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How to boost your real estate business venture

If you put these strategies into action, your new venture will get the boost it needs to be successful.

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Real estate is a huge market that can feel crowded at times. You must know how to navigate through the sea of agents with proven growth strategies if you want to grow your business and stand out.

If your motivation for starting a real estate business is mainly to make a profit, then you’ll need these effective real estate agent strategies to maximize your current revenue and create additional sources of revenue.

Look For Hidden, Off-Market Properties

If you can’t find deals in real estate before other businesses do, you’re going to have a hard time turning a profit from your business venture.

Properties that can generate income are not those that are in foreclosure or that are listed on popular real estate websites. They are the ones whose owners are eager to get rid of them as soon as possible.

These pocket listing properties could be owned by anyone who no longer has a need for them if they are, due example, traveling or experiencing financial difficulty.

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They could also be owned by couples going through a divorce who need money quickly but can’t sell through the traditional channels as this takes time. These are properties with a “For Sale by Owner” sign in front of them (FSBO).

The goal of purchasing off-market or “pocket listing” properties, as they are sometimes referred to, is buying below market value.

That means you get to save and make more money at the same time from such properties as the ROI (Return on Investment) would be high.

How to Find Off-Market Properties

  1. Make your presence known – Participate in a business network or a club. Let your network community know your name and what you do so that they can think of you first when they require the type of service you provide. Your ears should remain open because acquaintances, relatives, and a network of friends may approach you on their own behalf or on behalf of someone connected to them.
  2. Make connections with estate attorneys because they know people who are looking for fast access to money. As a consequence of this, these creditors have a greater propensity to sell at a lower price.
  3. Wholesalers are good business dealers because they buy low-cost properties that need to be repaired. Connect with them because they are quick to buy and sell these properties as soon as they become available. You can take advantage of the wholesalers’ lack of patience in order to obtain a good property for yourself.
  4. Take advantage of auction websites – There are a lot of properties available for a low price and they are listed on auction websites. Think about checking in on a few of them. Since the properties in question have been in foreclosure for a considerable amount of time, the banks currently own them.

Create the Idea of a Home

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Image: Mighty Buildings

Staging the home you want to sell makes a big difference. Consider walking past a clothing store and seeing a lovely dress on a mannequin.

You’d probably see yourself in that dress with your best shoe, and if you had cash on hand, you’d probably go in and make a purchase.

This is true whenever a potential buyer visits a properly staged property. It piques their interest in what life would be like if they were living in it.

The client’s heart might not be stirred by the photographs of the property if the rooms are empty.

When marketing an empty house, it will be difficult for you to make that killer impression on potential buyers. When clients view such properties, they are quick to pass judgment.

 It is also estimated that houses that have been staged sell in an average of 33 days as opposed to those that have not been staged, which take an average of 196 days.

Clients begin their search for houses online especially on free real estate social media posts to see the best deals they can possibly get.

If you’re having trouble selling an empty house, consider putting some furniture in it to bring the home concept to life in the minds of potential buyers.

Take Broker’s Examination

To be taken seriously as a qualified real estate agent, you must pass the state-mandated examination. This exam qualifies you to sell real estate as part of a larger company or as an independent real estate agent.

This test takes a few months. With the test license, you can only work as an independent agent or for a company. You cannot open your own practice and hire other agents. Only a broker can do that.

When you have passed the broker exam, you are free to start your own practice. This entitles you to a commission of 20 to 50 percent from the real estate agents who work in your practice. You would not miss out on making money as a broker.

Flip It

Many real estate agents use this strategy to increase their income and that of their clients. Flipping is the process of purchasing a property, repairing it to increase its value, and then selling it at a higher price.

The lucrativeness of this approach lies in flipping multiple houses rather than just one. To make this strategy work, you must buy a house at a discount and factor in the cost of repairs. This is to avoid the risk that comes with flipping a high-value house, where the ROI isn’t spectacular.

At this point, an experienced agent will outperform a rookie. The foreclosure market is an excellent place to find a property to flip.

It would be helpful to decide whether or not the property is worth it if you had a better understanding of the After Repair Value (ARV) of the property you are considering purchasing.

You can get an idea of what to anticipate by looking at some statistics regarding the recent sales values of homes in that neighborhood. You also have the option of seeking the assistance of a real estate agent in this endeavor.

You can also sidestep the need to flip the house by purchasing it at a wholesale price and then selling it right away. This is one strategy.

Generate More Leads Using Social Media

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Because billions of people use social media, it’s an excellent platform for generating leads.

Your chances of making deals will improve in proportion to the number of people who view your listings. The more transactions you complete, the more money you will make in your business.

You can expand your online brand identity and drive traffic to your listings and personal brand with the assistance of social media platforms such as Instagram and Facebook.

You will be able to communicate with a greater number of people using social media than any other method.

You can run ads on social media to target a specific audience that consists of buyers who are likely to be interested in your listings. You have a wide variety of options available to you when you use social media.

Use Direct Mailers

This tried-and-true strategy is still effective and generates the same return on investment (ROI) as social media marketing.

The response rate for direct mail is significantly higher. It has a very competitive cost-per-acquisition, outperforming many other digital channels in this regard.

When it comes to response rate, format plays a major role in the direct mailer:

  • Catalogs have a 3.9 percent response rate
  • Oversized envelopes have a 5 percent response rate
  • Dimensional has a response rate of 4 percent.
  • Letter envelopes have a response rate of 3.5
  • Postcards have a response rate of 4.25

Direct mail makes it difficult to track where leads are coming from. This is the only disadvantage. A larger budget would be required to track direct mail.

Because only a few businesses use this strategy to target their customers, there is room for your company to stand out.

Focus on Rental Market

You have the opportunity to capitalize on the demand for your property as a vacation rental during the time of year when tourists are in town. This could bring in some additional revenue for you.

It is possible that you will go through an unpredictably unpleasant time period if the price of your rental is high during the off-season for tourists.

This is especially true if you have hired a property manager to oversee the management and maintenance of your rental properties. The cost would be high.

In order for your business to remain relevant during the off-season, you must lower the price of your properties so that they can be rented all year.

If this concept does not appeal to you, make the most of the peak season so as to offset the decline during the off-season.

Some property owners consider vacation rentals to be a major investment, despite the fact that they can be difficult on their cash flow.

A vacation rental site noted that an average owner generates $28,000 by renting out his property on their site for 18 weeks of the year.  This is equivalent to 75 percent of each year’s mortgage payment for them.

Before you or your client venture into this market, it is imperative that you conduct an in-depth cost analysis of the management, maintenance, and repair services. Doing so will allow you to obtain the maximum benefit from it.

Source for Referrals

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This is the lifeblood of any business, particularly real estate. This is when businesses come looking for you. Inform your clients, both past and present, that you would appreciate it if they could refer someone your way.

You must also ensure that you provide adequate service to them before you can ask them to refer their friends, relatives, or anyone else who may require your services.

When your client is pleased with your service, they will gladly return the favor by referring others to you.

Investing in real estate has the potential to be a very profitable business venture.

It is now being considered by a lot of people as a potential business that will continue to be very profitable even in the future.

If you put these strategies into action, your new venture will get the boost it needs to be successful.

Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

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