Real Estate Industry

Real Estate Business & Franchise Opportunities

General Real Estate Industry

The Real Estate industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com 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 Real Estate Industry Numbers

SBA Non-Franchise Business Loan Data

0 %

Paid-in-Full Rate

The Paid-in-Full Rate Referring to the SBA 7(a) Loan Program, how many businesses in a particular industry paid their SBA loans in full including interest relative to… is when the SBA loan is fully paid off by the small business owner including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, indicating financial strength.

0 %

Charge Off Rate

The Charged Off Rate Also can be referred to as the SBA Loan Default Rate, the charged off rate is percentage of businesses in set field (e.g. industry)… is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

0 :1

SBA Loan Success Ratio

For every 21 SBA loans fully paid including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, 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

Real Estate Franchises

Are you interested in running your own business in the real estate industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com? Maybe you have always had an interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at… 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 A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… 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 Having put someone or something through a careful examination. At Vetted Biz, we put franchises and businesses through a careful examination and benchmarking of… 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 Also can be referred to as the SBA Loan Default Rate, the charged off rate is percentage of businesses in set field (e.g. industry)….

Average Real Estate Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com Percentage Fees

0 %

Royalty Fee

0 %

Stability Rate

0 %

Marketing Fee

0 %

Growth Rate

0 %

Failure Rate

Standard Real Estate Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com Investment

$ 0 K

This metric is the standard industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com investment amount for a single unit franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… investment in this industry. Our research and analytics team analyzed over 69 franchise concept investment breakdowns in order to calculate this figure.

SBA Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Loan Data

0 %

Paid-in-Full Rate

The Paid-in-Full Rate Referring to the SBA 7(a) Loan Program, how many businesses in a particular industry paid their SBA loans in full including interest relative to… is when the SBA loan is fully paid off by the franchisee including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, indicating financial strength.

0 %

Charged Off Rate

0 :1

SBA Loan Success Ratio

For every 26 SBA franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… loans fully paid including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, 1 SBA franchise loan was unable to be paid back, or defaulted.

*SBA Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Loan Data from 2010-2019

*Franchise Businesses taken into account: 542

Sample Real Estate Franchise Income Statement

Year 1
Year 1	Base	% of Revenue	High	% of Revenue
Sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue.	$ 43,400	100%	$ 56,700	100%
Cost of Goods Sold Also known as Cost of Sales, Cost of Goods Sold includes the direct costs associated with generating revenue. Depending on the business, it can…	$ 0	0%	$ 0	0%
Gross Profit The profit a business makes after deducting the costs involved in making, providing, and selling the goods and services. In an income statement, it…	$ 43,400	100%	$ 56,700	100%
Expenses
Rent	$ 6,000	14%	$ 6,000	11%
Utilities	$ 3,600	8%	$ 3,600	8%
Marketing / Advertising	$ 18,000	41%	$ 20,400	36%
Insurance	$ 1,900	4%	$ 1,900	4%
Royalties Fees paid by a franchisee to their franchisor in order to operate a franchise location. They are usually on a weekly or monthly basis.	$ 3,900	9%	$ 5,100	9%
Salaries / Wages	$ 5,000	12%	$ 5,000	9%
Repairs and Maintenance	$ 0	0%	$ 0	0%
All other expenses	$ 4,800	1%	$ 4,800	1%
Total Expenses	$ 43,200	99%	$ 46,800	82%

Owner Benefit The amount of money a business owner receives before taxes from a business’s operations over the course of a year.	$ 200	1%	$ 9,900	18%
Net Profit Margin The net profit margin shows how much a business is generating profit for every dollar of cost, expenses, interest, and taxes involved. It is…	1%		18%

Year 3
Year 3	Base	% of Revenue	High	% of Revenue
Sales	$ 249,700	100%	$ 335,600	100%
Cost of Goods Sold	$ 0	0%	$ 0	0%
Gross Profit	$ 249,700	100%	$ 335,600	100%
Expenses
Rent	$ 12,000	14%	$ 18,000	11%
Utilities	$ 3,600	8%	$ 3,600	8%
Marketing / Advertising	$ 18,000	41%	$ 20,400	36%
Insurance	$ 1,900	4%	$ 1,900	4%
Royalties	$ 22,500	9%	$ 30,200	9%
Salaries / Wages	$ 60,000	12%	$ 75,000	9%
Repairs and Maintenance	$ 0	0%	$ 0	0%
All other expenses	$ 4,800	1%	$ 4,800	1%
Total Expenses	$ 122,800	49%	$ 153,900	46%

Owner Benefit	$ 126,800	51%	$ 153,900	54%
Net Profit Also known as net income or net margin, the net profit is the net income on an income statement. It is the revenue minus… Margin	51%		54%

Franchise Industries: Free Guides Available

Learn more about the Real Estate Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com

Are you interested in owning a franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… in real estate services?

Download our free exclusive industry guide

By clicking the button, you agree to Vetted Having put someone or something through a careful examination. At Vetted Biz, we put franchises and businesses through a careful examination and benchmarking of… Biz’s Terms of Use and Privacy Policy and consent to receive notices and other communications electronically.