Secrets Of Running A Real Estate Business

running a real estate business

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 – 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.

Five Ways To Have A Work/Life Balance In Real Estate

work life balance real estate

Achieving a positive work/life balance in real estate is much easier said than done.

It’s true whether you’re a new real estate agent selling real estate full time, or an experienced broker or real estate investor.  It’s true whether you work in residential, commercial real estate, property management, or another real estate niche. Positive time management in real estate can be difficult to achieve.

Why Have A Work/Life Balance In Real Estate?

In the real estate business the more you work the more money you make.  If you work in various markets around the world, you can literally work 24/7, seven-days-a-week if you choose to do so.

This works well for a while, and a little bit longer than a while for real estate people who have no family to worry about.  And those that are able to focus 100% on their real estate business.

But after a while, no matter what you do, real estate burnout occurs.

You forget to return phone calls or emails.  You’re not able to hold an intelligent conversation with clients or friends about a topic that doesn’t involve work.  Or you make a mistake on a contract and end up getting sued.

Not good.

Five Ways To Achieve A Positive Work/Life Balance In Real Estate

Here are five tips to balancing your work and life when you work in the real estate business:

  • Email – limit reading, replying, and sending emails to one or two times per day
  • Phone calls – as with emails, limit the times when you will make and receive phone calls
  • Working hours – have set working hours and take at least one full day off each week
  • Choose clients carefully – many prospective real estate clients don’t value your time and actually have no intention of buying anything from you . . . learn to choose the ones the will make money for you and learn to say ‘No’
  • Pick a real estate niche – you can’t be an expert in every field of real estate, and you can’t be all things to all people . . . choose what you’re good at and stick to it