How many times have you asked yourself, "What's the key to starting my real estate business?" Starting a real estate business can be a very exciting endeavor, but one that requires careful study, research and a commitment to helping you clients. Many people consider the entrepreneurial route, but it is a risky road to take, especially if you don't set yourself up for success. You don't have to sell a unique product, but you should offer a one-of-a-kind service.
Anyone can start a business with the right attitude and financial backing. Competition will be fierce. You can't expect to put your feet up because it's your own business. On the contrary, you should expect to work very hard in the beginning. Before quitting your full time job to launch a real estate business in the hopes of becoming your own boss, ask yourself the following:
1. Are you committed? It takes more than just a good idea to develop a real estate business. It takes time, money and hard work.
2. If applicable, do you have the right partners? Friends are not always good business partners. Vet potential collaborators as objectively as possible.
3. Have you done your research to make sure there's demand for your services? You may have a great idea, but how many others have the same idea?
Action Steps
The best contacts and resources to help you get it done
Launch a real estate business with credibility and get licensed
All businesses are legally required to obtain some kind of government licensing. Your state may regulate real estate businesses through seller's permits, zoning and land use permits, federal and state employer tax ID numbers, and a business name certificate. Regulations vary from state to state, as do the state agencies that do the regulating. There are online resources that can help you navigate your way through the paperwork.
I recommend: Business Licenses is a fee-based online resource that offers information on statewide permits, including a real estate license.
Business.gov can assist you in obtaining the necessary federal, state and local permits, licenses and registrations for starting your business successfully. Use its “Permit Me” tool for efficiency.
Join an association and build industry credibility when you own a real estate business
As a new business owner, you don't have to go it completely alone. Consider joining an industry association for support. Organizations bring together professionals with the same goals and challenges. As a member you have access to certification and educational opportunities, in addition to networking events, so you can meet industry peers, vendors and suppliers.
I recommend: The
National Association of Realtors and the
National Association of Industrial & Office Properties both organize events for educational and networking opportunities. They also offer access to publications and other tools to assist you toward business success.
Become licensed in a variety of areas and expand the services of your real estate business
Real estate licensing does vary from state to state, so check the requirements in all the states that you plan on doing business. There are many online resources that can assist you in obtaining your licenses. If possible, you should become licensed in many areas so you can accommodate a variety of your client's needs.
I recommend: At
RealEstateExpress.com, you can get a specialty certification in financing and property management.
Allied Schools provides a wide variety of courses for licenses, renewals and USPAP updates, including sales, appraisals, and brokers.
Tips & Tactics
Helpful advice for making the most of this Guide
- When starting a real estate business, you may decide to balance your own finances. But as your business grows, consider partnering with an accountant who can help you with tax issues, and help you build a financially sound company.
Related Resources from Business.com
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