Running a real estate business that’s successful isn’t as easy as it might seem to be at first glance.
Here are a few secrets to running a real estate business.
Have A Real Estate Business Plan
It’s surprising how many businesses – both in and out of the real estate industry – don’t actually have a business plan. Owners of business start-ups oftentimes take the ‘fly by the seat of your pants’ approach and make things up as they go along.
Running a real estate business without a detailed, long-term plan is a recipe for disaster.
Business planning pros always suggest that after putting together the profit-and-loss statement for your real estate business, you should decrease your projected revenues by 50% and double your expenses.
If you’re still cash-flow positive after this exercise, your real estate business is very likely to succeed.
Strong Administrative Support
Most people that think about running a real estate business do so because they’re good at sales.
And in real estate, the more you sell the more money you make for yourself and your new real estate brokerage. If you’re the rain maker – the person that’s great at attracting new business and closing deals and working with lenders – that’s fantastic.
But running a real estate business also requires strong back office people and administrative support to assist with your time management. Tasks such as answering the phone and distributing leads, making sure bills get paid on time, and paying agent sales commissions are just a few of the countless items that fall into this category.
Choose Your Real Estate Niche
Businesses they try to be all things to all people end up failing sooner rather than later.
One of the keys to running a real estate business that’s successful is to pick a niche and stick to it.
Examples of real estate business niches include residential or commercial, buying & selling or leasing, property management, and vacation rentals.