The real estate industry is the driving force behind the growth of big businesses which are making billions in revenue year after year. It also serves abundant potentials for entrepreneurs to profit on a huge ratio. In the previous year there were almost 210,000 firms functioning in the housing brokerage and management field, which had created $200 billion in returns. On the other side there were 35,000 firms functioning in the commercial brokerage & management field, which had created $35 billion in returns.

The industry of Real Estate comprises three main arenas which are Brokerage, leasing and management.

Brokerage

Brokers in the real estate industry gets buyers and sellers together for the dealing of specific property. They also help in the things involved throughout a deal and the price negotiation. Usually a property seller provide commission on the basis of a selling price. This commission will be divided amongst brokers of purchasing party and selling party. They will get profited more as commission is based on the value of property. The brokers must contain a license of the state they are working in.

Leasing

Leasing agents get connected with the multiple owners of properties to manage the complication involved with searching, selecting as well as signing renters for their properties. They will also assist throughout the paper work. There are three basic types of commercial real estate leases (gross lease, net lease and modified gross lease) systematized around two rent calculation methods ‘net’ and ‘gross’.

Management

If we talk about the management firms, they are in the process of operating buildings and other properties by assuring that they are running appropriately, paying for utilities, appointing workforce and carrying out maintenance. There are plenty of management firms which are also perform as leasing agents for the property. As most property costs are fixed, preserving low vacancy rates is crucial for the profitability of management companies.

Difficulties faced by the real estate industry in the existing system

At present real estate transactions are not transparent and expensive as well. A reason behind this issues are need of brokers, management companies as well as leasing agents as a central authority. Currently, the title to a property is a piece of paper. And to transfer a property, you need to fill the blanks in deed, sign it, get it notarized to rubber stamp it, and send this paper to your local government office to be in their database. The process is too old-fashioned and most importantly, SLOW. In fact, too much time and money is also wasted.

In this digital world, Forgery of documents is one of the issues to fake the title ownership by using editing software to stipulate the transfer.