Category Archives: Business & Property

Taking Your Real Estate Business to Another Level by Building Solid Team

Real estate business gives more chance for you to get financial freedom. It means you have ultimate right in making decision and all. However, building real estate business means you need to be flexible to work individually and in team.

Building solid team real estate business

You must know that individual’s capability has limit. Even though you are good in many things, there are things in real estate business that need specific skills and knowledge. Thus, you need to trust your team to do their job based on their skills.

Building a solid team is a challenge because it cannot be achieved overnight either.

Building solid team for successful real estate business

Building the right team for your real estate business means you need to put the right people in the right place. If you success in building a powerful and reliable team, your business will be easier to higher up.

Taking decision of who is going to fill in certain position and who is going to take specific matter can be stressful. However, one thing to remember is that everyone in your real estate team play important role to build your business. Now, let me tell you about the things you need to build solid team to higher up your business.

As an investor, you need to be aware of the role of real estate agents. They are good source for potential leads and it is easier for you to find the right deals to close around you.

However, you need to choose the right agent not only the best one. Even the best real estate agent is possible to not fit you right. Thus, make sure you find out more about how they work and where they source comes from before working together.

Next important part of your team to consider is property manager. Some investors may say it is not urgent to hire property manager. However, you will need them if you run properties and aim to grow your rental portfolio.

Make sure to choose property manager that can handle your project well so that you can focus on other tasks. When you hire them, you won’t need to worry too much about rent collection, finding new tenants, and regular maintenance.

Contractors are also needed if your real estate investing focuses on rehab. It is important to hire high quality contractor.

The best way to find the right contractor is using personal referrals. It is more reliable since you gain information from people who have worked with the contractors. You need to find contractor that can supply you both references and availability.

Attorney also plays important role to take your real estate business to another level. Attorney will help you handling the deals and transaction of your business.

When you hire attorney, you protect yourself and your business from potential dispute related to legal issues. Make sure to hire seasoned attorney that can offer you dedication and passion. Choose attorney that is specialised in real estate and has knowledge about real estate in your area.

Things to Consider when Seeking Out Commercial Deals

Commercial deal is one of the best ways for you to gain long term wealth in property business. Seeking out a way to expand your business and make bigger investment is something good to do. It means that you have progressed and able to think forward to the future.

Things to consider when seeking out commercial deals

 

With this, you may have seen that commercial properties earn higher returns even though they require more time, capital, and effort.

Of course, the risks are also to mention in this case. When you invest in commercial properties and get a bad deal then the impact may be as bad. The impact is worse due to its relative size of the transaction.

Things to consider before purchasing commercial properties

Gaining benefit is one of the main goals in running business. When you are ambitious to earn profit as high as possible, you may think that commercial properties are the best chance. However, as mentioned earlier that as the possibility of higher profit comes greater risks you need to be willing to take. Here are things you need to consider before purchasing any commercial properties:

  1. This is mentioned many times that location is the key in purchasing property n matter what kind of property you are looking for. It is not the ultimate factor which can determine your success but it plays great role to help you make the right investment. Remember that tenants have basic considerations; location and price. If you are looking for business tenant, location even holds bigger factor to consider.
  2. Next thing to consider is the price as well as affordability. There are differences when you deal with residential and commercial purchase. For commercial purchase, it requires 30% down payment. In addition, some lenders even need to require a certain number of months of reserve mortgage payments. Thus, you need to be aware that you are going to let your money tied up for several months in the process. There are various expenses you need to deal with. Thus, it is important to invest in property that you can afford.
  3. Next consideration in purchasing commercial properties is the number. This is quite different from a single-family numbers. Thus, it is important to understand your information source before making any number and choose only trusted source. The number for commercial purchase means everything that you need to be extra thorough with your calculation. You need to understand everything or else you will face with trouble in the future. If you don’t understand a thing or two, it should serve as a red flag.
  4. If earlier mentioned that location is important, market is not less at all. When location focuses more on immediate area and surroundings, market focuses more on local supply and demands. Thus, both hold important roles in commercial purchase. Market is indeed dynamic in sort of ways. It is quite unpredictable but still important to look at. It at least will help you to decide where you may be headed with your investment.

Locations with Economic Diversity for Real Estate Investment

Investing in a real estate location may seem obvious when all you have to do to garner the most amount of profit is by investing in major cities. However, the idea itself is hardly practical as although properties in major metropolitan areas often yield the highest return, purchasing and even maintaining it can be a real challenge. There’s also the fact that you’ll have so many more competitions ready to offer a better price compared to yours.

