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Real Estate – Franchises and Businesses

Explore Businesses in the Real Estate Industry

Real Estate Industry

General Industry

The Real Estate industry is the economic sector that focus on buying, selling, renting, leasing, and managing real estate. It is real property that consist of land and improvements. The Real Estate industry can fluctuate depending on national and local economies but tend to remain constant as it deals with necessary goods: people always needs a place to live and businesses needs office spaces.

Real estate, rental, and leasing account for 13.3% of gross domestic product (GDP), or $2.7 trillion. In addition, the sector supports more than 2 million jobs and generates more than $10 billion in corporate profits.

Real Estate Industry Trends

An increase in demand within real estate investors and developers for low taxes, economic diversity, and high quality of life is among the driving forces behind the trends that shape the housing dynamic. In addition, homeowners, space users, and capital sources will increase even more the demand for technological sophistication. For example, deliveries to the front lobby, automating home valuation and machine learning algorithms to categorize interior features and correlate them to home value, artificial intelligence technology to enhance the buying and selling experience, and the Internet of Things to help real estate professionals grow and manage businesses more efficiently than ever.

Key Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charge Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 21 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 9,131

Franchises in the Real Estate Industry

Are you interested in running your own business in the real estate industry? Maybe you have always had an interest in the commercial and residential property market, but you worry you do not have enough experience in the field. In this situation, you may want to consider owning a franchise in the real estate industry. Franchises already have a proven business model for you to follow, and you can learn from the experience of other franchisees. You will have the support and training of the franchisor while also being your own boss.

The real estate industry has a wide range of franchises to choose from. They include but are not limited to property management, vacation rentals, commercial and residential properties, and even business services related to real estate. Some of these options like property management are a rather low investment amount. Property management franchises utilize technology software to efficiently manage hundreds of units, which can lead to a profit margin of 25-40%.

How much can a Real Estate franchise cost?

Vetted Biz has reviewed over 2,900 businesses and franchises with 1,700 in our portfolio as viable investment opportunities. Of the businesses reviewed in the real estate industry, we have seen an investment range starting at around $8,855 all the way up to $4,569,000. On average, the royalty fee is around 5.9% and the marketing fee is approximately 1.9%.

When reviewing the real estate franchises in the SBA 7(a) loans from 1991-2019, it is important to note that many fluctuations occurred after the recession and housing market went down. The loans disbursed in Real Estate franchises had a 60.1% Paid in Full rate and 12.5% Charged Off rate.

Average Real Estate Franchise Industry Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Real Estate Franchise Industry Investment

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This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 69 franchise concept investment breakdowns in order to calculate this figure.

SBA Franchise Loan Data

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 26 SBA franchise loans fully paid including interest, 1 SBA franchise loan was unable to be paid back, or defaulted. 

*SBA Franchise Loan Data from 2010-2019

*Franchise Businesses taken into account: 542

Franchise Industries: Free Guides Available

Learn more about the Real Estate Industry

Are you interested in owning a franchise in real estate services?

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