Six Steps to Setting up a Successful Real Estate Business

Karleia Steiner

July 31, 2014

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Real estate can be a stable and lucrative career for outgoing professionals with marketing abilities. If you are considering setting up a successful real estate business, follow these steps. Here are six steps to successfully launching your real estate business.

1. Save up enough money to plan for all the startup costs associated with starting a business. You will want to consider how much it will cost to rent a space and have a website designed. Factoring into the equation things like insurance and marketing costs are additional considerations in launch a real estate business.

2. Finding an accessible location is another important step. While it is ideal to rent a space that is very accessible doing so at the expense of your budget isn’t recommended. Consider how easy it would be to find and the safety of the neighborhood. In some areas, there may be tours available to help you learn about the property options in an area.

3. Researching the competition is another important step. Know the market that you will be operating in and learn as much as you can about the top performers in your area. Consider your staffing needs and their expertise when selecting candidates for your team to ensure that you’ll be able to thrive in a competitive environment.

4. Determine whether or not you will be hiring a real estate broker for your venture or not. Many people are on the fence about obtaining their licensing but it can be helpful. Familiarizing yourself with the requirements for obtaining a real estate license in your state can really make a difference. If you decide to work with a real estate broker, you should look for a good broker. In addition to the commission splits, think about the working relationship.

5. Next, develop an independent contractor agreement. This agreement should touch on the commission splits and the terms involved with dealing with an agent. There should be a code of ethics as well as a well-defined policy on how the office space with be used.

6. Finally, you need to join a chamber of commerce. After doing all of the hard work of getting your business off the ground, you should join your local chamber. This will help you build your network. It will also boost your visibility and could generate passive leads for your venture, according to Carter West.

There are numerous things that can be done to ensure that your real estate venture is a success. Start with researching, planning and budgeting in the beginning stages to get your business off to a good start. As a part of your strategy, consider how your competition and staffing needs to get your business off the ground.