2008 Internet Real Estate Agent

Happy New Year! Here’s to 2008 being the year for taking your business and personal life to their highest level. The need for people to connect and exchange goods and services has been one of civilization’s ongoing themes. Now, the need for people to get on the internet and search for real estate information is going to increase exponentially. The big question is, not how technology will advance the real estate industry, but rather how will you use it.

2008 poses many challenges for the real estate industry and its irrevocable relationship with the internet. How are you positioned to garner your share of targeted real estate leads and marketing potential of the internet? Are you investing in old traditional training techniques of sending out post cards, fancy listing presentation displays and a clever tag line? You already know that marketing to your sphere of influence and past clients is essential. But what other business systems have you implemented for seller or buyer leads?

How are you spending your education dollars and time? Now is the time to take action.

Search engine optimization and online lead generation is a competitive game, and it is growing more competitive by the day. You’ve read the articles, watched it on the news and read all the press releases. The biggest companies in real estate are investing the lion share of their resources to the internet. No more old traditional training, old school marketing or ideas. Major corporations are dumping money into their internet business in order to compete in the networked society we live in. What are you doing now to further your education and online real estate lead generation business? That’s your challenge in 2008 and beyond.

As I’ve stated before, you can still create a very successful online real estate lead-generation business. However, these days are numbered.

The Web is big, but it’s a finite resource. Well, more accurately said, cyberspace is infinite, but people will only dig so deep. Real estate Web sites that capture the top spots in the search engines are garnering high quality leads and massive lists of interested buyers and sellers. But, as more and more big-brand companies compete and figure out how to grab high ranking search engine positions, they will slowly but surely elbow out the little guy. It’s the nature of an industry to be “open” to early adopters at the beginning and then slowly close to only those that can afford the great investment of time and money needed to stay competitive. As more and more buyers and sellers use the Internet for real estate research, the “evening and weekend traditional real estate agent marketing model” is fast becoming extinct.

If you want to stay competitive in the period ahead, you will need to grab a piece of the Internet action, and now is the time to establish your foothold. You CAN still create a successful real estate online lead-generating business. You CAN still get top spots in the search engines. It’s not too late, but I guarantee if you wait, it soon will be.

More and more, I get calls from companies selling real estate leads. They notice I’m everywhere on the internet. My sites rank very high organically for specific real estate search terms and cpc. I also own the right spots on other real estate portals that drive targeted traffic to my listings, my sites and yes…..generate high quality, exclusive leads.

I just received a call from a company selling real estate leads. As published in my book, Internet Real Estate Agent: A Guide To Dominating Internet Real Estate Leads and Marketing, there are specific questions you must ask to avoid wasting money and time. After going back and forth with the skilled sales rep., I was able to hone down the basics of how the program works.

Here’s how their lead program works:

1. A person is watching television, listening to the radio or sees a banner ad online. The add is asking the person to call a phone number to learn about a real estate tax advantage and commission rebate back to them if they buy or sell real estate.

2. Pay $60 a month for a zip code.

3. Pay 19% referral fee at closing (this gets split between the “lead company” and the customer at closing).

4. Here’s the kicker….the leads are given to 7 other agents as well.

This real estate sales lead business model isn’t new and many companies have a slight variation to it. Personally, I would never buy leads from this business model. I prefer to create my own exclusive lead systems.

Here’s some of the pitfalls with the real estate lead business model you’re being sold.

1. Leads coming from TV, Print, radio or the internet that rely on some form of incentive offer are usually very low quality leads. One of the incentive offers is a “commission rebate program”. Need I say more?

2. Why pay a monthly fee so you can compete for the lead? Why not get EXCLUSIVE leads that are not incentive leads. You can’t do every lead program on earth, so pick and chose how you spend your money and time.

3. I have a hard time paying a referral fee to someone when I’m competing with other agents, given a low quality lead and there’s no personal relationship. That’s not a referral, it’s a lead. No relationship, no history and no commitment from the potential customer to use me. I like paying referral fees to agents that have personal relationships with their real clients. When I get a referral call from another agent, they know the person being referred to me and I get the client. That’s a real referral and qualifies for that big referral fee.

4. There are so many ways to generate leads. You should pick and chose the best ways to spend your time and money.

After reading Internet Real Estate Agent, you won’t fall prey to poor Internet business models. You may make a mistake or two–I do from time to time when trying something new–but, these mistakes are quickly remedied. You will understand exactly how to improve your real estate website, what to know before buying a real estate website, advanced concepts for Google AdWords, how to market your listings online for more leads, the changing Broker/Agent model and much more. Discover how to set up your own internet real estate lead generation machine. Don’t be dependent on any one company for leads. Get educated and become independent!

