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How to Start a Real Estate Business
Have you been having the thought to start a real estate business? According to Forbes, most of the recognized richest persons in the world are real estate investors. The likes of Donald Trump, Mike Adenuga, Grant Cardone and a host of others have stakes in the real estate business. This points to one thing and that is the fact that the real estate industry is a money making venture where anyone with the right plan could make a lot of money for himself.
However, starting a real estate business is not a child’s play as it takes a lot of dedication, hard work, marketing and perseverance. Planning and execution are also very crucial for success in this field.
For beginners who tend to start a real estate business, here are some things that need to be known:
- YOU NEED TO GET LICENSED
Before you can start a real estate business, you will need to get licensed by the appropriate bodies. There are a lot of petty real estate business around but to distinguish yourself and create a class, you need to get licensed by filling the requisite licensing papers with the appropriate bodies in your state or country.
- GET REGISTERED
If you plan to go big with your real estate business, then, you will need to register it. Registering your business is quite different from getting licensed. Although they may be similar. You need to register a business name and other necessary information with the appropriate Ministry.
For instance, in Nigeria the registration is done by the Corporate Affairs Commission (CAC). This also will go a long way in showing the genuineness of your business and will get more people to patronize you.
When you want to start a real estate business, you don’t just rush into it, the real work in real estate starts from researching. You need to research which area you intend to venture into. In real estate business, there are various area you can venture. Some of these areas are leasing, land flipping, property development, office and house rent, general property sale among others.
- Land Flipping
This involves buying land at cheaper rates and reselling them at a higher price to make profit. Depending on the choice of area, this aspect doesn’t require millions to begin. All that is needed here is capital and knowledge of land transaction.
This also is a very lucrative avenue. What it entails is you buying a property and leasing it out for a fixable amount. The amount you can fixed here is discretionary. It is so lucrative in big cities.
- Property Development
This is another area that is a bit similar to Land Flipping. However, as against outright sale of land in land flipping, the land here is developed into luxury and then sold out at a very exorbitant price. There is no limit to the price the property could be sold.
- Office and House Rent
This is similar to leasing too. Here, you don’t necessarily need to procure the property, you can act as agent to the owners to get people to occupy the available space and you get paid a certain agreeable percentage.
- General Property Sale
This incorporates almost all the areas. Here, you can decide to sell properties for their owners and get a fixed percentage of the purchase price or buy a property and resell it at high price.
- GET AN OFFICE
To start a real estate business, you definitely need an office where prospective property buyers would meet you. This is because only a very few people can give their money to someone they’ve never met or have an idea of where his office is. Therefore, you really need an office no matter how big or small it may be. Just go get one.
- HIRE MORE HANDS
If you really want to be serious with the business, you will need to hire real estate professionals who are good at what they do. Looking at the business plan, it is not something only you can run around doing. You need to hire more hands depending on your financial capability. You shouldn’t hire 10 people when in the real sense you can only take care of 5 of them.
This aspect cannot be over emphasized. It is very important and crucial. It is only when you market yourself that people will know you and patronize. People won’t find you if you do not push yourself out. Real estate marketing however may take different forms. Some of which are;
- Social Media Marketing
As it sounds, it has to do with marketing your real estate business on social networks. According to research, more than 2Billion of the world’s population use the internet and more than 1 billion are registered on Facebook.
Twitter, Instagram, Pinterest, among others collectively share around that amount too. All you need to do is take advantage of that population and market your business on Social media.
- Other Media
This has to do with marketing your brand in form of jingles and the like on television, radio, and newspapers. You can also get an official website for your brand.
In conclusion, the bottom line is that making a headway in the real estate business will not come so easy. It requires dedication, hard work, diligence, determination among other things. In the end, the success will be worth the struggles.