How To Start a Real Estate Business

Posted by Florida Realty Marketplace on Wednesday, December 18th, 2019 at 8:00am

How To Start a Real Estate BusinessZig Ziglar said, “If you fail to plan, you plan to fail,” which is especially true as you get a real estate business off the ground. You have to have a plan if you want to succeed. Let’s look at everything you need to know to start your own company.

Licensing and State Requirements

To being with, you have to get your license for the state in which you plan to work since you can’t practice real estate or get paid without one.

Requirements vary from state to state, and some licenses reciprocate from one state to another. However, take the time to do the research first to make sure you understand the requirements.

Aspiring Kissimmee real estate agents have a list of things to do to get a license. They must:
•    Complete an approved, 63-hour, pre-licensing course online or in person.
•    Submit a completed application, electronic fingerprints (for a background check), and the $89 fee.
•    Pass the licensing exam with at least a 75.
•    Activate their license (the license is issued in an inactive status, which can be activated later).
•    Stay active by completing an approved 45-hour, post-licensing course prior to the license renewal period
•    Complete 14 hours of continuing education to renew their license.

Obviously, there is a lot of education required just to get your license in Florida, and that is just the start to running your own business.

Making a Business Plan

Owning a business and having a job are very different things. You need to plan your budget, who you’ll join as a brokerage, and who you’ll work with as clients.

One of the most important aspects of keeping a business successful is cash flow. You have to decide how to bring in revenue. Working by referral is one end of the strategy spectrum, with cold calling and knocking on doors at the other. Decide which approach works for your personality and business model.

Getting Started Financially

The budget to start out would be about $2500 to cover licensing, testing, and the details of getting licensed. If you start by joining a team, you might see income more quickly, but it will be less than you’d earn if you start on your own.

You’ll need money for personal expenses saved up until your first closing. That can take weeks up to even a few months.

The broker you join will have expenses for you to pay as well. Office fees, commission splits, signs, lockboxes, and marketing material are all required just to get started. Splits are paid on commission earned, but the other expenses come monthly or as the materials are needed.

Where Do Your Clients Come From?

Some brokers will give you leads, but they typically charge a higher percentage on splits. If you find your own leads, you will likely keep a bigger portion for yourself.

To start finding your own clients, people who would buy Kissimmee Homes for sale, consider writing a personal, handwritten note to everyone you know. Mail it to them, and then call a few days later to make sure they know you’re in business. Be sure to focus on them in the conversation, not you and your accolades.

Emails, social media posts, and press announcements can get lost in the clutter of the advertising your clients are bombarded with every day. Calling to talk to them starts a conversation you can keep going to earn their business.

Find Coaches and Mentors

Now that you’re started in the business, it’s up to you to find a mentor or broker who will help train you in the day-to-day work. Don’t be afraid to ask for help and be willing to help the seasoned agents in any way you can.

Do your research, and then ask questions about retention, training, and mentoring. This is a great business, and finding the right broker and office is key to your success. Contact us and we’d be glad to sit down and talk with you. We can answer questions and share our office culture to see if it’s a good fit for you.

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