7 Tips For Expanding Your Real Estate Network

Posted by JD Esajian

How can you expand your real estate network?

Education is still vital to succeeding in real estate. However, more than ever, winning in real estate is about who you know – and who knows you. Having a million Facebook fans might feel good. It might even be good for branding, but that doesn’t always mean it is profitable. It might not even mean that it leads to closing more real estate deals. Buying social media connections, and giving out thousands of business cards can help, but it isn’t always the most effective or profitable way of building a valuable network.

So how can real estate agents, CEOs, and investors grow their networks, profitably?

1. Dedicated Time

Scheduling freedom is one of the best perks of working in real estate. However, there is a lot that can fill an agent, investor, and CEO’s time. Planning marketing, talking to prospects, managing transactions, and handling the business side of things can all take up a lot of time. Expanding your network is important. Those that want to build in this area need to block out time for it. Schedule it in. How much time on your calendar is dedicated to networking? This is a weekly, if not daily activity.

2. Hone in at Events

Most real estate investors will find no shortage of local networking events to attend each month. Those in more rural areas can check for county and regional opportunities. Then there are regional, state, and national trade-shows, expos, and conferences. There are many of these events which are in similar or related industries too. Leverage them. Home builder conferences, tech meet-ups, finance seminars, and home design shows are all great choices. There can be thousands of potential contacts at these events. Instead of taking the volume approach, try to hone in. Focus on quality contacts instead of making it rain with your business cards. It’s better to come away with one solid contact that will provide deals.

3. Leverage Twitter

Facebook, Instagram, YouTube, and Google+ are all getting a lot of attention. Yet, Twitter can be one of the best social networks for both expanding networks fast and effectively. Size matters, but not as much as what you do with it. Using hashtags at events can help scale relevant followers and contacts quickly. Creating your own hashtag anchored campaigns can help with this too. Ask for new contacts to follow you on Twitter instead of handing out business cards.

4. Do More of What You Love

Organized networking events have their advantages. They can have disadvantages too. Casual networking can be a powerful alternative. And often much better for real estate professionals. Consider eating out more, working out more, taking part in a wider variety of sports, and hobbies. These are all activates which can lead to making new contacts. There ought to be less competition. And it’s a warming method of prospecting than 90% of other real estate marketing options out there. Your personal performance as a real estate investor, agent, or CEO will benefit too. You’ll be happier and more productive. And your new relationships will share tighter bonds.

5. Unique Follow Up

How will you stand out from all of the other follow up efforts of your competitors? Don’t be tossed into the spam folder. Can you send a small gift instead of bulk email? Can you send an invite to a small dinner instead of another postcard? Can you at least make the effort to follow them back on Twitter. And favorite and retweet some of their posts?

6. Give Leads

Everyone wants leads and business from the contacts they make. Few are willing to give first. You may not always get them back – at least not right away. But this approach can still earn plenty of good will and recognition. Everyone has leads they can share. You may have buyers that need a mortgage, insurance, or title. You could have past clients that need a seller’s agent. You may have lists to share. Give generously.

7. Start Your Own Mastermind Group

Every real estate professional should be familiar with the mastermind group concept. It can be used to create a panel of advisers. It can also be used to form an alliance of strategic partners, and clients. The key is putting together a targeted group of like-minded individuals. You could all be aspiring golfers that like real estate as an investment. Or a group of foodies that are interested in redeveloping local real estate. Maybe it is just a group of your neighbors and friends that want to get ahead financially. Find the others, and build the relationship.

Don’t Rehab Your House Until You Read This

Posted by JD Esajian

Those real estate investors that can hit the ground running often have the advantage. If you can start repairs and improvements on closing day, you should be able to rent or resell faster. Unfortunately, many new property investors keep making big rehabbing mistakes. Making poor rehabbing choices is never worth reducing the amount of time you spend on a property. So what blunders do investors need to make sure they are avoiding?

The Big Value Question

The biggest mistake new investors are making today is not adding real value. Few new real estate investors really understand what makes a property valuable, or not. Even fewer understand which improvements and features make a difference. You could technically put $7M of upgrades into a $1M home, and not add $1 to the resale value of the property!

5 essential considerations for all investors:

1. How is ‘value’ really determined?
2. Understanding the difference between appeal and value
3. Determining the most profitable home upgrades and changes
4. Understanding end buyers and renters
5. Accurately calculating net ROI on home repairs and improvements

Understanding Property Values

There are volumes of articles on which home improvements can help add value, or help a home sell faster. The majority of them are seriously flawed. The alternative approach is the most common form of property valuation. This is one which most individuals understand the basics of. However, it also trips up many investors. A lot don’t understand the underlying factors which can push up, or bring down values. This home valuation method basically determines a value based upon the price of other similar homes. If an identical home on the lot next door sold for $300,000; yours should be worth $300,000 too.

