How to Start a Real Estate Company

A real estate company can be a lucrative venture, but delving into the world of real estate takes planning and forethought.

Instructions

Difficulty: Moderately challenging

Things You’ll Need:

• Accounting Advice
• Legal Advice
• Business Licenses
• Business Loans
• Business Services
• Errors And Omissions Insurance
• Business Cards
• Office Supplies
• Personal Organizers
• Business Plan Software
• Cellular Phones

1. Decide whether you want to become a real estate broker or hire a broker. Either way, a broker must be in charge of the real estate side of the business.
2. Decide if you want to purchase a franchise or start an independent real estate company.
3. Find a location to set up your business. A real estate company should have high visibility from a busy street, as people often come into a real estate office on the spur of the moment.
4. Get a business license from your city or county. Find out what other requirements there are for setting up a new business.
5. Contact the local board of realtors and become a member. Membership will give you access to the latest laws and regulations in the industry.
6. Become known in the community by joining local real estate agent tours.
7. Become a member of the local chamber of commerce.
8. Hire real estate agents. Choose agents who have the same goals and work ethics as you do.
9. Get listings (properties to be sold).
10. Market your company and your listings.

Tips & Warnings

• If you want to become a broker, it will take time to get your license. Check with the department of real estate in your state to find out what the requirements are.
• In some markets, getting property listings is difficult. If you are in such a market, try to secure listings by networking with friends, neighbors and any other connections you have.
• Real estate is a litigious industry. It is wise to get errors and omissions insurance to protect your assets.