Business & Property

Proper Ways to Look for Better Deals

Being a great investor in property business is not easy. There are many challenges to face and there is always not enough time. However, being a great investor is not only defined by the number of capitals or contacts you have. Of course, capital and contacts are important and valuable assets. However, they are not enough to make you a great investor which can build property business well. Being a great investor means you can look for better deals. It seems simple but not easy. Working on good or even better deals needs hard work. It also requires great plan and strategies.

How to look for better deals properly?

Aside from many challenges you need to face in order to build your business, you also have many assets and potential to maximize. Even little things are great potential you can use to close deals. Here are some tips to close better deals for your property business:

  • It is always mentioned that property business is not about feeling but numbers. Thus, you need to look at the numbers to look for good deals. This way, you will be able to decide the strength of a deal. While looking at numbers, it is also highly suggested to take conservative approach with all of the numbers so you won’t feel like tricked by the numbers. When you see that the numbers don’t deceive your judgment then you can precede the next step which makes you closer to choose better deals.
  • It is often that investors only focus on the number of deals they successfully achieve in a year instead of closing fewer, better deals. Of course, it is not wrong to make small profit from mediocre deals. However, you shouldn’t let a chance to close better deals slip off your fingers. Thus, it is important to know when to walk away and when to step forward of potential deals. If you think the deal is not good enough, you’d better walk away and look for more potential deals.
  • Setting up exit strategies is a great way to look for better deals. When you have multiple exit strategies, the higher the chance to close better deals. It is also useful to avoid unnecessary loss when you are already involved in deal that doesn’t go as planned. Your multiple exit strategies are your backup plan. Remember that in every business, the unexpected is unwelcome but sometimes it is unavoidable. However, you will stay safe if you have exit strategies which will lead you to find better deals in the end.
  • To be able to recognize good deals, you need to know what the expenses are first. You need to make sure that you know the holding cost, interest expenses, as well as closing costs. Seasoned investors might have good idea once they take a look at a property. However, it is not easy for new and inexperienced investors. If you calculate the expenses thoroughly, you will even find hidden expenses which can help you find out if the deal is good or not.
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Business & Property

Benefits of Word of Mouth Method in Property Marketing

There are many strategies you can use for property marketing. Direct marketing, indirect marketing, and many more are available to use to fit your liking. However, there is also word of mouth method in property marketing you may need to consider due to its effectiveness. This method is actually not new at all. This can be considered as manual or traditional method in marketing in general. However, this method seems to work efficiently in property business as lots of investors show their interest in using this method and the result is positively good in return.

Word of mouth method in property marketing benefits

Word of mouth method in marketing strategy is considered as recommendation which is made by satisfied customers to their network of personal contacts. The recommendation can be both in oral and written forms.  This is effective method because most customers are more eager to try new product or service recommended by their close friends or family. This strategy is more convincing in the customer’s point of view. It is more promising in the investor’s point of view. Here are benefits of word of mouth method in marketing:

  • This method is more effective in building trust to customers because most of them are more willing to try, purchase and stay loyal to brand or service referred by their friend or family member. This strategy emphasizes more on customer service and customer experience unlike the traditional marketing strategy which emphasize more on self-branding.
  • Word of mouth method in property marketing is less expensive than more modern marketing strategy such as putting ads on television, printing brochures, or campaigning on radios. Those who have experience in property business must have known that the cost of marketing is not cheap at all. It can even take large portion in operating budget. Thus, this strategy seems to be a great solution to have more affordable marketing.
  • This method of marketing is also a great help to build brand awareness. People will be easier to recognize your brand or in this case your property. Unlike social media which seem to be more exaggerated in many ways, word of mouth marketing is more convincing in providing resources which can be easily shared by customers to their families or friends.
  • It says that communication can be made not only by words but also by body language. Word of mouth is often to be done by direct communication and interaction between friends and families. This is why this method is more effective because customers will be more convinced by subtle body language such as when they friend’s eyes are so enthusiast while recommending your property.
  • Cold calling marketing startegies are less effective these days because people are getting immune to it in which they tend to ignore it instead of giving response. Meanwhile word of mouth method in property marketing uses warmer kind of communication by involving more intense emotional response. Thus, you need to formulate your strategy to drive this method so your property has positive light in return.
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Business & Property

The Benefits of Using Virtual Reality in Property Business

With the advancing technology, everything looks easier to do. You can do many tasks using high-technology devices. The most current advanced technologies appear in a form of virtual reality. It is mostly used for gaming. The popularity of this feature is rapidly increasing in recent years.

