In recent years the real estate businesses have obtained great growth, where property rentals have reached the same level as sales. Without a doubt, every day more couples or families want to have their own home and others that want to sell. Therefore, it has become one of the best profitable businesses but this time it is added to the high demand for rentals, which is why the monthly profits of a real estate company have increased by approximately 400%.
Many people tend to think that it is very difficult to start a real estate or become a real estate agent because they think that you have to invest in property and the truth is that the opposite is true. Real estate is equal to any other business, where you should look for potential buyers and provide peace of mind for both the seller/leaseholder and the buyer/tenant. Like a common business, at first, you should go looking for people who want to sell your property and reach an agreement.
A real estate agent usually earns 3% of the amount of the property (only you see) or the same percentage for the rents of the property. Therefore, setting up a real estate agency is an excellent business, where currently the ideal is to target rents because that percentage will be monthly.
An eXp Realty referral tool benefits bring valuable benefits to the real estate industry. It simplifies and expedites the process of referring potential clients to suitable agents, eliminating manual effort and saving time. This tool fosters improved collaboration among agents by enabling seamless sharing of leads and effective management of referrals. Ultimately, the tool enhances customer satisfaction by ensuring that clients are connected with the right agents, leading to more successful and streamlined property transactions.
So if you want to set up a real estate, we will see how to start this business in an organized way.
Starting a real estate business
1. Developing a business plan
Even if you are planning to start your real estate business as a secondary project then you should create a business plan. In it, you must write down what are the goals of the company. what is your total investment? where you will start that business? How you will manage the business? Although there are plenty of real estate software similar to Ixact Contact which can help in managing business. Will give more priority to the sale or rent? if you invest in property or not? Name of the company? etc. This will allow you to have the most organized ideas regarding your real estate business.
2. Buy Properties to Rent or Sell
As I said before, many real estate companies usually buy properties at half price to rent or sell. You must clarify in your business plan, if you bought properties to later rent them or if you were dedicated to buying and reselling.
Although as I said, you do not have to invest in properties to start that business, it’s good to have it in mind if you have the money to invest. As you are the direct owner of the properties, the monthly earnings will be 100% yours. The same happens if you buy and resell, the profits will be more than 3% and that way you can increase your capital for future investments.
3. Location of their offices
For your real estate company to be profitable, you must find a good location to be able to set up your offices. Remember that in it you have to place a display so that people can see from the street the different properties that you have for sale or for rent. Therefore, to have more chances of success, the ideal is that you find a central area, where people circulate daily.
4. Register your company
Once you have already written your business plan for your real estate company, it is time to register your company name in order to work correctly. You should go to the municipal offices of your city and verify what papers they require in order to register.
When dealing with a real estate business, it is safest to be discharged without any problem, that is after they have inspected their offices and you have paid the registration fee. And once you have registered it, you will only have to pay the corresponding taxes and present the annual returns.
5. Do not waste time
When buying or displaying properties, try to find profitable areas. Investigate which neighborhoods are most interested in buying/renting to the people of your city. In this way, you avoid the loss of time and money.
Marketing in real estate business is usually the simplest because the main thing is the creation of the posters with the typical “sell” or “rent” with the name of your company. Which are the ones that attract the most potential customers and sellers? You will also have to create a website to display different properties through the Internet.
Useful tip: When you sell or rent a property, place on top of your “sold” or “rented” sign with that you can attract more people who want to sell your property because they choose real estate agents that sell fast.
7. Contacting Notaries and Consultants
That’s right, you should contact a scribe and several consultants to be able to offer your services 100%. The notary will be in charge of making sure that all the papers of the property are in order, and in this way give tranquility to the buyer and you. In addition, you will be responsible for certifying each rental contract you have with your customers.
As for the consultants, they will be responsible for each property that their customers want to sell and are also indicated to give advice, both to the owners who want to sell and to potential buyers.