Recent years have seen a record number of transactions in the Finnish property market. This is mostly because of the significant infusion of foreign capital, which accounted for 66% of the EUR 6.3 billion in market transactions. However, the total volume of the Finnish real estate market decreased by 33% in 2019 since there were fewer singularly extraordinarily large deals. Despite this, the market remained busy as there were nearly as many trades as in the record year. Commercial properties continued to be the most popular sector, making up 37% of all transaction activity. The information in this article can help anyone who wants to launch a commercial real estate company.
Starting the real-estate firm
Let’s examine each of the actions you need to follow to launch a real estate company:
Write a corporate plan
Even while it’s not required, a corporate plan can help your ideas come into focus. The economic and operational objectives of your company are described in a trading plan. There is no requirement that your business plan is 100 pages lengthy.
An executive summary, market analysis, and trend analysis are common features of a conventional corporate strategy. The strategy also includes financial projections, marketing initiatives, and management approaches. Additionally, look for a supervisor who can help you analyze your company plan and provide additional information about beginning a real estate company.
Decide the legal structure
For diverse commercial enterprises, there are numerous distinct forms of legal structures. The key business structures for the corporate property industry in Finland are listed below.
Mutual real estate
A mutual corporation is the most typical structure now employed in the Finnish property sector for owning/possessing physical assets. MREs are somewhat distinct from regular businesses.
Limited partnership
The limited partnership, in which the financial services business typically serves as the general partner, is another popular form in Finland for indirect property investing.
These arrangements have considerable financial advantages because limited partnerships are tax efficient and, under certain circumstances, their capital income is taxed under the applicable investor’s tax situation.
After choosing your formal corporate structure, register the authorities. The documents you require and the locations where you must register depend on your business structure.
Set up business accounting
You’ll need to establish a bookkeeping process when establishing a venture to keep control of your money. This is required for tax filing purposes as well as being crucial to understanding the financial flow of your company.
Accountants do a financial analysis of a company to aid the owner in decision-making. You can also hire a bookkeeper for this purpose.
Get license
You must obtain your license before operating as an official Realtor if you are brand-new to the industry. You can sell domestic real estate in the majority of states if you have a license. To sell commercial real estate, you must possess additional credentials.
You must submit a request to the appropriate authorities to receive a broker’s license or a permit for commercial property trading. The authorities will investigate your educational history, corporate information, and experience before granting a license. A minor processing fee must be included with the license request to issue the license.
Grow your firm
Any real estate professional’s promotional strategy must include networking. This needs to be a key component of your business model. It’s important to network and builds credibility, but remember to prioritize quality above quantity. Consider using a focused approach to meet people at meetups who can assist you in achieving your objectives and expanding your network to broaden your network’s reach. You want to create a diverse community of corporations and people who can give you leads for the company.
