How To Build A Profitable Real Estate Business For Beginners

Starting a property business is not easy, considering the
high competition and the risk of failure. However, there are some successful
tips and tricks that you can refer to to start a property business well.

The property business has attracted the interest of many
young people recently because it is considered to have promising opportunities
and benefits. The demand for property continues to increase every day, making
this business very potential, even for beginners.

There is a common misconception that starting a real estate
business means having to buy or build properties first to rent or sell. In
fact, you can easily become a real estate agent and offer existing properties
through advertisements on home buying and selling sites.

Previously, the property business was only intended to meet
personal residential needs, but now it has experienced many developments.
Fortunately, starting an up-to-date real estate business is not difficult. With
a little effort and affordable promotional costs, you can maximize market
potential.

No need to depend on banners or billboards that disturb the
view. However, before going into that, you need to have a property object to
promote. In other words, you have to own the property or work with the property
owner as a broker.

Then, what exactly is the property business and what is
included in this business category? How do I start a property business? This
article will explain in detail the ins and outs of the property business which
is a mainstay for investors.

Also read: 5 Tips for Advertising Interesting Real Estate Properties

What is the real
estate business?

The property business is a business involved in the
management of land and buildings. Both individuals and companies can get
involved in this business. In an era of increasingly advanced technology, the
property business has become more accessible to anyone, both buyers and
sellers. Nowadays, you can even start a property business online through
various available websites and applications.

Property Business
Benefits

Property Selling Value Always Increases

One of the advantages of the property business is a
consistent increase in sales value. Property prices tend to increase along with
the imbalance between demand and availability of land. In addition, property as
an asset will not be eroded by inflation because its value is not in the form
of money.

Potential as an Investment Asset

The advantage of running a property business is its ability
to become a profitable investment asset. You don’t need to worry if property
prices are dropping because this decline is usually followed by high market
demand. Thus, property prices will recover and can even provide benefits when
used as a future asset. Even when buying your first property, you can already
think of it as a promising asset and investment instrument.

Low Loss Risk

Property is often considered an asset with a low risk of
loss because its price tends to be stable compared to other investment
instruments.

After discussing the benefits of real estate business, here
are some ways to start a real estate business that you might find useful.

How To Build A Profitable Real Estate Business For Beginners

1. Help People Sell/Rent Their Property

Support insiders selling or renting their property by
becoming a realtor. Your profit will come from the margin added to the price of
the house. Increase the network of acquaintances and improve communication
skills so that people are interested in the offers you provide.

2. Looking
for Property Information

To get affordable property prices, it is important for you
to find information regarding the property that is being sold. The first step
to take is to regularly visit housing locations and property exhibitions held
in the area closest to you.

Location is a key factor that determines the price and
interest in a property. Try to collect as much information as possible so that
potential buyers can get a satisfactory picture of the available home options.

3. Offer
Cooperation

After finding a seller, clearly offer cooperation and write
down the agreement to avoid losses for all parties involved. Include questions
about the details of the house being sold, such as area, floor, price,
surrounding conditions, desired payment method, and the commission you will
receive if you successfully sell the house.

Once the partnership is established, focus on finding a
suitable buyer. Your marketing skills will be indispensable here. Make sure you
can convince potential buyers in an honest way. Avoid exaggerating the facts
about the property, because honesty in business is very important. If they are
found to be lying, they will likely not use your services again.

In terms of price, avoid raising the price too high because
it can make potential buyers run away. Usually, the seller has set a percentage
of the commission that you will receive if the house is sold. Therefore, focus
on a written agreement on a percentage commission, not increasing the price of
an already expensive house.

Also read: 5 Best Real Estate Business Ideas in 2023

4. Starting
a Business with Owned Property Assets

Doing the property business does require quite a large
amount of capital, but that doesn’t mean that this business cannot be started
without capital. If you don’t have enough capital, you can still start a
property business on a small scale in a simple way, even without capital.

If you have several properties that can be rented out, then
that is good luck for you. If you have 2 motorbikes or even just one motorbike
that is rarely used, you can open a motorbike rental business. If you have an
unused garage, rent it out for a small shop. If there are several empty rooms,
you can turn them into a daily or monthly boarding business. Take advantage of
any property that you think has a rental value.

By utilizing the property assets that you have, you can
start a property business with small and gradual steps, even without large
capital.

5. Make
Connections

The next
step in a small property business is to build networks and business
relationships. You can try buying and selling houses owned by family or
friends. The reason is, the people closest to you tend to give more trust if
you can run a business well.

In
addition, as your name in the real estate business grows, you will be able to
offer a wider range of buildings. This will increase the potential for selling
or renting the property that you offer.

6. Planning a Promotion Strategy

After
successfully obtaining the desired property for investment, the next step is to
plan the promotion of the property. You can take advantage of digital platforms
such as social media and websites to achieve optimal results.

By
promoting online, you can expand your network more widely. Be sure to include
clear, attractive information, as well as eye-catching photos of the property. Thus,
the experience for consumers will become easier and more comfortable.

7. Create
an Attractive and Unique Business Brand

In starting
a property business, it is important for someone to determine the business
brand that will be used. This brand will be the identity that reflects the
business.

For this
reason, it is very important to ensure that the brand used is not the same as
another company’s brand. Brand similarity can have a negative impact on both
parties.

In
addition, creating a business brand that is attractive and easy to remember is
also crucial. This can be an attractive added value for a newly built property
business.

8. Make a
Promotional Website for the Property Business

In today’s
digital era, the internet is the main source for people to find information. In
addition, information conveyed through word of mouth recommendations tends to
be more trusted than advertisements in newspapers or other conventional media.

Therefore,
it is advisable to create a personal website that contains information about
the property business that you are currently running. Fill out the website with
complete information, such as available property types, detailed descriptions
of building area, building designation, and property prices.

Although
the displayed price is a bit high, this is not a problem because potential
buyers will most likely negotiate. Also make sure to conduct surveys on several
property websites so that the website you create looks professional and can
build trust.

To create a
website, you don’t need a long time and a lot of money. There are many website
builder services that are capable of designing websites with a credible
appearance.

Also read: 8 Tips for Building a Property Business

Growing Property Business

The
property business continues to experience growth in line with people’s needs
and lifestyle trends. Business projections in Indonesia are only part of the
potential that can occur. There are great opportunities that can be explored
from the primary and secondary markets. The primary market involves direct
sales of houses, apartments or shophouses, where the developer acts as a seller
to the end consumer. Meanwhile, the secondary market involves properties that
have been traded previously on the primary market. These former properties are
often referred to as second buildings.

Do not
underestimate the potential of second buildings, because they also attract the
interest of many people. Second buildings are generally used by those who want
to start a business or individuals engaged in the property sector. They will do
renovations and re-market it. Pay attention to the development of this business
because it has grown quite rapidly in just two to three years.

Conclusion

Those are
property business tips that you can practice to gain a lot of profit through
this business. In essence, to be successful in this business, you must have an
unyielding nature and always be willing to learn. Not only that, another thing
that you have to do in building a property business is a high level of
sensitivity to expenses and inputs that occur. Understandably, because this
business is a business with a high level of risk and a business with a large
turnover of money.