It has expanded to business industry like real estate sector. This has become one of high-technology devices used by investor for strategy marketing. Even though only few of property investors have used virtual reality as their marketing strategy tool, it is predicted that the use of this feature will bloom in the future. How so?

Find out benefits of using virtual reality for property marketing

Benefits of the virtual reality in property business

Living in modern life has made use realised that we cannot do many things without the help of technology. Even for small tasks, we can count on technology. No wonder that technology has expanded to property business where virtual reality has begun to be used recently. Are there any benefits from using virtual reality for property business?

The first benefit is to make the process of staging to become more seamless. It is easier for homeowner, for example, to visualise their property to buyers in more interesting views. Virtual reality makes the staging look realer even without visiting the real location.

Thus, this also makes staging process more efficient because there is no time to waste.

The next benefit is the marketing will look more interesting. There is no such thing like boring process in marketing your property to the customer. They will be able to see your property in more interesting way due to the use of virtual reality.

Everything can be seen from different angle. The visualisation will look better as well because it is provided in 3D.

There is no limit in space and time while using virtual reality as marketing strategy. Home buyers can walkthrough and experience a home without stepping outside their own place.

They can even explore potential property to buy all around the world no matter where the place is. Thus, they can experience for more than one home in a day because they don’t have to go from one place to another to do so.

There is no need for home seller to home staging. Furnishing home is no more needed when you have virtual reality. You can assist your potential buyers in visualising the property with virtual reality.

This saves your energy and time to do the home staging because this process is often time consuming and exhausting in reality.

There are more things that your customers will experience when they put the goggles on. It is different from looking to drawings or renderings. Every scene is delivered in 3D motion which makes them feel like they are in a real home at that time.

Even though they cannot touch the furniture, they at least know the visualisation which makes them able to consider whether or not they are interested to buy the property of yours.

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Business & Property

What is “Greenwashing” in Real Estate?

Slapping the label “eco-friendly” onto products has been no more than just marketing buzzword in a lot of industries. The real estate market is no exception. It’s even more harmful because what you invested in real estate is not small amount; it could be a life investment.

The investment of green buildings also has a great impact on the environment in a long period of time. It’s detrimental.

Greenwashing is a false claim, but it’s often not an outright lie. The claims of buildings or homes being environmentally friendly is sometimes not backed by sufficient evidence.

In the MLS, there are a lot of homes that are simply marketed as “green”, while in reality, builders are merely doing the standard procedure that meets the minimum requirement.

For example, the insulation of a house is simply a standard one, but it does not exceed even the minimum standard of the local code requirement.

What is greenwashing in real estate?

Greenwashing is extremely harmful and no more than just a ploy to gain more profit. It does not have anything to do with the builders nor the marketers caring about the environment. Greenwashing is harmful to both the environment as well as to potential buyers.

Every year, people are “tricked” into believing that they invested a premium into the environment. This is largely because of the lack of knowledge about what being “green” actually constitutes of. Therefore it’s easy to have people buy into the whole green labelling. That is only that, mere labels.

There are a lot of homes in the Multiple Listing Services (MLS) that are marketed as “green” simply to generate more offers or purely out of ignorance on the marketer’s part.

Often times, what they did for homes marketed as “green” is extremely trivial. It often does not have anything to do with the building or the features of the building itself.

For example, marketers put on the green label simply because they put in LED lights and having Energy Star-labeled appliances. This can be very misleading for uneducated potential homebuyers.

While these features are good, they do not constitute of what a green building essentially is.

Almost everything now has the Energy Star label, so it’s extremely common place for more efficient energy appliances to have place in homes these days. And it does not have anything to do with a building being “green”.

There is a whole lot of the building design process that goes into the building that is environmentally friendly, and energy efficient lightbulbs or kitchen appliances are not going to change that.

Buyers are attracted to labels such as “energy efficient home”, “environmentally friendly”, “eco-friendly”, you name it. Greenwashing at its core, is a way to generate more money.

It does not have anything to do with companies and marketers caring for the environment. Greenwashing distracts customers from the essence of the issue by featuring the issues that has very little impact on the effort of minimising the damage to the environment.

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Business & Property

Successfully close the Deals from House Flipping

Closing a deal in property business does matter. It is the result of the hard work you put through. If you cannot close the deal then it is likely hard to say that you have succeed in your real estate investing career. Flipping house now is majorly considered as one of the most promising investing strategy in property industry.

