How to Get More Leads and Make More Money
That’s what we all want isn’t it? We want to learn how to get more leads, find more deals and make more money. The secret to accomplishing this is marketing. You need have a clear, concise marketing plan that you implement consistently. That sounds pretty simple doesn’t it? I can tell you that it is (at least on the surface). Where most people get tripped up is on the consistent implementation of their plan. They don’t have a plan for getting it all done.
How to Get More Leads?
You need to have multiple ways to get leads in your business or multiple lead channels. How many do you need? I recommend that you have at least 3 to 5 that you use consistently. If you have several, when one source stops producing the amount of leads you need, you have other channels in place.
The problem with this very simple answer is that you need a plan to stay on track. In order to do anything consistently most of us need a little prompting. I use a big wall calendar to keep everything moving smoothly. I know this seems a little “old school” but it works. That calendar is my daily accountability partner..
More Leads = More Deals!!!
It really is that simple. Real estate is a numbers game. Make no mistake; you have to “kiss a lot of frogs” to find the prince as the saying goes. You will talk to a lot of sellers whose situation won’t work for you whether they just want too much for the house, they owe too much on the house for it to be a viable deal for you, or there may be any number of other reasons.
When that happens you just have to move onto the next person. There is always another deal if you have your lead generation machine working for you.
Direct mail has always been a #1 source of leads, but it is not the only source of leads anymore. Ways to market have changed based on the market!Think of it this way; if you have 5 buckets your leads come from your lead generating machine might look something like this:
1. Direct mail
4. Google organic search
5. Driving for dollars
If you are one of those folks that doesn’t like driving for dollars, maybe you will work code violations or develop another lead channel. In the end the choice is yours. To keep your pipeline full you need a marketing plan.
Your Goals Fuel Your Marketing Plan?
Now let’s look at what your goals are for the upcoming year.
If you want to be doing 2 deals a month 12 months from now (24 deals in the next 12 months), understand that it takes a while for momentum to build up with any marketing plan. You need to get your machine running perfectly so it will keep your phone ringing week after week, month after month.
You also need to get your systems in place, and have an implementation plan to keep your marketing machine working for you. Some of your deals should be coming from each one of those lead channels to meet your total number of closed transactions. If you goal is to close 24 transactions next year, some of those deals should come from each one of your buckets or lead channels.
So how many will come from each “bucket”? That depends entirely on how much time and money you devote to each one of them. If you are short on cash, invest more time on marketing. If the reverse is true, outsource as much as you can with the extra cash you can put into your business.
Make More Money and Finally Get Out of Overwhelm – Details Create the Bigger picture
If you have a strong marketing plan that you implement consistently, everything will fall into place. But here’s the thing; you need to get all the pieces right. There is a method to the madness as they say.
If you’re like most people, you have no idea where to begin…always begin with a plan!
Deciding where to begin with your investment is as important as what type of property you buy. If you don’t want to worry about things breaking, installing new items, painting, etc. you can either hire some contractors as stated above, or pay a percentage of your rent collected to a management company. They will handle all of these tasks, collect your rent, and help steer you in the right direction as new things come up. If you decide add new investments to your portfolio later, it’s easy to scale operations with a management company (like Quasar!).
First Investment Home: Questions to Ask Yourself
Like most people, you may be thinking, “If so many wealthy people are real estate owners, it must be the right investment for me too. Let’s buy some property!” Hold on there, future real estate tycoon. There are a few things you must ask yourself first before you can find the right investment.
While we can all agree that real estate can be a great investment for your portfolio, it is vital to understand a few important facets of your investment before you move forward.
What type of property is right for me?
f you aren’t comfortable with plumbing, basic construction, and other “handyman” services, buying an investment property that needs a large amount of work is not a great option. Hiring someone to complete these tasks will cost money and will cut into your profits early in the process. “Flipping” houses is very popular, but we don’t recommend them for first time real estate investors.
How will I own this property?
Some investors do choose to own real estate in their own names. However, creating a separate legal entity, like a Limited Liability Corporation (LLC), is typically a better alternative. Deciding on the right business structure can help you minimize your taxes, reduce your liability and bring in more profit.
How will I manage the property?
