Is There Still Any Room For Entrepreneurship In The Real Estate Industry?
by Abdul Aziz Mondal Entrepreneurship Published on: 05 August 2021 Last Updated on: 07 November 2024
The real estate industry has been well-developed, and large companies have occupied many opportunities. However, there are still chances that are worth taking the risk and becoming wealthy. Exploring the real estate industry is a pretty solid idea while you want to try out a separate career goal as a real estate entrepreneur.
If you don’t think so, please read the following article to change your mind.
What Is Entrepreneurship?
Entrepreneurship means creating a new business, accepting most of the risks, and receiving most rewards. The person who is in charge of the company is called an entrepreneur. An entrepreneur is usually an innovator who offers new ideas, products, services, and procedures.
Many of the entrepreneurs are thinking of exploring the real estate industry. You will need a bulk amount of money. But in reality, you are only going to need the potential and courage to try out the new career path.
4 Entrepreneurship Options To Explore
Entrepreneurs are central to advanced countries’ economies, providing people with new devices and lifestyles and creating lots of new jobs. Moreover, successful entrepreneurship usually leads to lucrative businesses, fame, and leadership in a specific niche. Apart from the real estate industry entrepreneurship, here are 4 types of entrepreneurship:
1. Small Businesses
In this type, you can own any kind of company, store, retail, restaurant, etc. Small businesses comprise the majority of entrepreneurs across the world. When you are in the real estate industry, you can start your career as a property agent or broker.
2. Startups
The number of startups is fewer than the number of small businesses, but they’ve gained much media attention in recent years. Many Silicon Valley companies were small startups that started from nothing. Being scalable is the essential characteristic of startups.
3. Big Companies
In this type of entrepreneurship, you propose an idea to the owner of a large company. The idea must be able to win a new market and increase the income and reputation of the company. For the real estate industry, a big company joining means work as an investor or a builder.
4. Social Entrepreneurship
This type of entrepreneurship is totally different. When you act as a social leader to solve a specific problem, such as air pollution or deforestation, you’re establishing social entrepreneurship. Of course, this is not necessarily for money.
Best Money-Making Niches For Entrepreneurship In 2021
Not all industries provide the same opportunities for entrepreneurship. As you know, the software industry and IT-based technologies have gained the smartest people and students’ attention.
So you can see a significant trend in entrepreneurship in the real estate industry. The most famous symbol of this trend is Silicon Valley and its companies. Many experts believe that there is no room for other entrepreneurs to grow.
On the other hand, many others think differently and believe that there are still lots of new opportunities in other industries.
Here are top industries for entrepreneurs rather than software and IT:
- Bottled Water
- Organic Skincare
- Self Improvement
- Inbound Leads from SaaS Software
- Travel Writer
- Wellness
- Online Dating
What About Real Estate Entrepreneurship?
Many real estate experts believe that the real estate industry can also be a good place for entrepreneurship. Of course, even many of the successful examples they bring for their opinion are startup companies that have developed online tools for real estate.
For instance, Condoly has a feature that indicates an accurate estimation for the assignment project’s pricing in the current market price and the next two years, based on the past market price analysis.
Obviously, it would be hard for experts in any niche to start a business without using software technologies, and real estate is no exception. So if you’re interested in embarking on a new career in this industry, you’d better come up with ideas relevant to software and IT.
Real Estate Entrepreneur Vs. Investor
The big question here is what the differences between a real estate entrepreneur and an ordinary investor are.
Generally speaking, an entrepreneur and an investor in the real estate industry are considered the same. However, they have some differences in terms of characteristics and techniques.
An entrepreneur must be more ambitious and risk-tolerant. Also, a person who wants to become a real estate entrepreneur should be self-motivated, having ideas to create new ways of earning money.
An investor makes the most out of available opportunities to make money, while an entrepreneur creates new opportunities.
Opportunities For Real Estate Entrepreneurship In 2021
If you want to have a good start point for entrepreneurship in the real estate industry, keep reading the following opportunities.
1. Real Estate Mutual Funds
One of the best opportunities for investing and also entrepreneurship in the real estate industry is mutual funds.
Here are the best real estate mutual funds
- TIAA-CREF Real Estate Securities Fund
- Cohen And Steers Institutional Realty Shares
- Cohen & Steers Real Estate Securities Fd
- DFA Real Estate Securities Portfolio
- Guggenheim Risk Managed Real Estate Fd
- Baron Real Estate Fund
- Neuberger Berman Real Estate Fund
2. Real Estate Investment Trusts
Real Estate Investment Trust (REITs) is the real estate industry companies that own, operate or finance properties. They usually provide people with high dividends in addition to long-term capital appreciations.
3.Short-Term Rentals
Although the traditional rental methods are still working, they’re not good options for the real estate industry entrepreneurship these days.
Online services like Airbnb are sought-after and are good places for investing and entrepreneurship.
4 Tips For Starting Real Estate Entrepreneurship
Now that you know different aspects of real estate entrepreneurship, it’s good to learn some tips to simplify your journey as an entrepreneur in the real estate industry.
1. Study In A Relevant Major
Having a relevant university background is of great importance in every career, and real estate entrepreneurship is no exception. To explore the real estate industry, the study of the industry is going to help you find the various paths in it.
If you haven’t graduated in a relevant study field, you shouldn’t be disappointed. Online courses are now available more than ever, and this is a great opportunity to learn the basics. Try not to embark on a new career without mastering the basics.
2. Conduct Competition Research And Come Up With A New Idea
Knowing the basics of an industry is not enough for becoming an entrepreneur. You need to compare your idea with other businesses to be able to trade-off and estimate the probability of your success.
Try to consider the most recent trends like the impact of COVID-19 on the market to be able to make a wise decision. For staying in the real estate industry, you have to analyze all real estate market asset price research and perform the case study.
3. Define Your Goals And Your Business Plan
Having a detailed plan is key to succeeding in everything. You need to define a SMART set of goals and a detailed business plan.
This will let you stay focused on a specific path to success. Remember that you need to be realistic when it comes to defining your goals.
4. Gather A Professional Team
You need to gather a team of trustworthy and skillful realtors, data analysts, attorneys, finance experts, and contractors. A professional team construction for the real estate industry is incomplete without a lawyer and professional relationship manager.
This is especially important when you’re running a startup because you are not seasoned enough, and therefore, you need experienced team members to support you.
Bear in mind that in the age of COVID-19, you might be forced to work with remote workers to reduce your costs.
Final Word
Becoming an entrepreneur is not an easy task, especially in the real estate industry, a competitive industry. But, of course, there is no need to be worried if you have a brand-new idea. Instead, being Hardworking and being up-to-date are keys to reaching success in this journey.
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