real estate

Research “Comparables” Before Buying Real Estate In That Market

July 31, 2019 by Team RE Mentor Leave a Comment

With any type of investment or business, research is important. This will allow you to know what to expect and also have the ability to be able to distinguish a diamond in the rough by examining comparables.

Before you write an offer for any market, you're going to want to spend some time getting a feel for the market.

Doing this before you look at deals will allow you to move much more quickly when recognizing a potentially good deal as much of your due diligence has already been done. How can you know what a good deal is without research?

You will have little background on which to judge investment deals. Your market research can and should include most of the following information:

what rent is going for an area, who the large employers are, and what the smaller sub-markets are doing. What are home sales like in the area?

Where is job growth going to come from and what kind of jobs will these be? Where will new transportation be? What is the current rental market like? Asking all of these questions gives you an idea of the bigger picture and explains the economics of the area. Knowing the current situation along with where future trends lie will allow you to assess a deal for current viability along with future appreciation based upon the trends that you have researched.

Secondly, look at some comparables with in the area.

Taking time to study these will let you understand what the market is truly like. This will allow you to know prices within an area (as well as submarkets) and roughly what you can expect to pay if paying market price. This can help you quickly determine if a prospective deal is brought to you whether it is undervalued and whether you might be able to create forced appreciation very quickly.

Look at as many comparables as possible and most experts recommend around the last fifty.

This can allow you to see what has happened over a period of time and lessens the impact that outliers can have upon the data due to the larger data pool you are using.

Remember that you do not have to find all this information yourself. Use the services of an experienced broker. They are paid very well to help you succeed. You must make the broker feel comfortable knowing that you will work for him as much as he will work for you. The importance of using a broker is that here she is in this particular market every day. He or she should know what the hot areas are and should be able to bring you some potentially good deals. You are paying for the brokers’ expertise to do not be afraid to ask questions as you do your market research.

Hopefully this article on the importance of doing a research is giving an indication of what you have to look for in the reasons to do it. Completing the due diligence can make you a great deal more money as you're able to jump on an opportunity that much quicker and put your bid in with the confidence that you have done the market research to make this potential deal work out for you.

Connections Make Money

July 10, 2019 by Team RE Mentor 1 Comment

Networking is about connecting. If you want to end up with new business, new connections, and new deals after attending networking events, you need to fully understand the right and wrong way to make strong, lasting business connections. You need to network to connect.

The worst mistake you could possibly make is assuming that you are the highest priority, and your highest priority is also the highest priority of the person you’re trying to do business with. This networking strategy will leave you with little more than a lot of useless business cards.

Of course, networking is extremely important in the real estate business. In fact, networking is pivotal for starting and building working relationships.

But when you get right down to it, networking can seem almost too self-serving—one person tries to make as many contacts as possible just so those contacts can do something for him or her.

Of course, this is why we network—we all have business needs to fulfill. But it is important to remember that other people are networking too, and we need to be aware of others’ needs too.

We need to connect with the people we meet. When we connect with them, we should develop at least some understanding of what they are all about.

Rather than thinking solely about what others can do for me, think about what we can do for each other and for each others' businesses. This helps form the connection.

I stick to this rule of thumb every time, and guess what– deals follow.

Making a true two-way connection might require a little more work than simply shoving your business card at a potential client. But the extra money you can make and the new opportunities you can open up for your business are well worth the effort.

To make real, lasting connections that lead to potential deals, just put yourself out there, be genuine and live your business’ mission. You will see– people will come to you for deals and business.

Check out these tips to create lasting and profitable connections through networking.

1. Cultivate your connections to make money:

You need to project an image of approach-ability, understanding and knowledge. Be genuine and be yourself. Express interest in everyone you meet; remember names; and listen attentively as people speak with you. Try to understand their needs and determine how you could assist each other. Building trust is a vital component of relationship building (i.e., connecting!).

2. Make small talk:

Having the ability to talk to anyone about anything is a valuable skill. It is also crucial for making lasting, profitable connections. If you can initiate a conversation, you are more likely to meet people who will turn out to be lasting, profitable contacts. Small talk can sometimes be difficult to muster up, so try to always have a few small talk ideas at the ready to use in any kind of situation (examples: Where are you from? or How did you get started?).

3. Be an active listener:

Networking to connect is not just about selling yourself or your business. It is also about listening to the other person and showing him or her that you are truly interested. Allow others to open up and talk freely. Give them your undivided attention even if it is just for a few minutes. Show interest in what is being said by nodding or agreeing. Try to use positive body language—face the person you are speaking with, and make eye contact.

