Do You Know How Do Real Estate Developers Make Money?
Making money in real estate is not an easy task. But if you ask or take help from the best realtors they can ease this difficult task for you. As there are various properties involved in real estate business so the choices to make money are also varied. The real estate developers purchase raw (undeveloped) land, establish the infrastructure (roads, water, sewer, power etc) and amenities such as recreation, community centers, etc then sell on higher margins to different investors. They also purchase the land and hold for the appreciation or increase its value then sell out.
They also build buildings (commercial, industrial, residential) then sell the finished product to end buyers.
Ways to make money:-
Appreciation: It is the most common and traditional way to make money in real estate. It can be performed in various ways on different types of properties. Return on investment can be increased in lots of ways.
Raw Land: one of the most common ways to purchase a undeveloped land used in a appreciation. Appreciation on raw land can be achieved through:
Real estate developers’ purchases lands, build houses that raise the value of land even further.
They purchase real land for discoveries of valuable minerals or other valuable commodities on it. Any appreciation generates from this goes into the pocket of developers as developers hold rights for the property.
Residential Property: it is also effective money generating method employed by real estate developers. To transform any investment into profit results plenty of factors you need to consider. For example, location is one of the main factors that play the very important role in appreciation. As the neighborhood around a home evolves, adding transit routes, schools, shopping centers, playgrounds and so on, the value climbs. Apart from purchasing properties, home renovation and improvements can also encourage appreciation. In order to increase the home value, we have several ways: remodeling kitchen, dining area, landscape, putting in an extra bathroom or room, heating a garage and many more. Many of these techniques have been developed by property flippers who specialize in adding high-return fixes to houses in a short time.
Commercial Property: is also in high demand to make money. Like raw land and residential real estate, ROI on commercial properties also depends on the location and developments.
Income: second most profiting way to generate money is a regular income.
Raw Land Income: you can earn royalties or regular income for any discovery. It includes pump jacks, pipelines, gravel pits, access roads, and cell towers and so on. Raw land can also be rented for production, usually agricultural production.
Residential Property Income: regular income on residential as well as the commercial property comes as a rent. Rental income is the great, easiest and popular way to generate income from your investment. However, it also involves plenty of task and headaches. Hire a top real estate brokers who have specialization in handling rental properties can ease up for you.
Real estate investment trusts (REIT), Mortgage-Backed Securities (MBS) and Mortgage Investment Corporations (MIC) are also good ways for deriving real estate income. So these are the ways how real estate developers make money. The developer’s profit margin depends on the sale price of finished goods and the total cost incurred in the development.
According to the survey, builders' net profit averaged 5.9 percent.
Top Social Media Sites Every Realtor Must Have
Everyone is on social channels to build relationships, discover new and targeted followers, and market business more effectively. Social media is one of the revolutionary tools proved in the age of information.
Instagram, Facebook, Twitter, LinkedIn, YouTube, and Pinterest are most profitable social media accounts that every top realtor should follow. The process to use these accounts is simple and intuitive. After creating an account on these pages you need to set up a business page.
Related Article: 5 Tips for Real Estate Agents to Succeed at Social Media in 2017
Have a look at some of these ideas for better and beyond social marketing strategy:-
- Set yourself up for social.
- Don’t forget to add social sharing to property pages.
- Keep your eyeball over your competitors, challengers.
- Make available 24x7
- Have your business card?
- Apply images and video.
Facebook is such an interesting, powerful tool and all above its free. Zero investment and huge returns, but how?
Facebook marketing as social media is huge and such a great tool for the real estate business. It's most popular and on top ranking on best social marketing channels.
If you already implemented the Facebook page and still didn’t get as expected returns. Here are a few simple guidelines on Facebook Page Marketing.
Also, read: How To Use Social Media To Sell Your Property?
- Set up a Facebook Page that shows and sell your real estate services.
- Update your profile and cover pictures frequently basis.
- Focus on Local Interests and also post about your Neighborhood, for example, an interesting event in your neighborhood.
- Whatever you posting on Facebook always use Images when you update.
- Offer helpful tips, suggestion, and advice to your clients and also show how much you care your clients.
- Run interesting contest and encourage followers to participate in it.
- Post Your Listings.
- Use Geo-targeted ads.
- Post interesting videos.
- Establish a constant connection with your followers, clients, always respond to comments.
- Last but not the least keep remember golden rule is 80/20.
Recently redesigned, Twitter is a powerful tool used in your real estate marketing strategy which is limited to 280 characters or less. Search stream is the main features of it. Twitter also supports ads that know how to target users with specific demographics and interests. 
