Real estate today is cluttered with innumerable construction companies and builders. The number is always on the rise because of the profitability and the cash flow in this industry. But anyone on the onset to start a real estate company will have to think twice or thrice before investing.
‘Investment’ of any kind, needs prior research and planning. When it comes to real estate more vigilance is needed. Because the tenure and the volume of investment are comparatively longer and bigger respectively.
Secondly, like in every investment, investing in real estate involves risks. So, you need to put your money to work today in such a way that you have more money in the future. Thus, a simple investor’s logic is applicable here too!
Thirdly, the return from your investments must be sound enough to cover the risk you take and the expenses you bear in the long run. Of course, as a thumb rule, the returns should always outweigh the risks taken.
Every real estate firm will have its own formula to run the show. But the foundation from which the formula is derived will be the same.
Being one of the upcoming real estate agencies in Bangalore, we present a simple yet powerful formula for a profitable business in the realty world. This encompasses an analysis that has both macro and micro checks in place.
The formula for a successful real estate business includes:
Let’s dig in deep!
For any real estate project, consumer need identification is essential:
On the other hand, what is your speciality? Pick up a specific real estate niche. For instance, choosing one or a few of the following will work:
The list is actually never-ending. At the end of this step, you will be able to devise a proper plan that details that can help you get an idea of the investment:
The next important milestone is procuring land. The real estate business revolves around this one single world, location. The location of any given land is the key to a project’s success. Lots of down points in developing a project on the said land can be overlooked if the right location is chosen. The following should form your checklist for procuring the land:
If you are able to check all the boxes against the above list then you have the right capital, to begin with, for your realty business.
A proper market study along with the location analysis will give you sufficient insight into both the scale and the scope of your investment.
The scope of your project should throw light into each of the following:
The scale of the project envelopes:
It involves choosing the right architects/consultants, as they play a very vital role in designing and development. The realty industry is filled with a lot of quality players like, “real estate brokerage firms” and “real estate agents”. Such expert partners who can leverage your strengths are definitely an ideal part of your investment.
It involves choosing the right architects/consultants, as they play a very vital role in designing and development. The realty industry is filled with a lot of quality players like, “real estate brokerage firms” and “real estate agents”. Such expert partners who can leverage your strengths are definitely an ideal part of your investment.
Coming to the project execution team finally! This includes the most professional sales, training & development, marketing & CRM teams. The entire administrative and post-operational wing is an important part of your investment in the realty business. Most of the real estate companies in Bangalore resort to channel partners, agencies that guarantee the sale of properties within a stipulated time frame. Apart from mere selling, they employ their own marketing and sales strategies in addition to the in-house strategies of the builders. They excel in contemporary value add-ons like branding, PPC advertising, digital marketing, SEO, lead management etc.
Thus, by following such a carefully laid down investment approach, one can simplify the entire process, making real estate investments a piece of cake. But keep in mind that ‘simple’ doesn’t imply ‘easy’. Any mistake made, will result in consequences that can range from minor inconveniences to chaotic disasters no matter how big your real estate company might be.
Happy Investing!