Are you a real estate agent, broker or appraiser? Do you want to learn how to start a real estate business with no money? Do you want to start your own real estate investment company? Or you need a sample real estate business plan template? Then this article is for you on.
Real estate is a very lucrative industry but you need to understand its intricacies; so that you won’t have your fingers burnt. So without wasting your time, below is a step by step guide to starting a real estate business
Starting a Real Estate Investment Firm – Sample Business Plan Template
- Which aspect of real estate do you want to invest in?
The first step to starting a real estate business is to know where to invest. To do this, you need to consider your own desires and the profitability of the possible investment.
- Are you going to invest in acquiring raw land, residential or commercial properties?
- Real Estate Development
- Real Estate Agency
- Real Estate Management
Well, the choice is ultimately yours to make. Even when it comes to a section such as commercial real estate, you must still ponder on what type of commercial properties you will be buying and selling. There are industrial and depot realties, office buildings and parks, warehouses and retail centers.
Standard development plans may be needed for each of these categories. The developments that must or must not be materialized should be investigated. You must develop, buy or sell properties according to the corresponding market demand.
This is why we invested time and resources to prepare a killer property development marketing plan. Additionally, the properties leased or sold are subject to the demands of the buyer or lessee. This is true for both residential and commercial real estate.
Planning is the next step to starting a real estate business; so you have to construct and compute every important detail. Being impulsive is not a virtue in this business. The marketing strategy as regard the different features of the property must be carefully tackled. This step must also involve re-evaluation of seeming perfect plans repeatedly.
Before purchasing or investing in properties, research must be done to determine their current and potential profitability including that of their location, weaknesses, and others. It is important to inspect the features of the property and the location in the present but it is also vital to know what can be expected in the future.
To successfully launch a real estate business, you must lay out your financing strategies and secure financing methods. Loans are available from banks and even private lenders, so it’s up to you to make a choice. Sharing the burden with investors is also a good financing method to start with. Combining these two may result to an effective funding solution.
Learn about zoning
When learning how to start a real estate business, it’s very important you learn about zoning. There are separate zones for residential and commercial real estate. An individual preparing to open a real estate business must check the city zoning to know about the division of the location.
In connection, the zone you have chosen must be accessible to direct targeted traffic. Repeating the research process involved in planning is also vital in this step. The infrastructures that may be built in the next years should be studied to know if they would serve as obstacles or be beneficial instead.
- Learn about land surveying
Another major detail on the journey on how to start a real estate business is land surveying. The geographic particulars of the location must be determined for the assessment of the land quality. This is important to know if the ground is suitable for construction.
- Form a strategic alliance with an architectural firm
For quality residential and commercial properties, the services of an architect are deemed necessary. Coordinating with him should be done for the realization of the building structures and designs desired by the prospective real estate business owner. After the property designs have been laid out, hiring contractors to carry on the construction is the next step.
Once the construction of the buildings is done, you should be prepared for building inspection. This is done to assure that the real estate properties comply with the standard requirements.
In conclusion, it is necessary you hire the services of a realtor or agent to find suitable tenants or buyers for the property. You should also strive to be personally involved in your project development and when you cannot oversee the operations on a daily basis, it’s advisable you bring on a property management team. They will be in-charge of maintenance, repairs, and other minor undertakings.
At this point, I believe I have laid out the basics steps on how to start a real estate business from scratch; so it’s up to you to take action.