The book will guide you through a tremendous amount of information and facts, not hype, regarding Internet real estate lead generation and Internet marketing. It’s the lowest cost real estate training and education you will ever spend. It’s all about internet real estate lead and marketing. Keep this book by your side and use it as a trusted reference guide. Start working on your Web site, and then move onto the other areas of online lead generation and Internet marketing. Once you have your online real estate lead-generation business set up, it really will run 24 X 7, by putting the right message in front of the right people, at the right time.

Agents and Brokers already know they need to market to past clients and their sphere, but it only gets you so far. They also know the urgent need to embrace the internet. The value of traditional farming techniques is diminishing. The fact is, everyone is mailing something; everyone is doing longer open houses; and everyone is getting into the real estate business. But, hardly anyone is doing online advertising. Even fewer are doing it right. In fact, most agents and brokers attempting to do online lead generation and property marketing are doing it totally wrong. Don’t waste money and time by buying leads from a company that sells false dreams of Internet riches. Take control of your business lead systems and start implementing your plan today.

Here’s a short sample from the book:

Marketing Your Listings for Leads

The majority of this book has been on creating a real business Web site, driving quality traffic to your Web site, and converting that traffic into leads. Now let’s focus on how to create more business by marketing your listing online. You’ve worked long and hard to get the listing, now let’s leverage that listing to create more business. For most of the homes I’ve sold, the buyers began by viewing the pictures and details online and then contacted me about a private showing. If you market the property correctly, you will get leads. Using the list of marketing resources below, I average over 2,500 targeted property views for each listing. I get highly qualified internet buyer and seller leads when marketing a property online. Think about that for a second. Online, people are searching for a specific home, in a specific area, in a specific school district, in a certain price range, etc….and my listings are showing up. That’s a ton of quality traffic almost all of it was free.

I just read the other day about a Director of Technology who serves on a major MLS board who said the traditional business model of getting leads from holding open houses is almost dead. People are using the Internet for research, and they are contacting an agent long before they enter the house. Based on my personal experience, I agree with this assessment. Having spent many Sunday’s working at open houses, I find it very rare for someone to walk through the door and say “I don’t have an agent.”

The following list of ideas will put you in a position to actually make more money from each listing you have. If you don’t have any listings or are new to real estate, I suggest approaching an agent in your office that has a listing and ask if you can do some Internet advertising for him or her. Just be sure to abide by any local MLS rules you have…

So here’s to 2008 and enriching your level of internet real estate education and business income.

Happy New Year, Cheers!

The Real Estate Sector

Boom & Bust of Indian Real Estate Sector

Engulfing the period of stagnation, the evolution of Indian real estate sector has been phenomenal, impelled by, growing economy, conducive demographics and liberalized foreign direct investment regime. However, now this unceasing phenomenon of real estate sector has started to exhibit the signs of contraction.

What can be the reasons of such a trend in this sector and what future course it will take? This article tries to find answers to these questions…

Overview of Indian real estate sector

Since 2004-05 Indian reality sector has tremendous growth. Registering a growth rate of, 35 per cent the realty sector is estimated to be worth US$ 15 billion and anticipated to grow at the rate of 30 per cent annually over the next decade, attracting foreign investments worth US$ 30 billion, with a number of IT parks and residential townships being constructed across-India.

The term real estate covers residential housing, commercial offices and trading spaces such as theaters, hotels and restaurants, retail outlets, industrial buildings such as factories and government buildings. Real estate involves purchase sale and development of land, residential and non-residential buildings. The activities of real estate sector embrace the hosing and construction sector also.

The sector accounts for major source of employment generation in the country, being the second largest employer, next to agriculture. The sector has backward and forward linkages with about 250 ancilary industries such as cement, brick,steel, building material etc.

Therefore a unit increase in expenditure of this sector have multiplier effect and capacity to generate income as high as five times.

All-round emergence

In real estate sector major component comprises of housing which accounts for 80% and is growing at the rate of 35%. Remainder consist of commercial segments office, shopping malls, hotels and hospitals.

o Housing units: With the Indian economy surging at the rate of 9 % accompanied by rising incomes levels of middle class, growing nuclear families, low interest rates, modern approach towards homeownership and change in the attitude of young working class in terms of from save and buy to buy and repay having contributed towards soaring housing demand.

Earlier cost of houses used to be in multiple of nearly 20 times the annual income of the buyers, whereas today multiple is less than 4.5 times.

