Commercial vs. Residential Real Estate Career: Which One Is for You?

The real estate market is one of the most potent and profitable career paths you could take on your journey to establishing long-term affluence at a young age as the industry boasts numerous benefits and advantages compared to other investment markets such as bonds, stock, and even the forex market.

While its increased leverage, hard asset benefits and long-term high cash yield and equity build-up pose significant advantages to any aspiring real estate investor or agent, it is important to note that the two industries bear numerous differences that can define the future of your career. That said, if you plan to venture into the lucrative market of real estate, you need to be aware of the various intricacies surrounding both traits, and determine the path that best suits your aspirations and skill set.

Let’s dive into the details and provide you with the necessary insights to determine whether commercial or residential real estate is right for you ‒ or perhaps even both?

 

The residential real estate market

Residential real estate offers the perfect starting ground for an aspiring real estate agent, investor, or manager because of its high turnover rate, increasing market potential, and simple and straightforward approach to property value assessment.

Contrary to the somewhat complicated uncertainties that the commercial real estate market can impose on those less experienced, the residential market makes it easier for novices in the business to gain the necessary background that will enable them to venture into the commercial market or establish a more lucrative footing within the residential sphere.

The major benefit of the residential market lies in the fact that it is a constantly growing industry. While people might not want to own or operate a commercial facility, they do need a place to live ‒ this fact alone makes for a significant turnover and selling or leasing potential.

However, the residential market is not for everyone as it requires exceptional interpersonal skills, property knowledge and an insight into the constantly fluctuating local market. You will need to establish a personal relationship with the properties you are selling and educate yourself on every tiny detail in order to answer every question the potential tenants might pose.

Along with detailed knowledge of the neighbourhood, its traffic flows, security and local socio-economic environment, you will need to realistically determine the property’s potential by calculating its selling value based on its location, future market value in an evolving environment and competitive rates.

 

The commercial real estate market

In contrast, the commercial real estate market calls for similar, yet unique skills and utilization of resources that require a keen mind and plenty of experience. However, the rewards are greater as this market has a vast cash yield potential.

Commercial real estate requires you to not only know the market potential and how to attract prospective clients, but also to strategize and optimize your property to increase its value in the competitive market. Given the fact that commercial properties require long-term tenants in order to yield a positive ROI, it is of the utmost importance to specialize in property optimization, value proposition, and professional property management as well as security and technical services.

The management and procurement of these services and benefits require substantial resources both in terms of monetary investments and professional manpower, meaning that commercial investment and management is rarely a one-man show.

While tenant turnover is low in the commercial sphere, the cash yield is significantly greater than in the residential real estate arena as leases last for decades and commercial clients are able to make greater monetary investments in order to secure a valuable property. This means that you can retire quickly from investing in and managing commercial properties if you sell or lease a property to a successful, long-term company.

Both the residential and the commercial real estate industries have a tremendous ROI potential and present lucrative and sound career paths that could help you achieve financial independence and even get rich in a short amount of time. While these individual industries require you to obtain unique skills, you can reap the rewards of both worlds with careful planning and by making calculated decisions.

 

Chloe is a designer, stylist and a writer at Smoothdecorator.com. She is passionate about photography, ballet and music. Chloe also enjoys researching, learning and blogging about interiors, architecture, real estate trends and various art related topics, since she is crazy about aesthetics. You can find Chloe on FB or Twitter.

Top 5 Marketing Tools of New Age Real Estate Agent

 

Top 5 Marketing Tools of New Age Real Estate Agent

It takes merely a fortnight for a new discovery to become outdated in the modern commercial scenario. Marketing tools for any business are undergoing the same changes. You apply one today, the same becomes expired when a new marketing expert launches a latest idea.

Staying in the trend is a topmost priority for any new age real estate agent to affirm his presence on the minds of the buyers.

“As You Sow, So Shall You Reap”

Even before stepping in the arena of real estate, an agent has to plant the right seeds of promotion. Only then the appropriate audience will know about you and your services.

In this internet age, people are spending most of their time online so naturally you should also be spending most of your marketing efforts online. In this technology age, here are the top 5 marketing tools for a Real Estate Agent:

  1. Social Media

It is one of the most viral marketing tools in the contemporary business era. Due to the increasing presence of the audience on social media every day, promotion of real estate agency on the same platform is a fruitful strategy.

In case, you want to contact a person or an organization one to one, Linkedin is your best source for generating B2B leads.

Whereas, if you want to promote yourself or your brand to many people (B2C), you should leverage Facebook and Twitter. You can also target other social media platforms like Google+ if you want to target a particular interest group. Home improvement section also gets great traction on platforms like Instagram and Pinterest.

