The market is hot for starting your own real estate business in 2021! Data from Realtor reveals that buyers are buying their dream homes across the United States. With relatively low mortgage rates and the opportunity to work from home amid the coronavirus pandemic, buyers are moving fast to become homeowners.
Becoming a real estate broker requires the readiness to accept challenges and the ability to provide an incredible customer experience. Let’s turn the keys over to finding out what you need to start a real estate business.
Becoming a real estate broker means first obtaining a real estate license. This license allows you to become eligible to sell residential real estate.
How do you get a real estate license? First, you will need to take a pre-licensing course. This course covers the state’s laws and regulations for real estate, as well as laws at the federal level. After taking the course, you will need to take and pass a real estate licensing exam. Once you pass the exam, submit your license application to your local real estate bureau and pay any application fees. Shortly afterward, you will receive your real estate license.
However, there may be a certain amount of experience necessary before you may be a broker. Check in with your local real estate bureau to determine if you need to meet any requirements. For example, you may need to first work at a brokerage as a real estate agent. This will allow you to gain the necessary experience and build your portfolio to sell real estate on your own.
Once you have the years of real estate business experience, start drafting a business plan. This will allow you to set goals for your real estate business and timelines for reaching each goal.
Additionally, your business plan should cover several important aspects of the business. Some of these include financing including tracking cash flow and expenses and setting up business bookkeeping and accounting. You will also need to conduct an industry analysis and conduct a market analysis within your market area and niche. For example, you may choose to sell residential real estate. Or you may explore other niches like resort and vacation homes.
Likewise, take an in-depth look at your ideal customer. Is it a first-time home buyer? How about a retiree? Millennials? How will you reach them? How can you create a great sales experience that builds referrals and word of mouth back to your real estate business?
What’s a customer relationship management system?
CRM is a type of software. It helps realtors, agents, and brokers organize leads, contacts, and connections. CRM simplifies the process of reaching out to leads and engaging with them to build referrals and find new customers. It also helps manage any marketing campaigns for your real estate business.
Did you think of a unique business name? Make sure to trademark the business name for your real estate business.
First, conduct a name search. This will allow you to determine if the name is available or pending registration elsewhere. If the business name is free, file to register it on the federal level. This will give you exclusive rights to your business name.
Typically, most real estate companies will file to incorporate the business. A popular entity formation is a limited liability company (LLC).
Incorporating as an LLC provides real estate businesses with limited liability protection. This separates personal and professional assets. In the event of an unforeseen circumstance occurs, such as a lawsuit, there will be no impact to the owner’s personal belongings. For example houses and cars are protected because of limited liability protection. If you choose to form an LLC, remember to draft an operating agreement for the entity. (Pro tip: put everything into writing when running a real estate business!)
It’s highly likely that your real estate business will open a business bank account. Later, you may also plan to hire employees. Obtaining an employer identification number (EIN) will allow you to fulfill these requirements.
An EIN is a federal tax ID. The IRS issues this nine-digit number to businesses to legally identify the business. This tax ID ensures the business pays federal and payroll taxes to remain in compliance.
Consider any number of potential situations that present a liability to your real estate business.
Obtain the necessary business insurance to protect yourself from these liabilities.
A website is critical for the success of a realtor and their real estate business. This website allows you to create a memorable, rich brand presence. Optimize your website through SEO for organic search. Make sure to obtain a relevant, key-rich domain name, too.
Above all, use your website to share more about who you are. Talk about the markets you serve and highlight your clients. You may share their reviews and testimonials on your website. This positions you as a trustworthy real estate professional and establishes your reputation in the industry.
To sum up, personal branding is everything in real estate. You’ll need to project your identity, services, and opportunities clients may gain from working with you through creative marketing campaigns.
Have fun with creating your personal brand! Create a logo that conveys who you are, business cards, brochures, direct mail, and signage for open house events. Set up a professional email address and phone number for your real estate business. Create a content strategy, including blogging and establishing a social media presence, that positions you as a thought leader in real estate. Watch the trends too — you never know what might happen in the market and you’ll want to stay a step ahead!
In conclusion, this is a basic guideline for starting a real estate business. You can find more resources through real estate associations including the National Association of Realtors (NAR),
Let’s help incorporate your real estate business today! Visit us at mycorporation.com or call us at 877-692-6772.
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Thanks for this valuable post - A helpful post for those who want to start real-estate business.
I would add one more point - After done the all above mentioned point you should also opt for a suitable marketing so you brand can appear online.