I maintain that the best way to start a real estate business is with the proper education. However, information can take a wide variety of forms — some obvious, and some not so much. And while I would never want to downplay the importance of a sound education, there are pieces of information that are more valuable than others.
As a new real estate investor, or at least one looking to start a real estate business, few things are more important than the knowledge pertaining to a specific market. Therefore, if you want to start a real estate investment business in the coming year, you must become intimately familiar with the people you intend to serve. Nothing, as far as I am aware, will make transitioning into a new real estate business easier than knowing the very thing you serve.
The most prolific real estate investors of our time gained an inherent familiarity with their “customers,” and there is no reason you shouldn’t attempt to replicate the same process. Remember, you shouldn’t have to reinvent the wheel; people have been investing in real estate successfully for quite some time thanks to one simple principle: a deep understanding of the market in which they work.
The trick is to interpret the information you are given in a way that will help you start a real estate business off on the right foot. With the right information at your fingertips, there isn’t anything that should stop you from realizing your goal. Mind due diligence and — above all else — understand one thing: knowledge is power. The right real estate rehab business plan can award anyone a glimpse into the future, but it’s up to you to intemperate said information and use it to your advantage.
It’s worth noting that the cost of market information isn’t as expensive as you may have initially thought. In fact, most of the groundwork has already been laid by those with more foresight than even myself.
The Zillow Group Report on Consumer Housing Trends has done all of the heavy lifting to help you start a real estate business worthy of competing in 2017. The self-proclaimed and “most comprehensive research ever done about home buyers, sellers, owners and renters,” aims to identify imminent trends we should expect to see sooner rather than later, not the least of which can help in starting a successful real estate business. It’s entirely possible for the information contained within the latest Zillow Group Report on Consumer Housing Trends to point your new business down a road of prosperity; that is if you are willing to listen to what it has to say.
Consisting of an unbiased sample of more than 13,000 homeowners, sellers, buyers and renters, Zillow’s latest report on Consumer Housing Trends attempts to paint a clearer picture of what may transpire in the coming year. And, not surprisingly, it would appear as if 2017 looks ready to build off the millennial trends established as recently as last year. According to the report, one-half “of all buyers are under age 36, meaning the millennial generation is driving more of the housing market than we previously understood.” That said, if you want to start — or even scale your real estate business — don’t ignore the people right in front of you.
As someone looking to start a real estate business, it’s in your best interest to cater to the largest population of potential clients: millennials. If for nothing else, real estate investing is a numbers game; the more potential clients you have to work with, the better. Why not place the odds in your favor?
To give your real estate investments a fighting chance, you might want to consider listening to what the younger generation has to say. That’s not to say you should ignore baby boomers, or any other generation for that matter, but perhaps 2017 is the year to pay special consideration to the millennial demographic.
Frame your business plan in a way that caters to what younger buyers want, and you may find that running into perspective clients doesn’t have to be so difficult. If you can identify your target audience at the onset of your career, running a successful real estate investment business will be much easier.
It’s worth noting, however, that that the report doesn’t only identify the potential demographics of homeowners, sellers, buyers and renters, but rather their respective tendencies. Most notably, online searches have yet to relegate real estate agents to the forgotten pile. If for nothing else, “those who start their home searches online are actually more likely to use an agent than other buyers,” according to the Zillow report. While today’s buyers are more inclined to begin their search online, they would prefer to cross the finish line with a professional.
Provided Zillow’s data presents us with an accurate portrayal of homeowner, seller, buyer and renter sentiment, it’s reasonable to assume there is a large contingent of buyers out there looking for some guidance. While all the information we could ever want is just an internet search away, the real estate industry isn’t as cut and dry as many would hope, and there are plenty of people that would appreciate the help of a trained professional; don’t forget that when you attempt to start a real estate investment business.
While catering to younger generations, don’t hesitate to offer your services to anyone in need of them; they are certainly out there. It’s entirely possible to market yourself in an approachable way that younger buyers and sellers may seek to confided in your professional wisdom. Be the helping hand for them to turn to when things appear to be overly complicated, and don’t hesitate to hold their hand through the process.
It’s not easy to start a real estate business, but those who do so with a plan in place will be rewarded accordingly. That said, there is no need to fear the early stages of becoming a real estate investor, but rather embrace them. Take what professionals have already forecasted to happen in 2017, and use it to your advantage. You will quickly learn that starting a real estate investment company doesn’t need to be nearly as daunting as many make it out to be. Remember, starting a successful real estate business is as easy as acquiring the right knowledge and interpreting it in a way that helps you succeed.