Despite all of those facts, major cities remain to be a highly profitable location for real estate investment. However, simply leaning onto investing in those areas won’t give you a chance to learn about creating opportunities, and learning when there is one. There are a set of complex factors that make a location a good place for investment. Those factors go beyond a mere number of population or population growth. There is a question of sustainability especially in the entirety of the economic sector of a location. And the issue of economic diversity is not something that all areas possess, nor seemed to develop in.

What is economic diversity?

Although locations that focus on a single or a few industries can very well thrive,

Places with a high economic diversity is on a level of their own. Economic diversification both stimulates positive economic growth and is a result of economic growth in itself. Some of the most common one-industry that dominate an area or a state are the industries of tourism and the oil and gas industry. These regions have one dominating industry likely because of a geographic factor. But more often than not, it is because of the combined geopolitical factors that make the industry of an area what it is today.

Growth across a wide range of sectors

The economic growth can be seen largely through the growth of employment rates and employment growth. In an economically diverse area, this is further re-defined as growth across a wide range of sectors. In a way, this is somewhat interlinked to the population growth as well. The population growth is generally linked to the growth of the market itself. With more jobs and industries available, the more people will come to the city, which contributes to both employment rates and population growth. This plays a vital role in the returns of the real estate investment.

Effects of economic diversity in property prices

It’s no secret that the places with the highest economic diversity yields the highest in terms of prices among other areas. It’s one of the most important factors that contributed to the thriving of the capital cities of many countries. Based on the report presented in Emerging Real Estate Trends 2019, it’s been said that Dallas Fort Worth is considered as one of the top markets in the United States. This is determined through a few prospects related to real estate such as the millennial and generation Z workforces. It’s also worth noting that there had been a rather big activities in startups. These data are acquired from a range of industries and not simply locked to one dominating industry.

Important Factors Before Buying Bali Real Estate For Sale Cheap

If you see something that is sold cheaply, what do you think of? The item is damaged? Or are there other reasons? If Bali real estate for sale is cheap, what do you think? Is it safe to buy something that is cheap? Buying property is not easy and playful. The budget for buying real estate is not a small amount. This is the reason why buying a property must be thorough and careful.

Bali real estate for sale cheap

If there are Bali real estate for cheap sale with special conditions, the demand will be very high. Maybe in seconds, you will no longer see the “for sale” sign. What allows Bali real estate for sale cheap? What important factors should you examine before buying cheap property?

There are many things that you see a lot of “for sale” signs. Given that Bali is the destination of many people around the world, both for work and tourism, it allows many foreigners to vacation or settles down. When the conditions of foreigners settled in Bali, what was needed was a stay. What if they no longer have permission to stay in Bali? When they no longer have a residence permit, the property they have must be sold to another party. This is one of the conditions why many Bali real estate for sale cheap.

Or they offer Bali real estate for sale cheap to other foreigners working in Bali. This makes it easy for them to sell without having to wait for enthusiasts for a long time. Before buying Bali real estate for cheap sale, there are many factors that you need to pay attention to.

Condition Of Bali Real Estate For Sale Cheap

You cannot expect a real estate that has been occupied to have perfect conditions. Whether it is in the form of a villa or luxury real estate. All things that are said to be second goods must have flaws and something that needs to be corrected. Whether repairs to walls, repainting, plumbing checks, swimming pools, courtyards or other possible small things have resulted in a decrease in the value of real estate. If needed, you can hire experts so that real estate is back in good condition.

A good condition of Bali real estate, allows you to generate additional income. You can get Bali real estate for cheap sale then repair and rent it for tourists who need a place to live. This will be your financial addition every month. You don’t need to worry about mortgage payments.

Location Of Bali Real Estate For Sale Cheap

Location is important for the value of a real estate. But in Bali, all real estate locations have high selling points. Some strategic locations such as Seminyak, Kuta, Canggu, and surrounding areas have very high real estate value. If you think about buying it at a strategic location, you may have to think more. What is the monthly mortgage fee? Can additional rental income cover the mortgage costs? No matter where Bali real estate for sale cheap you buy, the value of your investment will always increase every year.

Learn more about House Hacking in Property Business

Real estate business keeps growing each year. It attracts lots of people to start investing and trying out various strategies to make it through. Basically, there is always new real estate investing strategy emerges from time to time. It usually follows the trend and the changes.