Close the deals from the house flipping

This strategy is quite straightforward. Closing your first rehab deal is a goal you might after. Or, you might as well after a goal to grow your business. Either way, you still need to execute the right steps to achieve those goals.

For new investors, closing the first rehab is important so that they will be more motivated to make more promising deals and become more professional in handling this business. Here are some tips achieve your goals in closing the first rehab property:

  • Remember that real estate investing is a about numbers game rather than emotions. Thus, it is highly recommended to look for promising and profitable deals. It is important to find the right and most suitable property you can work with house flipping. There are many ways to find the deals. You can contact wholesalers or distressed property owners to find out if there is any property that will be suitable to your liking. Attending club meetings or local networking between real estate investors is also promising for you to find ideal deals of rehab properties.
  • Calculate everything started from the value of the property as well as the cost estimation of repairs. In finding rehab deal, you need to try looking for discount. It is not embarrassing thing in house flipping deal. You will have to calculate the total of capital you need to spend. Therefore, it is highly recommended to make calculation with patient. There is no need to rush the process because the most important thing is to calculate everything precisely and thoroughly. Remember not to leave small details from your calculation.
  • Next thing to do is to figure out the value of the property after rehab. To help you decide, you may need to look into the most recent comparable sales. Thing to consider in deciding the value is the amenities, since it impact the value the most. However, the information n regarding to comparable sales in the market is not an absolute guide you should follow religiously. Market is prone to change from time to time. Thus, your comparable sales in the market may change in the next few months even before you are able to close the deals. Comparing the sales in the market is important to avoid making your property overprice or underprice.
  • The last thing to do is making the right offer. This is quite challenging and nerve-wrecking for most investors. There is high chance of being rejected even if you think you have made the fairest offer. You can make the offer based on what you want and if it doesn’t work, you need to prepare the alternative.
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Business & Property

Things to Know about Rental Property Financing

Financing holds an important role in real estate investing. Without proper financing, it will be harder for you as an investor to manage your business and gain profit. It is also the same when you investing in rental property. Financing is something you need to master if you want to build your business properly and successfully. There are various strategies to run business in property industry. They include wholesaling, fix and flip, full rehabs, and many more. However, buy and hold rental property is one of the most promising strategies you can count on in earning steady income and promising profit. However, those will happen if only you can master the art of rental property financing.

Rental Property Financing

Things to consider about rental property financing

Rental property is promising strategy since there are rent everywhere. The demand is high in which it rises the opportunities to gain more profits. However, you still need to work hard to be successful in rental property investing. You need to do your due diligence and find the right tenants. You need to decide many things especially the basic so that your portfolio will be positively affected as well. Here are what to consider when it comes to rental property financing:

  • Financing is about number in the first place. It is important factor to mind. You need to run your number before anything. This is to find out how much you can afford to spend even before you start looking for houses to buy. Four things to consider in this point are financing to find out the best option to you, transaction fees to make sure your bottom line is safe, management fees to decide whether or not you need to hire property management company, and market indicators to find out more about the average rent and make comparison.
  • Next thing to consider is none other than location. This is one of the most important points in real estate industry. After running the numbers and finding out how much you can afford, it is time to find the best property to buy. Make sure to be selective in buying the property. It is recommended to find the one located in attractive property in desirable neighborhood. You can do your own research to find the best one. It is also important to consider local amenities which will make your tenants live comfortably in your rental property.
  • When you decide what kind of location you want your rental property to be in, then it is indirectly decided what kind of tenants you want to rent to. Every type of tenant has different needs. You can choose to target students, families, or workers as your target.
  • Financing rental property will be easier when you have good credit score. It gives you less risk of having financial obstacles in the future. Thus, make sure don’t have any credit issue even before you start investing in rental property. You need to fix any issue related to your credit before jumping into any actions.  
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Business & Property

Why Not Buying Property In Bali To Realize Your Dreams?

Bali is one of the islands in Indonesia that is located between the islands of Java and Lombok. Tourists visiting Bali have learned that this exotic island offers a myriad of luxury, comfort and high relaxation. Bali is an archipelago and blesses with beautiful beaches, beautiful scenery, culture, and stunning traditions. Have you ever thought about living in Bali and enjoying the beauty of a sunset?

buying property in balo

 

Buying Property In Bali, Realize A Good Dream and Enjoy Life

Many people dream of buying property in Bali. This is the perfection of life. Who doesn’t want to live on the dream island of most people? Whether buying property in Bali is your place of residence or as a second home, Bali is perfect for escaping in the winter. Why dream of buying property in Bali if it can become a reality?

