Business and Management

Residential Real Estate – How to Attract More New Clients?

Doesn't it seem like everyone you know has a friend, relative, or acquaintance as a realtor? How could anyone, especially someone new to the industry, possibly achieve success when faced with this much competition?

The answer begins to appear when you consider the following questions:

  • How many licensed real estate consultants have the talents required for success in sales?
  • How many have been trained in effective selling techniques?
  • How many know how to prospect effectively?

  • How many know which questions to ask to determine the factors that are most important to each prospect's buying decision?
  • How many take their profession seriously and are willing to put in the effort and hours that are required to build a successful business?
  • How many of them regularly sell multiple houses per month?

How to Build Credibility

Imagine you are a brand new realtor that has just passed the licensing exam. Why would someone turn to you to help them make what may be the largest investment of their lifetime? What makes you stand out from other licensed real estate agents?

If you are new to the profession, you won't have success stories or testimonials to point to as answers to these questions. However, there are many things you can do to build up credibility quickly.

When you are sure that everyone you know is aware of your new role, start pursuing new relationships. Don't limit yourself to contacts that may themselves become prospects. Also, look for opportunities to develop relationships with people that can refer prospects to you. This includes:

  • Mortgage brokers
  • Bankers
  • Salespeople in non-competing sales roles (i.e., new home sales vs. resale)
  • Property managers
  • Corporate relocation managers

You can also pursue relationships with people that have large customer lists such as accountants, financial advisors, and insurance agents.

 

Business and Management

When to Go to a Hard Money Lender

Most often, people are looking for a loan will go the traditional route, opting for a bank, credit union, or other large financial institutions. Requirements may or may not be tight, interest rates vary, and the approval process can take 30 days or more. This is great for many situations.

The other option is to go to a hard money lender. This is usually the rich who fund people like real estate investors. The lender will give loans to the investor of the amount which is equal to a percentage of the fair market value of the property after it was repaired-typically up to 70%. This amount is expected to be enough money to buy the property and pay for at least part of the improvement. You can know when to work with the best hard money lender via https://www.baymountaincapital.com/. It can vary greatly from person to person, but there are some general trends that can be useful to know the decision stage.

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For one thing, a hard money loan does not have to go through the bureaucratic process involved in traditional financial institutions. As a result, the funds can come quickly. It is very beneficial for young real estate investors who need to buy a property before it gets snatched up by someone with a more established bank account.

It is also important to know that hard money lenders generally charge a higher interest rate and closing costs. So, while the money will appear more quickly, the young investor needs to know that he can improve and sell properties quickly in order not to increase too much interest.