Google Plus
Google Plus with circle feature and good SEO benefits is free to use for business owners. It also allows choosing the “Local Business or Place” option which will connect to Google maps. The advantage of this option it demonstrates more visibility in searches. It also allows those with 1,000 or more followers to use +Post ads. To create a Google Plus page, you must have a Gmail or Google account first and after that, you will be prompted to set up a Google Plus page.
Its highly recommended platform to the realtors as it’s a perfect place to showcase listings. Pinterest supply a downloadable link how-to guide with guidelines, tips-tricks and best practices.
LinkedIn, Instagram, YouTube are other most beneficial social media websites to grow your follower base. All these real estate social media sites will help you really stand out online and return more leads.
I have discussed in my previous posts daily to-do list for every realtor. Plenty of things need to do by every real estate agent and in such a full of activity schedule, it’s really very difficult to devote time on these important social channels. But to reach the targeted audience you can’t ignore these channels as it allows you to market to your followers more efficiently by using excellent features.
What Are Some Unusual Features That Would Be Great To Add To A New Home Under Construction?
Being a home owner is one of the most fabulous feelings in the world. Whether you are moving into an apartment or building your home from the ground up, there are many features that home buyers try to incorporate into their new homes. With the changing times, home owners tend to opt for many unusual features in their homes in an effort to make their house stand apart in the neighborhood and also to increase their comfort levels. These features are also a big marketing point with potential home sellers in the future as they can charge a premium for homes that have such unusual features. What unusual features can you include in a new home under construction? Let’s take a look.
Heated Floors
Brian Belcher real estate agent believes that heated floors are actually more energy efficient than using heated air. Use heated floors in the bedrooms and especially in the bathrooms for warming your feet after coming out from a shower. These are especially a luxury to have in the cold regions.
Sunken Living Room
While the idea of a sunken living room is not new, it is still a great idea to include in your home as it adds a phenomenal touch of privacy to your living space. At the same time, it visually connects all the spaces around it as well. According to a top realtor, playing with levels also makes smaller spaces look bigger.
Making Space for a Home Theater
Nothing relaxes a person at the end of a hard day at office as coming back and lounging around to relax and take a pause from daily hustle bustle of life. You can watch movies and relax with your family and friends right in your backyard even. In fact, adding a home theater in your backyard will allow you to enjoy movie night under the stars. All you need to do this is just a white cloth, a projector and some pillows. Settle down with some popcorn and a great movie to drown your stress.
Add a Tree house
If you have children, then nothing can equal the joy of having a tree house. A tree house becomes their second home and also keeps them connected to nature. While building a tree house sounds complicated, the best time to actually have it constructed is right alongside your home construction. The waste generated from the house construction can easily be reused to build the tree house. The only thing you need to be careful about is to choose the right tree and the right location where to place the tree house. It is, after all, every child's dream to have a tree house.
Integrating Solar Panels
If you are interested in sustainability and at the same time looking to save some money, you can now easily integrate solar panels in your home design. Almost all states now provide tax benefits for using solar panels. Most solar units are available as a DIY unit and you can easily set them up and integrate them with your house. Think of all the money you will save on electricity bills.
Keep More Electrical Circuits than the Minimum
It is a good idea to keep some extra electrical circuits in any room. The circuitry for the fixed lighting in a room should be the only circuit there as the convenience receptacles. Having extra circuits ensures that if a circuit trips or if the electrical system needs to be serviced, then you don't have to do the work in the dark.
Some other creative features you can think about adding include a tea garden, building an atrium, adding a crafts room or a workshop, having a server room, including countdown timers for the bathroom/toilet exhaust fans, etc. These unusual features will surely set your house apart and it will soon become every neighbor’s envy.
5 Home Maintenance Tasks You Should Tackle in September
Around the world, September usually signals the end of the summer days and the beginning of fall. A slight chill begins to mark the early mornings and late evenings and you know what waits right around the corner - fuzzy sweaters and bulky jackets as welcome winters in. However, before winters set in, it is very necessary that we set our house in shape in order to avoid having any maintenance problems in the coming months. According to top realtors, when the autumn leaves begin to fall; it becomes a pain to keep everything in ship shape in the house so as to avoid any major repair costs in the winter months.
Here we list five of the top maintenance tasks that you should ideally attend to around your house in September.
- Begin with an Inspection around the House
While having your house professionally assessed is a good idea, but there are many tasks that you can take care of by yourself. Begin by walking around the house and carry out a thorough inspection of your home, both inside and outside. If you have a basement, then it’s a good idea to begin with the basement. As per Lisa Harris real estate agent, maintenance problems in a house generally begin in the basement of any house. Check your basement for any cracks in the walls or drains. If there is a hot water heater in the basement, then flush out the hot water completely and remove the residue that accumulates over the years.
