A real estate business is a great option if you’re looking to start a business. That said, this career path comes with its challenges and your foundation years may be difficult. For starters, as you‘ll have to struggle and keep up with competitors and established players.

Don’t allow these challenges to intimidate or distract you, though. Your focus should be on efficient planning and preparation. So, without further ado, here are our tips on how to start a real estate business.

 1. Develop a detailed plan

The real estate industry is highly competitive. Therefore, if you want to succeed, you‘ll need to have a robust plan that considers both your strengths and weaknesses. Also, find a niche for yourself. Remember that there are several options in real estate, so opt for an area that interests you, one in which you have the necessary soft skills to excel.

Knowing where you want to specialize in your business will help you identify your target audience and how to reach them. The marketplace is saturated irrespective of your niche; therefore, you must find a way to promote yourself. For starters, you’ll need a website. This is mandatory, especially considering that a significant percentage of today’s shoppers start their search online.

In addition to a website, you’ll need a social media page. Remember that social media is just as important as your website. You’ll need to ensure every Instagram post, Instagram story, and a caption is carefully curated before you upload any images.

Thankfully, you don’t need to have any special photoshop skills to be a creator and get started. You can search for an Instagram post template online and use it along with your brand font to showcase your business. This ensures your Instagram feed has a unique theme and represents your brand with each story or post. Admittedly, staying up to date with Facebook and Instagram posts can be demanding, so you can automate your posts using a planner. Ensure that your Instagram template and design embodies your brand and it tells anyone who cares to visit you and what services you offer.

2. Get finance, if needed

When starting a business, you‘ll need to assess your finances. It's important to have a suitable budget for your new career. Your budget should include what investments are profitable, and what areas to cut back and save money. For instance, if you have come across display houses for sale and believe investing in a display home or model home will be profitable in your area, you should know that this will cost a significant amount of money (although less than a new home with the same floor plan would cost). 

Thankfully, there are several ways you can finance your real business. However, ensure your read the fine print to know their interest rates and pick the most suitable financial option. Remember that diving into this industry isn’t cheap. Therefore, assessing your financial options before starting is crucial.

3. Get a license and join a team

As a newbie to the industry, you’ll most likely need a real estate license before you can start working legally. Every state has its requirements, but they typically follow the same pattern. First, you’ll need to take a real estate licensing course and get acquainted with the realtor code of ethics and professionalism. Next is the license exam, which you have to pass before working as a realtor. Finally, you can submit your license application, then find a broker who can teach you the ropes. When choosing a broker, make sure you carry out thorough research to know the pros and cons of working with a franchise brokerage or boutique brokerage.

Franchise brokerages work under an umbrella of companies that permit brokers to use their name, brand, and business plan. However, because of their size, they tend to lack mentoring and professional development. On the other hand, boutique brokerages are smaller in size and they compensate where franchise brokerages lack. On the downside, they have significantly lower budgets for resources like marketing materials and are limited to the boutique’s areas.