“Land monopoly is not the only monopoly, but it is by far the greatest of monopolies; it is a perpetual monopoly, and it is the mother of all other forms of monopoly." -Winston Churchill
Do you want to own a real estate property because it has by far been the most productive industry? However, you are scared to take a leap and grasp its potential for financial freedom as it seems like a topsy turvy journey then, join the fray. Investing in real estate indeed comes with its highs and lows, but you need to overcome the fears of taking a risk. If you think you are alone in a dilemma on gaining maximum returns from the property, you are wrong. It all comes down to your understanding of how to strategically acquire money and then utilise it for financial growth in this field. If you are not aware of what you are doing, you are likely to face a problem. That is why, for your ease, we are here with some specific tips which will inspire you to plan out your endowments to transform real estate into real fortune.
Start Small But Think Big
If you think that you need to hit a massive deal at the beginning of your journey, you are traversing on the wrong path. Chances are that you have a limited knowledge about real estate investment, so it’s a wise option to start small and get a hang on the details through experience. Money is of utmost importance in any scenario, so our advice to initially spend on cheap assets will help you grab the deal's intricacies and practices. You could commit to properties like single-family houses, renovate-and-flips, multi-units, etc., to reduce the burden of mistakes and acquire a considerable return without catastrophic consequences.
What could be your thought process which replicates the ideals of a successful real estate investor? You must be familiar with the popular notion that states that you need to think differently if you want to stand out from the crowd. You might get consumed by the dealings' work pressure that you neglect the idea of thinking for the future. This is where you must be cautious. Although you will be handling small properties, but your mind should calculate tomorrow’s values and return-on-investments. Each hour you spend on thinking to monitor your moves, you may save yourself from putting your precious efforts in the wrong direction.
Learn, Then Earn
Beware that people might trick you into believing that you need to pay up money for seminars and coaches to furnish your insight about the industry. There is plenty of information available which is free of cost or convenience. You ought to gain profits if you don’t follow the crowd. In this expedition of holding properties, you are to locate opportunities which is not known by every other individual. This is the reason why we are urging you to comprehend your goals before you start off with any action. This way you will have the possession of a deal which yields the maximum amount of money as the competition for it hasn’t even begun. Also, if you garner an in-depth analysis of the processes involved, you have less chances of getting tricked by others.
What do we mean by lease options, and how can it help you? If you start with a substantial extent of principal or somehow arranged huge credit, you can lease out properties with an alternative to buy. To put it merely, lease-options usually include some net amount that heads towards the property’s purchase. As a leaseholder, you could later exercise your power to buy the house if you continue to pay the contractual sum owed every other month.
Now, thinking from the perspectives of the land’s owner, you just hit a goldmine. First of all, you could demand a higher monthly rent since portions would be credited back to the renter. Secondly, the occupant would be eager to show greater responsibility towards the house's welfare since he or she would eventually be the holder of the particular property. Thirdly, you could place a deadline failing which the person’s credit towards the home would be considered invalid. This proves to be a great incentive to urge individuals to pay on time.
Long-Term Residential Rentals
The most common and lucrative methods in real-estate investment is long-term residential rents or also known as buy-and-hold. And do you know the vital element which comes in handy while selecting properties for the same? It's location. We have already mentioned the importance of thinking differently and foraging for suitable locations with less competition. This way, an asset will definitely owe you an increased value later, even if you were to get a dilapidated house. So, it primarily depends on the choice of the site.
Now, coming back to the subject matter at hand, prolonged tenure properties. Even in this case, the location of the place plays a key role. An individual is more likely to consider an extended duration of the stay if they find the house placed in a location accessible to other needed amenities. Apart from a consistent rental income every month, it ensures a positive cash flow as long as the renter pays off his or her dues properly. You could have the added advantage of gaining appreciation as the property’s worth will surge with time, and then permit you to sell off the house at a higher price.
Develop Client Loyalty
Loyalty of your clients depends on how you treat them and whether you are true to your words. If you have scheduled a call or a visit, don’t delay it, just do it. Such helpful acts will impact your business positively in the long run. We are not saying it, the numbers are stating it. For instance, a 5% increase in customer retention will lead you down the path of 75% profit.
Check out some of the ways to forge trust and loyalty with your clients-
Know And Be Known In Your Area
No matter what business you are doing, it's equally important to let your prospects know about your existence. As a real estate investor, you could linger around community events, celebrations at various schools or public events. This will aid you in knowing your audience better who might already be thriving in or near your area. Apart from spending a generous amount of money on billboards and flyers, you could sponsor some actions happening around the neighbourhood. Or you may support the local retailers and suppliers in hopes of gaining emotional support, eventually leading to a stronger bond with others.
Your business pitch should always be prepared to increase your exposure. You must have heard about word-of-mouth technique? While working in this industry, it’s crucial to yield this trick to gain more referrals. As and when you meet someone, be it, friends or family, leave your business card with them or just inform them about your profession. Always remember to grant a tracking system for such marketing campaigns. It will help in improving your performance by boosting your endeavours.
Another impeccable way to let people know about your brand then ultimately transform them into buyer is by leveraging social media platforms. Yes, social media marketing has gained popularity, and it is here to stay. You will be making a huge mistake if you don’t adopt its use to expand your company’s base. While harnessing its power, you need to get creative to grasp the audience’s attention. You have a pool of ideas to choose from, but any social media post's main facets would either be a static image, infographic or a video. Ensure a consistent aesthetic design and colour scheme with the appropriate language of your target audience.
Don’t Just Think But Act
Real-estate investment is not a plain sailing route, and you are bound to make errors in the process. When dealing with a restricted amount of money, you can’t gamble with your luck unnecessarily. You must be guided by someone whom you can trust. We have a solution for this too. Pin your faith on India’s premium listing assistance, Haarway. As we have already mentioned, information can be available at a considerable price, we are keeping our words. Haarway’s team of professionals will be serving you in every step of your way at a reasonable rate. Now, you have everything you need to embark on the journey of turning real estate property into a real fortune.