Deciding how to manage your investment is as important as what type of property you buy. If you don’t want to worry about things breaking, installing new items, painting, etc. you can either hire some contractors as stated above, or pay a percentage of your rent collected to a management company. They will handle all of these tasks, collect your rent, and help steer you in the right direction as new things come up. If you decide add new investments to your portfolio later, it’s easy to scale operations with a management company (like Quasar!).
Investors Shouldn’t Do It All By Themselves
Investors do not always have the answers, nor do they have all of the expertise when it comes to buying, renovating/fixing, or selling a property. Investors are successful at what they do by aligning themselves with experts in a variety of areas pertinent to their needs.
When purchasing a home, you should have in your corner a trusted Realtor and home inspector. Although you need other people to consummate a deal, those two individuals will provide you the MOST needed information.
These industry experts have a deep and thorough knowledge of the market, especially property values related to rental income. They tend to be technologically savvy and are able to deliver information and transactional processes quickly and efficiently. Realtors also might have previous experience working with investors or have themselves invested in property.
Investors tend to underestimate what it is going to cost for property repairs until they gain experience. Spending a few hundred dollars up front can save you thousands in the future. Home inspectors will give you a list of the defects in the home and are trained to find problems that may not be obvious. Inspectors are also great with letting you know the seriousness of items found during the inspection.
Once you own the property, you should have 2-3 contractors in each aspect of property maintenance to assist you in maintaining the property (unless you are an experienced contractor). All contractors should be licensed and insured, especially plumbers and electricians, HVAC, roofing, and glass (window) companies. It is also important to have some general all-purpose handymen/carpenters available for small jobs which may not require the expertise of a licensed contractor.
New Investments: What to Look For
As someone looking for property to invest in, there are always lists of rules to help you get started. One of the most important rules we have found to help determine how to choose the right property is this: Pick a property with which you are familiar and comfortable.
There are many types of properties in the real estate business. Apartments, multi-use properties, retail, the list goes on. The key is knowing what each investment means for you as the investor.
New, and even seasoned investors, must understand the investment they are giving their time, money, and energy. It is also important to know the plan for the management and upkeep of the property once it has been acquired, and what the best and worst case scenarios could be in the long run.
To learn more about the different investments you can make, what they entail, and how you can move forward with your first, or next, real estate investment, give us a call. We’re here for you!
Get Taken Seriously As a New Investor
This month’s Investor’s Corner is highlighting a great post from Tyler Flagg on BiggerPockets. He breaks down 6 ways to be taken seriously as an investor new to the game.
It’s not easy trying to break into a new industry, but these simple steps will help you feel confident about investing in real estate.
And don’t forget, our very own Kenneth Brown, CEO of Quasar, was featured on BiggerPockets.com!
Top 3 Ways YOU Can Invest in Real Estate
While real estate can be more complicated than traditional stock ownership and come with added responsibilities, the benefits are proven. Here are three different approaches to investing in real estate.
This is a straightforward approach, and one most people think of. You buy a home, then rent it out to a tenant. Most landlords would charge enough to cover costs, wait for the mortgage to be paid off, and then profit after. Additionally, the home will hopefully appreciate in value, which can be capitalized on in the future if you choose to sell
Real Estate Investment Groups
As we have talked about before in August 2016, investment groups are a wonderful to start your investment life. You usually have less financial commitment, and can lean on more seasoned investors for their insight and experience. You’ll also get a larger property which may lead to bigger gains. You also mitigate your risk by sharing the risk across the other investors.
Real Estate Trading
Also known as “flipping”, this can be a riskier form of investment, but can pay large dividends with the right property (do your research!). This type of investment is when an investor buys a property, makes repairs and potentially adds features, and then sells it for profit. These properties can be hard to find, but undervalued properties as well as homes in hot markets are ripe for this type of investment.
While there are a multitude of ways to invest your money in real estate, the bottom line is this: do your research, talk to experienced investors and property managers, and make smart choices when your money is on the line.
Five Dangerous Mistakes in Real Estate Investing
Real estate investing is everywhere. You see it on “flip” shows on TV, on late night commercials, and so many books that I’ve lost count. While this may make the industry look like a simple and quick way to make money, there are a few pitfalls I have seen new investors make – and they are easily avoidable.
