Five Tips to Ensure You Stay Competitive in the Real Estate Industry

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Remaining competitive in the real estate industry requires hard work and persistence. Property managers must provide a wide array of services for their clients, including the following:

  • Marketing properties to commercial and residential tenants
  • Screening potential tenants to reduce turnover and ensure on-time payments
  • Providing maintenance service for all units
  • Handling paperwork and recommending price points for lease and rental fees

For investors going at it alone in the real estate marketplace, managing all these tasks can be challenging. Here are five of the most important keys to longevity in the property management and real estate investment fields.

Tip #1: Solicit Feedback
Finding out what tenants are saying about you and your property is critical to maintaining a positive public reputation. By proactively requesting feedback regarding your properties, your maintenance procedures and your overall business practices, you can ensure a greater degree of tenant satisfaction and can reduce turnover in your investment properties. This can boost your profitability and ensure steady revenues for years to come.

Tip #2: Research Price Points
Making use of available tools to check pricing for comparable properties and to determine the real value of each real estate investment under consideration can help you select the right properties for your portfolio and the right rent or lease price points for your tenants. By staying competitive in the financial field, you can improve your performance and profitability in the real estate marketplace. Don’t forget to take neighborhood information into consideration; the right location can make a big difference in the desirability of a property.

Tip #3: Embrace Modern Technologies
Communicating with clients and tenants via email or text can save time and money in managing reminders and handling necessary correspondence. By paying expenses electronically, you can also reduce paperwork inside the office, allowing you to maintain a green-friendly workplace while enjoying added convenience for all your transactions. Mobile devices and cell phones can provide improved access to information, allowing you to stay productive even after hours or when you are away from the office.

Tip #4: Track Your Return on Investment
Maintaining meticulous financial records is not only a legal requirement but also a good idea to ensure that you are turning a profit on your real estate investments. Comparing revenues with expenses for each property in your portfolio can allow you to identify underperforming investments and take steps to address these issues to ensure the highest level of profitability for your company.

Tip #5: Trust but Verify

The right screening processes can have a real impact on the quality of tenants your properties attract. Checking credit reports, references and past payment patterns can provide added insights into the financial habits and dependability of potential tenants. In both the commercial and the residential real estate markets, acquiring and retaining the right renters and lessees can give a significant boost to your overall profitability. A little due diligence can go a long way toward helping you achieve this goal.

These five core strategies can help you manage properties and maintain a healthy financial profile in the real estate marketplace. By keeping your eyes on the profitability prize, you can expect your investments to pay off for increased longevity in this constantly evolving area of the U.S. economy.

4 Ways to Go “Green” — Our 1-2-3 Guide On How to Be More Eco-Friendly in Real Estate

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As climate change becomes an increasingly important part of our daily vernacular, finding ways to increase energy efficiency and environmental responsibility throughout your company can provide you with added savings on utility bills and reduce your carbon footprint. For real estate investors and managers, establishing a green-friendly brand image can provide a distinct selling point for your company while distinguishing you from your competitors in this field. Here are four proven strategies to boost your environmental credentials in the real estate industry.

Green Tip 1: Explore Paper-Free Options

Reducing the amount of paper needed to conduct business can have a dramatic effect on your office’s environmental impact. Some of the most important ways to limit paper use include the following:

  • Opt for online applications rather than print versions of the same documents
  • Allow for and encourage electronic payment and receipt options for tenants and lessees
  • Invest in centralized cloud or server storage rather than maintaining file cabinets and printed copies of contracts and other documents
  • Choose online commercials and a corporate website over printed brochures and direct mailings

These strategies can help you reduce paper use while offering the same top-quality service for current and prospective tenants in the modern eco-friendly environment.

Green Tip 2: Install Energy-Saving Fixtures

Although the cost of full replacement of light fixtures, water heaters and air conditioning units can be prohibitively expensive, upgrading to energy-efficient models over time can provide huge selling points for new tenants and corporate clients. According to the U.S. Energy Information Administration, lighting accounts for almost 20 percent of energy expenditures in the commercial sector. Installing green-friendly lighting fixtures and electrical equipment, you can reduce the cost of utilities every single month. Water-conserving bathroom and kitchen fixtures are also important in areas hard-hit by drought. Best of all, the cost savings realized by your tenants can result in increased retention and reliable revenues for your investment company.

