/ BLOG

How to Start a Real Estate Business?

Sep 8, 2021 · 8 minutes to read

Founding your own business to invest in real estate is not a simple matter, but if you prepare yourself correctly the rewards can be immense. There are many resources available for small business owners that can help you to learn the ways you can avoid the pitfalls and maximize your profits. The tips below have been created to help you become successful in the real estate business, from planning to establishing to expanding. 

What does a real estate business do? 

Real estate businesses are concerned with the purchase, sale, management, running, and/or investment in land and/or buildings 

Starting a real estate business

If you’re thinking of starting your own real estate business, you must be aware that it is not a simple matter. As with starting up any other business, you really need to put in the work to do your research properly and come up with a detailed workable business plan before you begin to put your plans into action. You should follow the steps below and don’t be tempted by shortcuts. 

1. Establish your business goals

Before you set off on your journey, you need to think about where you want that journey to go. You must consider what you want to achieve personally, professionally, and financially, because your goals will have a significant influence on the way you establish and expand your business investing in real estate. A good place to start is by thinking about what position you want to be in in five years, in ten years, and in fifteen years. Once you have established that, start to think about the strategy you can implement now to help you reach these goals. This is one of the most important parts of the establishment process. Having targets will keep you focused and inspire you to take effective action. 

2. Do your research

You cannot hope to be successful in business if you don’t research your chosen industry in the most thorough way possible; you need to identify your market, the place you will occupy within it, and who your competitors will be. There are several different strategies you could use: some first timers choose to go down the wholesale route, which gives some experience before making property purchases. Nevertheless, a buy-and-hold or rehab strategy could be a good option, depending on your targets. 

Look around the neighborhood you are planning to work in, find out about its amenities, and investigate median home values and rental costs. If the neighborhood isn’t suited to your plans, there’s nothing wrong with looking elsewhere. Do your research online, go to networking events, and maybe see if someone is willing to mentor you. The key point is that every hour of research undertaken at the start will save you weeks of work as you launch your business. 

3. Get your finances organized

There are several ways you can enter the real estate market without committing any capital, but you should still review your financial position before you begin. When you start to talk to a loan company, they will want to know about your financial standing and history. You need to know how to answer any questions that they may ask. Get a copy of your credit report and look over all your existing accounts and/or investments. You should remember that whatever your financial status, there is always a way that you can enter the world of real estate investment. 

4. Design a business strategy

Having done all the research you can possibly do, you will be ready to begin thinking about the precise ways in which you are going to make your business successful. Create a business plan that incorporates all the tools and resources that you are going to need for success. 

5. Establish a real estate LLC

A limited liability company (LLC) is a business entity created to ringfence a business enterprise so that the costs of business will not mix with the personal financial position of the investor. This allows you to purchase and hold real estate without taking on personal liabilities. There are different costs and rules about establishing LLCs in every state, although they all follow much the same process: 

  • Make sure you know all the regulations pertaining in your state 
  • Create your own business name – this must be unique 
  • File an Article of Organization 
  • Design an operating agreement for your endeavor 
  • Publish an Intent to File declaration (if your state requires it) 
  • Ask the IRS for a tax identification number 

Having created an LLC, you may need a number of additional permits to allow you to start operating as a business. Check the regulations in your state and once you have all the necessary documentation you can start thinking about looking for deals.

6. Create a marketing plan

You cannot hope to be successful in real estate investment if you don’t have a solid marketing plan behind you. What is it that you are offering the market that others aren’t? Finding the answer to this question will show you how to create a business brand that you can use in all your marketing. In addition, when you start out, you need to think of your logo, your central values, and your mission statement. Having these elements in place will show you how you can access the market and the elements your marketing material should contain.

Once you have laid the foundations for your business, you need to launch your initial marketing campaign. Some of the most effective ways of marketing are listed below.
Email campaigns: Emails are an excellent way of contacting potential clients, providing you can obtain or create a database of good contacts. As it’s not as easy to obtain email addresses as it is to acquire property addresses, it could take some time and patience to build up a good contact list. However, once you have such a list, email is a very effective and economical way of contacting purchases and vendors.

Social media: Social media is an excellent way of publicizing your business because it is completely free. Build your profile on LinkedIn, Instagram, Twitter, and Facebook, and try to update as often as possible. If you want to go a step further, paid for advertisements on social media can be highly effective.
Networking: Networking is the lifeblood of the real estate business; many people have got their first break in the business by effective networking. Look on Facebook and Meetup.com to find out local real estate events and attend them. Joining your local Chamber of Commerce could be a good way of meeting contacts as well. Once you’ve established a network of contacts, you could start to think about hosting your own events.

Bandit signs: Wherever you go in the US, chances are you will see bandit signs at intersections, the posters for real estate businesses. The reason you’ll see them everywhere is because they are highly effective and cheap too. However, make sure that they are legal in your local jurisdiction – you don’t want to lose goodwill or get in trouble with your local administration.

Website: It’s essential to have a website for your business: many people looking for a home go straight to the Internet as their first point of call. It’s easy to design an effective website with all the tools available now, but if you are lacking in confidence it’s a worthwhile investment to pay someone to design a really professional looking website for you. Keep it updated (adding new content is one of the best ways of getting to the top of search engine listings) and make sure you publicize your URL in all your publicity material.
Whether you choose one of the marketing methods above or decide to use all of them, make sure you are consistent in your marketing and always show a solid professional image.

