One of the most often asked questions from real estate agents I consult is how can I grow my business to the next level. The real estate agents who are asking me this question are educated, experienced realtors who have paid a hefty price for my time and who already close many houses each month.Almost all of them already understand the 80 percent, 20 percent rule and are having someone else do almost every thing in their business except generating real estate leads and showing up to closings.When you look at the sales cycle that a real estate agent and home buyer or seller go through it is very strain forward. The real estate agent is contacted or contacts the prospective client, they have a sit down meeting to discuss goals of the transaction and this is when it happens.One the potential client has meet with the real estate agent, the agent almost always gets an agreement signed stating the client is being represented by the agent.So, to produce more sit down meetings with prospective clients all an agent has to do is get more real estate leads or potential clients. This is where real estate leads come into the business cycle. More leads means more potential clients to sit down with and help through the buying or selling process.There are many ways for realtors and real estate brokers to generate their own real estate leads, but this goes against the 80 percent, 20 percent rule. The obvious answer is to find a reputable real estate lead generate company to send a consistent number of motivated real estate leads to your or your company.Notice the word motivated in my sentence. Many real estate lead generation companies do not target motivated home sellers or buyers and they sell these leads to realtors who then waste time talking with non motivated clients.You need to make sure the lead generate company you are dealing with is generating motivated home buyer or seller leads, meaning they are looking for someone who help them now and are willing to talk with a professional real estate person.There are many real estate lead generation companies, and each company has their own business plan or lead generation method and sale system. My suggestion is to ask the company where and how their leads are generated so you feel comfortable the real estate leads you will be receiving are motivated home buyers or sellers.Then ask what the conversion rate is for the companies leads. A good lead generation company will have around a 20 percent conversion rate. Meaning two out of every ten leads will end up listed or a buyer representation agreement will be signed signed.One you have a conversion rate and the cost the company charges for each lead you can come up with a budget for your leads. One suggestion I would make is to insist there is no cancellation fee for their service. The is to protect you from the no so generous and honest companies that exist in this market.Real estate leads are by far the best way to grow your business to the next level. You increase the number of clients you work with. This also allows you to increase your network of new clients. Ask the leads if they have any family or friends who need a professional real estate agent to help them in their next home search or sale.
I recently checked the Forbes Rich list of the wealthiest Americans. I could not help but notice the pattern of wealth creation; almost all the wealthy individuals were entrepreneurs or off springs of entrepreneurs. Secondly, they derived their wealth from owning or investing in real estate, technology companies, stock market, manufacturing, entertainment industry, retailing and commodities.This pattern of wealth creation reinforces my belief about the primacy of investing in real estate as vehicle for creating wealthy. I believe you can succeed, investing in real estate. What you need is to have the right attitude and mindset.I have learnt by trial and errors some of the important lessons in real estate investing. My main area of focus has been residential properties. Even if you are an experienced real estate investor, some of the tips I share still apply to your investing, because they are timeless tips that will set you on the road to success.Here are some specifics about investing in real estate that could propel you to wealth quickly. I urge you to take these tips seriouslyTip#1.Start small.The reason you want start small is you are on a learning curve. You want to keep your risk small. I would suggest you invest a lot of time learning the basics of real estate, and a little money in your first deal. Unfortunately most people do the opposite…they invest little time and spend a lot of money. This is the reason many investors fail and they wander why they failed. The fact, real estate is a wealth generator does not mean you don’t have to learn about -how it works to make you wealthy.Tip#2. Invest for value. Avoid speculationWhen you invest for value, you are on the right path to wealth creation. How do you invest for value? The answer is simple. Look for properties with cash flow and potential capital gains. This is important because value investing in real estate is the basis for wealth creation. Donald Trump, Sam Zell, Donald Bren and all the other real estate moguls you can find in the Forbes richest list made their fortune in real estate by creating value. There is a difference between a value