The real estate market in the United States paused when the pandemic started. After a few months, it staged a comeback. Industry watchers are confident that the real estate market will flourish in the coming year.
So, it’s logical to enter the real estate market by starting a real estate business. Here’s what you need to do to set up a real estate business.
Create a Plan
As in any business venture, the first thing you should do is to plan. It’s essential to research the market and create a business plan using the data you acquired through your research. And since real estate income is based on sales, it’s also important to consider your finances in the first few months of operation. You should make sure you’ll have a financial plan to keep the business running while working to find clients for the business.
The plan should also consider your entry point into the industry. While you can enter the market by establishing a real estate business, you can also consider starting as a real estate agent before venturing out to create a brokerage business. Starting as an agent allows you to get the experience you need for your business in the future.
Another entry point is focusing initially on homes for starting families or couples planning to start a family before you get into the luxury home market. The important thing here is that you decide how you want to start and create a plan that allows you to establish your own real estate business.
You can also hire a flat-rate business attorney to take care of the legal requirements to set up your business. This is particularly helpful if you have no idea about the legal requirements of the start where you are living in.
Get a License
Aside from creating a business and financial plan, one important thing you need to do is to get a real estate license. Without a license, you are not allowed to sell real estate. The requirements of the license depend on the state you’re living in. So, you’ll have to check with the local real estate bureau to know the requirements.
Additionally, states require applicants to take a pre-licensing course before taking the real estate license exam. The number of hours the course will take depends on the state. For instance, you need to take three courses in California for a total of 135 hours before you can take the exam. In New York, it only takes you 75 hours to finish the course.
Once you get the license, you can start selling properties as an agent of a brokerage company or your own real estate company. But you should make sure to check the laws in your state since some states may require new real estate agents to work first for a brokerage company for around three years.
Join the National Association of Realtors
Joining the National Association of Realtors (NAR) offers many benefits for a real estate practitioner. Besides becoming a part of a national organization of real estate professionals, you can also access the Multiple Listing Services (MLS), which carries multiple property listings an ordinary agent cannot see.
You also have access to educational programs that will help you as a real estate professional. Enhancing your skills and abilities are also possible through the specialized courses available through the organization.
Get a Mentor
The next thing you should do is to get a mentor. A mentor can guide you and provide practical advice in the profession. The mentor can even connect you with the right people who can help you in your career. This is important since you need to connect with people who can provide legal and financial advice to allow your business to grow.
Just make sure the mentor you will is willing to stick with you for the long run. But you can’t expect the mentor to be always there with you since he may also have other things to do. In this case, you can schedule a regular meetup every month so you can get some valuable advice from him to help you in your profession.
Create your Brand
At this point, you can consider creating your brand. You should remember that a brand is much more than a logo and a tagline. It involves everything you have to offer to your clients. It also helps you convey a message to them and allow them to know what you can offer. Aside from creating your brand, you should make sure to take care of it. This is important, so each time clients hear your brand, they’ll give positive reviews about it.
The real estate industry’s huge potential makes it an appealing option for people looking to start a business in a post-pandemic world.