Riding your real estate company
Today delve more about the services offered by a real estate company and how to plan your business project based on the same coverage.
First we define some of the main approaches that may have a property, such as:
* Agency Real Estate Brokerage
* Company Developer Housing Projects
* Company Real Estate Investment
Agency Real Estate Brokerage
The first of the alternatives in this business is to provide brokerage services other than through a formal agency that allows your customers to contact you to buy, sell or rent their properties. Basically this option allows you to negotiate the available properties and in return get a percentage commission.
To start a project of this kind is usually required to be affiliated with the Chamber of Real Estate Brokers in your area that also provide you with technical support will provide the ideal support for the professional performance of your services.
Also need to hire a sales team who are the people who do the field work in all aspects of customer care. You can see our theme Steps to Assemble a Real Estate for specifics.
The basic business model is to establish relationships of trust with your clients to promote their properties. Therefore you get a commission on sales which usually rounds between 4% and 5%. While your costs should be designed as follows:
* Up to 1.5% for sales advisory committee
* From 0.5% to 1.5% for advertising and promotion
* From 0.5% to 1.5% for administrative costs
* From 1 to 2.0% of net income
Initial investment: approximately U.S. $ 5,000 to $ 10,000.
Housing Project Development Company
This proposal is the promotion of real estate projects built by yourself regularly with the support of investors. Not necessarily have to imagine a residential project of 200 houses. On the contrary, I know several entrepreneurs who have started their own company building a house or two or a small condo and have been gradually growing.
The basic strategy can be planned from these different points:
* Acquire land for housing construction and sales
* Buying homes at auction, refurbishing and reselling
* Acquire land for development and sale of lots
* Construction of commercial or business offices
* Buying homes or small buildings for rent rooms or apartments
In all cases of course option for investment has to do with the size of the land and / or build houses. You might consider an approach either popular or seek an upper-middle market that has greater capacity to pay. In all cases will be essential to base market study to determine the chances of success in the area you want covered.
This type of business is to develop a vision and long-term which basically is to acquire properties at very low cost or who are looking for land in places where cities are developing, so it can get very good prices. In addition, of course is required to have a good capital to invest both in the purchase of properties in the development and construction of housing units.
Need primarily:
* A good engineer to help you coordinate the tasks of development and construction
* A good lawyer to help thee as General Counsel for everything related to procedures, registration, dismemberment and deed to new owners
* Contacts with banks or financial options to offer credit to your customers
* Administrative and IT Support
* Sales staff to ensure the speedy promotion and sale of projects
* Investors. There are many people with available capital looking for serious projects in which to invest, so it is essential to present visionary projects to attract them.
Investment Company Real Estate
Finally we discuss the investee companies are usually formed by venture capital investors to put on serious building projects.
As in everything, is crucial to be clear that investment in real estate is a business and therefore risky. Risks can be minimized to the extent that evaluates the various investment proposals from construction companies or developers. So it is important to answer these questions as part of the investment project:
* How much cash are you willing to invest comfortably?
* What kind of return you expect to gain by investing in real estate?
* How much of your own efforts contribute to the development of the property or project?
* What is the future of equity to be achieved through investment, as term?
* What type of property you are more attractive for investment: residential or commercial, social or do you not care?
Investment Forms
Essentially we can divide the methods of direct and indirect investment.
The direct real estate investment deals to compare, sell, resell or rent properties. Just as those concentrating on the construction and development of specific housing projects thus earning a return. While indirect investment options are those where the investor puts their money in shares, securities or letters backed by mortgages management or promotion of a portfolio of properties. And that can be summarized in:
* Investment in Fixed Income. Consists of the acquisition of properties to refurbish and rent them.
* Speculative Investment. Consists of the purchase of a property with the intent to resell for a higher price in the future with the respective value of the surplus product of the property. Ideal for this mode is the acquisition of goods or hereditary foreclosures.
* Investment in constructive development. With different scales and different investment alternatives for the society, this modality has to do with a complete real estate development project that goes from conception either small works or if its investment capacity allows, in large projects.
* Investment in Repair or Parts. This has to do with the purchase, renovation or repair of immovable property for resale at a better price. Thus obtaining a significant short-term profit estimated up to 30% on an average of six months.
Moreover, just as the risk can be minimized, and also the failure it is essential that your investment is always accompanied by adequate counseling by a professional Real Estate. And finally we must reaffirm that this is a good time for real estate mainly because people always need a roof to live either owned or leased, especially in our Latin American countries.
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