- Move On To the Bathrooms and Kitchens
According to top realtors, maintenance issues generally plague bathrooms or kitchens in a house. So begin by checking for any water leaks in the bathrooms and kitchen areas. Ensure that the caulking around sinks and tubs is sufficient so that there is no water seepage into the flooring. Also check the caulking of the doors and windows. This will lower the chances of heat or cooling loss when the season has changed. Make sure to check out that there is no disruption in your plumbing connection and that water flow is moving in an adequate manner. 
- Check Your Smoke Detectors and Emergency Generators
It is absolutely necessary to keep the smoke detectors and emergency generators in your home in top working condition. After all, the lives of your family depend on this. Test your smoke detectors for proper functioning. If there are any other home alarms in your homes, then test and clean all of them as well. If you have a tie up with a maintenance company for your generator, then it is a good idea to call them over to have them check out the generator.
- Check out Your Roof
Take out a ladder and take the pain to climb up and give your roof a thorough inspection from outside. Please don't climb onto your roof if you are unsure of its safety. Check for cracks and look at the overall condition of the roof. Sweep away the debris and leaves that has collected over the past months on your roof. This ensure that water or snow does not collect and build-up on your roof. Also if there are shingles on your roof, then make sure that none of them are broken or become loose.
- Prune Those Overgrown Lawns
Over the summers, the lawns become full of strewn debris and dead wood. You may think that you will be raking the leaves once fall hits but it is still a good idea to clean out the twigs and branches beforehand so that your work is cut out beforehand.
From the exterior to the interior of your home, everything has to be taken care of. Being a homeowner is no small job and you are responsible for the upkeep of your house.
5 Qualities and Habits of Great Property Managers
Finding a dream home can be a big headache and finding a reputable property manager can be the biggest task.
Daily operations related to property, rent collection, answer the queries and complaints of tenants, keeping a low vacancy rate are the major tasks performed by the property managers. The top property manager must possess some top notch qualities and make sure to whom you choose should have these characteristics.
There are few things that you need to be considering while you are choosing a property manager and those are mentioned below:-
Also, read: Why Hire A Professional Property Management Company?
Education and Experience:-
Good degrees with additional professional courses and certifications do matter a lot in any profession. Higher education and certified courses in accounting, business and real estate can offer property managers an edge when dealing with the accounting side of property management. To be a reputable property manager or top realtor one should have a higher education degree with good experience in hand. While choosing a property manager make sure you investigate his previous real estate experience. The Institute of Real Estate Management is one national association that provides certification and accreditation programs. In order to keep everything running smoothly and in order experience in real estate business plays a great role.
So this is the biggest factor that makes the chances of your business’s success less or more.
Trustworthy
Mangers that have the intention to work with you in long run could be a perfect selection. A real estate agent in USA with full of dedication, trustworthy and attitude can ensure you that your biggest investment of lifetime is in safe hands. A person with a supreme quality to take out the business stress in his hands is the top choice of every property owners.
Communicate. Communicate. Communicate.
Open and effective communication is one of the most important factors of the connection between property managers, owners and tenants, plumbers, electricians, painters, and others who do work in the building. His availability, response time can make him good or bad manger and also help make the house a more comfortable, relaxed and happy place for tenants to live. An excellent property manager will keep in regular contact with owners as well as keep connection open with tenants. People person can attract new tenants and keep current ones which keep a low vacancy rate. So while taking an interview considers his communication way carefully.
Related article: Top 10 Property Management Tips
Better knowledge of latest Technology
Best property manager knows that to cope up with every situation or in any scenarios, technology plays a vital role and also act as a helping hand. Better utilization of innovative technologies and tools will not only enhance your experience but also make the tenants live there comfortably and happily. Search out on the tools on the internet that can make your work more easier such as create online accounts where they can pay their rent, review lease information, ask questions, create maintenance requests and pay utility bills and much more.
Share if you too have some characteristics that make you best or top real estate agent. Choosing a right manager with a positive attitude and great professional skill is a tedious task but once you hire success of your invested business is sure. The time, money and effort required to sign up the right property manager will be well rewarded with fulfilled tenants and a well-run property.
Steps To Create a Successful Real Estate Business
In Real Estate Business To Increase The Sale First Learn What Is A Sale?
In most of our previous article, we have explained why we should hire the real estate agent, what a reputed realtor posse’s good skill, factors you should consider while selling a home, purchasing a home, renting a home and much more. Today our focus is to give a brief explanation about the real estate business. How you can be reached the ladder in real estate business like Paulette Applegarth Real Estate Agent reached. Here we are going to share some useful tips to build a prosperous real estate business and all these tips are captured from the reputed real estate professionals.