According to 11th five year plan, the housing shortage on 2007 was 24.71 million and total requirement of housing during (2007-2012) will be 26.53 million. The total fund requirement in the urban housing sector for 11th five year plan is estimated to be Rs 361318 crores.
The summary of investment requirements for XI plan is indicated in following table

SCENARIO Investment requirement
Housing shortage at the beginning of the XI plan period 147195.0
New additions to the housing stock during the XI plan period including the additional housing shortage during the plan period 214123.1
Total housing requirement for the plan period 361318.1

o Office premises: rapid growth of Indian economy, simultaneously also have deluging effect on the demand of commercial property to help to meet the needs of business. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organised retail. For example, IT and ITES alone is estimated to require 150 million sqft across urban India by 2010. Similarly, the organised retail industry is likely to require an additional 220 million sqft by 2010.

o Shopping malls: over the past ten years urbanization has upsurge at the CAGR of 2%. With the growth of service sector which has not only pushed up the disposable incomes of urban population but has also become more brand conscious. If we go by numbers Indian retail industry is estimated to be about US $ 350 bn and forecast to be double by 2015.

Thus rosining income levels and changing perception towards branded goods will lead to higher demand for shopping mall space, encompassing strong growth prospects in mall development activities.

o Multiplexes: another growth driver for real-estate sector is growing demand for multiplexes. The higher growth can be witnessed due to following factors:

1. Multiplexes comprises of 250-400 seats per screen as against 800-1000 seats in a single screen theater, which give multiplex owners additional advantage, enabling them to optimize capacity utilization.

2. Apart from these non-ticket revenues like food and beverages and the leasing of excess space to retailer provides excess revenues to theatre developers.

o Hotels/Resorts: as already mentioned above that rising major boom in real estate sector is due to rising incomes of middle class. Therefore with increase in income propensity to spend part of their income on tours and travels is also going up, which in turn leads to higher demand for hotels and resorts across the country. Apart from this India is also emerging as major destination for global tourism in India which is pushing up the demand hotels/resorts.
Path set by the government

The sector gained momentum after going through a decade of stagnation due to initiatives taken by Indian government. The government has introduced many progressive reform measures to unveil the potential of the sector and also to meet increasing demand levels.

o 100% FDI permitted in all reality projects through automatic route.
o In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres.
o Urban land ceiling and regulation act has been abolished by large number of states.
o Legislation of special economic zones act.
o Full repatriation of original investment after 3 years.
o 51% FDI allowed in single brand retail outlets and 100 % in cash and carry through the automatic route.

There fore all the above factors can be attributed towards such a phenomenal growth of this sector. With significant growing and investment opportunities emerging in this industry, Indian reality sector turned out to be a potential goldmine for many international investors. Currently, foreign direct investment (FDI) inflows into the sector are estimated to be between US$ 5 billion and US$ 5.50 billion.

Top most real estate investors in the foray

Investors profile

The two most active segments are high networth individuals and financial institutions. Both these segments are particularly active in commercial real estate. While financial institutions like HDFC and ICICI show high preference for commercial investment,the high net worth individuals show interest in investing in residential as well as commercial properties.

Apart from these, the third most important category is NRI ( non-resident Indians). They mostly invest in residential properties than commercial properties. Emotional attachment to native land could be reasons for their investment. And moreover the necessary documentation and formalities for purchasing immovable properties except agricultural and plantation properties are quite simple. Therefore NRI’s are showing greater interest for investing in Indian reality sector.

MAJOR INVESTORS

o Emmar properties, of Dubai one of the largest listed real estate developer in the world has tied up with Delhi based MGF developments to for largest FDI investment in Indian reality sector for mall and other facilities in Gurgaon.

o Dlf India’s leading real estate developer and UK ‘s famous Laing O Rourke (LOR) has joined hands for participation in airport modernization and infrastructure projects.

o A huge investment was made by Vancouver based Royal Indian raj international cooperation in a single real estate project named royal garden city in Bangalore over period of 10 years. The retail value of project was estimated to be around $ 8.9 billion.

o Indiabulls real estate development has entered into agreement with dev property development, a company incorporated in Isle of Man, whereby dev got subscription to new shares and also minority shareholding the company. But in recent developments indiabulls have acquired entire stake in dev property development in a 138 million-pound sterling (10.9 billion ruppees) share-swap deal.

o Apart from this real estate developments opens up opportunity for associated fields like home loans and insurance. A number of global have shown interest in this sector. This include companies like Cesma International from Singapore, American International Group Inc (AIG), High Point Rendel of the UK, Colony Capital and Brack Capital of the US, and Lee Kim Tah Holdings to name a few.
Following are names of some of the companies who have invested in India

International developer Country Investment
(US $ million)
Emmar properties Dubai 500
Ascendas Singapore 350
Salem & ciputra group Indonesia 350
GE commercial finance U.S 63
Tishman Speyer Properties U.S 300

Simultaneously many Indian retailers are entering into international markets through significant investments in foreign markets.

o Embassy group has signed a deal with Serbian government to construct US $ 600 million IT park in Serbia.
o Parsvanath developers is doing a project in Al – Hasan group in Oman
o Puravankara developers are associated with project in Srilanka- a high end residential complex, comprising 100 villas.
o Ansals API tied up with Malaysia’s UEM group to form a joint venture company, Ansal-API UEM contracts pvt ltd, which plans to bid for government contracts in Malaysia.
o Kolkata’s south city project is working on two projects in Dubai.
On the eve of liberalization as India opens up market to foreign players there is tend to be competitive edge to give quality based performance for costumer satisfaction which will consequently bring in quality technology and transparency in the sector and ultimate winners are buyers of this situation.

