Questions Every Real Estate Business Startup Should Ask
Starting up to work in the real estate industry might look easy for those who are looking from the outside and people that watch tv shows like Flip This House or Flip Men. However, given the high competition of this industry, there are many questions that need to be answered in order for your business to be successful. Any aspiring real estate agent, investor or entrepreneur should look into those specific questions before deciding to dive into this field. Otherwise, they risk facing unexpected challenges that will make it even more difficult for them to succeed.
Regardless of what your end goal of getting into this field is, you should answer these very important questions before making a final decision.
Why?
Find out what are the reasons you are really drawn into this type of business. Is it simply for the money or do enjoy other aspects of real estate? Are you passionate about it? Find out what it is you like doing the most and see if you can integrate that type of work into your start up in this field. There are many different niches in real estate (property management, wholesaling, rehabbing, working with buyers, working with sellers, rent-to-own specialists, shortsale negotiations, etc.), which niche fits your passion and why?
What are my talents?
Keep in mind that there are many aspects for the real estate business that require different types of skills and even personalities. Decide what aspect of the business you want to be focused at the most; is it the direct sales part or the logistical and administrative side? For example, if you like socializing and have great people skills, then you should be doing the in-person sales. If you are not very sociable but extremely organized then it might be better that you do the administrative work and bookkeeping. Are you a computer savvy person or enjoy marketing? Then maybe you should focus on the advertising and developing your internet presence. You should only do the things that you are good at and you should outsource the other things that you are not good at or tasks that you don’t enjoy doing.
Unique Selling Position (USP)?
Keep in mind that this is a competitive business. Find out what your unique selling position is? What are the skills, knowledge and traits you have that will make you stand out among others who are already established?
Where can I gain what I lack?
Of course, you cannot go into real estate knowing everything about it. For this reason, having a clear idea of your strengths and weaknesses will help you move on to the next step and identify what you can do to strengthen yourself and your business and be successful. It is important to educate yourself by taking courses and reading. It is also a good idea to work with experts who are already successful in the field you want to go into.
Do I have a lot of time or money?
If you have a lot of time but not a lot of money, then wholesaling might be a good option. You can also work for investors that do have a lot of money by a commission based structure. If you have a lot of money but not a lot of time, then private lending is a great option. Promissory notes secured by a mortgage are a safe investment vehicle that produce 6% and higher interest rates.
Conclusion
Ask yourself these questions if you want to get into real estate and develop your specific niche or specialty. If you try to master every niche starting out, you will become overwhelmed, stressed, sidetracked, and you will not make much progress. Master one niche and become an expert. Once you are an expert in your niche, then you can move on to master more niches. There are a lot of great options in real estate but you shouldn’t choose simply based on money. Pick the niche or specialty that makes you the happiest and makes you want to get out of bed each morning to start your day!