Want to learn how to start a real estate business?
If you’re a real estate enthusiast, like me, then you’ve probably wondered how to start a real estate business to start making some profits from the real estate market.
There are many aspects that you need to consider before learning how to start a real estate business. And even after you’d educated yourself, it is important to understand what you’re trying to achieve from the business that you want to start.
So, in order to answer the question “How to start a real estate business?”, you first need to address these 5 important aspects of the real estate business in order to get started on the right career path, armed with the right knowledge to find success in the world of real estate.
How to Start a Real Estate Business – Educate Yourself
The first step towards starting a real estate business is to educate yourself on all the different aspects of the world of real estate.
The world of real estate is a very large and diverse one. There are many career paths to choose from, many laws to learn about, and numerous aspects to master. Luckily, there are also thousands of different ways that you can use to educate yourself and learn about the world of real estate.
When you start learning about real estate, the main sources of knowledge that will be available to you are:
- Real estate books
- Online real estate websites and blogs
- Real estate professionals and mentors
All of these options are great for getting you started as well as for learning the ins and outs of the real estate world. However, some online sources might not be accurate or comprehensive, so make sure to choose carefully.
Note: To learn more about all aspects of real estate investing, continue reading our blog.
Real estate books are the most conventional and guaranteed way to learn all about real estate investing, although they can be very time-consuming. However, if you already have a solid idea of the exact things that you want to learn about real estate, there will always be a book designated to that topic.
Real estate professionals and mentors are my favorite way of seeking education about the ins and outs of the real estate business. Carrying years of experience on their backs, real estate mentors can help you learn from their own experience, and they will guide you through the different stages of your real estate business and career.
Learn: The Ultimate Guide to Buying an Airbnb Property with Ease
How to Start a Real Estate Business – Choose a Career Path
The world of real estate has many career paths that you can choose from.
When it comes to answering the question “How to start a real estate business?”, the answer will rely mainly on the career path that you’re most interested in.
A career path as a real estate agent, for example, might require an official education and/or many years of experience in the real estate market. A career path as an investor, on the other hand, might require a solid amount of cash to be available for investing.
These are the three main and most common career paths that people choose in the real estate world:
- Real estate investor
- Real estate agent
- Real estate developer
A real estate investor is the most common path that people take in the world of real estate. A career path as a real estate investor does not necessarily mean that you will be investing in real estate full-time. It means that you are investing an amount of money in any type of real estate investment with the aim of making a profit out of it.
A real estate agent is the backbone of any real estate deal. You will need to have enormous amounts of knowledge about the real estate market, and you will need enough personal and professional skills to handle all the different aspects of being a real estate agent.
A real estate developer is also someone who needs to have a lot of experience and knowledge in the real estate world. But more importantly, a real estate developer needs to have a solid connection with professionals in the field, including real estate agents and investors, as well as contractors, engineers, lawyers, and other professionals.
How to Start a Real Estate Business – Stick to a Niche
No matter what career path you choose to go with, each career path has a number of different niches or specializations for you to pick.
Whether you’re a real estate investor, a real estate agent, or a real estate developer, there are three main types of real estate niches that you can choose from, in addition to several other strategies and property types within each category.
The three main types of real estate are:
- Residential real estate
- Commercial real estate
- Industrial real estate
Residential and commercial real estate are the two most common types, especially for real estate investors.
Residential real estate is considered the easiest to get into, and it is typically considered an entry-level investment that any beginner investor can invest in. Commercial real estate, however, is where real money can be made in real estate investing, but it requires more experience and a larger amount of money to get into.
Additionally, there are three main investment strategies that real estate investors, as well as agents, can specialize in:
Each of these three investment strategies has its own unique aspects, and they differ drastically in the way they function and generate profits, as well as the time period that it takes for these strategies to bloom and generate their expected returns.
Related: Top 6 Real Estate Investment Strategies
Lastly, there are numerous types of real estate properties that you can choose from:
- Single-family homes
- Multi-family homes
- Condos
- Apartments
- Office buildings
- Storage houses
- Shopping malls
- And several others…
Depending on your career path, your niche, and your strategy, you can focus on a single property type that you’re most comfortable and experienced with, or you can mix and match different property types to suit the needs of your investment or career path.
How to Start a Real Estate Business – Learn the Rules
While learning about the different aspects of real estate on its own is a time-consuming and mentally draining task, there are other fields that are interrelated to real estate that you will also have to learn about in order to avoid any unnecessary risks or complications.
The main and most important field that you will need to educate yourself on is the field of law. Whether you’re a real estate investor, agent, or developer, you can’t escape the law, so you might as well learn about it and abide by it.
There are two ways that you can learn about the laws and regulations associated with the real estate business:
- Reading books and articles
- Seeking the advice of a legal expert
Although it is definitely recommended to educate yourself and read as much as you can about the laws that might affect your career, I will always recommend seeking the advice of a legal expert.
Legal experts will have more experience, knowledge, and understanding of the laws and regulations, and they will know exactly what will affect you and what won’t. They will greatly reduce the amount of time you need to learn about any aspect before moving onwards with your business, and they will know more than anyone else the ins and outs of the business when it comes to the laws that dictate it.
How to Start a Real Estate Business – Know the Tools
Finally, one of the biggest advice that I can give you when asking the question “How to start a real estate business?” is to know the tools that are available to you in order to make your life easier.
There are numerous online websites and platforms which are specifically designed to serve the needs of real estate investors, agents, and other professionals in the field.
Also read: 6 Must-Have Real Estate Investment Tools
Some tools allow you to search for and find investment properties that you can purchase for profits, while others provide you with digital calculators that you can use to easily and quickly calculate the different metrics and help you determine the profitability of your investment.
Mashvisor, for example, is an online real estate analytics platform that real estate investors use for finding investment properties anywhere in the US, using tools and filters to customize their search results. Our platform provides users with analytics and data comps to help them identify the most suitable investment properties in the market based on their own search criteria and investment preferences.
Note: To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
Bottom Line
How to start a real estate business? Know what you want, and know that no matter what it is, there is something or someone out there that can help you get it.
Whether you’re looking for education, a career guide, or tools to help you close the deal faster, Mashvisor can be a great place to get you started on your career as a real estate investor.
Sign up for Mashvisor now and enjoy the tools that can reduce the amount of time it takes to search for a property and analyze it or the market from several months to only a few minutes. In this way, you will always be ahead of competition, and you will have a greater chance of finding success and becoming a wealthy real estate investor or agent.