However this never ending growth phase of reality sector has been hard hit by the global scenario from the beginning of 2008. Analyst say situation will prevail in near future, and latest buzz for the sector comes as a “slowdown”.

Sliding phase of the reality sector

In this present scenario of global slowdown, where stock markets are plunging, interest rates and prices are mounting, the aftermath of this can now also be felt on Indian real estate sector. Overall slowdown in demand can be witnessed all across India which is causing trouble for the major industry players. Correcting property prices and rentals are eroding away the market capitalization of many listed companies like dlf and unitech.

Fundaments behind slowdown…

Propetry prices move because of the basic principle of demand and supply
o when demand is high and supply low prices will go up
o When demand is low and supply high prices will go down.

For example let’s assume that somebody has bought a property for Rs X and he is trying to sell the property (say after a year), there can be three options, assumption being that the owner is in need of money and cannot wait for more than 3 months to sell the property.

1. When the property prices are gliding everywhere : now owner will try to add as much premium to the property as possible, in order to book profits, therefore he will wait for 3 months and sell off in last month at the highest bid. Where he ill get total of Rs X + Rs Y.
2. When property prices have stabilized: here owner will not be able to sell at premium and book profits due to market stabilization & since he don’t want to sell at a loss, he will try to get same amount he brought the property for. Where he’ll get total of Rs X = Rs Y
3. when property prices are going down : owner will try to sell the property at least profit or least cost. Therefore he ill get Rs X-RsY.

Reality deals in major cities like Delhi, Mumbai, Bangalore, Chennai and Hyderabad have shown enormous downfall from October 2007 – March 2008. The downfall had been cushioned by fall in stock markets as it put a stop for wealth creation, which leads to shortage of capital among investors to invest in real estate activities. Apart from this in order to offset their share losses many investors have no choice, but sell their real estate properties.

Other factors which have contributed to this slowdown are raising interest rates leading to higher costs. Due to this almost all the developers are facing serious liquidity crunch and facing difficulties in completing their ongoing projects. Situation seems to be so disastrous that most of the companies have reported 50-70% cash shortfall. The grade A developers which are facing cash crunch include DLF,MGF, Emmar, Shobha developers, Unitech, Omaxe, Parsvnath Developers, Hiranandani Group, Ansal API, BPTP Developers and TDI Group. As a outcome of this liquidity crunch many developers have started slowing down or even stopped construction of projects which are either in their initial stages of development or which would not effect their bottom line in near future.

Also with increasing input costs of steel iron and building material it has become it has become inviable for builders to construct properties at agreed prices. As a result there may be delays in completion of the project leading finical constraints.

At the same time IT industry which accounts for 70% of the total commercial is facing a slowdown. Many residential buyers are waiting for price correction before buying any property, which can effect development plans of the builder.

Aftermath of reality shock to other sectors

Cement industry hit by reality slowdown

The turbulence in the real estate sectors is passing on pains in cement industry also. It is being projected that growth rate of cement industry will drop down to 10% in current fiscal. The reasons behind such a contingency are higher input costs, low market valuations and scaled up capacity which are in turn leading to reduced demand in the industry. High inflation and mounting home loan rates have slowed down the growth flight of real estate sector which accounts for 60% of the total cement demand. The major expansion plans announced by major industries will further add to their misery as low market demand will significantly reduced their capacity utilization.
Setting up new facilities will impart additional capacities of 34 million tone and 45 million tone respectively in 2008-09 & 2009-10. This is likely to bring down capacity utilization in the industry down from current 101% to 82%. Even as it loses power to dictate prices, increased cost of power, fuel and freight will add pressure on input costs.

Ambuja Cements too is trading at a higher discount than previous down cycle, suggesting bottom valuations. However, replacement valuations for Madras Cements and India Cements indicate scope for further downslide when compared to their previous down cycle valuations.
All this has added to stagnation of the cement industry.