For now, you might be interested to get to know more about house hacking. It is one of real estate investing strategies that fits for new investors. Lots of people feel discouraged to start investing in real estate due to many reasons.

One of the reasons is that they haven’t even purchased their own home yet. Is it really a big problem to start investing in real estate?

Find out more about house hacking

Find out more about house hacking in property business

House hacking is basically real estate investing strategy in which the investor earns rental income by renting out their primary residence? Is that possible though?

Well, many newcomers in real estate business have started this investing strategy and showed that it worked.

There are different types of house hacking. First is when the investor lives in one of the units of their multifamily property then they rent out the others. Second, they live in a single-family home and rent it out at the same time.

This option is mostly chosen for investors who don’t live in multifamily home or don’t want to purchase one. For investors who live in single-family home, they rent out one of the bedrooms, garage, etc.

According to real estate business experts, this investing strategy fits for those who are interested in earning passive income but still doesn’t really know or have the courage to start with the business. This is also a great way to reduce house expenses. This can be a good start for those who want to try investing in real estate career by baby steps.

Benefits of house hacking

Here are some benefits you can earn from house hacking:

  • As mentioned above that house hacking will help homeowner to reduce housing cost. That is basically the main benefit to earn. Of course, multifamily property has higher housing cost. However, renting out some units will significantly eliminate and reduce the expense to some point.
  • Next benefits is that house hacking is a very smooth way for you to start with real estate investing career. The transition is smooth since you won’t be overwhelmed with all difficult technical things. You will learn little by little how to be a good landlord and learn more about the business. Next, you will gain needed skills to step up the game.
  • House hacking is flexible investing strategy. Even if you are moving out to a new city, you can just simply rent out your property and still earn your income. There is no need to worry about your house.
  • House hacking helps you to earn extra cash from passive income. Thus, you will be able to pay down your mortgage quickly. In fact, you can even save up for your next investment in the future.

Reducing Carbon Footprints in the Property Business

What’s carbon footprints?

Before we go to the details of carbon footprints’ relations to the real estate industry, let’s take a look at what is exactly “carbon footprint”. The term generally refers to the emission produced by anyone; whether it’s a company, an individual, or products, or its productions process that translates to equivalent of carbon dioxide. Companies have been known the biggest culprits producing carbon footprints in great amounts in a relatively short period of time. The concept of carbon footprints become important across any industries because of its harmful effects to the earth as well as its inhabitants.

Not surprisingly, the property business is known as one of those industries that contributed a significant amount of carbon footprints on earth. It’s more than just important for real estate dealers and investors to care about the impact of carbon footprints. It’s an integral part of keeping the business sustainable and not harm the environment further.

Embodied energy in a building

You’ve probably heard the term tossed around whenever you’re reading up stuff about environmentally friendly properties. Embodied energy means the total of energy needed in order for a building to stand. This includes the whole process from its extraction, construction, and delivery. It’s been said that built environment contributed to at least half of the carbon emissions in the world. Taking care of the embodied energy is extremely important as it is the indication of how much carbon equivalent went through the process of getting a building to complete. The higher the number of embodied energy, the higher the impact to the environment.

Locally-sourced materials

One of the biggest culprits in contributing to carbon footprint in the property and real estate business is the fact that the materials are transported from halfway across the world. This should be able to be remedied through ordering materials that come from the local sources. The carbon emissions from produced by the materials that needed to be transported through flights and other long-distance journey is significant. Ideally, there should be little energy in order to transport a material to its designated place. It may not seem like such a significant move, but the transportation process contributed to a great deal of carbon emission in the production of buildings.

Why is it important to care about carbon footprint?

It’s important to ask yourself why is it important for you. As people have their very own reasons for believing in reducing carbon footprint in the property business.  Those reasons can very well include an indirect one such as the bottom line. Are you interested in the eco-friendly business and the cause of reducing carbon footprint because you’ll be able to reach a certain target market? Are you genuinely concerned with the environment? It’s important to ask yourself all of these questions It’s also essential to remember that caring for the environment and wanting profit can co-exist. Sometimes you may want to have a choice to sacrifice on or the other. But once you’re sure where you stand, you may be able to make a better, informed decision.

Property Business Insiders Need to Invest in Environment and Sustainability

Whether you consider yourself a newbie in the property business or a seasoned veteran, the matter of sustainability should not be of compromise. If there is a one thing that everyone in the property business can agree on, it should be the issue of environment.

Environment and sustainability property investment

The largest impact can be made by the people who have the power. And “power” here translates to capital. To put it more plainly, money. Why should you (and everyone else) care about the environment in the real estate industry?

