Real estate can be a rewarding career to pursue. Many people think of real estate and envision easy money consisting of large commissions. Real estate, like any other line of business, involves investing the time and money to make it work. If you’re interested in starting a real estate business, this guide is for you.
Types of Real Estate Businesses
The first thing to do is research the field. Find out as much as you can about the industry to see if this is something you’d be interested in. Once you decide to work in real estate, you’ll basically be starting your own business. It’s important to understand what that means for you, and what will be expected of you.
As a business owner, it’s up to you whether you work your business on a full-time basis or part-time. Again, this is your business. Ask yourself important questions like why you want to do this business and how much time you can commit to it. Once you’ve done that, it’s only a matter of determining the type of real-estate business you want to have.
You can become a real estate agent in about four to six months, depending on where you live. It may require an upfront investment. The steps involved in becoming a real estate agent are:
Research the requirements for your state
For most states, the process involves taking classes, passing a state exam, and finding an agency or broker to work through. But there are specific requirements depending on where you live, so make sure you know the process for your state. Continuing education is a requirement, and some states may let you have licenses in multiple states.
Take the pre-licensing courses
You may need to take several different courses before taking the exam. There are some differences between states when it comes to getting your real estate license. Expect to pay a fee for courses.
Take the real estate licensing exam
Expect to pay up to $300 for your exam. Exams are computerized and consist of two parts: a national portion on general real estate principles and practices, and a state-specific section that covers your state’s real estate laws. It is not uncommon to fail the exam on the first try. Most states allow retakes. How many times you’ll be allowed to retake depends on the state.
Apply to be a real estate agent
After passing your test, you have to submit an application and any other documentation your state requires to be a real estate agent. Fees are associated with the process. Once your application is approved, you can activate your real estate license.
Join a real estate brokerage
To perform real estate, you have to work under the umbrella of a broker. A broker is licensed by the state to oversee real estate transactions. In essence, brokers have in-depth knowledge of the real estate business beyond what the real estate exam covers. That protects you as an agent to ensure all transactions are legal and ethical. You will be paid a percentage of your real estate transactions by the broker.
A Realtor, a licensed agent, is a member of the National Association of Realtors (NAR). The NAR provides information that holds a realtor to a higher standard than an agent. Membership in the NAR comes with access to market data and other services and benefits beyond that of an agent.
You can make money in real estate as a real estate investor. In doing this, you can invest in real estate property and fix and flip, or buy and lease out your property. Leasing or renting property makes you a landlord. That is an important function, and you want to be sure you’re ready to take on the responsibility of being a landlord.
Summing it All Up
No matter how you look at it, there is money to be made in real estate. Make sure you research to decide the best option for you. Lantern Real Estate Group is a group that understands how hard it is to grow your real estate business. If you’re ready to become an agent or realtor and looking for a broker, let us help you reach the next level. We give you everything you need to market and run your business.
As an investor, if you’re looking for your next property, enjoy the unparalleled marketing, concierge-level service, and exceptional results that Lantern Real Estate Group offers.
Contact us to learn more.