Dying reality advertising

The heat of reality ebb is also being felt by the advertising industry. It is being estimated that all major developers such as DLF, omaxe, ansals & parsvnath have decided to cut down on their advertising budget by around 5%. The advertising industry in India is estimated to be around 10,000 crore. This trend can be witnessed due to weakening spirits of potential buyers and real estate companies call it a reality check on their advertising budgets. A report from Adex India, a division of TAM Media Research, shows that the share of real estate advertisements in print media saw a drop of 2 percent during 2007 compared to 2006. According to Adex, the share of real estate advertisement in overall print and TV advertising last year was 4 percent and 1 percent, respectively. It’s a known fact that infrastructure and real estate companies are responsible for advertising industry maintaing double didgit growth rate. Therefore its understood that a recent slowdown in iindian reality sector has made things worse for advertising industry. The Adex report indicates that the top 10 advertisers shared an aggregate of 16 percent of overall ad volumes of real estate advertising in print during 2007. The list include names such as DLF Group, Parsvnath, Sahara, HDIL and Omaxe group. However, the real estate had maximum share in South India publications followed by North and West publications with 32% and 26% share, respectively, during 2007.

According to many advertising agencies consultants, this phenomenon is taking a toll as all real estate companies want a national foot print and also these companies are turning into professionals. Therefore they are setting standards when it comes to advertising to sales ratio.

Falling stock markets knock down reality stocks

Reality stocks have been hard hit by uncertainties prevailing in the stock market. The BSE reality index is the worst performer having shed 51% of its 52-week peak reached in reality. The BSE benchmark index has shed 24% since January. The country’s largest real estate firm DLF scrip lost 54% while unitech lost 64% from its peak. The scrips of Delhi bases parsvnath and omaxe have lost 68% each since January.

The sector is facing a major downfall in sales volume in most markets of the country. The speculators have exit the market and Mumbai and NCR, the biggest real estate markets in markets are cladding subdued sales. In Gurgaon and Noida, which had seen prices almost treble in four years, sales are down 70%, leading to a price correction of 10-20%.
Lets us have a look how major cities are affected by reality downfall.

Top 4 metros taking the lead – in slowdown

Delhi &NCR

While bears are ruling the stock market, the real estate sector in Delhi & NCR region has started facing departure of speculative investors from the market. According to these developers based in region the selling of flats has become very complicated at the launch stage due to lack of interest from the speculators. Developers attribute this to stability in prices against the past where prices were up surging on monthly basis. The scenario has changed so much in the present year that developers are now facing difficulty in booking flats which may delay their projects and reduce their pricing power for instance a year ago, if 100 flats were being sold in month at launch stage now it has come down 30-40 per month. Till mid 2007 speculators made quick money by booking multiple flats at launch of the project and exiting within few weeks or months. But now due to the stabilization of the property prices little scope is left for speculators to make money in short term. Therefore outcome is their retreat from the sector.

Mumbai

Mumbai real estate market, which witnessed huge increase in prices in recent years, which made the city to enter in the league of world’s most expensive cities, is now feeling the heat of slowdown. Property sales that have been growing at a clank of around 20% every year have been plumped by 17% in 2007-08.

Though slowdown news of property market in country’s financial capital has been much talked about, but it was first time that figures proved the extent of slowdown. Information about residential and commercial property sales from the stamp duty registration office show almost 12,000 fewer transactions during the last financial year compared to the year before. From April 2007 to March 2008, 62,595 flats were purchased in Mumbai as against 74,555 in 2006-07.
According to reality analyst sales volume can die out further in south as developers persist on holding to their steep prices and buyers anticipate a further fall with current rates beyond reach. They further add that market is on a corrective mode and downward trend is anticipated for another 12 months.

Between 1992-96, the market ran up the same way it did during 2003-07. Post-’96, the volumes dropped by 50%. This time again it is expected to drop substantially though not so steeply. The demand is now extremely sluggish and customers do not want to stick out their necks and transact at prevailing rates.Chennai in past few years we witnessed reality index gaining huge heights on BSE and it also impact could be felt allover India. Amongst them Chennai was no exception. With IT boom in past few years and pumping of money by NRI’s have led to prices touching skies. Chennai also witnessed a huge boom property prices over the last few years. However in past few months it has been facing slowdown in growth rate.

Following factors can be attributed to this:
o This is one of the common factor prevailing all over India- rise in home loan interest rates, which has made it extremely difficult for a normal salaried person to be able to afford a house.
o Depreciation of US dollar, which means NRI’s who were earlier pumping money into the real estate are now able to get less number of rupees per dollar they earn in US. Therefore many of them have altered their plans for buying house in India.
o The Chennai Metropolitan Development Authority (CMDA) has imposed stricter norms for apartment construction and penalties for violations are more severe than before.
o Failure of the legal system of chennai to prevent intrusion, forged documents and illegal construction has added to the problem as many NRI’S are hesitating to buy plots in chennai.
o Apart from this tsunami of 2004 has shaken the confidence of many investors to invest in real estate.

However many analyst are quite bullish about this region. Especially in areas like old mahabalipuram, south Chennai etc because of numerous IT/ITES/ electronics/automobile companies are expected to set up their centers in these areas. Once these projects are complete and companies begin operations their, many people would like to live near to such areas and outcome will be boom in residential sector.

