REAL ESTATE DEVELOPMENT RE-ENGINEERING

If you’re reading this article, there’s a good chance you love talking to others, building connections, and helping out—you’re a people person. If this is the case, the real estate industry is a perfect career choice because it relies on you having excellent people skills in order to be successful.

And, if on top of being personable, you’re also organized, ambitious, goal-oriented, and up for a challenge, you’ve hit the metaphorical jackpot.

The real question is: Are you able to play the long game? While traditional business models provide a more regular income, in the real estate world, it might be three months before you get paid—and it could even be longer.

If you think you have the drive and the people skills, keep reading.

Step 1: Planning

Whether you’re starting a real estate business, a corner coffee shop, or a company that manufactures rocket parts, it’s a good idea to write a business plan. It makes you more successful, and that’s been scientifically proven!

Not only will working through the planning process prompt you to think about important things like how you’re positioned to compete with similar businesses, and how much cash you’ll need to actually get started, but it will also help you validate your idea and get into a habit of setting goals and milestones.

Tools like LivePlan make the business planning process even easier, guiding you through each section. The same is true of sample business plans—take a look through some of the free sample real estate business plans on Bplans.

Step 2: Market research and idea validation

How do you know you've got an idea that will work? How do you know you've picked a niche in the real estate market that actually has a target audience? How do you figure out how to position yourself within this niche?

These questions and many more like them can be answered in the initial market research phase. By conducting both primary and secondary market research, you give yourself a broader idea of whether or not the target market you've picked is valuable enough to pursue.

Of course, there’s no one-fits-all approach to figuring out what niche you’re best served to help—and the variety of responses we got from real estate agents across the United States is proof of that.

Step 3: Branding

Branding is important for businesses of every size. If you’ve got a memorable brand, it’s easier to build credibility, look bigger than you are, attract customers, and in general be the first person or company people think of.

Essentially, your reputation is your brand.

Step 4: Making it legal

One of the best things about getting into real estate is that for most states, there’s really only one exam you need to pass. Study hard, and you might be able to do it in a couple of months. Naturally, this differs slightly from state to state, so make sure to check in with your own state about regulations and rules.

Of course, real estate qualifications aside, there are some things that you can do pretty early on, including figuring out a name for your business, registering said name, applying for a Federal Tax ID and obtaining any necessary business licenses and permits.

Step 5: Getting financed

One of the great things about getting started in the real estate industry is that having a huge amount of cash on hand isn't necessary.

It’s also a business that you can start part-time while you’re still holding down a day job (though of course, you may need a flexible employer so that you duck aside to occasionally take phone calls).

The real thing to think about, according to Dennis, is cash flow. “Don’t just calculate the start-up cost, calculate ‘carrying cost,'” he says. “As in, how many months it will take you to start cash flowing. In real estate, there are a good 60 days or more before you could get paid.”

If, however, you want to start a real estate business that has a customer facing office, writing a business plan in order to find investors or get other funding is going to be of much greater importance.

If you’re wondering what a real estate business plan looks like, take a look at some of our free sample real estate business plans. They’ll give you a great idea of how to structure your own plan. Also, be sure to check out the resources below, including our guides on funding and pitching, which will help you when it comes time to present to an investor or a bank.

Step 6: Setting up shop

For most people getting started in real estate, an office location isn't necessary. At this beginning phase, the focus is really more on building a reputation within your chosen niche.

When it comes to technology, great Customer Relationship Management software seems to be the real estate agent’s prized possession.

Step 7: Marketing and launching

Ask any real estate agent how they market their business, and you’ll find that “SEO” and “a good web presence” are common responses. Beyond the required networking you’ll need to do, maintaining an online presence in your real estate niche is key to your success.

Again, we go back to the importance of your personal relationships with people. Getting business is all about seeing people, wherever they are, though it’s equally important to have an online presence so that people can find you themselves!

If you don’t have any customers, a good place to start is to reach out to people in your existing network. “Tell them about what you’re doing,” Dennis says. “Ask if they know anyone who you can provide value to. If you’re new and starting out, you need to put yourself in situations that allow you to create new connections, meet new people, and provide value just by being yourself. Once people like you, they’ll correlate your name with ‘real estate’ when they themselves or someone they know want to buy or sell a house.”

See you at the top! :):)