The issue of environment and sustainability is everyone’s concern

Environment should not be an individual’s issue. It is the collective responsibility of all of us who occupy the earth. The property business insiders have a particularly important role in improving the environment. One of the major issues of improvement that can be made is the issue of minimizing carbon footprints.

There are numerous issues that needed to be addressed and continuously improve upon.

Some of them include fuel and energy related activities, purchased goods and services regarding any construction activities, management of waste, the carbon footprint resulted in travel, as well as downstream leased assets.

It’s been identified that the majority of the real estate industry is made up by energy consumption throughout the life of a property, the process of construction itself, as well as the process of maintenance.

Minimizing carbon footprints caused by the real estate industry

Corporate footprints across all industries is undoubtedly the biggest culprit in environment issue. The real estate industry is responsible for much of the carbon footprints caused by constructions as well as the gathering of construction materials.

It’s been said that that the real estate sector had shown a good initiative to reduce the carbon footprint on the environment. This comes with a sense of responsibility, as the knowledge and capital in this sector made up for a great amount potential in both improvement and destruction.

There are organizations such as European Energy Efficiency Directive who are dedicated to this cause.

Ideal investment in sustainable properties

Investing in environmental issues won’t ‘merely’ benefit the mother earth and all of her inhabitants. A study has found that environmentally friendly properties yield higher returns and attract a more stable market.

The target audience that are able to focus on the environmental issues in the purchase of properties are likely to be more invested beyond financial issues.

It’s also a known fact that the eco-friendly investment is highly attractive to millennials.

The next generation of homeowners who are slowly but surely dominating the real estate market buyers, are known to care so much more about the issue of sustainability compared to the previous generations. From the plastics issues to a more personal issues such of being a vegan, the millennials are prime examples of the embodiment of emissary to environmental issues.

Property certifications

Since there had been a rampant practice of “greenwashing” in the real estate industry, one of the methods in distinguishing an actual environmentally-friendly house is through certification.

More and more people who are looking for sustainable green properties are looking for certifications instead of just an empty label of “green” properties that any sellers and agents can slap on.

Real Estate Marketing Ideas to Better Get the Word Out

Marketing is probably what constitutes a real estate agent and the everyday home sellers’ time. It can be a tiring or even a mundane process.

This is particularly true if you did not experiment with new ways in marketing your properties. While always implementing the tested and proven is every marketer’s mantra, experimenting is what led to breakthroughs. There is no magical surefire method to attract homebuyers. But you can definitely learn from the everyday technology that is well within your reach and accessible to your potential homebuyers.

Make use of your social media platforms

You’ve probably thought of this before but did not know where to start. After all, even though social media is often a part of everyone’s everyday lives, not many had fully grasped its potential in generating leads or even transforming views to sales.

Real estate marketing idea using social media platforms

Social media platforms are powerful tools in marketing. Make use of groups, pages, and even facebook or twitter ads to promote your properties and reach an even wider array of demographics. Take the time to invest in learning marketing in social media. It’ll be worth your while and the skill can be implemented in any of your future property sales.

Consider Search Engine Ads

If you don’t have an idea on where to start, get an agency to help you out with your real estate business. A more affordable means would be to hire a freelancer to do the ads for you.

The best way is to hire one that you’re confident and comfortable in working with.

Remember that you need to communicate clearly of your expectations. Make sure to listen and heed what the agency explained to you. A more sustainable and long-term marketing in this area would be search engine optimisation. But only do this when you already have an established website or blog of your very own.

User-oriented blogging

Today’s marketing world cannot be separated from content. The real estate industry is no exception. Take one of the most popular real estate business sites, Zillow. Aside from being a listing for houses, the site also posted relevant articles for both homebuyers and home sellers.

Provide useful content for your potential audience and your market. Marketing today is all about engaging content.

Virtual open house is a killer marketing move

While an open-house is usually done for the potential buyers who are in the area, taking it a step further by making it accessible to more people is a brilliant step. Make use of the 360 degree camera technology.

You’re figuratively “bringing” your house to a much larger audience, and you may even reach ones that you’ve never expected before.

Understand your future market potential

You biggest market in the future would be the next generation of future homeowners; the millennials. It’s important to understand what your market wants. Continuous learning can only improve your chances.

Learn about what the millennials care about and match them with how it can benefit your sales. The millennials are all-out authenticity; so make sure to do this bit genuinely. Investing in environmentally friendly houses is one of the major causes that the millennials care about.