Bangalore

As discussed for above cities Bangalore is also dwindling between the similar scenarios. Bangalore seems to be in midst of low demand and supply. This trend is due to myopic developers, due to sudden growth in Bangalore in last few years, lot of builders have caught the opportunity of building residential houses thinking their will be lot of employment, increase in salaries and hence demand for housing. Past few years have been jovial for Bangalore as IT industry was doing well and banking and retail sectors were expanding.

However with this sudden economic slowdown, due to which Indian stocks markets are trembling, interest rates are high, jobs and recruitment put on freeze have led to cessation of investment in local property markets.

According to the developers real-estate industry of Bangalore has experienced a drop of about 15- 20% in transaction volumes. Adding to it grade A developers have faced a dropdown of 50% on monthly levels of booking compared to what they enjoyed in December 2007.

Future outlook

The real estate explosion in Indian real estate is due to by the burgeoning IT and BPO industries. The underlying reason for all these moves is that the Indian real estate is tremendously attractive, because of basic demographics and a supply shortage. Truly Indian real estate is having a dream run for last five years.

However in the current scenario Indian real estate market is going through a phase of correction in prices and there are exaggerated possibilities that these increased prices are likely to come down.
In this scenario hat will be the future course of this sector?

Many analyst are of view that tightening of India’s monetary policy, falling demand and growing liquidity concerns could have negative impact on profiles of real estate companies. Slowing down would also aid in the process of exit of some of the weaker entities from the market and increasing the strength of some of the established developers. A prolonged slowdown could also reduce the appetite of private equity.

Its also been projected that large development plans and aggressive land purchases have led to a considerable increase in the financial leverage (debt/EBITDA) of most developers, with the smaller players now being exposed to liquidity pressures for project execution as well as a general slowdown in property sales. Property developers hit by falling sales and liquidity issues would need to reduce list prices to enhance demand, but many still seem to be holding on to the asking price – which, would delay the process of recovering demand and increase the risk of liquidity pressures.
It was being witnessed that before the slowdown phase the projects were being sold without any hook at an extravagant rate. But at present negative impact is highly visible as lot of high end projects are still lying unsold. In such a scenario, there may be blessing in disguise as high profile speculators will be out making way for the actual users.

But here also sector faces trouble as correction in prices has been accompanied by increase in home loan rates by the banks which have led to erosion of purchasing power of middle and upper middle class majority of whom are covered in the category of end users or actual users.
Therefore for future of real estate sector analyst call for a wait and watch method to grab the best opportunity with the hope of reduction in loan rates.

The Keys to Success to Investing in Real Estate

Most real estate professionals flunk within the first few months of trying to create a business enterprise out of real estate investing. The trick begins with a beneficial marketing plan and then practicing a disciplined effort to the marketing plan on a even basis. There is a lot more required to succeed, and you will encounter more tips, tricks and unique real estate marketing techniques in this article.

Is there anyone in your town that doesn’t recognize that you buy homes or that you are a real estate professional? If so, you aren’t performing as well at marketing or rendering real estate investing information about your real estate investing business enterprise as well you could be. I find out real estate investors telling all the time that they aren’t receiving seller phone calls and subsequently aren’t receiving the leads they need to find the real estate business deals they require to earn a living. I say increase the marketing and the sellers will Call. Not only that but if you are canvassing the world (or at least your area) that you buy problem real estate holdings, eventually you will be acknowledged for what you do and sellers will telephone you strictly on your reputation. this is what is called cost effective marketing.

One real estate professional was in a home, garden and hardware store a few calendar weeks ago and went past a couple of guys in an aisle. A conversation was heard while he walked by, I overheard one state, “That is the real estate man”. Now I had never known either of those men and have no idea who they are but that experience lets me acknowledge that I must be doing my business at letting the world to recognize my business is buying real estate in that area. There are many ways to let the area know that you are in the real estate investing profession and getting information out there that helps people realize you buy foreclosures, distressed real estate, do real estate short sales and have got a lot of real estate information and experience to flip properties. Some methods are cheap and some are more expensive. You are going to have to attempt many things and acquire a feel for what brings about for you the best results in your region to get the calls you require to transact real estate deals. I have tried many forms of marketing methods for real estate commercial enterprises of all varieties and have come back to a few that consistently create enough leads for me to purchase the 2 or 3 real estate holdings and houses I want to purchase every single calendar month. They are as follows:

Classified Ads

The classified advertisement in the most prominent newspaper in the region is by far the heaviest producer of leads for local real estate investors that I have determined. I understand it is costly and I understand there are instances it does not generate phone calls but if you are going to persist in the real estate investing business sector just place it in there and leave it. Get used to it making up part of the toll of performing the real estate business. You may expend about $350.00 a calendar month for my 4 line ad and that is the commercial range. I’d consider running it 365 days a year to constantly cue everyone that you are a real estate professional and you purchase real estate in their region.

