage to get a few customers, you can think of expanding your business. Getting your own office to meet your customers face-to-face is important to build trust and transparency!
When you allocate your finance, make sure you keep this step in mind as a plan.
Step 9: Check on your competitors
Competitive advantage is an important tool to analyze your competitors. Since there are many successful real estate agent stories around the world, you need to find your competitors’ weaknesses to challenge them with new ways of operating your real estate business.
You can gain a good competitive advantage by knowing how to start a real estate agency with the correct procedure.
Step 10: Grow everyday
Make sure you keep growing since the day you start. It’s the secret to the success behind real estate businesses. You need to make sure you use networking tools to market online, have a good CRM (customer relation management) system, contact your leads, get reviews from your customers and finally keep in touch with technology as it is growing every day.
Successful real estate agent stories like Brandon Turner who is a real estate investor worth $4 million net worth. Brandon has used his experience in the real estate industry to motivate others by writing real estate tactics and presenting motivational speeches.
These successful real estate agent stories knew how to start in the real estate business. Brandon has given a living example of how one can be successful by entering the real estate business.
How to start a Real Estate Agency?
Once you know how to start a real estate business from scratch your next step towards your own successful real estate agent stories starts here!
Learning how to start a real estate agency is not hard once you know all the needed inputs. How to start a real estate agency comes with important legal requirements.
First, you need to decide whether your agency is self-employed. If it is, then only having a valid business license will get you started.
However, if you have partners or offer brokerage there are legal requirements such as Sole proprietorship, Partnership, Limited Liability Company (LLC) and Corporation.
Your business structure will decide where your business stands when it comes to legal requirements. How to start a real estate agency starts with getting to know all the legal requirements. So having your attorney is vital when you learn how to start in the real estate business.
Author
An Entrepreneur and Digital Marketing Consultant in Sri Lanka. Helping People with Digital Marketing services, building an Online Business and making Passive Income.
