How to Make Money in Real Estate even in a Down Market
There's no doubt that the real estate market has taken a hit in recent months. However, there are still ways to make money in real estate even in a down market. The key is to be smart about your choices and to have a solid strategy in place.
Before you even think about getting involved in the real estate market, you need to do your homework. Research the ins and outs of the market, and try to find a niche that you’re passionate about. By having a clear understanding of how the market works, you’ll be in a much better position to make money in a down market.
Do you like working with first time home buyers? Do you like listing properties in certain neighborhoods? Do you have experience with condos and townhomes? Are you really knowledgeable in the historic districts? Do you love working with investors? Use your strengths to find a niche where you can thrive as a real estate professional.
While you may not be able to become a real estate mogul overnight, you can still make smart choices that will put you on the right track to financial success.
Here are my 5 tips to strengthen your real estate business this year:
Upgrade your systems.
Is your real estate business running like a finely tuned machine? Or are you recreating the wheel every time you get a new transaction? Now is the time to look at the core systems in your business and spend some time organizing and upgrading. Are you sending the same emails over and over? Create templates so you can click 2 buttons instead. Are you trying to remember all of the things to bring when you do an Open House? Create a checklist and an Open House kit instead. Are you trying to find ways to remember to keep in touch with new leads and past clients? Invest in a CRM instead. You are a business owner. The more efficiently you run your business, the better experience your clients will have. A happy client will share your name with others, especially when you make sure to keep in touch over many years and truly value the relationship with that person.
Connect with your industry partners.
Are you on a first name basis with several lenders and several Title Company partners? If not, find some amazing people and start building a relationship. We are all in this business together and we need to help each other. We all get paid the same way. Bring value to your industry partners. Drop off cookies at their office. Send them a thank you note when they help you with a question. Refer them to others so they get more business. This is a reciprocal relationship. Always be the first to give! Your efforts will not go unnoticed.
Get your Marketing on Point.
I hope that you have already laid out your marketing plan for the year, but if you have not, get out a piece of paper and a pen and decide how you are going to reach your ideal customers. Is it videos online? Is it social media? Is it postcards? Is it a newsletter? You need to get very clear on who you are trying to reach and how you will get your message delivered to them. The most important component of all, is to be consistent. Most real estate agents throw together a plan in January and then fall off with their efforts by March. Be the real estate professional that has a year-round marketing plan and outsource that plan to trusted partners so that it goes out without fail week after week, month after month. It may take someone over 20 times of receiving your messaging before they reach out and call you. Don’t give up!
Dig into your market.
Do you have a specific part of town that you work in? Then spend time each day really digging into your area. Know your market like the back of your hand. When you meet a seller or buyer in that area, you will know how many listings, how many pendings, what the average closed sale price is, how long homes are sitting on the market. You’ll even know about the new apartment complex they are building and the old hotel they are tearing down across the street. The more you know an area or a market segment, the more value you bring.
Specialize.
Choose an area of real estate where you can really excel. Are you amazing at helping first time home buyers understand all the ins and outs of a transaction? Are you an expert at Transaction Coordinating and would rather work for a team than yourself? Do you have experience with land or green building or some other area that would really set you apart? Whatever your unique selling proposition is, market that to anyone and everyone you meet. Having a specific niche will help you stand out in a sea of real estate agents.