There are many finer elements and quirks to this methodology. Views, lot position, age, and big features like swimming pools can all make a difference. The most important factors for value are generally the number of bedrooms and the size of the property. Typically the larger it is, and the more bedrooms it has, the more it is worth. That is providing it still has comparables in the neighborhood. For example; there is no use in putting 6 bedrooms into a home when all the surrounding properties only have 3.

In many areas, the underlying land makes up most of a property’s value. Consider that if the property is worth almost as much as a vacant lot, improvements aren’t going to add much value. In some cases, tearing down and clearing a property may be considered the best improvement. But this is highly controversial.

Real estate investors must consider the ‘highest and best use’ of each property. If a home sits in the path of major development, it may be better off being re-purposed. It could be desirable for a commercial real estate developer who can put many condos or stores on the property.

Finally, consider how end buyers are now valuing properties. For example; rental homes are now being value based upon their income and cap rates, not comparable sales values.

It’s complicated. Many real estate agents don’t even understand what truly impacts property value. The more real estate investors can learn about values, the better. The more you know the better deals you will make, the more profitable your efforts will be. Improve knowledge in this area by talking to licensed appraisers and mortgage experts, and by taking appraiser and real estate investing courses.

Cosmetic Appeal vs. Appraised Value

The biggest issue is understanding cosmetic appeal versus appraised value. Few home improvements add tangible value to an appraisal. If buyers are paying cash, and are willing to pay over market value, this may not be an issue. However, if buyers will be using financing, they will be limited by the appraised value of a property.

Items like landscaping, flooring, appliances, painting, and staging offer no boost to appraised value. This means upgrading kitchens and bathrooms can often lose money. Cosmetic home improvements can be useful. If they increase appeal, attract more bids, and help a home sell faster, it can be worth it. But do the math carefully.

Understanding Your End Customer

Finding the right balance in rehabbing is all about understanding your end buyer or renter.

Will you be renting or reselling the property? The extent of repairs and improvements will depend a lot on this answer. It also matters whether the end buyer will live in the property or rent it out. Do they care more about having a beautiful place to live or value? Are you able to improve it to their tastes? Or will they gut it and remodel themselves anyway? There may be little profit in renovating some high end luxury homes. Many of these buyers will invariably gut renovate once they take over. In contrast; some mid and lower end buyers may prefer to finance a finished home, than have to find the cash to do it. Style is a factor here. For example; paying to replace siding when no buyers want to live in a home with siding panels. It may be better to leave them as is. Or to change the exterior.

Another factor which trips up many new investors is calculating the true ROI on improvements. Cost versus added value is just one part of the equation. Materials and labor are just one part of the real cost of improvements. Holding costs are a big factor. For example; putting in a pool might add $30,000 in value. But if it costs $20,000, and requires holding a property for another 3 months, it may not be net profitable at all. What about the cost of financing improvements? Are you paying interest on that money? Are you missing other buying opportunities? Would wholesaling some houses as is actually be more profitable than fixing and flipping them?

Why Everyone Needs to Buy a Home in 2015

Posted by JD Esajian

Everyone needs to buy a home in 2015. Those that already have homes need to consider moving up, or even finding second homes and investment properties. So why is buying a home so important this year? How can buyers overcome the perceived challenges?

Rentals Are Taking Over

Rentals are taking over America. More land and existing homes are turning into rentals. Home builders, large funds, and private real estate investors are converting into rentals. As a result, homeownership in the U.S. is dropping to new lows. Saturation of rentals creates a competitive environment. However, demand for rentals remains so high that rents and application requirements keep going up. While many are turning to rent as the ‘more affordable option,’ it is becoming tougher than buying. It is twice as expensive to rent as buy a home in many parts of America. Landlord screening procedures and move-in costs are now even tougher than some mortgage lender criteria.

Fortunately, there are fewer options for renters. The options that are available are more expensive and tasking than they used to be, however.

None of this is a secret. Yet, for many, buying a home still appears to have its challenges. Many still suffer with bad credit. Others expect the down payment requirements to buy a home to be too burdensome. Millennials are one of the biggest pools of prospective home buyers, but many have not yet established their credit. Many do not feel they are ready to settle down yet. Still, everyone needs to buy a home in 2015. Let’s take a look at the reasons:

The Benefits Of Homeownership

There are many benefits of homeownership. Even if you think you are not ready to settle down, or may lack the credit and finances to buy a home this year, it is worth remembering the following:

1. Lower living expenses
2. Tax breaks
3. Ability to create your own environment
4. Owning a tangible asset
5. Building wealth and a nest egg
6. Enhanced school performance for kids
7. Eliminating housing costs in retirement
8. Avoiding getting priced out of your home town by landlords
9. Growing an inheritance for the next generation
10. Acquiring passive income producing assets

Why Buy A Home Now?