With the help of Groups, Open Discussions, Communities, Pages, and Campaigns, you can easily generate many qualified leads for free.

  1. Building Your Own Website

As a real estate agent, if you don’t have a website yet, then this should be your number one investment priority this year. In this internet era, your website is your brand. Assuming that you have invested in a website, you should update it continuously with latest listings and latest news in your locality or area of operation.

Today every buyer wants to know their realtor beforehand. You can showcase your expertise on your website. If you can educate your prospective buyer, you have already gained half his trust. You can do that by writing rich and well-researched content on your website or real estate blog. Also, when a visitor comes on your website, you should not make him leave after gathering information for free. Provide an option on your website for him to subscribe to your email newsletter. As they say that money is in the list. As a Real Estate Agent, nobody knows this better than you. So, start building your email list today.

Although, a little basic, don’t forget to provide your contact details (email and phone no.) right on the home page so that the visitor doesn’t have to sift through pages to find your contact list.

  1. Informative Videos

To help the audience connect better with you take the help of explanatory videos. You can upload these on Youtube and embed relevant videos on your website pages. If a picture speaks thousand words, then a video speaks a million. It is much easier to gain trust of audience through videos than any other medium online. Videos will help your buyer understand that you are the master of your realm.

  1. Online Reputation

Your buyers appreciate authentic reviews on websites and other social media platforms. Ask your clients to write testimonials on your website when they appreciate your work.

You can always select the best clients over your list and request them to post testimonials on your website or social media sites like Facebook, Quora, Google Reviews etc.

People tend to trust the recommended names more. Testimonials are a great way to gain trust of new clients who you have never met you before.

  1. Marketing with Mobile Devices

Today people are accessing internet more on mobile than desktops. So, it is important that you also shift your focus to mobile. Now, mobile can be used in different ways to reach out to your audience.

First, you should make your website mobile ready so that visitors can easily check out the content without having to scroll from left to right. A mobile-ready website adjusts itself to the screen size.

Next, you can form update your clients over SMS about various transaction details.

Then, if you have the budget and resources, you can also launch your own mobile app that your clients can download and get updates from you directly.

Now, today with so many marketing channels available, it can become overwhelming to promote your brand on each and every channel. If you have a small real estate agency, it would make more sense for you to focus on just one or two channels, do well in those and then slowly target other channels when you have more resources.

I hope you found this article useful. Are you using any or all of these tools? Which ones are working best for you? Please write your experience in the comments.

About the Author

Mukul Malik is a Real Estate Entrepreneur who likes writing about Real Estate, Finance and Digital Marketing. He runs a popular Real Estate Blog http://assetyogi.com and lives in New Delhi, India.

What Avenues are Available for Emerging Investors in the Real Estate Industry?

The real estate industry has been going up and down quite a lot between 2014 and 2016. It might seem impossible to believe, but it looks like the stock market is starting to get back on its feet. The world economy is slowly recovering too, and that’s because the world of business has advanced tremendously. Tech startups are everywhere, which can only mean that increasingly more investors will want to buy property for different purposes. Nonetheless, some people are still confused due to sudden market fluctuations. They can’t seem to decide whether now it’s the best time to make an investment.

What avenues are available for emerging investors in the real estate industry 1

 

Real estate – an ever-changing industry

Although as of November 2015 – when global investment restrictions have been abolished – we haven’t seen any major changes happening. Most foreign investments are organized via investments that are either debt of equity oriented. There’s no doubt that there are benefits linked to investing in real estate. Nonetheless, governmental rules have restrictions that both domestic and foreign investors don’t agree too.

 

Real estate standards

Why are emerging investors afraid to invest in real estate if the industry is one of the safest? There are lots of benefits associated with property investing; the core benefit being that even if you can’t make a profit, you will still have a tangible asset to rely on. Today’s property investment business is an extremely diversified domain. Investors can also buy to rent or buy to flip; not just buy property to sell. However, prior to buying a house or condo building to rent, it’s very important that you analyze the location very carefully.
Afterwards, you must settle on a target audience and set up a plan. As far as flipping is concerned, the exact same rules apply. If you haven’t heard of “house flipping before”, you should know that it’s a very common form of investing in property. The purpose of a flip is to sell; but only after that property has been completely restored. Don’t let yourself fooled by properties that only look good on the outside. It doesn’t really matter because you’ll sell it only after having it restored.

What avenues are available for emerging investors in the real estate industry 2

 

Buy property to sell

Is buying property to sell a good idea? It all depends on how well you know the real estate market. Do you have any experience? Can you predict which properties in your area have the highest chances of increasing in value? These are common questions every investor should have an answer to. In property investment, location is paramount. The type of property you’d like to invest in has to be located near schools, shops, highways, and hospitals. This way it will attract a larger audience, and more people will want to buy it.

