Real estate may be a topic of particular interest to you. You might know how squirrels can cause significant property damage or the current price of homes in your area. If you are planning to start a new business, real estate can be a perfect choice.
It may seem easy to get started, and there may be plenty of opportunities to help you grow your business. However, before you jump head first into this decision, it’s important that you do your research first. This article covers some of the basics you need to know before starting this exciting journey.
Become a Harlem Insider – Sign up for our weekly newsletter!
You have to learn
It is important to do a lot of research in the market so that you can establish your niche there. Start by checking out specialist websites that can give you insight into your local community, the broader market, and current industry trends. You should regularly keep up to date with the latest news and updates and follow the best blogs in the field, in order to stay abreast of any changes that may affect your business. In turn, this could give you an edge over your rivals.
There are many free documents that you can read online that will fill your knowledge gaps. If you want to understand something like a occupancy rate, you can access explanations on the main real estate KPIs. It is also possible to find out how hotels are tracking and increasing their occupancy rates and to know the relationship between occupancy rate and RevPAR (Revenue Per Available Room).
It will take your time
Related: Monuments Board approves Riverside Park skate upgrade in Upper Manhattan
When you’re self-employed, it’s up to you (and all employees) to make things run smoothly. If you want to be successful in this field, be prepared for long days and weekends, as well as evenings devoted to researching or networking with potential clients / clients. You need to make sure that you can achieve a healthy work-life balance, otherwise it could have negative consequences for your family and future clients / clients.
Establishing as an entrepreneur doesn’t mean you have to give up everything to be successful, however, most entrepreneurs go this route because they really love the lifestyle (and not just the potential financial rewards). If your current lifestyle isn’t compatible with entrepreneurship, maybe now is not the time to start your own business.
You will need to stay on top of your finances
Get an estimate of all the costs needed before you start your business, including rent, utilities, insurance, licenses, etc. You need to know how much money you need to invest in your business and how much you will need to stay afloat. It can also include knowing things like bank interest rates and taxes on real estate investments. Whether you need to get financing to buy a property or have cash on hand, figure out how much money you can invest and what your level of risk is.
Be resourceful with your money instead of leaving it lying around and collecting dust. If you are planning on furthering your education and taking training courses, this could help increase your chances of being one step ahead of everyone around you.
You must legally obtain
Related: 5 ways to design with authentic materials
You will need to obtain a business license, including any permits or licenses required by your state. It is also essential to purchase the necessary business insurance and to understand the tax aspect. If you plan to have employees, make sure everyone is filling out their tax forms correctly. It would also help if you make sure that they fill out their WKs as they are also required for tax purposes.
Consider hiring an attorney or accountant to help you with legal and financial matters, respectively. This will protect you against breaking the law in terms of national and local legislation, and with respect to submitting accurate and timely tax returns. Without it, your business could be penalized and in the worst case scenario, the IRS could shut you down.
You need to organize yourself
Here are some helpful tips to consider:
- Get a professional email address – make it clear what type of immovable you work with (i.e. residential or commercial)
- Gather all your paperwork – this includes things like tax records and receipts from previous jobs, so you can show potential clients what you’ve done in the past
- Decide if it would be better to run a business online or in the office
- Consider hiring employees to help you with tasks like answering the phone and making appointments if needed.
- If you have an office space, make sure it is inviting and professional looking
- Build a website using the latest SEO techniques to attract customers
- Produce quality social media posts on a regular basis so people can find you easily and discover the properties they like
- Build relationships with other industry professionals so they can recommend a company to you when needed
You should create a business plan
Related: What are the health benefits of the home sauna
This is a document that helps you map your business. Having one is essential if you want to get business loans because it will explain exactly what the money will be used for and the risk of failure. The information in your business plan should be useful to investors, funders, or even new hires. Chances are you can find templates online, but if you don’t, your local library may have some.
Some key areas to include are:
- how much you will charge for your services
- your niche (residential, commercial)
- your goal (being a real estate agent / quick renovation and resale / rental as the property value increases)
Your goals should be clear and they should include specific timescales for measurement
As you can see, you take on a lot of work and responsibility if you go down the real estate route. That said, the potential for profit is huge if you go about it the right way. Unlike things like stocks and stocks that go up and down on a daily basis, property remains a stable investment for anyone who knows how to harness their power.
