The first thing you need to understand in starting a real estate business is that you should always make money. Keep in mind that this business requires a considerable amount of money in your bank account to keep it running. For that reason, it’s imperative to be a strategic real estate business owner.
This article tackles the top methods agents of real estate businesses use to maximize their current revenue or earn more than they anticipated. Hopefully, these tips will help you manage your real estate business, allowing it to expand in the future.
Top Real Estate Business Strategies
Fix and Flip Strategy
Flipping is the strategy of buying a house and fixing it before selling it. A lot of real estate agents focus on house flipping. Agents can also help their clients flip their homes, giving them a chance to generate an additional income stream.
TV shows often show that you can earn at least $100,000 by flipping a house. But that is not always the case. One professional real estate agent named Mark Ferguson said that it is not always about hitting big with just one flip, but it is about flipping many properties. Doing so will allow you to earn a bigger profit.
Find Hidden or Properties That Are Off-market
It is common for you to have a hard time making money if you cannot find good deals before anyone else. Usual sites like Zillow or MLS won’t give you a good amount of deals or money. There are a lot of properties that can provide you with cash, but you won’t find them on these sites. They are the properties that the owners needed to get rid of quickly.
When the owner doesn’t want to keep the house anymore, it will be called an off-market property. Owners have different reasons for giving up their homes. It could be because they need to migrate to another country or due to financial problems. It can also be a property owned by a divorced couple.
Mostly, these owners need quick money. And in the perspective of a real estate entrepreneur, they are the best targets. You can buy the property at a meager price, have it renovated by a reputable general contractor, and sell it for the right price. These properties can even double your return on investment.
Rent Out Properties
There are seasons when tourists are at their peak. So, owning a property and allowing tourists to rent it seems like a good idea. But what will happen if the season ends? If you have a too high rental price, you will most likely have an unproductive season. And according to Mark Ferguson, the cost of managing and maintaining rental property can be pretty expensive.
So the key strategy here is to set the rental price low enough that make it easy to rent year-round. But if you think that is not possible, ensure that you can earn good money in peak seasons.
Stage the Property That You Are Selling
A lot of people treat their property viewing experience as very important. The property is where they imagine their future life, so it needs to look appealing. If your property looks dull, it will be difficult for you to sell it.
Many clients create judgments based on their first impression or first look at the property. So if you are going to show them empty rooms photographs of the house, you won’t be able to give them the best first impression. The house needs to look as if it’s alive in the photo.
Here, you need to stage the property you will sell. Try to make the house look lived in. Try adding some furniture that is easy to remove or carry. Staging the house will help your potential buyers have a better impression of what this property will look like once they move in.
Use Direct Mailers to Generate Leads
Up to this day, this old-school method will still work, especially if you focus on your target market. And the truth is that it can also give you the same ROI, just like social media marketing.
But the downside of this strategy is that it will be difficult to track where these leads come from. Or where they see your property for the first time. There are possible ways to track direct mails, but that may require you more effort.
These are the top strategies you can choose from and try on your real estate business. But these aren’t the only strategy that you can do. You can experiment with what is good for you, from there, determine the strategies that work best for your business.