 

Don’t make decisions all on your own

There’s no shame in admitting that you don’t know everything there is to know about the real estate industry. But if you want to invest, you should do it. Consult with a skilled realtor and ask for advice. Professionals know best, and the most competent are local agents who have a thorough understanding of their local real estate market. Explore more than just one option, and be open to suggestions. Settle on a budget before spending any cash, and settle on some crystal-clear priorities.

Whether you’d like to buy and rent or buy and sell, when it comes to real estate there’s no doubt to have doubts. Have business plan in mind. Do I want to buy and wait for my property to increase in value? Or do I want to buy, restore, and then sell? The better you understand what you have to do, the better chances you have to make a good profit in the long term.

What avenues are available for emerging investors in the real estate industry 3

However, not everyone wants to invest in homes. Some investors look beyond conventional property. Condo and office buildings can have a lot of potential too. As a new investor, you must be extremely careful when spending your cash. Stocks, equities, bonds, and real estate all feature risks. But if you play your cards right, you might have a real shot at seeing a good profit.

Real Estate Investing and Advice Strategies for 2017/2018

Real Estate Investing and Advice Strategies

Real estate is a real gold mine for investors across the globe. The bulk of the wealth of the top 1% of Americans is built in the property market. While there are numerous other investment opportunities, there’s also a lot of fool’s gold lying around, and making informed decisions the only way to steer away from it.

Some markets are coming out of the doldrums, while some may descend into it. To come up roses in such a volatile and complex climate, investors need strategies as sound as a dollar. The good news, though, is that there is a slew of innovative platforms and tactics for investing in residential real estate.

 

Foundations of trust

One of the exciting new developments is the proliferation of real estate investment trusts (REIT). Their business model is built around the strategy of purchasing or developing income-generating assets in a certain segment of the market. That is to say that their performance depends on cash flow and sales profit.

Much like buying stocks or mutual funds, one can acquire shares in a public REIT. Some trusts focus on residential buildings, others invest in residential real estate, and there are those that specialize in a specific type of property.

 

Partnering up

Another viable option is to utilize real estate partnerships. They can be constructed in a variety of ways: as tenants in common projects, general partnerships, limited liability corporations (LLCs), and limited liability partnerships (LLPs).

Each of these models has its pros and cons, which suggests that investors have to measure twice and cut once. Some of the most important considerations involve decision making, selection of managing partner(s), and written real estate partnership agreements.

 

Power of the crowd

There has never been a greater assortment of tools in the arsenal of an individual investor. Peer-to-peer (P2P) lending platforms are one of the newest trends in the real estate market. Namely, Fundrise took off in 2014 ad broke new ground with residential real estate loan products.

SoFi has followed suit, offering mortgage underwriting and P2P loans to borrowers with solid credit. This is only the beginning, as equity crowdfunding is expected to gain even more traction and shift the property landscape in 2017 and beyond.

 

Overseas adventures

The borders of space crumble in the presence of globalization and owning a foreign real estate is potentially a very lucrative endeavor. For instance, real estate experts predict that markets in countries like Malaysia will explode in 2018 and bring immense wealth to those who tap into them.

Websites from Australia offer real estate in Tasmania, while others point to Europe and markets such as Sweden. Even if you live in a stable economy like the US, it makes financial sense to spread your wealth and expand the safety net.

 

Rental property

It is becoming harder to sell due to the surge in renting. Financial hiccups prompt people to delay big purchases and resort to other options. As a result, there are more renters in the US than ever before. The problem, however, is that most rental properties available for sale in many parts of the country do not promise great returns.

Still, there are some underutilized techniques that could make a difference. Take the example of master leasing. It refers to the practice of leasing from a landlord and then subleasing to an occupant tenant to fill the gaps between the rents.

 

Ahead of the curve

The real estate has evolved into a new asset class, joining the ranks of bonds, stocks, and cash. Investing in the property market is also a sound tactic to diversify your portfolio and mitigate risk. Indeed, the property is a substantial, distinguished part of any investment portfolio, although it can also become a money pit.

In any event, the profit is not just there for the taking. You have to discover a great place or a way to invest and do your homework. Global transactions will reach new heights, but to reap benefits, you must make an effort to stay on top of emerging trends and anticipate those that wait around the corner.

Chloe is a designer, stylist and a writer at Smoothdecorator.com. She is passionate about photography, ballet and music. Chloe also enjoys researching, learning and blogging about interiors, architecture, real estate trends and various art related topics, since she is crazy about aesthetics. You can find Chloe on FB or Twitter.