My goal is to let you in on a few of these mistakes so you can be on your way to making smart, measured investments in your future.
- Impressions of “Get Rich Quick”
- Doing It Alone
- Overpaying for Your Investment
- Not Doing Your Homework
- Making It Up As You Go
Impressions of “Get Rich Quick”
You’ve seen these let night TV ads. They all say it’s “simple and easy” and “just follow these simple steps” and “you could be driving a Maserati next year!” Sure, investment deals can be fruitful, and some come to fruition faster than others, but real estate investments take planning, hard work, and lots of homework.
Doing It Alone
This is not a one man/woman show! Smart professionals are key in helping you in your investment life cycle. Real estate agents, inspectors, contractors, attorneys are all critical in moving along every part of your investment.
Overpaying For Your Investment
The key to making money is to find value in undervalued assets. If you are paying too much for a property, you’ll find that when you attempt to sell and make your money back, there is no money to be made. Investments are for profits, pure and simple.
Not Doing Your Homework
You wouldn’t try to build a skyscraper without being an architect, or consulting one, would you? The same is true for real estate. Doing your due diligence means reading articles, going to the library, and especially speaking to professionals.
Making It Up As You Go
I can’t stress this enough: Have A Plan. Don’t buy a property and then try to figure out what to do with it in order to make a profit. Figure out first what your investment plan is, and THEN find the property that best matches your goals. Working backwards can land you in some pretty hot water, and ultimately diminish your profits.
We at Quasar would love to help you on your way to becoming a successful investor. Whether this is your 1st or 100th investment, or you are still just thinking about getting into real estate, give me a call and let’s work through any questions you may have. I’m here to help!
LLC Vs. Personal Real Estate Investments
If you are in the market for a real estate investment, you should consider whether or not to purchase the property through an LLC. While it may sound scary to create a Limited Liability Company (LLC), it’s actually built to limit your personal vulnerability to potential lawsuits in the future.
Consider this scenario from LegalZoom, “…the owner of an investment property leases it to a tenant who decides to throw a big party, during which one of the tenant’s guests falls over a balcony. In today’s legal climate, it is quite possible that the injured guest would pursue a claim based on the “unsafe condition” of the rental dwelling. More often than not, the owner would be named in any lawsuit resulting from the incident.”
If you owned the property in question under your own name, you would be named in the lawsuit and would need to defend your own assets (more than the investment, including your own home, car, etc.). However, if your property were owned by the LLC you created, your risk would be covered by the protection of the company, with the assets owned by the LLC as the only assets at risk.
Based on the current state of the market and the trends of the past few years, the presence of LLC’s that hold real estate investments will continue to rise. As a holder of more than twenty LLC’s myself, I encourage any real estate investors or potential investors to consider taking advantage of the benefits an LLC can offer.
New Year, New Goal: Just Start
The best time to start is yesterday. New diet, organized home, a business. These things take time, they take energy, but more importantly, they take the initiative to say, “I’m not waiting any longer. Here we go.”
As far as real estate is concerned, most people I know in this industry, including myself, aren’t Nobel prize winners, valedictorians, or scholars. Some of them, sure. But it is not, by any means, a pre-requisite for success. All it takes it some industry knowledge (mentors like me can help with that), the ability to set a goal, overcome any obstacles that come your way, and take things one step at a time.
Are you ready to take the next step? Quasar is always looking for motivated investors in the real estate industry. Make your first move in 2017. Give me a call and let’s talk about what goals you are looking to accomplish, for yourself and your family.
As they say “The world is run by the people who show up.”
Real Estate: More Attractive Under Trump?
Most people have an opinion about President-Elect Donald Trump. But one thing is for certain – he will be the President of the United States in 2017, and per most experts, likely making changes that will affect the real estate business.
Lawrence Yun, a contributor to Forbes, says, ”People in real estate and property owners across the country should therefore be on alert about any policy discussion on these matters.” The matters he is referring to are the mortgage interest deduction, property tax deduction, and capital gains from home sales. These are important issues and policies that could be changed under a Trump presidency.
A writer for the New York Times, Ronda Kaysen, writes, “Mr. Trump promises to not only cut taxes and regulations, but also to invest in infrastructure and jobs, a potential boon for business.” While she was only speaking about New York real estate, the changes proposed would go into effect across the U.S.