One final but essential thing: if you are going to start your own real estate business, you must invest in liability insurance. Real estate insurance coverage can be economical, with different plans available to suit your business, but it could be a lifesaver. If you make an error, or even if you have to take the consequences of somebody else’s error, if you don’t have real estate insurance coverage, you could lose everything you worked so hard to create. Learn more about your options for business insurance for real estate.

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

Get Free Online Quotes and get coverage instantly

The coverage you need for your business.

Business insurance is divided into different policies. We offer 4 types so it's easy to design the coverage that fits your business.

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

BizInsure has really come through for me on some really hard to place risks. Andrew takes the time to understand the risk and work through how we can make it work, rather than looking for ways to say no. Thank you for your help!
Carlos T.
18:06 16 Mar 23
Very helpful and explanatory on the policy line of the policy
Josua V.
17:30 14 Mar 23
Worked with Tevin. Amazing customer service. Was very patient with me in figuring out the best insurance coverage for business. Thanks Tevin for making it easy.
Faisal O.
16:23 14 Mar 23
No complaints, Always a fast response when a need arises.
Dan F.
13:56 10 Mar 23
Very good information patience was shown. Much help from Kaled, satisfied with the amount of insurance and good coverage. Affordable is what you need with starting a small business until you grow. Old saying is go as you grow.
Jacquelynn W.
21:53 20 Jan 23
Professionals at what they do! easy to navigate and very good people to lead to to the best coverage!
Magnifier 2.
20:37 17 Jan 23
I have been shopping for business liability insurance for several months. I am happy to share that BizInsure ranked #1! The representatives were polite, patient, and empathetic. They accomplished what most companies struggle with achieving: they did what they said they were going to do, they were on time, and they had empathy. They delivered a policy for 25% less than the closest competetor, and even included $50k of cyber security at no additional cost! I only write reviews when I receive exceptional experiences- highly revommended; keep up the great service BizInsure!P.S. I own a professional referral service in Hawai'i and I am going to see if BizInsure offers an affiliate program.Aloha!
John S.
05:51 23 Nov 22
They respond quickly and give you quotes immediately ...
Regean K.
23:55 09 Nov 22
The agent that I spoke to was very experienced and could tell that I was new at this and was very understanding and took the time to explain everything to me.
lotanga J.
00:04 15 Oct 22
Easy to work with and very responsive. Glad to have them as my broker.
Edward G.
18:54 13 Sep 22
We’re very happy with BiInsured LLC. VERY AFFORDABLE
Paul A. F.
19:20 11 Sep 22
Jasmine Q was on the spot professional, she knew where to direct me and explain to me my concerns and request; she delivered my personal information within minutes of me asking policy questions.That young lady is a true ROCK STAT!!!
Shaka 3 Z.
23:09 15 Aug 22
For a small non-profit, the package I was given was affordable. The representative was polite, patient, understanding, and knowledgeable.
Gertrude R.
18:06 15 Aug 22
Asked for a specific venue to be place on our certificate of insurance and it was done within one business day. Yay! Bizinsure!
Melinda S.
17:02 01 Aug 22
The process was fast and easy and the professional staff was very knowledgeable with any questions that I had and ready to help
VALERIE M.
06:40 31 Mar 22
Friendly agents. Timely replies. Fair pricing. This is a good fit for my business! Thank you, Noah, for all your help.
Beth Anne V.
19:27 28 Mar 22
They are awesome
Tony H.
00:41 07 Jan 22
Noa made sure I had all the information I needed for a first time business owner . He helped me understand what I needed to secure a quality policy and he was super helpful when explaining how the policy would serve its purpose to my company. I was very satisfied and had an Awesome experience, I think people like that make the company look good!
Wayleen O.
04:36 15 Oct 21
I was in need of WC, GL and PL coverages for my business and was able to shop, discuss, confirm and purchase all the coverages in two days! This was a great experience, especially when "Time is Money". Noah Bowman was very professional and knowledgeable. Thanks!
AmeriCreed 1.
15:42 23 Sep 21
MOVING FORWARD, I WILL BE SENDING ALL OF MY BUSINESS TO THIS COMPANY !!!! Incredible customer service!!! Thanks
THEODORE W.
19:49 09 Sep 21
Their representative clearly explained different kinds of policies to help me select the one appropriate for my needs and then helped me enroll by phone painlessly. By the end of the call, I had a policy in place.
Dissent D.
22:21 02 Sep 21
Eugene was Awesome!!!!
Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
Lane
18:22 22 Jun 21
Done in less than an hour!
William O.
00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
Brenda J.
20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
Arik S.
16:34 10 May 21
Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba P.
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper M.
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic F.
21:00 07 Apr 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin B.
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V L.
23:13 09 Mar 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie W.
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined P.
23:32 17 Feb 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe W.
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa W.
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda H.
23:26 12 Nov 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran S.
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen D.
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele H.
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina R.
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy S.
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope J.
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela C.
16:45 24 Aug 20
Great and fast service!!!! The representative was very professional!!!!
Tanya S.
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy S.
19:01 14 Jul 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda G.
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul R.
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene S.
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre H.
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn T.
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. A.
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh M.
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Y.
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark W.
23:42 13 Nov 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham B.
22:12 23 Jun 17
js_loader

Popular Searches

Google Rating
4.4
Based on 89 reviews
×
js_loader