Over the past few or so years I have watched many “real estate investor” ads come and go. Most folks put them in for a many or even just a couple of calendar weeks and then remove them or try just placing them in on the week ends. Real Estate Marketing just simply does not work this way. Put your real estate ad in the paper and leave it in there. It will more than make up for the price, trust me, and you will see after you finish your first deal. If you are distressed because there are real estate investors ads from many other investors in there, don’t be. They are there because they are getting responses. Just be sure to and actually answer your cell phone and keep it on all the time otherwise you’ll be squandering money.

When a fresh ad for real estate investor information shows up in my newspaper, I will always call on the advertisement. 9 times out of 10 I get a message device or answering service. This is a significant turn off to somebody who needs a resolution to their real estate trouble now. They want to speak to a person who can quiet their anxiety over their current issues with their home and tell them everything is going to be ok. Your answering device won’t do that, they need a human being. As for what to put in the advertising, you will have to work on this one. I have tried various idea and the one I have now hast not changed for over 4 years. I haven’t switched it because I get responses. My ad is:

We Pay CASH FOR HOMES In 24 Hours! Any area, price or condition Call xxx-xxx-xxxx

Now I have had other real estate professionals jockey for place and interchange their ad copy to be leading of mine in the column but it has not made whatsoever difference, at least as far as I can discern. Don’t worry about those things, just get the advertising out there and leave it. It could possibly take a bit of time, perhaps a several weeks to get going but sellers will telephone. As soon as you have your classified advertising running, then you should start working on your other marketing techniques right away. If you only go through one idea a week, within a few weeks or a couple of months you will have a significantly powerful real estate purchasing process.

Ads in the “Freebie” Papers

You might also run advertisements in the freebie papers in your local region or the region you want to conduct real estate investment deals. These are the “Thrifty Nickel”, or whatever they are named in your region. We run both a column ad and a display in this newspaper and expend about $175.00 or so a calendar month for these ads. They pull in seller leads reasonably well and have always rationalized the costs. Remember that these guys are usually open to talking terms on your rates and you will probably get a better rate if you commit to a longer advertising agreement.

Bandit Signs or Road Signs.

Bandit signs are great. They are some of the best lead producing tools around. I have yet to put out a bunch and not be bombed with calls right after I arranged my marketing. I just don’t position them out that often. I might place out a few to a half dozen or so a calendar month and the ones that continue and don’t get taken down continue to pull in phone calls. At an average price of less than $4.00 per sign, they are one of the greatest real estate marketing and advertising values available. Check the net for sign manufacturers for discount signage costs. I use 18 x 24 signs and set them at high traffic crossings around the town I wish to purchase houses in.

I also position a sign in the front yard immediately after purchasing any house. I have purchased several homes in the same regions as a result of marketing this way.

You can either use wood stakes or the wire stakes with your signs. I like the wood stakes because they do not bend like the wire ones, in addition, they are more less expensive and you can find just about any reasonably sized stick of wood or stake at your local hardware store for a really good value. Just get long lengths and trim down to fit. Then just nail the sign to it with the roofing nails with the orange or green plastic tops or you can use screws. There are many variants on what the wording on the sign can say. Keep in mind that traffic will be moving so you want to keep your message short and simple so it may be read. Plus your telephone number must be big, large and easy to read.

If you search the sign advertisement content, you will discover that it is same resemblance my paper ad. I like to brand my advertising because I believe that helps with identification that is probably why the two guys noticed me as a Real Estate Professional..You want to have contrast, so a white sign with dark blue letters usually is the best draw. Some folks swear by black on yellow or black on orange. Again, I say it’s not what or how you say it rather simply that you’re out there marketing and placing out signs that counts. You’ll build a ‘brand image over time if you stay logical with your real estate marketing endeavors. When dealing with bandit signs, be sure that your local code enforcement laws are aware of them. In some areas or counties they can lax on them but a few miles down the road in another county or city, they can be super strict and will ticket you in a minute, pull the signs down and lead off looking for your next posters to go after you again. Some retail merchants in high tax areas can’t put out any A board signage without having them sized and then fined.

