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How long does it take for a real estate business to take off i really want to start real estate after i graduate but im scared i wont make it no where ?
how long does it take for real estate business to takeoff? I really wanna do real estate, but I’m scared that I wont get no where.
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Michael’s Answer
Hi Miria!
Real Estate is a tough business to start due to the large startup costs required and the learning curve. There are a few avenues of approach that you could take, depending on your goals and timeline.
You could work as a property manager, learn the ins and outs of the business, generate wealth for yourself and save money on the side to build your business.
Another option would be to earn your RE license. This can be tough because it is typically commission based but is a great stepping stone for RE.
Lastly, and the option that I like the most is to get a degree in an applicable field (finance, accounting, entrepreneurship, etc) and find a firm to work with while learning how they operate their RE assets. That way when you generate enough funds to start your own RE business, you already have a great amount of real world experience with real life experience.
Timeframe is different depending on you and your goals and routes, but I'd say 1-3 years to get started, 10 years or so to see significant progress, and 20+ years to see an autonomous and productive business.
Real Estate is a tough business to start due to the large startup costs required and the learning curve. There are a few avenues of approach that you could take, depending on your goals and timeline.
You could work as a property manager, learn the ins and outs of the business, generate wealth for yourself and save money on the side to build your business.
Another option would be to earn your RE license. This can be tough because it is typically commission based but is a great stepping stone for RE.
Lastly, and the option that I like the most is to get a degree in an applicable field (finance, accounting, entrepreneurship, etc) and find a firm to work with while learning how they operate their RE assets. That way when you generate enough funds to start your own RE business, you already have a great amount of real world experience with real life experience.
Timeframe is different depending on you and your goals and routes, but I'd say 1-3 years to get started, 10 years or so to see significant progress, and 20+ years to see an autonomous and productive business.
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Ben’s Answer
The type of real estate venture you wish to embark on can greatly influence your strategy. If you're considering the buy, renovate, and sell approach, it could yield a handsome profit in a short span, but it does require an initial investment. On the other hand, if you're leaning towards purchasing and leasing properties, it's a more gradual process, but it can provide a steady return on investment over time, as your tenants essentially pay off the mortgage. One crucial aspect to bear in mind is the importance of the entry point, which refers to the purchase price of the property.
My own journey in real estate began in 1992, with a focus on buying and renting condos. Their smaller size made them easier to manage, especially in terms of repairs. However, it's worth noting that monthly HOA fees can take a bite out of your profits, so ensure you've done your calculations accurately when buying a property.
If you're starting with limited funds, I'd recommend you begin by saving, but don't let this deter you. There are opportunities where sellers might offer to finance the purchase themselves. Another option is to partner with someone and share the initial down payment.
Finally, there are large-scale investors in the market who employ individuals to scout potential properties for them. In this scenario, your role would be to compile lists of homeowners in distress, reach out to them, and gauge their interest in selling at a discounted rate. The investor then purchases the property, and you receive a generous commission for your efforts.
Best of luck on your journey!
My own journey in real estate began in 1992, with a focus on buying and renting condos. Their smaller size made them easier to manage, especially in terms of repairs. However, it's worth noting that monthly HOA fees can take a bite out of your profits, so ensure you've done your calculations accurately when buying a property.
If you're starting with limited funds, I'd recommend you begin by saving, but don't let this deter you. There are opportunities where sellers might offer to finance the purchase themselves. Another option is to partner with someone and share the initial down payment.
Finally, there are large-scale investors in the market who employ individuals to scout potential properties for them. In this scenario, your role would be to compile lists of homeowners in distress, reach out to them, and gauge their interest in selling at a discounted rate. The investor then purchases the property, and you receive a generous commission for your efforts.
Best of luck on your journey!
Updated
Marshall’s Answer
Greetings Mira-
In general it takes 1-3 years for any business to start to earn a profit/ become profitable. That really depends on how much capital investment was needed up front and what ongoing costs are.
Starting a business does require some amount of money and there will be things you didn't think of. It will also depend on how you found it, if you have partners or not etc. (I would recommend:) You can take some courses in starting a business if you are interested in starting your own.
I might also recommend (having done the "create my own business" path twice in the past) that you consider working with a company for a couple years to get an idea of what challenges you might face running your own real estate business. This will also give you a chance to work out how you do the work of the worker and not have the stress of also being the owner of the company right off the bat. If you work for a smaller one, you might have the opportunity to get to know the owner/ founder and they can give you some insight. Remember that if you do then create your own business, you would be creating competition for them (and others in the area) so they may not be too keen to share a lot of secrets. Working for a larger firm would probably not give you the same opportunities but you would also get to know how the big kids do it.
Real Estate comes in two flavors: Residential and Corporate. One has better potential for higher commissions dueto property sizes being larger. It also depends on the market you are in and how big your working zone is. I worked for a few years in Corp RE in a couple markets/states.
In general it takes 1-3 years for any business to start to earn a profit/ become profitable. That really depends on how much capital investment was needed up front and what ongoing costs are.
Starting a business does require some amount of money and there will be things you didn't think of. It will also depend on how you found it, if you have partners or not etc. (I would recommend:) You can take some courses in starting a business if you are interested in starting your own.
I might also recommend (having done the "create my own business" path twice in the past) that you consider working with a company for a couple years to get an idea of what challenges you might face running your own real estate business. This will also give you a chance to work out how you do the work of the worker and not have the stress of also being the owner of the company right off the bat. If you work for a smaller one, you might have the opportunity to get to know the owner/ founder and they can give you some insight. Remember that if you do then create your own business, you would be creating competition for them (and others in the area) so they may not be too keen to share a lot of secrets. Working for a larger firm would probably not give you the same opportunities but you would also get to know how the big kids do it.
Real Estate comes in two flavors: Residential and Corporate. One has better potential for higher commissions dueto property sizes being larger. It also depends on the market you are in and how big your working zone is. I worked for a few years in Corp RE in a couple markets/states.
Updated
Emma’s Answer
The timeline for a real estate business to take off can vary, but it typically involves completing education and licensing, building a client base, and navigating market conditions. Success in real estate hinges on factors like effective marketing, networking, and consistent effort. Gaining your first clients may take several months to a year, and market conditions in your area can influence the speed of your progress. Financial preparation, mentorship, and adaptability are crucial, and persistence is often a key factor in long-term success. While starting a real estate business can be challenging and require dedication, many professionals have achieved rewarding careers in the field with hard work and a well-structured plan.