Identifying Seller’s Market in the Real Estate Industry

The term “seller’s market” is thrown around often. What does it mean when industry insiders say it’s a “seller’s market?” What is “hot market” and what it means for you? Whether you’re a buyer or a seller, knowing whether the current market is a seller market or a a buyer’s market is extremely important in making decisions.

Identifying Seller’s Market in the Real Estate Industry

Demands and Supply Law

The economic law of demand and supply is the main important indicator of whether the current market temperature is “hot” or “cold”. When demand is higher compared to the existing inventory, then it’s safe to say that it’s currently a seller’s market.

Inventory is Low

When the number of inventory or supply is lower compared to the previous months or years, it may translate to higher demands. The low inventory may also be a result of a higher number of closed deals compared to the previous months or years. Competition is going to be more tough for homebuyers to compete during the time supply is low.

Median Sale Prices Fluctuations

When the median sale prices increase, it means that the hot market has been going on for a while now. It would normally be an ideal time for property owners to sell their homes. Median sale prices rise can be compared to the previous 3 – 6 months of property sales. A rise that would be considered significant depends on an assortment of factors such as locations. A decline in price is much the same.

Days on Market Indicator

When the indicator of Days on Market (DOM). Make sure to take notice of the DOM in the Multiple Listing Services (MLS) you’re visiting. However, it is known that the DOM of a property listing can be misleading at times. There are property owners who do the practice of re-listing their properties. Home owners know that the DOM matters to buyers, and therefore, sometimes they take down a listing, and re-list it again in order to resent their Days on Market. This practice is quite common and you’d probably need a neighborhood specialist in order to find out the actual DOM of a listing.

Selling a house “as-is”

Because the competition between buyers is high, often, a high number of inventory is sold. The frequency as well as the duration in which a house is sold affect the condition of the house during the time of selling as well. A lot of homeowners don’t have to make much improvements, if any, during the time the market condition is hot.

Properties are sold higher than the asking price

When there are multiple occurrences that homes are sold with premium, or a deal is closed in a higher price compared to the asking or listing price, it can be assumed that it’s a seller’s market. The higher price is also often a result of the competition between buyers. However, this is not a given. Higher yield than asking prices require work. Home staging is one of the effective practice in making a property so much more appealing and is also known to increase the appeal of your property.

 

Secret Recipe of Successful Real Estate Business

Real estate business has gained attention and is considered as one of the most promising investments. However, this is also a challenging industry. It may be easy to start investing in real estate. However, building and maintaining consistent business is at another level. It is not something impossible to achieve. However, you need to work a little bit harder than the average people if you want to be exceptionally successful in this business. it is true that every investor may have a different way to reach their success. However, there is always principle and fundamental that will always be the secret and absolute recipe to achieve success.

Secret Recipe of Successful Real Estate Business

Find out more about secret recipe for a successful business

It is easy for new investors to step back from the business once they plan don’t go their way. However, it is the bad mentality to start with. Instead of scowling and wallowing over a little rough start, it is more productive to find out the secret recipe of successful real estate business. Well, these are not actually secret. However, you will understand more about the basic things you need to build a successful business in the real estate industry. Here are they:

  • Knowledge is the first ingredient you need to have in order to build real estate business and start investing. Keep in mind that real estate business is constantly changing from time to time. There is no power you could have to stop the changes. Instead, you need to learn how to handle it and adapt with it. The key to do it is knowledge. You can gain knowledge about real estate business in many ways. Education is important as basic fundamental in building a business. the more things you need, the wider the chances you have to make your business more consistent. Education is the start you need. When you are well-educated in this business, you are armed with the best weapon.
  • Next ingredient for the recipe of successful real estate business is action. There are lots of people who are knowledgeable and well-educated in this industry. However, it won’t matter if they don’t take the right action. That is why education is not enough. You need to arm yourself with another weapon which is action. It doesn’t have to be a grandiose act. You can just start by joining a local networking group, seminar, etc. Taking action also includes planning, preparing, and strategizing. Taking action doesn’t always guarantee a positive result but you can consider it as learning by doing.
  • The last but not least ingredient is the system. It is important to make your own system in building real estate business. When you find the right system for your business, everything will fall into the right place effortlessly since system means automatic actions. When you build the system, it also means you have to do repetitive actions. For example, repeatedly sending mail campaign to get potential calls which can bring you to potential leads. This repetitive action leads you to more contacts and makes you closer to closing the deals.