If you’ve decided that you want to make your fortune in real estate and that means branching out from just offering your services as a realtor, then despite what shows like Flip or Flop might have made you think, you can’t just buy houses and make them look pretty – you really need to know how to run your venture as a real business, and that means that you need to know how to bring in revenue and enable your company to flourish.
Here are some smart tactics that you can use to build a very successful real estate business:
Renovate and Flip
Okay, so Flip or Flop and other similar shows, may make it seem like it’s real easy to buy a property, improved and sell it on for profit, and although it isn’t quite as simple as they would have you think, it is one way of growing your business.
If you can find properties in decent, up and coming areas, at lower than market value prices, and you can renovate them, so that they are worth more, then you could start making serious money and growing your business very quickly. However, you should bear in mind that you’re unlikely to make $100,00 or more on a flip like you see on TV – your profits are likely to be more modest (in the low thousands), but do this enough times, and you’ll be well on your way.
Seek Out Off-Market Properties
If you want to get ahead of the competition, and that’s exactly what you need to do if you want to grow your business, then you can’t rely on finding properties on the big real estate websites – you need to seek out off-market properties; properties that the owner needs to offload in a hurry, perhaps to liquidate assets ahead of a nasty divorce. For the average person, these kinds of properties can be difficult to find, but if you’re already in the real estate business, you should be able to use your contacts to find these properties, and it will surely be in your interests to do so. As well as using your own contacts, joining lots of local organizations like the Business Network International and even small local church groups is a great way to hear about these kind for situations in a timely manner.
Try New Markets
If you’ve so far focused on the student rental market, offering studios and small apartments, why not try marketing a townhouse for a family, or even better, getting into the vacation rental market. You’ll attract a lot of new customers who may not have thought of you before, and if you can maintain good relationships with them, then the word is likely to spread about you, and they’ll keep coming to you whenever they have a housing need. This will undoubtedly help you to grow your bottom line above and beyond what it is now.
Team Up with Others
If you’re a real estate agent, why not team up with a house flipper, invest some of your cash in their operation on the basis that you’ll get a percentage of the profits and first dibs on advertising the property for sale. This is a great way of tentatively entering the house flipping business without all of the work or risk, and since there are a lot of people looking for the finance to flip houses, it might not be too difficult to organize.Just make sure that you choose someone who you are confident can pull the project off.
Stage Your Properties
When you’re selling properties, if you are simply having your clients tidy them up a bit and perhaps removing the clutter, then you aren’t making the most of your opportunities to make sales and make money.
If you have properties that are hard to sell, but you want to grow your real estate business, then you need to start staging your properties, so that they are more appealing. Why? Because buying a home is an emotional experience, and if you can create the feeling of a warm family home or a place that’s perfect for partying, depending on the market you’re targeting, you’re much more likely to make a sale and get a good price for the house.
Flip Property Contracts
This is a really easy way to make more money from our real estate business. All you need to do is find someone who is in a really hurry, perhaps ev en desperate to sell their property on and put them in touch with someone who is eager to buy in their area. You take a commission for getting them together, and without doing very much more than making a few phone calls, your bank balance is a whole lot bigger and you’ve helped out two people who really needed it.
Step Up Your Marketing Game
Of course, a simple way to grow your business that doesn’t involve making any changes to your business model is by improving your marketing strategies. There are numerous ways you can do this, but getting on social media and engaging with people in your local community is a great one. Creating virtual tours of the properties you’re selling can also be effective, and you know what? So can direct mailing your listings in the local area. This may seem counterintuitive in the internet age, but there is lots of evidence to suggest that letting people in the local area, via letters and glossy leaflets, know that a local property is available for sale, gets great results.
As you can see, there are so many smart ways to make more money from real estate other than offering your skills as a real estate agent, and they can really help to grow your business. So, you would be totally be mad not to try at least one or two. After All, the more strings you have to your bow, the safer your business will be from tumultuous times in the market.