As a successful real estate agent, you probably have your hands full with satisfied clients and profitable commissions. If you love meeting with clients at all hours and working through the paperwork to help people’s dreams come true, you probably want to continue doing so until retirement age.
But if you’re ready for a new adventure, the promise of steadier income, and a different set of responsibilities at work, it might be time to start your own real estate business. Here are a few things you should know as you get started.
Learn About Starting Your Own Business
If you’ve been successful in real estate thus far, then you already have a knack for business. However, there will be a few things that you might not understand about running a business. There’s accounting, taxes, finding an office, hiring employees, filing for a business license, and more.
Starting a business doesn’t require formal education, but if you’re worried your knowledge is insufficient, look into online courses or classes at a community college. You’ll learn a few basics about what it means to be the boss, and that will boost your business efforts.
Gain Funding
As a realtor, you know a thing or two about getting funding for a great investment. You’ll need a decent down payment along with a reliable business loan to cover your expenses. Business expenses might include:
- Office space
- Office furniture and supplies
- Employees
- Legal fees
- Business startup fees
- Utilities
- Contracts, licenses, and permits
- Communication lines
- Marketing
- Website
Unless you have a lot of savings or recently came into an inheritance, you’ll need a good business loan to cover these costs. Shop around for a banker you trust and interest and repayment terms that work for you.
Your Experience Is Your Greatest Asset
Since your business knowledge may be lacking, lean on other strengths. Your greatest asset will likely be your time as a real estate agent. Your track record and time spent in the field will establish you as someone your employees will come to respect. Learning how to run a successful business is vital, but your experience will fill in some gaps.
“Irrespective of the educational or employment background you hail from, your learning and experience will always help you out, especially when you start out on something new,” says an article from Realty Times. “It is advised that you draw on your previous career and scholastic experiences. That way it will become easy for you to plan and execute your business dreams.”
Become a Real Estate Broker
Most states require that you become a real estate broker before you start your agency. Usually, this means taking a real estate course and spending a certain number of hours studying its principles. After that, you’ll take an exam in your state and pay any associated fees.
The regulations for getting your broker’s license vary according to your state. In some states, for example, you need the support of a sponsor to qualify for a license. Others require that you practice real estate for a certain number of hours. Research the requirements for your state to help you prepare.
Get Some Help
Don’t try to run your real estate business on your own. You might have the ideas and the expertise, but there are many entities that can promote your business and help you find greater success in this avenue.
“In order to build a successful realty business, you need a few essential people on your team,” explains an article from the real estate and property management group Green Residential of Houston. “When you have more numbers on your team, you can direct more money to investments, cover more ground, and deliver a higher level of satisfaction to buyers and renters. In a word, you’ll see higher profits as a result.”
Any good real estate business will have a front desk secretary, other realtors, lawyers on retainer, property managers, real estate agents, mortgage brokers, escrow officers, photographers, insurance agents, property stagers, and other related entities to promote their services. You don’t need this many full-time employees, but you should have connections in each of these industries.
As you work on your business, recognize that there will be a certain amount of stress, financial obligations, and other difficulties that will require additional attention. The journey will be long and detailed, but the rewards of starting your own business are abundant.
