No matter where you live in the country your local real estate market is always “hot” for some type of real estate investments. This article will expose 4 topics to consider while growing your real estate investing business.
Whether your city is experiencing a buyers' market, sellers' market, or flat market there are real estate investment opportunities that can make you substantial profit all around, but you have to find and/or create many of these opportunities. Sellers of almost every type of property have circumstances that drive them to want or need a fast-sale in every market. This is where you come in…
The 4 bullets below will help push you along through your next few real estate transactions.
Instead of riding the wave, plan to be in front. The future is coming. The future is also a direct affect of all the causes happening today. Don't be left wondering what happened.
Real estate is often very predictable. Many sellers in today's market are in a financial situation that is an affect of decisions these sellers have made in the past. Understanding the logical reasons why sellers get into situations that force them to sell-fast can be a super-charge to your lead generating business.
Choose to be at the front of the next real estate wave by understanding today's climate and preparing for the affects. Example from recent: A few investors I know are marketing to homeowners who have mortgage interest rates that are about to adjust. If you are not familiar with this process of adjustable rate mortgages then understand that some homeowners will not be able to pay their mortgages when their mortgage interest rates rise to X%.
Make sense? Plan to be where the motivated sellers will be. No matter the year or date you can simply look to the past to help you focus on where to advertise and market to find motivate sellers.
Be honest with yourself: This is perhaps the most important aspect to make crystal clear. It is critically important that you be honest with yourself. The profitability of your company depends on your honesty. Answer the questions below to determine if what you are doing currently is right for you…
- How many real estate transactions or “deals” have you closed in the past 12 months?
- How much time do you have per day to commit to working your leads and deals?
- How much liquid investment capital do you have or have access to?
- Do you mind bringing in partners on your deals?
- What areas of investing excite you about REI?
- Do you know how to structure at least 6 different R/E acquisitions techniques?
Always be able to provide a value: It comes as a surprise to many of the investors I help train that real estate investors earn their living by providing value to others. If you can learn to provide a value to everyone you interact with you'll be well rewarded for your efforts. On the other side, if you sit around all day doing nothing you're likely to get just that, nothing.
One of the best ways I know how to provide value is to network with other active investors and learn multiple creative real estate purchasing strategies other than traditional bank financing. Every time your phone rings from your advertising efforts you should attempt to make money. Always aim to have at least one strategy to help every seller or buyer that calls, even if you only assign this lead to another investor or Realtor.
Advertise, Analyze, Advertise: Seller-leads are the “pulse” of your real estate investing business. If your seller leads fall short so will your business. Always be willing to invest time, resources, and money into your advertising budget.
Look for ways to partner with local businesses or services that will allow you to advertise for little or no upfront costs. Example: I have successfully negotiated a partnership with a local business to advertise my “Sell Your Home Fast” banner and phone number in their prominent store-front window. I handle the complete real estate process and split any profits 70/30 with the store proprietor. In order for the store owner to track the leads he is driving to my business we set up a free Google voice number so this is easily tracked and stored online.
Be creative and be willing to split deals with folks that help you advertise your business. In addition be willing to allocate at least 20%-40% of each deal's profit back into advertising and marketing for sellers.
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