Renting is unsustainable. It is as simple as that. There are many potential excuses not to buy a home. Many landlords and corporations would love for you to believe them. Your rent pays for their investments, expensive cars and clothes, and larger homes. We all may have to rent sometimes. But, if you stay a renter you and your family will always be captive. You’ll always be ransom to what landlords ask for. Who knows how much rent will be in 5 years? Or where you will be able to afford to live? Chances are it will be somewhere far smaller, for more money. Perhaps even in an inferior location.

At the same time; buying a home has rarely been as affordable as it is today. Interest rates remain low. Home prices are lower than they will be for many years. Buying a home now offers an incredible bargain. For many, it will make all the difference in surviving and thriving later in life. Waiting will only mean paying more for living, and paying lots more for the same home later.

Overcoming Home Buying Challenges

It’s obvious that buying a home is smart. Buying more than one home can be even better. This is the time to buy, but what if your credit isn’t perfect? What if your credit is terrible? What if you are self-employed? What if you don’t have much of a down payment?

Buying a home this year can still be easier than you think. If credit is the challenge, you can fix it. You can have negative items removed by challenging them yourself. You can use an attorney or credit repair specialist to assist you. There is an estimated 2,000 or more down payment programs in America. These programs can help provide the down payment you need. There are even programs to help with closing costs and home improvements. This is on top of the return of 100% financing, and stated income loan programs. Self-employed borrowers can take advantage of alternative mortgage lending to qualify for home loans.

There are still options for those unable to fix their credit or qualify for home loans in 2015. Rent-to-own, seller financing, and lease options can all work.

The key is not getting discouraged. Get out there and find a way to buy a home.

8 Trending Home Features of the Elite

Posted by JD Esajian

What home features are trending among today’s elite?

Staying connected to trending home features, especially of the wealthiest and elite leaders, is about more than fashion. It is about keeping up with trends that sell homes. So what home features do the the world’s elite find the most attractive and appealing?

Kitchens

The March 2015 Miami Home Design and Remodeling Show demonstrates how important kitchens are to the elite. Even the speaker line up consists of chefs. Kitchens almost went extinct in the last boom. No one ate at home and nobody cooked. Today’s paramount focus on healthy eating and eating for performance is changing how people look at the kitchen. Now kitchens are more of a focal point than ever before. They are getting bigger – figuratively and literally. Not everyone has the time to cook, but those desiring peak performance are eating healthier and simpler. The wealthy see great ROI on having personal chefs, and this requires ‘chef kitchens.’

Cryotherapy Chambers

Tony Robbins’ new thing is intense cold therapy: cryotherapy. Those that can afford it are installing these units at home to kick start their day. Ice cold plunge pools can be a budget replacement.

Views, Views, Views

Real estate is about “location, location, location.” Today it isn’t about being close to downtown, or close to work. The internet and remote working is changing that, but views will never go out of fashion. Especially views that won’t be blocked by new developments. Peak performance is priceless. Inspiration is priceless. Views help deliver both. Try putting a price tag on that.

Smart Homes

Most individuals are still reading about ‘The Internet of Things.’ Most see smart home on technology as futuristic and out of reach. Everyone but the wealthy, that is. The wealthy already have homes with smart technology integrated in. Mood lighting, security systems, intelligent refrigerators, mobile app controlled utilities, and more. It isn’t about showing off or splurging: it means hyper-efficiency in every area of life. It means hyper-productivity and performance.

Saunas and Spas

Heat therapy has proven to enhance many types of performance: mental and athletic included. However, heat therapy can help recovery too. If you are a celebrity, the paparazzi loves photographing you. If you are busy, you can’t afford to be heading off to any old gym sauna or hotel hot tub. Expect to see more homes advertised with saunas and spas in the future. Expect them to be a popular home improvement in 2015.

Home Gyms

Home gyms are not a new phenomenon. Home basketball courts, tennis courts, racquet ball courts; these are not rare. They are rarer than middle class home theaters. However,, the elite are continuing to prize home gyms. Going to most public fitness centers isn’t efficient or productive. Unless the goal is to network, home gyms are a necessity. They do have value, but for the super-elite. A home gym is far better for those that can afford one. For the price of an Equinox gym membership, you can build your own well equipped gym at home. That adds value to your home. That’s better than increasing the valuation of a pricey gym startup.