Bali with friendly weather throughout the year and the value of land and buildings that have high selling value is a smart investment step. With a little repair for a used house or villa and facilities, you can get all the comfort and lifestyle. The property in Bali market continues to increase by 25-30%, along with the increase in tourist arrivals.

Lately, many tourists come to visit and decide to buy property in Bali. Buying property in Bali means securing your own paradise. You must be here to see for yourself the scenery and beauty of Bali. The photos that you see online do not yet represent the beauty of Bali as a whole.

Buying property in Bali cannot be done carelessly. All stages and procedures must be carried out in accordance with applicable government regulations. This applies to all who wants to buy property without exception, both Indonesians and foreigners. Realizing the dream of buying property in Bali will be easy if through a property agent. Especially for foreigners, they will greatly assist the legal process related to property ownership in Bali.

In fact, if you are a foreigner, it is not possible to own land and property in Bali. Or you can own land and property on behalf of the Indonesian people you appoint. Having property in Bali is a dream, which can be realized for everyone, no matter where you comes from. Provided that it meets the requirements and follows applicable government regulations.

Some real estate is popular and is the target of most such as Seminyak, Canggu, Umalas, Kuta and several other places. The simple tendency of people who want to enjoy life in Bali is to want to be close to the beach. It would be very beneficial if you buy property in Bali to stay or invest. Buying property in Bali is an investment with the best benefits and smart steps both short and long-term.

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Business & Property

The Importance of Sustainability in Property Business

Today, it is impossible to ignore the act of ‘go green’ especially when it comes to residential and commercial property. Even though technology seems to be capable to make any kinds of changes or improvement, nothing can compare to the importance of sustainability. Thus, technology today is geared toward more sustainable development in property business. In the past, majority of people are interested to live in the big city.

The Importance of Sustainability in Property Business

Today though, millennial are more interested to live in suburban since it provides more comfort and ideal situation for living. Besides, people are now preferred sustainable and energy efficient appliances instead of the luxurious ones. This shows how people are more aware about the importance of sustainability which benefits them as well as their surroundings.

Why is sustainability importance to be applied in residential and commercial property development?

Going green is not new since humans have become aware that the problems of global climate change are serious and need the right solution. The first thing that is suitable for the change is property in which people are living and doing their activities daily. Going green means all kinds of redevelopment of the property either residential or commercials focus more on sustainability. In return, it benefits the environment, as well as community and economy. As for the homeowners and investors, sustainable redevelopment is also beneficial. Investors have more potential to sell their property which has sustainable features. As for the homeowners, they can reduce energy bills and even their life will be improved in many ways.

 

Reasons why sustainability is important in property business

  • Buildings, both commercial and residential contribute to energy used about 40 % of the total amount. It leads to global climate change. That’s why sustainable properties will help reducing carbon footprint as well as general environmental impact.
  • Sometimes investors and developers are reluctant to build or remodel properties to go green concept sue to the cost. However, it only cost 5-10% more expensive. If they can only utilize some features, the percentage will be decreased.
  • As mentioned above that homeowners gain benefits from buying and living in a house with sustainable features because they can save energy bills. This is beneficial not only for the homeowners but also for the overall energy used. Net energy will save up significantly in a year and more.
  • Investors and developers are mostly worried about go green properties not being attractive enough for the consumers. However, the study shows that nearly half consumers are indeed willing to buy a home with some sustainable features or zero net energy. This shows that the possibility of earning less profit is rather small.
  • There are many features in homes that can be remodeled to be more energy efficient such as wall, ceiling, floor, window insulation, lighting, heating or cooling system, electrical outlets, as well as ventilation system. Developers can start from any of them. Remodeling can be applied to the entire elements in home or to only some of them.

 

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Business & Property

Things to Prove Your Credibility as Property Investor

In real estate business, credibility hold important key to the success. Through credibility, investor can legitimate themselves as well as their service to others. Without credibility, it is hard to earn trust from customer or partner. Thus, it is a must for property investor to have credibility package which contains service and business to offer.

