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.
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.
The Seattle real estate market is one of the hottest markets in the country. Over the past few months, home prices have started to accelerate even more quickly. The economy of Seattle is strong, and this is encouraging many people to move to the area. Not only that, but there is less traffic in Seattle than other major cities.
The biggest driver behind higher housing prices in Seattle is a lack of inventory. It is fairly common for a home to sell within a day or two of going on the market. There are many people who want to buy a home in the area. The problem is that there are few homes within an affordable price range.
The good news is that many building companies are working on new homes. However, it is going to be several years before the new homes will catch up with demand from buyers. Over time, this should be an issue that gets worked out with more homes being built.
As a buyer in the Seattle market, reacting quickly is essential. If you see a property that you are interested in, you need to submit an offer quickly in order to be considered.
Over the past year, home prices in Seattle have increased by more than eight percent. This is a massive increase in prices during one year. Many real estate experts believe that this trend is going to continue into 2018. With more demand from buyers than ever before, sellers have an incentive to continue increasing the list price on their home.
Real Estate Investors
Investing in real estate is a great financial decision over a long period of time. There are many real estate investors who are looking in Seattle for a property to purchase.
This is another factor that is increasing the overall cost to live in the area. Real estate investors typically react quickly when a home goes on the market. Seattle is a great market to find a rental property in because of all the population growth. Rent prices in Seattle have also been rapidly increasing in recent years.
Although Seattle is a great place to live, many people are having a hard time finding a home in the area. Some people are starting to look at cities around Seattle in order to find more affordable homes to purchase. The inventory shortage in Seattle will continue in the next year.
In real estate, growing your network can be one of the most beneficial aspects you create for yourself. Knowing people in all facets of the industry can help to boost your career to new heights. While people work hard to learn as much as they can about the field, you can be better allocating your time to making connections.
Creating relationships with others in the real estate industry gives you a leg up when it comes to growing as a professional. You could have all of the knowledge about real estate but if you have a limited network to collaborate with, you will seldom see as much success. As an investor, it is important that I seek contacts within all other facets of real estate. Knowing contractors, brokers, architects, and agents are all a crucial part of running a successful investment company. Having these connections with those who are experts in areas that you are not, helps to guide you along your project’s journey. The complementary relationships that you build with other businesses allows room for growth and learning as well.
In today’s world it has become just as important to network online as it is to do in person. Creating a strong online presence is an aspect of networking that many people neglect or feel as though is unnecessary. Utilizing sources such as LinkedIn and ActiveRain are amazing networking tools. Everyone from investors to brokers should be utilizing these sites to help boost their relationship and establish themselves within the real estate community. Making sure that your profiles are optimized to their fullest potential will also have a great impact on your social networking abilities.
As vital as online networking has become, there is still much force behind making personal connections with colleagues. It can be especially useful to host or attend local networking events. In the real estate industry we are lucky to have extensive groups of us working around the country towards common goals. For those who may have already established networks in their community, expanding your connections to surrounding areas is never a harmful tactic.
Professionals of all industries should be focusing a decent amount of their efforts towards expanding their networks and relationships. Having strong online and personal connects gives you more power than all of the knowledge in the world.
To be a part of the real estate industry doesn’t necessarily mean you need to become an agent or broker. The markets around the country are standing on relatively solid ground and we owe a great deal of that credit to the investment side of the industry. Real estate investors are doing very well for themselves right now and there’s a good reason why. While the markets may be contributing to successful investments, there are certain habits that many prosperous real estate investors live by.
Following the Markets
Besides the stock market, real estate, is one of the most fluctuating markets in our economy. When investing in the industry, someone who has succeeded spends a significant amount of time researching. To continue thriving as a real estate investor, keeping up with the trends and developments of the market are a must. Everything from interest rates to unemployment statistics should be closely monitored by investors. The more that an investor knows about their market, the more promising they can expect their business to be. Another crucial trend to keep an eye on is consumer habits. By knowing which audiences are driven to your investments can provide you with the tools you will need to properly invest.
Develop a Niche
When first starting out in real estate investing it is important to determine which style of real estate best suits your wants and needs. Choosing whether residential, commercial, or land it is important to know which area you want to focus your attention to. Learning everything there is to know about your chosen niche will give you the confidence to make smart investments along the way. Understanding as much as possible before moving on to another type of real estate can help an investor project long-term success. Once a particular focus is mastered, the investor can then choose if they are ready to move on and put their money towards another type of real estate.
In any industry it is important to surround yourself with those who support and share your goals. Real estate investing is no exception. For those new to the investment side of the field, finding someone with already established success is something worth taking the time to do. If you plan on starting your own investing company, it is worth it to know someone who can help introduce you to their seasoned colleagues. Not only is networking in the real estate industry but finding trustworthy contractors, realtors, and architects will help take your investments to new heights.