The real estate business is one of the most lucrative fields today. From renting to leasing or buying properties, the world is growing at a swift pace. Real estate marketing is, therefore, very crucial for any agent or investor in the industry. You should invest in both online and offline marketing to ensure no market is left out. In this article, you will find some of the creative ways to market your real estate business.
Create a Professional website
You mustn’t create just any website, but a professional one, especially if your focus is on moving property. Ensure that your website is appealing and accessible. The quality of content on the website should encourage visitors to want to see more. Avoid stuffing it with too many ads, and nobody wants that. You can as well include listings on your site and make sure to keep them updated.
Get Social Media Marketing
Make use of all social media platforms such as Instagram, Twitter, and Facebook. Research from the National Association of Realtors (NAR) shows that 92% of real estate customers first use online platforms before consulting an actual agent. So make sure your social media pages are active and highlighting what you are offering. You can even engage social media influencers to help with marketing.
Engage Local Television and Radio Stations
With this, you are sure it will reach the target audience, but make sure you do it right. If you choose to advertise through television, make sure it is one with a large viewership of your target audience. Use appealing and quality images to show your clients what you have. If it is through the radio, give precise details of your location and properties. Do not forget to leave contacts in both.
Start a Blog on Matters Real Estate
If you are a real estate agent or investor and still do not have a blog on the topic, you miss out. It would be best to start a blog to give more details about your services and engage with your potential clients. It is a great way to interact with people and know what they need. From the blog, you can link your website where potential clients can find you.
Customers play a significant role in the real estate business. Realtors are more likely to enjoy success if their clients are happy and satisfied with their services. As a result, happy customers will recommend their friends, relatives, or co-workers about a real estate agent. There is a lot of competition in the real estate industry. Unsatisfied customers will have to look for similar services from other agents. It is why realtors need to adopt CRM. It helps them attract and retain customers.
Understanding CRM in Real Estate
Thanks to technology, real estate agents can use CRM tools to interact and create meaningful relationships with clients. Moreover, they can manage the business from a single platform anytime and anywhere. Here is why CRM is vital in the real estate industry.
In most cases, CRM tools help realtors track and manage leads. Whether the realtor turns the lead into a client will depend on how quickly an agent responds to the lead. Additionally, existing clients expect real estate agents to respond promptly to their feedback, queries, and complaints. If a client is asking for price estimates, the agent who responds quickly has a better chance of being hired.
CRM tools allow agents to communicate and respond to their clients’ concerns quickly and from anywhere. Moreover, the software will track and record all interactions to help develop effective marketing campaigns.
In the real estate business, relationships between the agents and clients shouldn’t end. It is because previous clients can tell other people about the services. Moreover, they can contact the agent when they need to purchase property in the future.
Realtors should send emails or automated messages to clients during holidays, birthdays, or anniversaries to ensure long-lasting relationships. The timing should be right. Otherwise, they are unlikely to read the email.
Managing Marketing Campaigns
Customer relationship management (CMA) helps realtors track and manage marketing campaigns to identify their business’s most effective campaign.
Easier Decision Making
Sometimes, it can be hard to determine in which client you should invest. Also, real estate agents can spend a lot of time on deals that won’t yield an acceptable profit. CRM analytics helps realtors identify better clients and sales.
From the above, it is evident how CRM software impacts the real estate industry. It allows realtors to maximize their time and also improves productivity and communications.
How do you know if a house is a smart investment or a good property to flip? You may be looking to acquire properties for your portfolio. The problem is it can be a struggle to identify good deals quickly. Read on to learn how the 70% rule will help you.
The 70% Rule is a Simple Rule of Thumb.
Investors and flippers should use the 70% rule to determine whether to buy a property. The rule states that you should only pay 70% of the after repair value of a home.
An example would be a $175,000 home that needs $10,000 in repairs. After repair, it would be worth roughly $200,000. A flipper or investor should only pay 70% of that. The total they should pay is $140,000 for the home.
This protects them from overestimating the value of the home. It also protects against downturns in the market.
Speculating that a property will increase in value can be very dangerous. Seasoned investors prefer to make money when they buy to minimize their risks. This also protects them in case they missed something.
Other Factors To Consider For the 70% Rule.
You should also consider a few other factors. Settlement costs, financing costs, and carrying costs take a large chunk out of the deal too.
Closing costs on a $200,000 property could easily be 2 to 5% of the property. This means it would be up to $10,000. Financing costs would likely be around $5,000.
You should subtract $15,000 from your offer price to account for these factors. Some sellers may not discount the whole amount. It is better to get some of these off the cost to protect your margins.
Exceptions to the 70% Rule
The 70% Rule is a simple rule of thumb for finding rentals and flips. It is only a starting point. There are other circumstances where you might want to ignore it.
One of these cases will be if you’re holding the property long-term. Then, you would not spend as much on renovations.
You would be more concerned about the cash flow. Getting a good deal would still be necessary. A better price will still allow you to get lower monthly payments. Lower payments will help you with cash flow.
Take the time to determine your situation and goals. Are you looking to get quick cash? Other times you’ll be looking for steady returns over the long-term.
The 70% rule is a good rule of thumb. You should always be cautious with your repair and closing costs. It is a good starting place to protect your profits.
An essential skill in making a house flipping profit in the real estate business is knowing how to value a house properly. For individuals who are in the industry to make profits from low purchases. Here are ways to determine worthy homes to flip.
Average Value Determination: The house post-rehab value is determined by considering the cost of the houses in the general vicinity and the price of recently sold homes similar to the post-rehab vision. The final worth after repairs is the value you use for determining the worth of the house.
