If you have an idea for a startup, you’re probably excited about getting it off the ground. That’s going to be true regardless of whether your plan is for something completely new or conventional. Real estate startups aren’t unusual, but it’s a steady market, and getting into it makes sense.
New real estate companies face some distinct challenges. However, there is technology at your disposal to help you, and as long as you’re determined, there’s no reason you can’t make a splash in this industry.
Here are six real estate startup tips that should point you in the right direction.
Figure Out What Kind of Real Estate You Want to Feature
Few real estate agencies represent all kinds of properties. A company interested in marketing luxury real estate probably won’t want to deal in tiny studio apartments. It helps if you:
Meet with your partners and go over what properties you want to feature
Familiarize yourself with the different neighborhoods on which you might want to focus
Hire real estate agents and other staff who share your vision
The best real estate companies find a particular niche and stick to it. Later, if you’re successful enough, you can expand.
Understand How to Use Technology to Your Best Advantage
We are living in a time when there are more excellent real estate apps than ever. There is also more real estate software that can help you with a broader task range than was the case ten years ago, or even five.
Do some research and pick out the best software and apps to help your startup. You also might consider:
Setting up proprietary software if you have the money to do so
Contacting a dev team to create an app that perfectly meets your business’s needs
There are apps and software now that do things like open property doors without keys or give you instant local school ratings or crime stats. Master them, and you’ll be in a great position to serve your clientele.
Figure Out Your Funding
Unless you’re independently wealthy when you go into this endeavor, you’re going to need to set up your funding before you embark on this exciting new adventure. If you’re getting a business loan from a bank or another financial entity, make sure that you compare rates to get the best one.
Local banks or credit unions are sometimes worth looking into because if you’re going to keep things small when you’re starting, it’s nice to have nearby branches that you can visit. You might befriend loan officers or other individuals who can help you as you work to establish your operation.
You might have a clear idea in your head of how you want things to go. However, it is the rare business venture that operates perfectly right out of the gate.
As the owner or operator of a startup, you and your partners, if you have any, must be ready for setbacks. They’re almost certainly going to happen. You have to be prepared to roll with the punches, and when something goes wrong, don’t panic.
Try to think of contingency plans beforehand. If you prepare for the worst, then it will not catch you flatfooted if it happens.
Think About Forming an LLC
In the real estate industry or any other endeavor, forming an LLC is something that you and your partners should consider.
An LLC means a limited liability company, and its purpose is to guard your personal assets if your business does not succeed. Tax benefits exist for forming an LLC, and you should research them before you decide if you want to make this move.
Remember, though, that forming an LLC costs money. You might choose to create one in a different state from where your startup is. Startup based in NYC can actually be a company based in Missouri, and so on.
Delaware is a popular choice for incorporating an LLC because the rates there are among the nation’s most reasonable. Talk it over with your partners.
Hire a Passionate Staff
You’re probably going to need to hire additional staff members at some point, and when you do so, try to trust your instincts. If someone seems like they would be a good fit for the company, give them a chance.
If their credentials seem perfect, but their temperament isn’t quite right, you might do some more interviews and see if someone else impresses you.
Your real estate startup is going to be a lot of work, but hopefully, it ends up paying off the way you envision.