4. Be a giver:

When you focus on helping others, you too will receive. Do you like people who just seem to take take take, but never give? I don’t. When you are generous, people will notice and respect you. And, most people would rather do business with people they respect, trust, and like. I know I do. Being a giver is not that hard. Try some simple things like acting as a host at events you attend. Do this is by connecting others. Either introduce two people to each other (very easy) or provide a testimonial about a person you admire to the entire group (easy). These acts allow you to focus on others while also building solid equity among your peers. Be a giver and everyone wins.

5. Stay positive:

Try to have a happy, congenial demeanor upon walking in the door. People tend to flock toward those who appear energetic, positive, and outgoing. Remember– people enjoy doing business with people they like, so be a person who others like. Also, leave your problems at the door. Whatever you do, don’t talk about your problems. People have enough problems of their own. Focus on the positive and strive to make people forget their own troubles while in your presence.

6. Don't sell:

Remember what I said earlier about listening? Connecting is not about trying to push your agenda. It is about building relationships with people. Once you've made a connection, those people will likely be happy to tell others about you and what you do. Word of mouth and the words of others are so much more valuable than you talking about your own accomplishments. Take every chance you possibly can to let others know what you do and who you are. Try it and see—it’s definitely more powerful than giving a new contact your standard elevator speech or sales pitch.

7. Get creative with your follow up:

Most people send an email to follow-up with new connections. It’s definitely the easiest and quickest way to follow up. But why not stand out after the event by hand-writing a thank you card or note. Whichever method you choose, make sure to mention something from your conversation.

RE Mentor offers a different point of view on real estate investing by showing you, through education and coaching, how to start making money from right where you are.

Go HERE to discover how to unleash your real estate profits through networking.

Business Systems Provide Value

July 3, 2019 by Team RE Mentor Leave a Comment

Business systems are the way you do things. They are the procedures that can be replicated.

For example, we recently created a telephone answering system for an office receptionist. We created a script that delineated how she is to answer the phone and what information she needs to collect. She has responses for the types of questions callers may have and to whom she should direct calls.

We were very specific about the circumstances for transferring telephone calls and circumstances for taking messages. In addition, we established the procedure for inputting the information in the business’s customer relationship management (CRM) database program.

Effective business systems can be created for all kinds of work performance that occur in your organization. As you formalize your systems, the time you spend focusing on the details of a job become invaluable; as you critically examine each step of a process, you are also determining whether certain areas need improvement. This is a key component of the process because business systems need to be reviewed and improved as the ways of doing business change.

Here are five other reasons that effective business systems provide value:

1. Systems provide consistency

With business systems, you can produce the same products and services with the same level of consistency. Once you have created your systems and written down the sequential steps, your employees can follow the proper procedures consistently. You can monitor these processes and improve when necessary.

Systems can be implemented for sales, marketing operations, employee training, etc. The people who benefit the most from having systems in place are your customers who know what to expect from your business.

2. Change is easier to accomplish

Systems make a business predictable. So when change impacts your business–which may often occur–then knowing what business systems need to be modified becomes easier. You will know the current work process and can predict how change should be handled while still maintaining your systems.

Once your systems become part of a flow chart, or are written as a set of sequential tasks and procedures to follow, they become easier to monitor. You’ll notice that tasks will be completed properly and efficiently; changes can be more quickly addressed.

3. Training new employees becomes easier

New hires can be quickly integrated into your business when there is a written set of procedures for them to follow and they know exactly what is expected from them. It becomes easier to gauge the effectiveness of an employee when you have a measurable set of guidelines to review.

4. Business systems allow staff to focus on what they do best

Any time you are trying to complete a project with a specific deadline, you will want to avoid any problems that may develop. We like to create business systems that also best match the employee talent that is available. Allowing people with specific skills, knowledge, and abilities to be responsible for those parts of the business allows for better quality of work; everyone then can focus on what they do best.

Once business systems are established and implemented, activities can be performed on “autopilot.” Repetitive activities in your business become routine, and you can focus on activities with higher payoffs.

5. Business systems create value

Effective business systems become a part of your company’s organizational infrastructure. If you are selling your business, formal procedures add value. Buyer can see that operations run smoothly and consistently; new hires can be quickly integrated.

Systems are what make businesses grow, flow, endure, and sell. This makes a business purchase more enticing and more valuable because the systems become tangible assets. Businesses that effectively follow systems find themselves winning against their competition.

Are you looking to implement systems into your real estate business? Learn more about how our dedicated RE Team mastered this process and can pass on the mechanics of success.

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