Green Tip 3: Recycle and Reuse

Recycling aluminum, paper and glass items can be a good starting place for instituting green-friendly policies in your office. Refilling printer toners and recycling electronics can also reduce the environmental impact of your business enterprises. By passing along unwanted and obsolete equipment to charitable organizations or recycling centers, you can provide added help for those who need it most. At the same time, you prevent dangerous or toxic substances from contaminating ground water in your area.

Green Tip 4: Consider Transportation Options

Investing in a hybrid vehicle can not only provide you with added green cred among your potential clients, but can also save you a considerable amount on fuel costs during the course of an average year. By driving a vehicle that is in line with your corporate environmental policy, you can also enhance your company’s reputation among environmentally conscious buyers and sellers.

These four strategies can provide your real estate company with an added selling point for green-friendly clients and can enhance your overall reputation for innovation among potential renters, buyers and sellers. By adopting an environmentally responsible attitude toward all aspects of your business operations, you can enjoy the economic benefits of lower utilities and an improved market position among the eco-friendly demographic of the U.S. economy.


References:
http://www.eia.gov/tools/faqs/faq.cfm?id=99&t=3

Real Estate Investing is a $175 Billion Market

First checkout the infograph below via BiggerPockets.com AND Memphis Invest then we will get to the $175 Billion!

The $9.2 Billion Impact of 28.1 Million Real Estate Investors

Infographic Courtesy of: BiggerPockets.com AND Memphis Invest

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According to the survey above 28.1 million American’s currently own an investment property and 7 million of them consider themselves active investors with plans to purchase in the next 12 months (please keep in mind the survey was done in 2012). If investors plan to spend a median of $7,500 on 1.2million properties then investors will spend $9.2 Billion on rehab costs per year.

These are great stats but what are investors spending on tools, closing costs and service providers to close these deals?

Well let’s start from the top and go from there:

GDP and Real Estate Investing

You are welcome to use this graphic on your site or blog as long as you provide credit to Revestor by providing a link to our site www.revestor.com

If you start with GDP, Real Estate is 12.6% or $1.926 Trillion of the total $15.685 Trillion GDP.

Residential real estate sales end up being about 38% of all real estate totaling $729 Billion.

24% or $175 Billion of all residential real estate is investing.

There are a lot of dollars made off of that $175 Billion!

At the top of the list, according to RealtyTrac, are investors – with an average profit of $18,391 per sale. (Not all properties are flips but if they were, investors would be earning 13%, or $22 Billion of the pie.)

According to the above survey from our friends at BiggerPockets, next on the list would be contractors with $9.2 Billion of the pie. (we did not include in our graph)

Then of course real estate brokers and agents earning an estimated 5-6% of the pie at $8.75-$10.5 Billion.

According to NAR the ratio of investors using financing to all cash is about 50/50. Mortgage Brokers, Lenders and Servicers are next on the list with at an estimated 3-4% of $87.5 Billion. I know this seems high but 3-4 points includes origination, gain on sale (GOS), service release premium (SRP), servicing, etc. In fact this is quite conservative at $2.62-$3.5 Billion.

Closing costs from service providers (appraisal, inspection, escrow, title, etc.) we estimate to be 1.5-2.0%, or $2.6-$3.5 Billion.

How much do investors spend on support staff, assistants, analysts, researchers, education, software, tools, etc to acquire investment properties? [COMMENT BELOW] with your thoughts…

How much do real estate professionals (agents, brokers, mortgage providers) spend on online marketing?

Well according to the 2012 Real Estate Advertising Outlook report by Borrell Associates this year, 55% of all real estate advertising, or $13 billion, will be spent on online media. Total advertising equals $23.7 Billion.

Does that mean if 24% of the business is from investors that real estate professionals will spend 24% or $3.12 Billion on online advertising? If real estate professionals who work with investors spend a total of $5.69 Billion we’d be surprised. I would estimate the number to be more like $3.4-$4.2 with $1.87-$2.3 Billion of that spent online to target investors. (not a bad number and we hope we can carve out a nice slice of that pie by connecting investors to real estate professionals)

24% of the residential real estate market is a big slice of the pie and $175 Billion is a big number and can’t be ignored. We believe the numbers will continue to grow as more investors are able to qualify to buy again. The first wave of foreclosures occurred in 2007. The seven year waiting period will be up for many “re-investors” starting in 2014. Will they make better decisions this time around?

