6 Strategies to Grow Your Real Estate Business
If you’re starting a real estate business, you know it must make money. After all, you need enough cash to stay in business, and maybe even buy a luxury vacation home in Jackson Hole, Wyoming.
The question is, what are the most effective strategies to make that money?
Below you will find a list of six strategies real estate agents use to bring in additional revenue or maximize their current revenue. From becoming a broker to flipping houses, there’s at least one strategy you’ll find useful.
1. Fix it and flip it
If you’ve considered buying a house, fixing it up, and then selling it, you’ve considered “flipping.” Many real estate agents turn to house flipping, or helping clients flip houses, to generate additional income.
While TV shows make it seem like you can earn $100,000 on a flip, it’s not common. According to Mark Ferguson, a professional real estate agent and owner of Invest Four More, “The real money is not hitting it big with one flip but in flipping multiple profitable properties.”
Flipping houses involves risk. To make it work, you need to buy a house below market value and accurately estimate repair costs. Experience is everything.
A good place to find houses to flip is on the foreclosure market. Sites like MLS have a section to search for such houses. Of course, this may be a competitive market depending on where you live.
Know the After Repair Value (ARV) before you buy a property. You may need a real estate agent’s help, but you can get an idea by looking at recent sales in the same neighborhood.
Alternatively, you can buy a property at wholesale price and sell it quickly. According to JB House Investor, “You can make an average of $5,000 to $10,000 per deal with very little effort and work.”
Before you jump into flipping houses, read step two (below).
2. Find hidden, off-market properties
If you can’t find deals before anyone else, you’ll struggle to make money. Many profitable properties aren’t listed on usual sites like MLS or Zillow. These are properties that owners need to sell quickly and aren’t necessarily foreclosures.
An off-market property (sometimes called a “pocket listing”) might be owned by a couple going through a divorce or an owner who no longer wants the property for other reasons. These are your gems.
Finding someone who needs immediate cash means you’re more likely to acquire a property below market value. These properties offer the biggest return on investment.
A good way to find off-market properties is to network within your social circle. Let your friends, acquaintances, and relatives know you can help them or someone they know who needs to sell quickly. Join networks like the Rotary Club and Business Network International, so when someone in your network is in a jam, they’ll think of you first.
Build connections with estate attorneys. They often have clients who need quick access to cash and are willing to sell at a discount. Networking with wholesalers is also a good idea, as they buy low-price properties that need fixing and make quick profits by selling them shortly after purchasing.
If you’re comfortable with property auctions, check out Auction.com. You can search for both residential and commercial real estate. Many properties are priced low because they’ve gone into foreclosure or the bank owns them.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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