Careers In Real Estate Business – Real estate may be defined as the land with all the improvements that human activity created to that land, e.g. homes, buildings, farms, ranches, etc.
It also includes natural resources such as minerals, crops, and immovable property. These improvements that involve human activity may be below the ground, e.g. water pipes or sewer pipes and above the ground fence, landscaping, buildings, etc.
According to Russel Sage, the American financier, and politician, “Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity has devised. It is the basis for all security and about the only indestructible security.”
What is real estate business? Real estate business is properties comprising land and buildings. The real estate business deals with the buying, selling, management, and investing of these properties.
As a real estate business owner, there are several niches in the industry that you can take part in. A real estate business can realistically be launched with little to no money all the way up to billions of naira. It all depends on what niche you choose and you need a license also. On average, the time it takes to get a real estate license Florida is anywhere between 2-5 months.
The real estate industry can be divided into several different areas: Let’s discuss Types and Major Careers In Real Estate Business one after the other.
Major Types Of Real Estate Business
Let’s explore how the industry works and what the major types of real estate business?
1. Real Estate Agents
Real estate agents can also be called real estate brokers or realtors. These individuals are licensed professionals who serve as middlemen between buyers and sellers of real estate, acting as representatives during negotiation.
When a sale is made, the agent receives a commission i.e. a percentage of the property’s purchase price. Therefore, as a real estate agent, how much you make depends on how many deals you are able to close.
2. Land Reseller
As a land reseller, you buy land or property at a lower rate and then resell when the property has appreciated in value. This strategy requires knowledge of land appreciation patterns as well as a lot of money. However, it can pay off extremely well in a few years.
3. Real Estate Development
Real estate development is a process that involves the purchase of raw land, rezoning, construction and renovation of buildings, and sale or lease of the finished product to end users.
Developers earn a profit by adding value to the land (creating buildings or improvements, rezoning, etc.) and taking the risk of financing a project. Development firms create a new product, which can be thought of as the “primary market” or generation of new inventory.
4. Sales and Marketing
Sales and marketing firms work with developers to sell the buildings and units they create. These firms earn a commission for creating all marketing material and using their sales agents to sell the inventory of completed units. These firms typically focus on new units.
5. Brokerage
A real estate brokerage is a firm that employs a team of real state agents (realtors) who help facilitate a transaction between the buyers and sellers of property. Their job is to represent either party and help them achieve a purchase or sale with the best possible terms.
6. Property Management
Property management firms help real estate owners rent out the units in their buildings. Their jobs include collecting rent, showing units, fixing deficiencies, performing repairs, and managing tenants. They charge a fee, typically a percentage of the rent, to property owners.
7. Real Estate Lending
Lenders play a major role in the industry as virtually all properties and developments use leverage (debt) to finance their business. Lenders can include banks, credit unions, private lenders, and government institutions.
8. Professional services
There are a variety of real estate professionals who work in the industry and help make it function. The most common examples (other than the ones listed above) are accountants, lawyers, interior designers, stagers, general contractors, construction workers, and tradespeople.
Some Services/Product In Real Estate Business
Now that we’ve outlined the types of real estate business, let’s explore some specific product or services of different types of real property.
Single-family dwelling
– Any home designed for only one family
Multi-family dwelling
– Any group of homes designed for more than one family
Attached
– Any unit that’s connected to another (not freestanding)
Apartment
– An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.
Multi-family house
– Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.
Condominium (Condo)
– A building with individual units owned by individual people.
Detached house
– A free-standing building not connecting to anything else (a stereotypical “home”)
Portable house
– Houses that can be moved on a flatbed truck
Mobile home
– A vehicle on wheels that has a permanent residence attached to it
Villa
– A building with only one room and typically a steep pointy roof
Hut
– A dwelling typically made of raw materials such as bamboo, mud, and clay
Major Careers In Real Estate Business
Below are major Careers In Real Estate Business afforded in the real estate sector:
1. Property Development
Another field in the real estate sector is property development. As a property developer, you basically buy an undeveloped property and repurpose them into commercial centres or luxury accommodation.
This too requires a sizable amount of capital to start, even more so than land flipping.
2. Property Leasing
Similar to the previous niche, in property leasing, you buy some property or erect a building and lease or rent it out. To succeed in this business, it is important to buy a building in a location where it would be easy to find tenants.
In Nigeria, most building owners or landlords ask for rent on a yearly basis. Furthermore, you can always sell this property at a high profit, if desired.
3. Blogging About Real Estate
Finally, if you enjoy writing, offering commentary on the world, and discussing finance, blogging about the real estate industry is another niche you could venture into. There are always people willing to learn the ins and outs of the business.
To run a real estate business with success you need two important skills. The first is networking. As an agent, developer, or landlord you will need to source for the property, tenants, buyers, and sellers, and networking, both in-person and online is invaluable.
The second is online research. You will need to hone your ability to find credible information on the internet and how to apply it to your work.
4. Real Estate Agent
Being a real estate agent requires very little capital as your job would mainly involve linking buyers and sellers together. You earn a commission of 30% for every successful deal made.
In becoming a real estate agent in Nigeria, you would have to know how to convince people and have great interpersonal skill.
5. Real Estate Developer
Unlike a real estate agent that does not require much capital, being a real estate developer requires enough capital.
A real estate developer carries out tasks like structural development of projects like building of houses and sells to buyers who are interested.
6. Real Estate Legal Consultant
If you are versatile with the laws guiding the operation of real estate business in Nigeria, you can venture into this kind of business and serve as legal consultants for people.
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