When most people think about real estate, they think about buying and selling residential homes. But the industry has many other aspects, like commercial real estate, investing, property management, and land development.
Regardless of how you get into real estate, there’s one common thing between all these different types–a real estate business is just that, a business. You need to show up consistently every day.
Definition of Real Estate Business
First, let’s define what the real estate business is. A real estate business is the buying, selling, and managing of physical property such as land, buildings, and homes.
It includes activities like renting out properties, investing in real estate developments, marketing rental properties, and flipping houses. In addition, real estate professionals typically work with buyers, sellers, landlords, or tenants to facilitate transactions.
If you’re willing to put in hard work and time, a real estate business can be a very lucrative venture for you, but you have to be ready to show up consistently and be good at managing your time.
How Can I Start A Real Estate Business
If you’re interested in starting a real estate business, you first need to decide what type of real estate you want to be involved with, like residential sales, investing in property, or flipping homes.
It's no secret that the real estate industry is lucrative, with plenty of growth opportunities. As a result, it is an attractive option for career changers and entrepreneurs looking to create their businesses.
Although it can be a complicated field to navigate, many advantages come with launching a successful real estate enterprise.
Starting up any type of business can be intimidating, but embarking on a real estate venture can be manageable if you are willing to put in the time and effort and develop systems that make all your tasks more manageable.
First, when considering starting a real estate business, it is vital to know the market.
It is essential to stay up-to-date with current trends and industry news to make informed decisions about which properties are worth investing in.
You should also research local laws and regulations related to real estate investment to remain compliant.
- Get a real estate agent’s license, join a brokerage, and MLS board.
- Invest in educational courses to comprehensively understand the real estate industry.
- Research and find state regulations that apply to running a real estate business.
- Network with key contacts in the industry, such as lenders, brokers, and other agents.
- Become aware of current market trends and stay updated on buying/selling laws.
- Develop a business plan and include a budget for marketing, legal fees, and other expenses.
- Find the right financing option for your investment. Consider getting pre-approved for a loan before you start looking for properties.
- Partner with an experienced real estate broker or agent who can help guide you through the process of buying and selling.
- Decide which type of real estate business you want to pursue: residential, commercial, or industrial.
- Research the local market and understand rental rates in the area.
- Create a marketing strategy to promote your business and attract potential buyers or tenants.
- Stay organized with day-to-day operations by using a property management system.
- Develop relationships with clients and other investors to help build your business.
With so many things to handle as a business, you’ll need to master your time management skills.
I like to use two different time management strategies to help boost my productivity, and these are the tips I share with other real estate agents.
Time Blocking: Time blocking is a management strategy that takes your work day and breaks it up into smaller chunks of time that you can dedicate to a particular task. For example, running a real estate business, you’ll need time to market and prospect, go over contracts and paperwork, and set aside time to meet with clients.
Using time blocking, you’d take these tasks and devote a couple of hours to each. So for marketing and prospecting, you’d set aside two hours, say from 9 – 11 am. Then from 11 – 1 pm, you’d focus on contracts and paperwork. Finally, you’d dedicate 4 pm – 6 pm to meet with clients, show houses, and sign listings.
Pomodoro Method: The Pomodoro Method is a strategy that takes your time and tasks and breaks them into smaller time periods to work on, with intermittent breaks along the way.
Let’s look at a time block from the example above with your marketing. If you’re working a time block from 9 am – 11 am that is dedicated to marketing, using the Pomodoro Method to increase your productivity would look like this;
- Take a timer, set it for 20-minutes
- During that time, work only on one task
- After the timer goes off, take a short, 5-minute break
- Then reset a timer and devote your time and energy to one task
- Repeat for 4-5 cycles and take a more prolonged break (15-30 minutes)
Managing your time will make you more productive, help you achieve more in your day, and have the energy to turn to other tasks. It’s a great way to break your day into more manageable slots so that you can focus your energy on each task without having things fall through the cracks.
Types of Real Estate Business
As a business, real estate is a great way to make a living, and there are many different types of real estate businesses out there for you to explore.
Whether you're looking for a steady income from rental properties or want to get into flipping houses for profit, there's something for everyone in this dynamic industry.
Becoming a sales agent or buyer's agent is the most traditional route. However, investing and becoming a landlord or property manager is an excellent option for those looking for alternatives when starting a real estate business.
Another option, if you're looking for something with more of an adventurous flair, is to work with investors on house flipping. This type of real estate business involves buying properties at reduced prices (such as foreclosures) and renovating them before selling them at a higher price. It requires some risk-taking and construction ability, but it can be incredibly lucrative if done correctly.
When considering starting a real estate business, it is important to know the market and all the requirements to operate legally, such as licensing requirements. To be successful, you’ll also need to stay up-to-date with current trends and industry news to make informed decisions about which properties are worth selling or investing in.
Furthermore, having a comprehensive business plan is essential for success.
A plan will help you manage your investments, set achievable goals, and stay organized. And this is where finding a mentor and coach would be a great idea.
A mentor is someone that can show you how they’ve been successful over the years and give you tips and the systems that have worked for them.
A coach will help you devise and strategize the things you want to do and how best to accomplish them.
With the right strategy and knowledge of the industry, you can create a profitable real estate business that will serve as a source of passive income for years to come.
Real estate is a relationship business about buying, selling, and renting property.
You can choose to work in residential, such as a house or an apartment representing buyers or sellers. On the other hand, you could work in a commercial, such as a retail store or office, working with long-term renters or sellers. Another niche industry is the industrial side, such as a warehouse, or the agricultural sector, such as farmland.
Knowing how to manage your real estate business and your time is key to success.
From developing an effective property management system and staying organized with day-to-day operations to actively networking with other investors and building relationships with clients, having good time management practices will go a long way in helping you reach your investment goals.
Having experienced help from coaches and mentors will keep you on track and organized, especially as you handle many different tasks simultaneously.
With careful planning and knowledge of the industry, starting your own real estate business can lay the groundwork for a great financial future.
