Starting a real estate business isn’t for the faint of heart. What other industry requires you to cold call dozens of leads every day but only close five deals in your first year (if you're lucky)?
It’s a common adage that 3 out of 4 real estate agents fail within the first five years. But for those who have what it takes, starting your own real estate business can absolutely give you the seven-figure job of your dreams.
Here’s a down-to-earth look at how to start your own real estate business, plus advice for avoiding mistakes that hijack momentum as you grow.
Know Before You Go
For many new agents, real estate is their second, third, or even fourth career. You loved the idea of “being your own boss” while making more than you did at your last job, but freedom has a very different meaning for an employee versus a business owner.
How to Start a Real Estate Business
- Get a CRM
- Craft your ideal personal plan.
- Write a real estate business plan.
- Build a consistent marketing plan.
- Get a website.
- Prospect consistently.
- Nurture leads.
- Have good time management.
1
. Get a CRM.
At the end of the day, a business is a system.
Barry Jenkins is the broker-owner of the #2 Better Homes and Gardens Real Estate Team in the United States. He’s also a guy who hates inefficiency. “I, to a fault, like to make things easy. The reason my business is so successful is that it was built on the core principle of leverage.”
2. Craft your ideal personal plan.
Before you set the right financial goals for your business, you need clear financial goals for your life.
Commissions are great but — let's face it — we all came into this business wanting something bigger and better than what we had.
Whether that’s the 187-foot yacht of your dreams or the ability to leave the office at 2:00 PM so you can pick up your kids from school, take time to think through what your ideal life would look like.
Consider the following questions:
- What time do you want to start work?
- What time do you want to finish?
- How do you want to feel each day?
- How much money do you want to make?
Common Professional Pitfalls (and How to Avoid Them
1. Losing momentum.
You’ve put in the work. Early mornings and late nights following up on leads, arranging showings, and putting out purchase fires have yielded the desired result: consistent sales.
The problem? For many agents just starting their careers, it’s easy to get caught up in this initial rush of success and start relying on their laurels instead of pushing forward. While this may work for a few months or even a year, the loss of momentum can be devastating over time.
To keep sales flowing, it’s critical to keep your foot on the gas and keep looking for new leads.
2. Thinking short-term.
Success in real estate means thinking about what comes next — the next client, the next sale, or the next purchase.
The problem? This can lead to short-term thinking that ignores what got you success in the first place: your clients.
As a result, it’s critical to forge a relationship with clients you’ve helped in the past. Not only does this increase the chances that they’ll come back to you if they choose to sell their current home or purchase a new one, but they may also refer you to their friends and family.
Let’s Get Real
Success in real estate is not simple — or easy. With the right approach to business planning, service marketing, and lead generation, however, it’s possible to build a real estate business that helps you achieve life goals and establish a firm financial future.
Best bet? Know why you’re getting into the industry, be prepared to put in the work, and learn from your mistakes.
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