Tuesday, March 24, 2015

5 Tips for Avoiding Real Estate Startup Mistakes


Every real estate investor is going to make at least a few mistakes early on I this process, but it is important to avoid the catastrophic mishaps that could cause some serious issues later on. Here is a closer look at five tips that could help you avoid some of the most common real estate start-up mistakes.

1. Purchase Equipment as a Business Entity

Any electronics or equipment that is bought at a consumer could lead to a serious headache in the future. Not only are these devices more expensive when they are not purchased as a business entity, but if they break down you could be facing the dreaded customer support. Products purchased by a business entity have access to a much better support system, and this means a shorter downtime for you.

2. Prospect Every Day

After new investors have picked up a few prospects, they may begin to rest on their laurels until those sales are made. It can take 60 days or longer for a prospect to turn into a new deal, and this means that waiting until you have concluded with one client before you bring on others could result in months of absolutely no work. Take a few hours out of every week to continue working on and increasing your database.

3. Create World-Class Presentations

If you are competing for business, then a world-class presentation could make all the difference. Even if you happen to be able to keep all of the information in your head, most clients want information to be laid out in an eye-catching manner. Take a little time before any meetings to improve the presentation of your statistics, market share, and strategy.

4. Improve Your Time Management Skills

The daily life of a real estate agent is unlike any other job. Many people will make the transition from a traditional 9 to 5 and find themselves unsure of what they should be doing once they get into the office. Create a daily plan and then stick to that plan rigorously. A few hours wasted every week can create serious problems over the course of a few months.

5. Create More Touchpoints

New investors are often worried about contacting business partner and clients too often, but there are a few methods to make these touchpoints as useful as possible for both parties. Instead of making a call or sending off an email, start thinking of creating ways to keep up your professional contacts. Consider sending them useful listings, creating a business letter, or simply having a meal together every few weeks.

Gennady Barsky is the CFO of JetSmarter and has many years of experience in the investment and real estate industries.

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