What’s going into personal gyms in elite estates is changing. Look at current fitness trends. The endurance race and Spartan Race brand is trending on Facebook. This is a far different workout, with different equipment than in most fitness facilities.

Guest Houses

Guest houses are in. We’ve seen mother-in-law suites make a comeback in mid-range housing. At the top of the market it is about having guest houses. Some elite estates don’t stop with one. Compounds are cool. Two, three, or more guest houses are great. This provides plenty of space for the grand kids, without cramping your zone. It facilitates being able to invite others to stay and meet in privacy over a few days. This is how today’s elite are doing business – not in budget co-working spaces. With the right zoning, guest houses and the land they sit on can sell in one day.

Outdoor

Outdoor spaces took off in 2014. Now outdoor is becoming redefined. The hottest home designs now incorporate flexible indoor-outdoor spaces. Kitchen walls vanish and open to patios for entertaining. Patio covers are becoming increasingly automated. Louvered pergolas ensure entertaining is never interrupted by the weather. Outdoor home offices are emerging. Take your home outdoors!

How To Get The Most Out Of Your Open House

Posted by JD Esajian

The new real estate landscape will require sellers to adjust to the needs of buyers. That said, is it time for real estate agents and investors to up their open house game with more exciting experiences? Or are open houses dead?

Long Live the Real Estate Open House!

Open houses have been declining in popularity for years. Some statistics claim that few real deals resulted from hosting real estate open houses. Many brokers have used this information to get out of holding open houses for clients. Now there is so much out of area buying, international real estate investing, and online home searches. Agents have more excuses not to host them.

2014 numbers from the National Association of Realtors suggest that many home sales come from open houses. Some millennials might argue that gimmicky open houses won’t do any more to get them to make an offer than Facebook posts do. But many investors, agents, and sellers are fooling themselves by only focusing on online home searches. Almost 100% of home searches begin online, and more than half via mobile devices. But are those browsing houses on the web any closer to actually buying a home than those visiting open houses?

It may be completely accurate that few of the visitors to your open house will buy the home. But you only need one buyer. And the conversion rates on open houses and showings may be higher than visits to real estate websites. Most suffer from shortsightedness, or failing to realize that every open house visitor is a real lead. They are already taking action and are investing themselves in the home search. They might not buy this home. They might not qualify for a mortgage today. They might not even buy for six or nine months. Yet, if treated well, and maximized, this is pure real estate lead gold. The vast majority of open house visitors will become buyers, sellers, and even real estate investors. Most will also have a trusted circle of at least 250 others who are potential clients too. With the right care, these visitors will market to hundreds of others for you, for free. They’ll even reach those you cannot.

4 Reasons Real Estate Pros Should Be Hosting Open Houses 260 Days a Year

Real estate investors and agents should be hosting open houses at least 5 days a week if they are in the game full-time. Here’s why:

1. Open houses are a great way to get started in real estate, even if you don’t have your own inventory and listings.
2. Sellers still want them, and happy seller clients mean more referrals.
3. Being able to operate from anywhere. Open houses are a much better place to work than in the office or at home.
4. Success relies on making new contacts each day, and open houses provide that opportunity.

So how do sellers and agents pack open houses, and maximize effectiveness?

7 Traditional Open House Tips:

1. De-clutter homes
2. Depersonalize houses
3. Make them smell better with fresheners and fresh baked cookies
4. Make sure all visitors sign in and leave their contact details
5. Make sure the seller isn’t present to turn off prospective buyers
6. Anchor open house signs so that the competition doesn’t steal them
7. Use broker only opens as well as consumer open houses

4 Newer Open House Staples:

1. Hosting themed open houses on special occasions like Easter and Valentine’s Day
2. Live one day auctions
3. Doubling open houses as charity fundraising functions
4. Hosting virtual open houses online

10 Creative Open Houses Ideas for Entertaining Millennials:

Inman News suggests it may be time to up the game to attract and entertain the millennial buyers expected to move into the market. Those seeking more interesting and creative options might consider the following:

1. Celebrity appearances and photo ops
2. Airbnb style sleepovers to test drive the property and neighborhood
3. Hiring a DJ
4. Hosting a poetry night
5. Art auctions
6. Interactive open houses using augmented reality to allow visitors to engage different features
7. Live screenings of films or sports events
8. Networking events
9. Startup competitions
10. Investor pitch events

3 Keys to Higher Conversion Rates

For those in the real estate business to make money, open houses need to be more than just fun nights out. Three ways to get more real visitors in, and more real deals out of open houses are:

1. Matching your activities to your ideal prospects’ tastes
2. Get more people in with mobile marketing, push notifications, high quality personalized invitations
3. Convert visitors into leads and ambassadors with follow up drip email and social campaigns