3 Tips to Get Your Real Estate Startup Up and Running

Real estate is still red hot in most parts of the country, but there are more ways to profit from this sector than simply making traditional investments. As many entrepreneurs have discovered, there are huge rewards waiting for those who launch and grow successful real estate startups.

Real Estate Startups Thriving

The real estate niche will always be a profitable one. Land is a finite resource and will continue to become more scarce as the population increases. Historical data also shows that real estate prices increase in a fairly linear path over time, which indicates there will always be more than enough money to go around.

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From real estate finance to real estate technology, startups are proving that there are plenty of opportunities for innovation. Here are just a few of the companies to keep an eye on right now:

Rentberry. This online platform helps property owners streamline the management of long-term rentals. From open houses to rent collection, it can do it all. The platform has grown to more than 5,000 cities and just finished a $30 million investment round.
Better Mortgage. Some are saying this digital-only mortgage originator could totally transform the industry. It qualifies loan applicants within three minutes using simple checks and completes a full underwriting process within 24 hours. It has over $65 million in funding from some of the biggest venture capitalist firms.
AskDoss. AI platforms are finally becoming commonplace in the industry, and AskDoss is taking things to a whole new level. It’s a virtual real estate assistant that you can talk to and use to find properties. It’s still in the early stages but reports lots of satisfied users.

These are just a few examples of many. There are literally dozens of startups making noise in the real estate space, and many have billion-dollar potential. If nothing else, it proves that this space has promise.

3 Tips for Pushing Your Real Estate Startup to the Top

If you have a real estate startup—or an idea that you’re hoping to push forward in the coming months—you need to be prepared for the heavy competition in this space.

Here are some tips to help you rise above the noise and stand out:

1. Get your funding down.

It’s important to figure out your funding strategy early on. You need to have plans for financing different stages of growth, as well as contingency plans for if/when they fall through.

While it’s nice to get funding from a venture capitalist or angel investor, not every startup will have such opportunities. Plus, even if you do get these offers, you have to be careful not to give up too much equity and control.

Loans are going to be your safest bet. There are a variety of startup business loan options, so make sure you do your due diligence and get clear on the pros and cons that come with each.

2. Put a new spin on something.

Because of the competition in this space, you have to be wary of pursuing ideas that are already oversaturated. If you’re just another startup doing what every other entrepreneur is doing, you’ll find it incredibly difficult to stand apart.

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When you have an idea, always go back to the drawing board and think of a way to put another unique twist on it. Then, when you think you’re ready to move forward, repeat the process. You want something that’s highly effective and unique. That’s how you attract investors and customers.

3. Be ready to pivot (a lot).

With as much innovation and competition as there is in this space – not to mention the market fluctuations – it’s very rare that a startup stays the course. You’ll almost certainly have to pivot at least once (and probably multiple times). As long as you have the mindset that pivots aren’t failures, you’ll be fine.

Get a Head Start

Where there’s opportunity, there will be competition. This is certainly true of the real estate industry where startups are carving out space in technology, finance, and marketing niches. As you look to grow your business, make sure you’re building a sustainable foundation that’s conducive to growth.

Would you consider getting into the real estate startup space? Which startups’ success are you currently following?

Comment below!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.