Are you looking to get more real estate deals? Whether you're a new or experienced investor, these insider tips will help you improve your margins.
Making offers on investment properties can be tricky- it's important to know what to look for and how to make an offer that stands out from the rest. So, whether you're just getting started or you're looking for ways to take your business to the next level, keep reading for some helpful tips!
Why Is Real Estate So Difficult?
Real estate can be a difficult business to get into- there are a lot of things to consider, and it can be tough to know where to start. So, why is real estate so difficult? Here are some of the main reasons:
- There is currently a housing shortage in the United States. As more jobs transition to a “work-from-home” model, more people are moving from the cities to the suburbs. This change, alongside supply chain issues, such as the lumbar shortage, means there aren't enough houses to go around.
- On top of the above, traditional real estate was already a highly competitive market for realtors and home flippers. The lack of product means that any additional real estate investor in your area is an immediate cut in your profits and opportunities.
- Buying and selling homes takes a lot of time, energy, and knowledge. If you underestimate how much repairs will cost, you could inadvertently put yourself in a massive financial hole.
- Traditional real estate investment demands massive capital up-front and tends to have lower margins, making any investment high-risk, high-reward.
Are There Any Less Competitive Real Estate Markets?
As the housing shortage continues across the United States, finding a less competitive real estate market is becoming harder and harder. However, there are still some areas that offer more opportunities for investors.
There are limited houses on the market but an almost unlimited amount of raw land up for grabs. Not only is raw land more readily available, but it is also cheaper to buy and easier to manage.
There is no need to worry about termites, toilets, or tenants in raw land investment, and some Land Investors have discovered ways to purchase land for pennies on the dollar.
And, the land market is far less competitive than the housing market, in that any other land flippers are actually a good sign for your business.
Who Are Your Target Raw Land Buyers?
When it comes to raw land investment, you need to have a specific target market in mind. Who are you trying to sell to? Here are some tips:
- Due to the housing shortage, home developers are eating up prime locations. Just imagine- buildings that are seriously damaged by fires are selling for hundreds of thousands of dollars (yes that really happened). By targeting, infill lots, and path of growth properties, you can cash in on this high demand. The one downside is that these properties usually require a larger investment.
- Suppose that you find a property that can't be built upon because it doesn't meet state requirements. That doesn't stop you from investing in a property that's more within your price range. Construction companies (or just any company) looking for places to store their equipment will rent or buy properties that can't be built on.
- There are also opportunities to sell road or highway adjacent properties to someone looking to erect a billboard.
- Retirees without enough income to buy a house need somewhere to settle down. Your rural property could be the perfect chance to own something they can afford and then drop an RV on it. For these deals to work, you will usually offer seller financing, which is a great tool for many scenarios.
- Hikers, hunters, or campers always look for somewhere to appreciate the outdoors. You can rent out or sell forest land to this niche set.
Of course, to reach all of these potential buyers, you will need to know where to find them.
The Best Marketing Tactics To Find Your Land Buyers
Suppose you have a property that you have your eye on but are hesitant to commit to, knowing that your reach is limited.
Networking should always be your first step in starting a real estate business. Make connections and find buyers through referrals. This is also a great reason to maintain positive relationships with your clients.
Beyond word of mouth, traditional marketing tactics are always a good way to get your name out there. Consider investing in Google Ads or even local newspapers.
And, of course, you should always list your properties on a listing site such as Land Watch or Land Modo. These sites are the first stop for someone looking to purchase a property and will drive sales to you without you ever lifting a finger.
And from there, you'd be surprised at how quickly the deals will start coming in. So why not prepare yourself for success?
Scaling Your Land Investment Business
Once you make a few deals, you may find the flow of offers has become too much to deal with.
And unless you find ways to scale, your business will stagnate.
To reach your full potential as a business owner, you will want to know how to automate your systems and hire the right people to support you.
If you need help growing your land flipping business, reach out to Land Profit Generator's experts!