How to prove credibility as property investor

Besides, the competition in property business is not to be underestimated. It is essential to be different or steps ahead your competitors. It is also common for investor to use their credibility to earn trust from lenders. Thus, they will be willing to give financial support for your investment deals. You need to gear your credibility to buyers and sellers to become a savvy investor in this business.

Important things to prove your credibility

Remember that credibility can only be earned. It aims to build trust as major purpose. It is also important to establish credibility itself as well as to differentiate business from others. Credibility is not only geared towards buyers and sellers but also private money lenders as mentioned above. Read along the below things you need to prove others about your credibility!

It is important to keep personal information in the brief section. Personal information is the first thing you need to include. It includes your email address, phone number, official website, address of the office, and your company’s history. You need to list the core service you offer through your business. You need to show how your offer will benefit sellers or buyers.

It is also recommended to include frequently asked question in the section of your website for example. This will give benefit both for you and customers. The process of finding out information will be more efficient for customers since they don’t have to ask the same questions. You also have a chance to clarify your services and how those benefit you customers. The section is sometime is underestimated but it provides great prove to your credibility. This also makes you easier to gain your customer’s trust.

It is also important to use case studies to prove your credibility. Success stories will make you have positive image. This will help building your credibility to your customers. About the case studies, they don’t have to be too complex to understand. They just need to include important points such as client’s basic information, description of the situation, services you performed, the result, and testimony from the client.

Next important thing to prove and legitimate your credibility is testimonials come from your past clients. It can be used as confirmation about your performance and service in the business. Lots of people look p to testimonials. It gives people courage to decide whether or not to make a deal.

Your real estate portfolio can be an important key to prove your credibility since it contains your past and current deals in the business. It will also show others whether sellers or lenders about your investing strategy and how your approach to earn properties.

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Business & Property

Here’s How Co-Working Spaces Benefit the Emerging and Future Workers

Much of everything else in today’s world, working has evolved, and is still evolving, to be more mobile, as it continued to cater to demands of flexibility. Co-working spaces have been a good solution to these demands, and they continued to become an important part of today’s working environment. Co-working spaces are known to be extremely vital to freelance professionals and groups of startup businesses. How do these working individuals get to benefit from these co-working spaces that becomes especially popular the past decade?

Here’s How Co-Working Spaces Benefit the Emerging and Future Workers

Addresses the issue of lack of accountability

This is especially true when one is a freelance worker who mainly offer their services online. Despite the immense flexibility and freedom it offered, freelancing is difficult to get right simply because of a lack of fundamental aspect that exist in the traditional working environment; accountability. That is, no one that held you accountable is anywhere near the immediate facility. And often time, you’re working by yourself. Changing the working environment is something that has been proven to be effective for many freelance workers. You don’t even have to work with your boss in the vicinity, simply with a colleague or a project partner—or just strangers—would improve your productivity and lessen distractions. Theres also the fact that you’ve gone out of your house just to work, and it’s something that you can technically do at home—so you might as well get it done and over with.

 

Minimize distractions

When you work at home, it’s easy to just go back to sleep, watch TV, or pet your cat. You’re also prone to get distracted by your family, by relatives’ visits, and many other factors. And since no one who’s holding you accountable is anywhere near, it’s easy to just, say, go back to sleep, or binge-watch netflix. It’s also important to realize that by working at home (the worst is your bedroom without any separation whatsoever with your working space), you’re likely to associate your personal space with work, a potentially high stress-inducing activity. Separating your home from your work has shown to strike a healthier work-life balance that’s extremely essential for both mental and physical health.

 

Networking

Co-working spaces provide an excellent opportunity to socialize. A lot of working faces have various facilities such as cafes and restaurants. It’s easy to chat over a cup of coffee during breaks and form connections. There will be more chances to find like-minded individuals as well. Freelancers and small business owners alike often led a very isolated life due to the nature of their work. Therefore, moving the working space onto a setting that provides a better opportunity for social interactions to flourish is a smart move.

 

Helps with challenges and frustrations of working independently

Again with the lack of accountability, it’s simply difficult to follow a schedule. Aside from knowing your limits and how much you can chew when it comes to working, creating a supportive environment is just as important. Doing business at a co-working spaces often increase productivity compared to simply doing work at home, especially if you’re a one-man or a one-woman team.

 

Significant reduction of space-related cost

This especially true for small businesses. Employing a co-working space would greatly minimize startup capital. Cost for space is not going down—has only increased as time goes, in fact. Therefore highly adaptable strategies such as employing the use of co-working space is a wise one.

 

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