Are you embarking on a new business venture? Is it a real estate business? Well, hats off to your entrepreneurial spirit! Real estate business is one of the most lucrative business sectors, regardless of whether you practice in your hometown or across any nation in the world. When you enter the international real estate market, the changes in the global market will patently impact your local business.
Being a real estate business owner, you should keep one thing in mind: you are the first one to work, last one to leave, and last one to be paid. So, if you are reading this article, then I guess you really want to start your business venture in the real estate industry. You might not be aware of the fact that real estate signifies an important portion of most people’s wealth, and this is specifically true for many homeowners in the United States.
A report cited by the Survey of Consumer Finances by the Federal Reserve states that around 62.5% of American families prefer to have their own residence. So being such a propitious industry for investors, creating ultimate business strategies can help you grow seamlessly in this agile market.
But as the adage goes, “We don’t grow when things are easy, we grow when we face challenges.”
Is becoming a real estate owner the right career move for you? And is it the best route to success? Are you ready to get started?
Here are the 5 steps you need to take to become a real estate agent or owner:
Get a Basic Knowledge of International Real Estate
When you first thought of venturing into real estate, you might have done some research to understand the industry. Although research work is significantly important, you need to develop your skills and knowledge regarding government laws, currency issues, market conditions, political issues, cross-cultural relationships, and legal issues – this is possible through education. Yes, there are many institutes that offer an MBA in international real estate for students. Homburg University is one of them.
Moreover, you can also pursue your degree in Real Estate Management, which can help you learn about portfolio management, valuations, and buying and selling procedures when operating in various countries. Browse the internet and get a list of universities in your locality.
If you already have an international real estate business but you don’t have certification, then it’s time to plunge into online programs to gain more knowledge about the industry.
There are pre-licensing classes available that teach you the basics of real estate, such as mortgages, legal issues, contracts, etc., regarding properties.
Build a Team of Partners When Working Abroad
A strong relationship is very important in any business, and it is true in the international market as well. Having good relationships in the international real estate market can help build your team of experts and networks to do business deals. Knowing how to connect forces with another business is the key factor in making any growing company fruitful. Moreover, a strategic partner can provide you capital, or let you control their brand to run the gauntlet in the international markets.
There are various international organizations with whom you can partner and do international business, including the International Real Estate Federation (FIABCI), Global Real Estate Council, and National Association of Realtors.
The National Association of Realtors (NAR) is a voluntary trade association for real estate agents. Usually, the term “Realtor” is sometimes used as a substitute for “real estate agent,” but it actually refers to an NAR member specifically.
What are the benefits of joining NAR?
- Access to exclusive resource
- Protection options
- Discounted technology
- Banking services
- Risk management
- Educational tools
Understanding of Culture
When you are doing business in other countries, it is necessary to understand your customer base completely. To be an effective real estate agent across boundaries, you have to accept that cultural difference dwells – adopt a unique approach and market your business appropriately. Your research can aid you to rank each country on a range of dimensions:
- Individualism: how much people care about the happiness of others.
- Masculinity: based on whether a culture believes in male/female equality.
- Indulgence: the limit to which people try to control their desires.
- Pragmatism: respect for tradition.
These cultural dimensions are not bounded only for marketing and sales, it’s also critical for other magnitudes of real estate business, too. You should establish a common factor with your foreign clients while offering your services.
When you are at the growing stage or doing research work for your real estate business, you might come across outsourcing services. As the owner, you need to wear multiple hats for managing various tasks of your business, including real estate accounting, marketing, data entry, etc. And you cannot neglect these tasks to keep your business financially healthy.
Therefore, it’s better to outsource non-core jobs and focus more on what matters the most.
What if you are busy with your income statement, reviewing checks, preparing taxes, and due to such instability you were not able to satisfy your client? This could be dangerous for the reputation of your firm. Hence, outsourcing is an ideal choice for business in international markets to focus more on customer satisfaction and earn profits.
Benefits of outsourcing:
- Access to the latest technology
- Access to experts
- Available 24/7
Choose Your Specialization
One of the significant aspects of this industry is selecting your area of specialization. As real estate business is very vast, you can deal in various fields such as luxury homes, commercial offices, mid-size hotels, etc. But, when you are in an international market, it becomes difficult to be an expert in any field of real estate. There is 90% failure rate among agents in the real estate markets surrounded by government turmoil.
Below are a few examples of specializing in certain types of products and/or clients in the real estate sector:
- You can focus on a specific area according to geographic farming.
- You can focus on apartment types with two bedrooms in a building.
- You can focus on commercial offices with great infrastructure at prime locations.
- You can focus on luxury homes that are fully furnished with great interiors.
Real estate is a global business that includes great profits if run successfully. But make no mistakes, your endeavors can lead to failure if you’re not careful. Be undeniably good so that no one can replace the way you provide services to clients in the market.