There are some market insiders taking a somewhat more “wait and see” approach. While it’s true that uncertainty is rampant, smart investors are watching the market closely and should take advantage of any positive outcome a Trump presidency provides.
Everyone has concerns about investing in real estate. But the choices made in the next four or eight years could be very beneficial for real estate investors. Any changes in tax breaks or exemptions make real estate a wise choice for long-term investments. Time will tell on these issues, but it is smart to pay attention to how President-Elect Trump makes waves in the real estate market’s outlook.
On a recent episode of the Rental Income Podcast, our own Ken Brown talks about his experience owning and managing lower income properties in disadvantaged neighborhoods.
These types of properties can have much higher returns, but they usually come with more management challenges. Ken shares with us how he uses systems and economy of scale to make management of these properties much easier.
This is a great learning opportunity to see how anyone can make money with the right focus and attitude.
Real Estate: Part of a Balanced Portfolio
Everyone has concerns about investing. There are an almost limitless number of choices of investments. Determining what investments are appropriate, balancing risks with potential returns is a daunting task. Investing in real estate is a balanced approach to smart investing with some key advantages over other investments.
Key advantages to investing in real estate:
Cash flow is what is left over from the rents received after you pay the mortgage, taxes, insurance, and any maintenance and repairs. Over time, the cash flow from a real estate investment should increase as rents rise.
Rental houses, apartment buildings, commercial properties, and vacant land all have differing potential tax benefits. You will need to speak to your tax advisor as to how investing in real estate will impact your tax situation.
Equity is created a few ways. Each payment on any borrowed funds (mortgage) pays interest and some principal (usually). Although your payments are stable, each month more money is paid to reducing the principal balance of any loan which means that the RATE that you build equity through this method increases over time as well as the absolute amounts. Over time, real estate generally increases in value. This also builds your equity in addition to the reduction in any balance of borrowed funds.
Stocks, Bonds, Commodities, Certificates of Deposit (CD’s), and Mutual Funds all have risks and rewards that vary. A smart portfolio is diversified among some or all of these types of investments. Real Estate is just one integral part of a well diversified investment strategy.
Want to Safely Grow Your Money?
3 Things You Should Know About Group Investments
Investing is a great way to grow your money. Smart investors minimize their risk however possible and investing in a group is a great way to limit these risks. Real estate investment groups are simply a group of people who put their individual funds together to pursue joint real estate investments. These types of investments are a way for anyone new to investing to be a part of larger real estate opportunities, learn about the process, and gain valuable experience.
Here are THREE tips to help you determine if a group investment is right for you:
Obtain a Larger Property
Many people new to real estate investing have trepidation of making a large financial commitment in a complicated investment such as real estate. Investing smaller amounts limits the type and size of a property which can be purchased. Investing with a group increases the total funds available, which in turn, increases the potential size and quality of the investment, and expands the total potential number of opportunities.
“Share the Pain, Share the Wealth”
Risk is inherent in all investments; so limiting risk is the name of the game. With a group of investors, you can lower the risk of the investment. You will divide the risk among the group, just as you will divide the profits.
Depth of Knowledge
This is your chance to learn about the real estate market. It’s up to you to tap other people with experience and skill sets that you don’t have to make yourself a better investor. And the collective knowledge of the group will help drive the direction and overall success of the investment.
Investment groups are an excellent way to ease your way into investing without carrying all of the risk. One of the most valuable benefits of investing as a group, especially for those new to investing, is the ability to have decisions analyzed by multiple people with an expanded set of experience.
If you are interested in learning more about group investments, send us an email at firstname.lastname@example.org with some basic information about yourself, and answer these 3 simple questions: Are you a beginner or experienced investor? What type of properties are you interested in investing? What level of funding are you comfortable committing to long-term real estate investment?
Quasar Property Management and Real Estate provides professional, licensed agents specializing in the listing, leasing and selling of both residential and commercial properties. We will put our experience and professionalism to work for you. We will price your properties correctly, facilitate the best deal on the right property, ensuring that we will meet and exceed your ultimate goals. Throughout this process, you will be treated fair and represented with the utmost professionalism and respect.