Real estate industry is such a popular big business that generates hundreds of thousands to billions in revenue per year. This is also an opportunity for entrepreneurs to convert to a profit.

This industry is cynical that reacts to macroeconomic trends like population growth , rates, interest and economic strengths.This business boomed in the post WWII around 1950s then sank in 1970s and rose again in early 1980s.Back in 2000, low interests allowed residential real estate to fluctuate despite the economy was slow , then mortgage crisis happened which resulted to collapse of price.

Even so , the real estate industry offers numerous and different opportunities for entrepreneurs .

This industry has three primary fields:

1. Brokerage 

Brokers bring together buyers and sellers of property, provide assistance in price negotiations and facilitate the work involved in deals from initial interest expressed through money being exchanged at closing.

Note: the value of location differs based on quality of roads and schools public transportation access etc. 

Real estate brokers should be licensed in which they work.

2. Leasing and Management Companies 

Leasing agents work with the owners of the property to handle the complexity involved with finding and signing tenants for their properties and of course the handling of paperworks .

On the other hand , the management companies operate buildings and other properties to make sure that it is running in order , paying utilities, hiring and maintaining their performances.

What are the Risks ?  

Investing always has two outcomes: success or failure. So, it is best to know and be aware of the risks . According to Franchise Help : 

  • Macroeconomic factors beyond the control of the business owner, such as downturns in the local or national economy
  • Changing demand – a location once coveted can change quickly and properties can become less desirable. Of course, the reverse is also true – skilled selection of properties can reap profits in up and coming areas.
  • Increased supply – building of new properties, and/or newly for sale properties in the area can drive rental or property prices down as well.
  • Changing priorities or requirements for building management companies, particularly for aging properties. For instance, indoor air quality liability can be a serious legal issue, as can required removal of mold growth.

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