The Small Business Times

How To Start Your Own Real Estate Business

It takes much courage to start a real estate business. Probably no other industry requires so much cold calling and produces so few closes. That said, those with the right skills and, perhaps more importantly, the right attitude, can get their real estate business to provide a seven-figure income.

Real estate is often the new agents’ second, third, or even fourth career. Making more money than you did at your last job while “being your own boss” probably sounds appealing. Freedom, however, means different things to employees and business owners.

You should first understand that this is, in fact, a business. That means you need to think like an entrepreneur, whether you’re a solo agent or part of a team. You’ll need to figure out your business plan, unique value proposition, and personal vision before you even take the first step.

So how do you enter the field and become a real estate professional? Here are the steps you need to take.

1. Obtain A License

Getting a real estate license is the first step in your real estate career. You should consult your local real estate bureau to understand what’s required to get your real estate license. Each state has its requirements, timeline, and costs.

Once you have your license, you are legally permitted to rent, broker, or sell real estate in the state where you obtained it. 

Talking to a lawyer or law firm that specializes in real estate is also a great idea at this stage. Getting experienced legal professionals onboard could be a smart move for multiple reasons. Real estate can be an unpredictable business, and construction accidents law offices Spar & Berstein may just come in handy at one point or another.

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We should note that in most states, you must work with a brokerage for the first two or three years of your career. 

2. Join The NAR

Until you become a member of the National Association of Realtors, you cannot call yourself one. Perhaps more importantly, a NAR membership will also give you access to the Multiple Listing Service (MLS), where you can search through all the listings currently available on the market.

3. Seek Out A Mentor

Observe those around you and learn from them. Does anyone at your brokerage know a thing or two about running Facebook ads? Does anyone you work with specialize in FSBOs? If so, get together once a month for coffee, ask if you can shadow them for a day, or volunteer for a project they’re leading.

Spend time and develop relationships with successful people in the areas you would like to succeed in. We promise that the time investment will pay off in the long run.

4. Consider Your Ideal Customer

The experience of working with first-time home buyers is vastly different from the experience of working with downsizing retirees or second-chance buyers reentering the market after a forced foreclosure.

Each of these subsets carries a different audience, necessitating different industry knowledge and other considerations. Their needs, concerns, and goals are different.

You must understand prospects’ problems, pains, triumphs, and desires if you want to resonate with them. 

Creating a buyer persona is the first step in this process. This can give you information and insight that will help you refine your marketing efforts, refocus your messaging, and even present your brand more effectively.

5. Build A Personal Brand

There is no doubt that real estate is a lead generation business, as seasoned real estate agents know well. The best way to expand your network and reach more prospects is to build a stronger personal brand.

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Publishing your own real estate website will help you differentiate yourself from your brokerage and the other agents in your area. Make sure your professional brand has a social media presence. You can also host networking events and happy hours to spread the word about your business.

6. Have Patience

You won’t be able to sell million-dollar homes the moment you get your license and start a real estate business. It takes time, hard work, and effort for new real estate agents to build a presence on the market, expand their network, and start taking on some real profit.

You’ll need a lot of elbow grease to develop the audience and database of contacts necessary to establish a successful real estate career. After that, you must figure out how to present yourself, provide value, and remain consistent.

Be prepared to work hard, network, and support more seasoned realtors for a few years, and don’t expect to earn big bucks immediately.