According to expert predictions, mortgage rates and home prices are expected to rise this year. Unlike the fluctuations that the housing market experienced throughout 2020, the market is expected to stabilize and become more normal throughout 2021. The success of the predicted seller’s market somewhat depends on how many more shutdowns occur, but on a whole, 2021 is expected to have high buyer demands.
For real estate investors, this can be exceptional news. With more people shopping for homes, there is more of a likelihood of success when it comes to growing a real estate business. This year, it’s predicted that sellers will be more confident than they were in 2020, and buyers are expected to be seeking out higher-quality properties.
To make the most out of 2021, it’s wise for real estate investors to take a look at the following strategies and determine which best fits their personal goal of growing a real estate business.
In the past, real estate investors and real estate agents served completely separate purposes. However, 2021 presents a unique opportunity to combine work models. Combining services with the hybridization business model allows investors to work with both motivated and traditional home sellers.
By obtaining a real estate license and learning about real estate wholesaling, investors can better protect their growing businesses from possible market fluctuations.
This way, if investors find that they’re unable to overcome wholesaling competition, they can always rely on working with traditional sellers to make a profit. In addition, if traditional selling slows down, investors can still count on the need for fast cash sales.
The hybrid agent/investor method can protect a growing business from running into market issues along the way by providing a gateway into either seller-type.
EVERGREEN MARKETING METHOD
Working as a real estate investor can become exhausting due to the fact that investors are constantly hunting for leads. If they’re not actively searching for motivated sellers, converting leads, and closing on sales, the workload dries up.
While this method of pursuing sales may seem fine at first, it can become an unending and tedious cycle when repeated over and over again. Burnout can and will occur eventually.
A process known as evergreen marketing presents a great solution for real estate investors. It allows them to grow their real estate businesses without the constant need to work at hunting down leads.
Evergreen marketing allows investors to properly market their services to individuals who are motivated to sell their homes quickly. By ensuring that an investor’s website shows up front and center when an interested party searches for fast ways to sell, an investor can cultivate an entire pool of leads. Even after closing on a number of sales, the pool continues to grow because traffic is constantly being directed to a relevant site.
HOW TO KEEP YOUR SITE AT THE TOP OF RESULTS
Investor sites need to stay active and produce consistent pieces of content in order to move up the search result listings. By creating blog posts, videos, infographics, and other relevant pieces on a regular basis, investors can ensure that they’re getting more viewers and converting more leads than their competitors.
In addition, it’s important to use proper keywords, tag posts, and link out to other accounts (like social media) in order to make posts work in an investor’s favor.
Though real estate investors cannot be expected to have psychic abilities, it’s possible to plan for the future rather than predict exact outcomes.
To create a decent plan for 2021, write down a list of reasonable goals and outline the steps that are necessary in order to achieve them.
After that, think about the possible setbacks that might get in the way of reaching each goal. It’s important to think realistically about what might happen throughout the year, the more setbacks that come up in planning, the better.
Once an investor has designed a list of goals and conflicts, the preparation for the future can begin.
Come up with solutions to combat the issues that may arise. Develop ways to work around market challenges, and in this way, investors can be prepared for any outcome that occurs. Be ready for the worst-case scenario before it ever occurs.
CONSIDER MARKETING MEDIUMS
Advertising to potential clients has changed quite a lot throughout the past few decades. The popularity of different marketing mediums has undergone even further changes during the recent pandemic. More and more people are seeking out businesses by using their mobile devices.
Though this has been the norm for years, increases mean that other marketing methods have decreased in popularity. Take billboards and in-public signs, for example. Because so few people are going out and traveling, focusing on mobile and online ads is likely a smarter decision than investing in physical advertisements.
Developing an effective online marketing strategy is crucial when it comes to growing a real estate business in 2021. Focus on driving relevant traffic to real estate websites. From there, take the steps needed to convert leads into clients.
DISCOVER WHERE YOU BEST FIT
One great way an investor can stay on top of market competition is to know exactly where they fit into the real estate patchwork. Having a unique niche can set an investor apart from any other in their market.
For example, an investor could carve out a niche for himself/herself by deciding which market location they’re passionate about serving. From there, the investor can decide whether they are most knowledgeable and attentive when working with motivated sellers, probate sellers, first-time buyers, or individuals who are struggling to sell a complicated lot.
Adding personality and identity to a business can attract clients who feel that the human aspect of an investor’s company matches their needs and makes them aware that they’re in experienced hands.
DEVELOP A GOOD RAPPORT
When interacting with leads, it’s critical to make a good first impression, because there is never going to be a second chance. If an investor fails to make the lead feel secure, they’re going to lose the prospect.
When following up with a lead, don’t pressure them. Be courteous and understanding when it comes to their needs. If the lead rejects an offer, don’t give up. This does not mean that it’s advisable to badger the homeowner. However, reaching out again in the next quarter, in six months, or in a year might change the outcome.
No matter what the outcome is, remain polite and considerate. This way, it’s easier to develop a good rapport with potential sellers. This effort will likely mean that whenever the homeowner is ready to sell, they will know exactly who to reach out to.
GAIN COMMUNITY ACKNOWLEDGEMENT
In addition to maintaining a good rapport with clients and prospects, it’s a good idea to try becoming a pillar of your community. When people feel that an investor cares about the community they serve, they’re more willing to trust this individual and work with them when selling their home.
Though the pandemic has negatively impacted the ability to hold public events, there are still ways to reach out and make a positive difference within a given community.
Try participating in events that appeal to home-sellers, real estate agents, and real estate investors.
It’s difficult to talk to people in-person the way that was common in past years, but communicating at a distance is still very much an option.
Keep an eye on public events and do what you can to take part in them. For example, hosting online charity events or participating in ones that are already scheduled in the community are a great way to show that you care about the area you serve.
It would also be wise to help out or volunteer for community service activities. If there are no public events taking place in your area, you can always become active in online events, such as making significant donations to worthy causes, or spreading awareness about a topic that matters to your locality.
OFFER YOUR ADVICE
Another way to inspire trust from residents in your community is to get involved with home-sellers on social media.
When individuals have trouble listing their homes for sale through an agent, they often try to sell on their own. In doing this, they may list their homes for sale via social media.
Look on social media community pages that allow individuals to sell their properties and offer your advice or assistance when you notice a home seller that may benefit from your services. Offer your contact information if you come across listings that may benefit your business and the seller’s goals. This way, you not only network with sellers, but others within the community will likely see the post and contact you if they’re considering a home sale.
The changes that the world experienced in 2020 were unlike anything that we’ve seen in modern history. As such, it’s reasonable to assume that the years following are going to be unique. For investors who want to grow their real estate business, these unique years can present a fantastic opportunity to experiment and flourish.