How to Expand Your Real Estate Business

A real estate business is a long-term investment which, when done right, can offer a profitable outcome. If you are already on the property ladder there are many ways to invest in real estate, but not every route will lead to business growth. Here is a quick guide to help you expand your real estate business successfully.

Find a Niche

Great news, you have successfully achieved your first property, perhaps you even have a string of homes under your belt. So, what’s next? One great way to grow your business is to find a niche and then stick with it. With so much competition on the market, the best way to expand is to hone in on one particular area and become an expert in it.

Fix and Flip

Made popular by day time TV, fix and flip properties can be a great way to make large returns. It is a short-term investing strategy which could amount to a huge profit. The concept of fix and flip involves purchasing a low-cost property, refurbishing it, and then selling it for a larger sum of money. The property is often inexpensive due to the amount of maintenance required to make it marketable. A varied amount of work is required before it can be sold on. Both time and money is necessary to go down this route, and real estate know-how is essential. Before deciding on a property, you should consult a real estate expert, research the value of similar properties in the area and estimate the cost of repairs.

Buy and Hold

This is a long-term investment strategy and it involves buying properties, holding onto them and then renting them out to tenants. Although you do not see a major profit at the beginning, this route offers the benefit of long-term appreciation and equity, a regular cash flow and, eventually, 100 percent profit. This strategy is ideal for new investors and can generate long-term and immediate returns. However, being a landlord means you will be in charge of the upkeep of the properties you rent out and you will need to address any arising issues and complaints from tenants.

Tourist Destinations

Staycations are big business and vacation rentals are a great way to build equity. Investing in a property in a location which is targeted by tourists can help bring in major capital during peak season. However, during off-peak months you may need to vary your rental prices and you should be prepared for unpredictable seasons. Another thing to think about is the cost of repairs as maintenance is an ongoing expense.

Whichever niche you decide to go into, having some capital behind you is a must. Sachem Lending provides private loans to different types of investors and can help you begin your business expansion.

Seek Out Hidden Properties

Keep an eye out for ‘pocket listings’ for a great deal. These occur when owners want to make a quick sale and they can be found by approaching agents or homeowners directly. These hidden, or off-market, properties are made available by owners who might be going through financial difficulty, relocating or going through a separation with their partner and wish to sell quickly. Off-market properties can be difficult to find but you can identify one in a neighborhood by looking out for a sign stating ‘FSBO’ or ‘For Sale by Owner’. In this case, some sellers are in need of cash. This could lead to a below market investment which would mean a big return.

Reach Out

Find your target audience and reach out to them through direct mail, social media and other digital platforms. Using direct mail may seem a bit archaic in today’s world but it can generate a high response rate and will give your audience something physical to hold on to. Your direct mail should be eye-catching and can be in the form of letters and postcards.

Creating an online profile through a business website or social media platforms is another practical way to get noticed. It allows you a way to share content, images and important details about your properties and offers potential buyers and renters an easy way to reach you.