How you can build a successful real estate business:-
Build Your Brand
What makes you different from other real estate agent in USA? What achievements, strengths you have captured that make you stand in front of your competitors. The success of any business depends on the brand of your business. Powerful business brand may bring multiple opportunities in the most competitive real estate market in the world. The brand is an integral part of a business. First, focus on your brand and also do research on competitor’s brand. If you’re just startup heaps of efforts you need to put into your business to make it stand out in the competitive real estate market.
Make A Routine To Learn Any New Thing On Every Day.
Changes are good for life so it’s good for your business too. It’s an essential factor to maintain a top notch business in real estate market. Implementation of new technology into a business may positively expand your business strengths. Read articles, blogs, attend open houses, seminars, meetings as these things can boost your knowledge, skills, and experience. Invest your time to find out the innovative ways to grow your businesses.
Analysis Customer’s Requirements, Current Marketing Trends
Customer research is the main strategies to expand the real estate business added by the Paulette Applegarth Real Estate Agent on a web.
There are ample questions you can ask yourself on this front: Identify your target audience, what strategies or methods you must have to use to solve the needs of your current customers, etc.
Answer all the questions and if you are not satisfied with your answers then you need to improve your work model. The success of any real estate business depends on the quality of services you offered to your audience.
Role Of Existing and Happy Customers
Customer satisfaction is the key to your real estate sales success and not only your current clients but also your previous clients matter a lot in your business success. Paulette Applegarth Real Estate Agent says if you have a good and satisfied list of previous clients it means you can generate up to 20 to 25 percent revenue from theses previous transaction list. Try to connect with them by phone calls, emails or by using social media. The blog is also a good platform that connects your business to their previous and potential customers. Utilize all these methods and give bloom to your real estate business.
Availability Is The Key Factor To Grow Real Estate Business
How often you answer the queries of your customers, how frequently your reply Phone calls, text messages, emails, etc? In order to build a successful business, you have to give every other second to the business. Your complete presence is very important in business expansion.
These are the best ways to take your real estate business to the next level by all the top producers. Follow them and enjoy the success in the competitive real estate business.
How to Find a Los Angeles Low Commission Real Estate Agent
Selling a home or buying a home whatever is your need saving money will remain the same priority on every transaction. A standard commission rate in Los Angeles is six percent which divides 50-50 between the listing agent and the selling agent. Is it possible to find out a broker in a Los Angeles who will take 3 percent commission or can we receive a discount on the commission paid to the real estate agent? Yes, most of the top real estate agents offer a discount. Some of them are also negotiable but not every agent. Some top realtor USA will not discuss a commission with you. In any home selling transaction around 3 percent is received by the Seller's realtor and the other half is given to the realtor who represented the buyer.
Although above I have described how agents are paid or how the commission is divided. But according to the policies, it can vary among brokers. It’s not mandatory to equally divide the commission between the listing agent and the selling agent. In most of the real estate business listing agents received more commission than the agents who bring the buyer.
Commission division depends on what services and profit models agents offered for their sellers.
how a top realtor in USA offers a discount it also depends on the various factors such as the value of your home, the condition of your home or circumstances of the sale, commission rate etc. don’t just rely on what others say. Go and ask is he willing to lower his commission. In Los Angeles, you will find out with lower cost structures than others. Below I have clipped details about how you can ask for commission or discount or how you can save money on commission.
I already told you some agents are open to negotiating and some will not negotiate a commission with you. It’s totally their choice. If your selected agent is not open to discussion then find other agents and we also encouraged you to find agents who agree to a fee reduction. After all, we all want to save money on the sale of a home.
If an agent offers a discount then check the standard of his services. Here I strongly say never compromise with services just for saving some money. Some real estate agents offer basic services by receiving a lower commission. Other agents with some additional costs can offer you more than basic services.
Now the question arises how we can search low commission real estate agents in Los Angeles?
Referrals, ads, house magazines, the internet, open houses, seminars are various options to find out but what is best for us.
Local Los Angeles phone book is common selection step. You can contact as many as real estate agents, you can ask he is low commission realtor or not apart from important housing queries. If phone book is not suitable for you then you can jump to the internet.
Through the internet you can use online business directories or online real estate resources, realtors’ websites etc. to find out a low commission real estate agents in Los Angeles. Lots of real estate agents have very nice business websites where you can access every important point or best features or best deal of a reputed realtor. The open house is also a better choice where you can speak directly with a low commission real estate agent.
