Q:

How do you start a real estate business?

A:

Quick Answer

To start a real-estate business, save enough start-up capital, get a real-estate broker's license, create a website, choose an office location, hire agents, and advertise the business. You must have at least two years of real-estate sales experience in many states to sit for the broker's exam.

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Full Answer

  1. Save money

    Place enough money in your savings account to cover expenses, such as purchasing insurance, creating a logo design, renting space and buying office supplies. Save enough money to cover operation expenses in the form of utilities and fees for the next three or four months.

  2. Get a broker's license

    Take a course approved by your state government to become a licensed real-estate broker.

  3. Choose your office location

    Pick a suitable place to conduct business based on such factors as zoning restrictions, parking and visibility.

  4. Create an online presence

    Create a website to attract business, and utilize the Multiple Listing Service to gain access to more potential clients.

  5. Purchase insurance

    Buy errors-and-omissions insurance to protect your business from litigation.

  6. Draw up agreements

    Create an independent contractor agreement that outlines a code of ethics and standards that the agents must abide by.

  7. Hire agents

    Recruit talent for your business. Train the agents in sales techniques, if necessary.

  8. Advertise your business

    Use television, newspapers, real-estate publications and radio as marketing platforms. Hire a marketer who can help you advertise your business online.

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