HOW TO START A REAL ESTATE BUSINESS

Those wondering how to start a real estate should be cautioned that owning a real estate company is no easy feat. Just like starting a business in any other industry, entrepreneurs should log countless hours conducting research and craft a meticulous business plan before actually jumping into business. Take guidance from the following tips as you open the door to starting a real estate business:

1.     Think Through Professional Goals

2.     Conduct In-Depth Research

3.     Organize Your Finances

4.     Craft Your Business Strategy

5.     Register your business

6.     Plan Your Marketing

7.     Build A Website

8.     Launch Campaigns

9.     Stay On Top Of Leads

10. Build A Support Network and learn from established realtors

Set Your Business Goals

Before you hit the ground running, take time to evaluate and prioritize your plans for the future. This means thinking through your personal, professional, and financial goals—as these will influence how you start and build your real estate investing business. Start by asking yourself where you plan to be in five, ten, and fifteen years. Then, strategize more immediate steps to help you get here. The importance of this process cannot be overstated. Goals not only help investors stay focused, but they also help them take action.

One framework I find particularly helpful is SMART goals. This stands for specific, measurable, attainable, relevant, and time-bound. Essentially, it helps investors balance ambition and action steps as they plan out the future. SMART goals operate in both short-term and long-term frameworks, making them perfect for any starting point. 

Conduct In-Depth Research

A successful business plan is always preceded by in-depth industry research, which should identify a specific niche, market area, and potential competitors. There are several exit strategies your real estate business could focus on, though some are more geared towards beginners. Many first-time investors will opt for wholesaling, allowing them to learn the ropes before purchasing properties. However, depending on your goals, rehabbing or buy-and-hold strategies may be great options as well.

Your research should then focus on what market area is best suited to your investing niche. Look at median home values and rental prices, research neighborhood amenities, and most importantly, don’t be afraid to look outside your current location. Online research, networking events, and even getting a mentor can help during this part of the process. Always remember, the more research you complete now, the more prepared you will be to start developing your business plan.

Organize Your Finances

There are several methods to get involved in real estate with no money down; however, that doesn’t mean you should avoid taking stock of your current financial standing. Chances are, when you approach a lender, they will want information on your financial history. It is important to take a look before you are ever approached with questions. Request a copy of your credit report and review any existing accounts or investments you have. I always tell investors that no matter where you start financially; there are ways to get started in real estate investing.

Depending on your investment strategy, there are a few financing options that may be right for you. Real estate investors can start somewhere traditional, like a mortgage from a financial institution or government loan. Or, they can opt for nontraditional financing options like private money lenders, business partnerships, and even crowd funding. You don’t have to settle on one “method” right now, but you should be familiar with a few options. That way, when it’s time to get your business up and running, you know exactly where to go. You can easily start by selling land and houses for other people for commission, linking landlords and tenants.

Craft Your Business Strategy

Once you have conducted sufficient research, you should already have started formulating ideas in your mind on exactly what will help your business succeed in your market. Write out a business plan that also includes the resources and tools you plan to leverage.

Form A Real Estate Company

A limited liability company (Ltd) refers to a business structure set up to protect business costs from interfering with an investor’s personal finances. The designation allows investors to purchase and own real estate without involving personal liability. You can operate in the informal sector depending on your financial capacity and preferences. You can run a business without formal registration.

Plan Your Business Marketing

Having a successful real estate business is synonymous with having a successful marketing strategy. What is your unique value proposition? Answering this question will help you establish a brand for your business and any subsequent marketing campaigns. This is also a great time to settle on a logo, core values, and a mission statement. These components will help inform how you reach out to potential customers and serve as a jumping-off point for your marketing materials.

After you create a foundation for your real estate business, it is time to start your first campaign. Read through the following list of common marketing materials for some inspiration:

• Direct Mail: Believe it or not, direct mail still has a place in this digital age. Real estate investors are constantly using postcards, handwritten letters, and other mailers to reach potential sellers. The most important thing to remember when using direct mail is to remain consistent: more often than not, your response rates will increase on the second or third attempt.
• Email Campaigns: Email is a great way to reach potential leads, as long as you can gather enough contact information. Because email addresses are not as readily available as property information, it may take a while to put together a strong list. That being said, in time, this is a highly cost-effective method to reach both buyers and sellers.
• Social Media: Social media is great for beginners because it is an entirely free way to spread the word about your business. Create profiles across Facebook, Twitter, Instagram, and LinkedIn, and post updates when you can. In time, you may find paid social media advertising to be helpful as well.
• Networking: Real estate thrives on networking,, in many cases it really is about who you know. Start by attending real estate events in your area, and branch out from there. Not sure where to find events? I recommend searching on Facebook or meetup.com Once you start building connections, you can even start organizing networking opportunities yourself.
• Bandit Signs: When newcomers think of real estate, this is often the first thing that comes to mind. Bandit signs are those posters that sit at popular intersections with messages like, “We buy houses!” or “Call us for a cash offer!” Have you ever stopped to think why there are so many? It’s because they work. Bandit signs can be a great way to spread the word about your real estate business. Just make sure they are legal in your area.

Build A Website

In today’s digital age, having a proper web presence is critical. Your marketing materials will, without a doubt, refer potential clients back to your website, so making sure your website is ready to go should be a top priority. Consider using websites like WordPress or Wix, which offer beginner-friendly experiences at relatively affordable prices.

Launch Campaigns

Make sure to be consistent across all of your marketing channels, whether social media, e-mail, snail mail, or traditional marketing. Be sure to schedule out follow-ups to each of the campaigns that you deliver.

Stay On Top Of Leads

One of the worst things you can do for your business is to launch marketing campaigns without a plan to track and follow up with your leads. Even if someone does not present an immediate opportunity, cultivating a relationship over time may earn you their business down the line. A great way to keep track of your leads is with the help of a Customer Relationship Management system or CRM. This type of software provides a way to manage all of your marketing campaigns and leads in one place. Programs like Hubspot, AgileCRM, and Apptivo are great places to start your research. Look for free trials or pricing plans based on the number of leads you work with.

Build A Support Network

As cliche as it sounds, no person is an island when starting a real estate investment business. On the contrary, many leads and deals in real estate will come directly from your personal network. Whether your network consists of clients, colleagues, mentors, or even competitors, make sure to invest ample time in cultivating these key relationships. 

Further reading: Wealthresult