You’ve probably heard of your friend’s friend making thousands off of the real estate market or picked up a book about how the industry is a goldmine? Regardless of how you were attracted to real estate in the first place, starting this kind of business is not an easy road. The competition is cutthroat and you’ll need every edge to get ahead.
Anyone who loves to sell properties may find the idea of owning their own brokerage firm attractive. With numerous agents splitting their commission with you, having your own brokerage firm allows you to thrive even under the worst market conditions and fluctuations. Apparently, having your own brokerage firm entails taking on additional supervisory responsibilities aside from regular brokering duties.
How to Start
The first step to start your own real estate business is to save up enough cash for overhead expenses. These include business space, equipment, logo design and marketing tools, business insurance, and even your business’ website. It is also good practice to set aside money to cover operating expenses for the next three or four months at the very least. You don’t know when your business is going to pick up and start making profits so you best be ready to absorb some financial blows.
The next step is getting your real estate licence. In most states, you’ll need to take a state-certified program and be at least 21 years of age. There are a few places offer quality real estate courses, Real Estate Academy Australia, for example. Experience as a real estate salesperson is also a requirement in some states.
If you don’t have any real estate background, check online for real estate training near you. There are several programs to choose from, each varying on focus, duration, and pricing. Although it will cost you money, the right real estate courses provide an edge against competitors.
What You Need
Location is key for any business. Prime real estate improves your business’ image and attracts clientele. Things to factor in when looking for the right location include zoning restrictions, visibility, and of course parking space for your employees and clients.
Aside from physical brand presence, you should also establish web presence since a significant percent of potential clients can be found online. Set up a professional-looking website or hire someone to do it for you. Employ software that allows you to display all listings in the area including your own.
Financial protection offered by insurance is important as well. As a broker, you take tons of liability for the actions of your employees. An Error and Omission Insurance Policy will protect you from unsatisfied clients who decide to file a lawsuit against your brokerage firm.