investor and a speculator. A value investor buys a property based on overall value, both today and in the future. A speculator buys with a hope that the price of the property will increase…this kind of approach is no different from playing at the casino tables in Las Vegas.Tip#3. Start and stay close to home.When you are starting out as a beginner investor, it’s important to concentrate on an area close to home…one you can get to know very well. When I say close to home, it means you can drive, walk, or cycle around the area regularly. When you concentrate on an area close, you can observe if it’s declining or growing. You can observe the trend in sales and property rentals. Also, look for the top brokers who operate in your area, call them to find out more about the area. This is important because when a property comes on the market, you can know quickly if it is a good deal or not and you’ll be able to act fast. My first real estate deal was a disaster because I bought a property that was 3 hours drive from home. I failed because, I was not close enough to understand and observe the trends in the local real estate market.Tip#4. Expect to make mistakes.When you start investing in real estate or in any business, you are bound to make mistakes-everybody I know does. Remember your mistakes aren’t setbacks. They are steps in the learning process. What is important is to learn from your mistakes, correct and keep on taking action. The fact you can make mistakes is one reason to buy properties with positive cash flow, because it can help you buffer those mistakes. There is a theory for success called accelerated failure. The reasoning behind this theory is that you are most likely to fail at the initial stages of starting any business, however the faster you can fail forwards the faster you can begin to succeed. So don’t let the fear of failing stop you from starting investing in properties…it’s all part of the learning curve.Tip#5. Know what you can afford. This means finding out how much it will cost you for the cash flow you want. In other words, what will it cost you to get an ROI (return on investment) of 20%, 30%. Secondly, if your assumptions about the property deal are wrong, can you afford the losses from your mistakes. Before you start investing, ask yourself these questions; how long can I afford a vacant property if my tenant moves out? If there is a costly maintenance problem, can I afford it? Remember, the purpose of real estate investing is to solve your financial problems, not give you bigger ones to solve.Tip#6. Look for Ugly ducklings you can turn to swans.One of the best ways to make money in real estate investing, is to look for is a property that someone has walked away from because of a problem. Figure out how to fix the problem and you can instantly increase the value of the property. One example that comes to mind is a one bed flat I bought recently in an apartment building. The problem with the property was presence of mould and damp in one of the rooms. Because of this problem, I was able to buy the property and 25 percent below market value. I solved the problem with the help of a building specialist, and as a result, I was able to increase the value of the property and charge more for rents. The lesson here is focus on turning “ugly ducklings to beautiful swans” so you can create value for your portfolio and get rich in the process.Tip#7. Always remember to look at the numbers. One of my mentors, Robert Kiyosaki, bestselling author Rich Dad, Poor Dad often says, “Think with your calculator, not your heart”. This is important because once you understand the area you’ve chosen to invest in and know what property you are looking for, you need to follow through by looking closely at the numbers on your chosen property. The numbers are; the price you pay; the mortgage interest; rental income; maintenance cost; vacancy rate and every other factor you need to analyse the profitability of your investment. These numbers should all add up to…making you, money or else you wind up with financial problems.Warning, Cheap may mean expensiveOne of the commonest mistakes I see investors make is the assumption that because a property is cheap it’s going to be profitable. This is far from the truth because price is not the only factor for success when you are investing in real estate. You should never let your guard down or sacrifice your principles by what seems an attractively low price. The important point to bear in mind; Does the property meet your criteria? Does it have positive cash flow? Remember this… Because a property is cheap does not mean it’s a good deal. In fact, if you buy a cheap property that has no value, it could be the most expensive property you can buy.You can become wealthy investing in real estate. All you need is a goal to succeed, a determination to persist until you succeed. You can accelerate your path to wealth, when you follow my tips