Standard cosmetic rehab: A general rule to estimate repair costs is $20 for every square foot. Based on this assumption, adjustments can be made upwards or downwards depending on the individual house’s specifications. This value will help determine whether to select the house for flipping.
Transactional expenses: Purchase closing costs are usually paid by the seller and account for 0.5 percent of the purchase price. The selling closing costs range between 1-6 percent, with an additional 1 percent as attorney fees. Holding costs such as property taxes, insurance, utilities, and maintenance costs should also be considered.
Offer price-setting- There are formulas to determine what offer price will be stated. One way is to get 70 percent of the average repair value deducting the repair costs. Another way is to subtract the repair costs, closing and holding expenses, and desired profit from the ARV to get the right offer price.
Geographical setting: Proximity to facilities such as shopping malls, transportation services, and school increases the property’s value while highways and airports decrease it. Different locales may have various school taxes, municipal and private trash collection companies with different days.
Physical attributes: As much as the seller wants the house to stand out, it shouldn’t be so significantly marked up in features that it overshadows the neighboring houses. It will only lead to a scenario where it will be too costly for that neighborhood. The most successful house flips are those that have the most work. However, if structural issues are suspected, it would be wiser to buy a house in better condition.
Lenders- Rehab lenders give between 65-70 percent of the ARV. This factor is because an investment is made with the anticipation of making money in the end. If the lender advises otherwise, then there will not be enough equity for the investing party to make money in the end.
When it comes to real estate investments, there is one thing that is certain: the time is now for savvy investors to hedge their bets on the real estate market, not just in their home country, but all over the world as well. There are excellent opportunities for beachfront property in many different surprising worldwide locations. Consider the following options:
The best thing about Algarve, Portugal would have to be that there are no foreign ownership restrictions. When coupled with the stunning cliffs and beautiful beaches, a person definitely has a paradise that even 70’s Yacht Rock artist Bertie Higgins could get behind. The property options are also very diverse, with $8 million buying an oceanfront home and $215,000 getting a home if a person wants to sacrifice that beach view.
Ambergris Caye, Belize
This property in Belize is very underrated. Of course, there aren’t too many properties that could absolutely be considered beachfront. However, it has a tropical landscape, mild weather, and numerous recreational opportunities. The prices won’t break the bank either, with a two-bedroom condo only costing around $250,000 and a one-bedroom option going for $150,000.
Lush jungles. Mountainous terrain. These are just two ways to describe Cayo, Belize. There are plenty of housing options for retirees that start at just $130,000. Moreover, there are plenty of condos available in the area for $100,000 or less. American retirees will love the area simply because for the most part, it has all of the comforts of home.
Granada was founded in 1524 by Spanish conquistador Francisco Fernandez de Cordoba, Granada is a historic old colonial city in coastal Nicaragua. When someone couples the warm weather and picturesque lake with a rich history, they are sure to find an extremely desirable place. Historic homes dot the landscape, and most of them have been turned into condos. Prices are fairly reasonable. For example, buyers will find condo conversions available for around $170,000, and a completely renovated colonial home can be had for between $100,000 to $400,000.
Puerto Vallarta, Mexico
There is no question that a lot of prime real estate can be found in Mexico. Puerto Vallarta is a great option, but it truly is better to buy than to rent. Simply put, renting property in Puerto Vallarta is very expensive. However, buyers will find price options for this Pacific Ocean retreat that are well within their budget as long as they are willing to rent them out themselves for the time they are not there.
Panama City, Panama; Samana Peninsula, Dominican Republic; Abruzzo, Italy; Medellin, Colombia; and Istanbul, Turkey are all good options for property investors as well for a variety of different reasons. All someone has to do is their research and they are sure to find some excellent overseas property investment options!
When it comes to financing real estate, there are a variety of channels. Some are very standard and well known, while others are hidden gems. Some factors to consider when selecting an avenue are the timeframe, the amount, and down payment. To get ready, set up contacts with as many financial systems. When a viable piece comes up, run it past several outlets to compare interest rates, fees, and terms.
This type of financing is something that big-box banks and institutional lenders offer. The loan officer must adhere to standard protocol. In the event some data does not fit into the box, they may not approve the deal. Some individuals choose this form because it is straightforward and comfortable.
Some hybrids of traditional real estate loans are FHA, USDA, and VA. These are government loans, and each one requires the applicant or property to meet specific criteria. Borrowers will pay mortgage insurance on an FHA loan. USDA loans are restricted to certain rural areas, and to qualify for the VA product, one must be a veteran or a veteran’s spouse. Both active and retired military personnel can apply. These loan products have different down payment requirements, which run from nothing down for the VA loan to 20% or more.
Private money is an agreement between two parties that does not need any outside confirmation. Private money can come from friends or family members or outside groups. Peer-to-peer platforms are popping up online. Through these portals, people can put in their credentials, the type of project, and the cost. Investors on the site comb through the opportunities and offer deals, or some operations have preset parameters.
Interest rates are typically higher, but the terms can be very flexible. Often these investors can get the cash out quickly, which is essential in a hot market.
Depending on the contract, there may be little to no down payment. For family and friend loans, that is not uncommon, but the peer-to-peer ones usually require some down.
Hard money is a blend of traditional financing and private funds. A hard money lending company collects funds from a group of investors. The borrower will have to meet some standards, and the process will go through a review. The investors will want some level of security, which can come in the form of a hefty down payment.