Flyers and Bulletin Board Postings

Flyers and related collateral are another cheap way to get the word out that you are a real estate investor buy property, foreclosures or distressed properties. Just create a flyer with any one of the free on-line flyer software internet sites telling people that your are a real estate investor and how to get in touch with you. Make copies for few cents apiece and you have some really inexpensive real estate marketing and advertising. It really is that simple. Then place these flyers on every bulletin board in your Town or region you would like to buy your property, foreclosure or distressed home.. I also recommend that you place some of them in those plastic sheet shielders so the rain won’t ruin them and put them up on phone poles around neighborhoods I like to buy property in.. While not as prominent as the bandit signs, on poles actually in the neighbourhood they still attract phone calls. I carry a file with me in my automobile and put them up whenever I stop at a grocery store or major discount shop or really wherever. Some of the other area to put them are:

· Laundromats
· Taped to the inside of telephone Booths.
· On the counter of any business organization that will let you place them at.
· Bulletin boards at any local or major rebate store (lots of traffic)
· Grocery store bulletin boards
· Fax to Mortgage agents, call first
· Fax to Real Estate Agents, call first and they may get a lot of these.
· Take them Door to Door in target regions
· Employment centre Bulletin board
· County Courthouse or public office Bulletin board

These are just a few illustrations. Any place that will allow you to set one is a good place. You can never let too many people know that you are a real estate investor and are in the foreclosure market.

Imprinted and/or Promotional Items

Optimum Real Estate Investor Marketing Ideas – These no-lose ideas are sure to get you top hits on leads and calls for your Real Estate Investing occupation.

These are some of my favourites and most fun. While they are not the top producers of leads or the least costly, they will sure position you apart from the average investor.

Pen Knives – These tiny Swiss army knives are the neatest things. They are actually key chains etched with your content, mine being: WE BUY HOMES – All cash or take over payments within 24 hours! Call xxx-xxx-xxx I assure if you give one of these to somebody they will hold on to it it and if they conceive of selling, they will think of you. They are about $1.75 each.

Key Chains – I give these to all my buyers with the keys to their new house on them and leave them all over the place. They come in the shape of a house or #1 or whatever style you like and have your message on them. You can guess what mine says. Cost – about $. 25 cents apiece.

Pens – I use these all the time. Whenever I sign a sales receipt or anything I leave my pen. I cannot tell you how many outcries I have gotten off of these things and since I often need one, I always possess one to give away. My attorney even has a supply on his closing table. I possess two types printed. One for sellers says “We Buy Homes!” and one for buyers says “Everyone Qualifies”. Cost – about $.26 cents per unit.

Coin Holders – These you hardly find anymore so everyone is surprised when I have them. I leave these things everywhere. Mine are bright yellow with blue letters and my message. Cost – about $.30 cents apiece.

I leave all of these promotional items everywhere, on the top of gas pumps, on end-cap displays in grocery stores and in department stores. I look at it this way, if I give away 100 pens, 50 knives and 50 coin holders a month, that is only a little over $100 bucks a month. That is still cheap advertising. And with the money you can make in a real estate deal, it is ‘no cost’ marketing strategy. You can get any of these promotional advertising products at many major promotion marketing manufacturer, and you can find companies online as well.

Business Cards

I order business cards by the 1000’s and you should as well, there are a lot of great places online that can print up nice (and cheap) cards for you and that specialize in real estate as well. As for business cards, well, they are cheap, mine are about $50.00 for 2000, and I pass them out and leave them everywhere I possibly can. I leave my cards everywhere, in pay phones, on restaurant tables, my kids even have their own supply to pass out. Try to get a box a week out. The card doesn’t have to be fancy, in fact the simpler the better. My card is bright yellow with blue letters and says:

WE BUY HOUSES Foreclosure? Need Repairs? Bad Tenants? Divorce? CASH IN 48 HOURS! OFFERS MADE ON ALL CALLS! XXX-XXX-XXXX

Car Magnetics

Magnetics are one of those things where you spend once and get use for a long time. Mine cost about $75.00 and are yellow with blue letters. They say:

WE BUY HOUSES! FA$T CA$H XXX-XXX-XXXX

or

SELL YOUR HOME FAST WE PAY CA$H XXX-XXX-XXXX

I have gotten several deals from these signs. Remember to order a smaller set for the back of your car/truck. People have more of a chance to read the message when they are riding behind you.

Clothing

I like golf shirts and oxford dress shirts with my logo on them. There’s plenty of adverting houses that will help you design a logo if you don’t have one or use the one you already have. There is no charge for set up and all items ordered include your embroidered logo free.

I pass custom imprinted hats out to everyone I know who wears one and have given away many shirts as well. They really look nice and present a nice image for your business.

Other Advertising Tools

There are many other shapes of advertising, some I have tested in the past such as billboards, door hangers, yellow pages, television and radio advertisement. I even have a traveling billboard, an old SUV painted bright yellow with blue WE BUY HOUSES! and my telephone number that I drive around and park overnight at dissimilar places. It brings the calls! Get the marketing going and let the world know who to call when they have a house to sell, a pre-foreclosure, distressed property or someone who just wants to get out of their house.. If that phone isn’t ringing, you aren’t making money so you need to get a good marketing strategy going and stick with it!

I sincerely hope these tips will help you in your next real estate marketing efforts and get you the real estate investing deals you’re after.