Whether you are interested in buying, or selling real estate in Saginaw MI, the information provided here should be helpful.Buyers and sellers of Saginaw Michigan real estate are facing unique problems, most of them caused by the same economic factors affecting the rest of the state. Changing employment opportunities, job losses, transfers, company closings, etc. have affected not only business owners, but property owners and other residents of the state, all good people. Experienced Michigan real estate investors, like us, are making efforts to help these good people out of their bad situations.Selling Real Estate in Saginaw MI: The FactsTrying to sell can be frustrating in any area. The house must always be spotless. To get the best price, all the repairs must be done. Countless people walking through your home and since agents do not pre-qualify the “lookers”, many of them are just that…just looking. The Saginaw Michigan real estate market is slow, as it is in most areas of the state. Many properties take months and months to sell. Sometimes, it is just not possible to wait.If you are selling, real estate in Saginaw MI, you may have already realized that the economic struggles faced by residents of Michigan may require some unique action on your part. We may be able to help you sell Saginaw Michigan real estate more quickly or help negotiate a lease option agreement for you.The number of foreclosures included in the Saginaw Michigan real estate classifieds is depressing. People typically buy when their future is secure or in an effort to make their future more secure by investing in real estate. In Saginaw MI and throughout the state, if you are a property owner, you should know that there are several ways to avoid foreclosure.The lease option agreement is one plan that is becoming increasingly popular in Michigan. With a lease option, your monthly mortgage is paid. This can be particularly helpful if you are being transferred or have already moved. Paying two mortgages is a big strain on a homeowner. It is this type of problem that can often lead to foreclosure. Having a foreclosure on your credit record can devastate your rating, making it harder to make major purchases in the future, even if your financial situation improves.As investors in Saginaw Michigan real estate, we offer unique options for the seller. Our lease option program is one option. Many of these options are overlooked, particularly by real estate agents. We look for the win-win situation, looking for the most agreeable terms for both the seller and the buyer.Buying Real Estate in Saginaw MIIf you want to buy real estate in Saginaw MI, but your credit score is stopping you, a lease option plan may work for you. If you are employed, can make the monthly payments and have saved a few thousand for a downpayment or “option consideration”, then you can probably be a homeowner sooner than you think. Traditional lenders typically focus all of their attention on a person’s credit score. There are many factors that can affect this score and it is not always a true reflection of a person’s creditworthiness.If you are a buyer, even with bruised credit, the situation that currently exists in the Saginaw Michigan real estate market may make it easier for you to own your own home. Motivated sellers are often more willing to work on terms or accept a lease option agreement. Conventional lenders may have turned you down, but you have other unique options. As experienced Michigan real estate investors, we can help you find the right option.If you are currently renting, you should know that you can probably afford to buy real estate in Saginaw MI. Monthly rental payments are usually more than mortgage payments on the same or similar property. The Saginaw Michigan real estate listings currently include hundreds of properties for less than $100,000. In fact the median price for real estate in Saginaw MI is currently $89,900. The mortgage payments on properties in this price range can only be described as affordable.If your credit score is too low to qualify for the low interest rates that many lenders are currently offering or too low for even a high interest loan with a high down payment, our lease option plan may be right for you. With a lease option or “rent-to-own” plan, a portion of your monthly rent goes towards the purchase of a home. Instead of working just to pay the rent, you can be working to build your future.The Future of Saginaw Michigan Real EstateAn investment in real estate is almost always a good investment. It’s just that sometimes it takes years for the market to turn around and many people who are trying to sell real estate in Saginaw MI cannot afford to wait…not for years, maybe not even for a few months. On the other hand, a person with secure employment who buys or starts a lease to own plan now is investing in the future.The current value of Saginaw Michigan real estate will almost surely improve. The area has seen economic ups and downs since the first European settlers established a fort on the banks of the Saginaw River. First there was lumber, then furniture and horse drawn carriages, followed by gears for the new horse-less carriage. Over the last forty years, the value of real estate in Saginaw MI has gone up and down, as the success of the automobile manufacturers went up and down.The future is health care, research, service industries and tourism. Fishing in Saginaw Bay attracts people from all over the country. A more stable economic environment is just over the horizon. If you start now, a lease option plan can help you improve your credit score and eventually own a home that will likely increase in value as the years go by. Whether you want real estate in Saginaw MI or elsewhere in the state, we would like to help.