How Many Realtors Are At Your Football Game

Ever go to a party and find that every other person is a realtor?

If you’re living in Arizona, Hawaii or Florida, there’s a decent chance you have. While California leads the pack in terms of sheer numbers of realtors, those states are the top three for realtors per capita according to an article published midyear by business news website AGBeat.com.

The numbers themselves were compiled from the National Association of Realtors. To give you a sense of the fierce competition out there, consider this: In Arizona, which ranks first in the nation for realtors per capita, there is one realtor for every 168 residents.

Now let’s put that number in perspective. Let’s say you went to an Arizona Cardinals football game at University of Phoenix Stadium, located in Glendale, a suburb of Phoenix. The stadium capacity is 63,400 people. If the stadium sold out to a perfect representation of Arizona’s population, at least 377 of those people would be realtors.

Here is a look at the numbers, in more detail:

1. Arizona, 1 realtor for every 168 residents.

2. Hawaii, 1 for every 173 residents.

3. Florida, 1 for every 175 residents.

4. Washington, D.C., 1 for every 193 residents.

5. Nevada, 1 for every 200 residents.

6. New Jersey, 1 for every 201 residents.

7. Connecticut, 1 for every 229 residents.

8. California, 1 for every 241.

9. Colorado, 1 for every 257 residents.

10. Idaho, 1 for every 267 residents

The profession has generally been on the rise again as the housing market recovers from the dismal years that capped off the end of the last decade. Places like South Carolina have reported an uptick in people entering the profession. But, even so, in some places, the profession is clearly still a draw.

Revestor featured in Inman’s Startup Scene Column

Revestor’s CEO, Bill Lyons, was interviewed by Inman’s Startup Scene columnist and co-founder of Tech Policy, Natalie Fonseca.

“It was a pleasure to be interviewed by Natalie, she was very knowledgable of the space and was straight forward. I’m always happy to share our vision and am pleased with the article that came out. Natalie and Inman did a great job at covering us,” said Lyons.

The article is titledInvestor-friendly property searchcheck it out and let us know what you think. We hope you like the site so far. We are encouraging your feedback in a post titled “What do you think?”

 

BloodHound Unchained Real Estate Conference Anaheim

While attending the National Association of Realtors annual conference in Anaheim we decided to veer off the beaten path on Friday and attend BloodHound Unchained. The group invited us to present/demo Revestor and so of course we accepted the invitation with open arms. We gave them a little sneak of whats to come this month and received some great questions and feedback. Most of the group signed up on the spot to reserve their username and even were nice enough to share their unique URL with friends and other real estate professionals!

Bill Lyons Revestor

Bill Lyons CEO of Revestor

[Side Note: No I am not normally a grizzly bear. I am involved in a charity called Movember Facial Hair Formal to squash cancer put on by one of our advisors Teevan McManus as well as sportscaster and friend John Weisbarth.]

I would best describe Bloodhound Unchained as a mini inman conference where technology meets real estate (yes that is Inman’s tagline not mine). No, but seriously, a conference/training event/seminar/social/networking event with a tight group of cool geeks getting real results and real organic leads with hard work, software, unique content, blogs, links, SEO, email marketing and more! I know that isn’t a sentence but neither is bloodhound unchained. I was impressed to say the least and I learned some really cool stuff and so did Carlos Pastrana, our friend and agent from San Diego who also attended.

Special thanks to: Greg Swann of Bloodhound Realty in Phoenix for sharing tips, tricks, and secrets on lead generation. Scott Schang of Homeownership University in Orange County for sharing his WordPress tips and plugins, conversion techniques, and analytics. Mark Madsen and Tony Sena of Shelter Realty in Las Vegas for sharing their overall marketing techniques and passion for unique content that has driven their real estate sales and property management to new heights. Brian Brady of Mortgage Rates Report in San Diego for the invite and email marketing tips. And last but not least, Eric Blackwell of Eric on Search for the amazing SEO training.

Attending events like these is not about “I know most of this or all of this stuff” (Yes, some content may be a review for some). The point is to take away 1-2 solid breakthroughs or distinctions that will pivot your business into explosive growth! And that is what most people don’t get…

I would like to thank the entire group for the warm welcome and we look forward to great things to come!