How to Create a Great Business in Real Estate
Real Estate investing is not an easy way to make money, in fact it takes planning, good judgement and a strong business mind. Many investors have fallen down and experienced hard financial lessons before they were able to achieve success. So you need to find out How to Create a Great Business in Real Estate.
You will want to do all you can to surround yourself with experienced investors so you don’t have to learn the hard way like many of us have, instead listen and network with as many real estate investors as possible, build relationships with these folks and learn those real estate investing tips that have helped them because those tips will ultimately help you as well. If you are new to the real estate business you will have many questions, ranging from funding to finding deals and everything in between. There are many different ways to approach your new real estate business but if you surround yourself with successful folks, have a positive attitude, a well thought out business plan, a good source of leads and a strong work ethic you will have great success with your new real estate business.
The best real estate guidance I can give for your new business is to make sure you have systems in place before you start investing your own money. As an investor you must always have a plan of action, a specific purpose, easily defined goals and last but certainly not least a mentor/s. If you are committed to your success you will most definitely need those components above and a large network of investors you can bounce ideas off of and ultimately learn from. Remember, that in real estate you have peaks and valleys, do not get too high or too low and do all you can to stay positive and motivated as your mind will allow you to be successful but it can also be your biggest obstacle if you allow it to be. To all the beginner investors, one of the best real estate investing tips I can give to you is to start off in this business by wholesaling properties; wholesaling investing allows you to learn the business without risking your own funds, in my opinion this is how all investors should start their careers as it allows you to learn the many facets of real estate investing without having “skin in the game”.
If you are serious about creating a strong real estate business than you need to come up with a business plan and know what type of properties you want to focus on. Make sure you know your market so you can determine the best areas to buy properties and so you can focus your efforts and energy there. Be sure to network with investors, after all this is a relationship business,spend at least an hour reading about investing as you never want to stop learning. In addition to these above, you will want to find a good realtor to help you find properties – make sure they understand Return On Investment, Net Operating Income and debt service, you will also need a good real estate attorney as you will be closing on a lot of properties and you’ll need someone that you can trust and that will protect you and finally you will need a strong lending source, realtors and attorneys may be able to give you some recommendations but I would recommend asking other investors, lending options will include banks, hard money, private money, mortgage lenders, portfolio lenders etc. Investors will have many real estate investing tips for you, my advice is to listen and ask them for tips. Remember, this business is all about relationships and while networking is not always the most enjoyable activity it is necessary and will help you find success sooner rather than later.
In order to have success in real estate you need to have systems to follow, a team of experts, a positive mindset, a strong desire to succeed and a great source of leads.These are all very important to a successful real estate business, however the most important without a doubt is access to leads. If you are the smartest guy or gal in the room in wont make a difference if you don’t have quality leads. You could be the best closer in your town but if you don’t have the leads your talent for closing will never come to fruition. You can access leads in a variety of ways, below is a list of ways to generate more real estate leads for your growing real estate business.
Please be aware that each market is different, some of these may work very well while others may not have the same impact, whatever the case may be, I encourage you to try many of them and settle on the ones that work best for you in your market.
Ways to find leads- Direct mailings, Cash buyer and motivated seller ads on craigslist, Networking with other investors/investing groups, Build a website for your business, Run a SEO campaign to attract motivated sellers and cash buyers, Always ask folks if they know of any great deals, Google probate attorneys in your town and network with them, Hubzu.com, Auction.com, Xome.com, HUDhomestore.com, Ask banks for their REO list, Find a foreclosure list provider, Find list of for sale by owner homes, Join your local REIA group, Visit your courthouse’s clerk office and look through list of foreclosed homes, Build a Facebook page for your business and post weekly, Post bandit signs, Conduct skip traces for mailing that is returned, Set up an automated phone system for motivated sellers, Drive through neighborhoods and look for vacant homes.
While, all the above will definitely help you grow your business, If your goal is to make serious money in real estate investing you need to have a lead generation plan. I have tried many different lead sources over the years ranging from pre-foreclosure to estates to short sales and many more. This past year, I came across Real Estate Sales LLC, a company that truly changed my real estate investing fortunes forever. This company provided me with motivated seller leads as well ascash buyers! Real Estate Sales defines motivated sellers as folks that own vacant properties with high equity, in other words folks with non-producing assets. Cash buyers are defined as folks that have bought at least two properties in the past 6 to 12 months for cash. Out of all the lead sources, I have come across, none have been as accurate and as strong as those from Real Estate Sales. I am so glad to have access to these leads as it definitely gives me a competitive advantage over other investors in my area. I don’t count on just one lead source but 90% of my deals come through the leads Real Estate Sales provides.
If you are serious in making money, make sure you have a lead generation plan because without one you will not have the success you deserve. If you want to experience success make the investment and find a lead generation system that works for you.
The business of real estate is a complicated one, however if you surround yourself with the right people, have a positive mindset, a strong desire for success and a plan of action in place than you will have no choice but to be successful. Have confidence in yourself and don’t be afraid to fail as it will only make you and your business that much more successful. Happy Real Estate Investing.