The facts in this article is simply an opinion. It uses U.S. Census Bureau records on New home income (now not present houses or non unmarried own family homes) to derive a proprietary thesis. No assertion within this article ought to be considered as an offer or assertion to shop for or promote actual property for funding functions or any other purpose! The statistics became garnered from sources believed to be accurate but isn’t always assured.information from the U.S. Census Bureau may suggest that a backside may want to occur in the actual property marketplace because it relates to unmarried family new homes as early because the first quarter of 2008. even though instead dismal information can be launched in its first zone report in April of 2008, the myriad of doomsayers which might be bound to emerge may be the preamble to a stark restoration. by using July of 2008 data may genuinely show that the first region was certainly the lowest and that the actual estate market is off to a healthful and fast restoration after making its bottom!And would not that be quality? maximum real property marketers will tell you that the stoop has long past on lengthy enough!close to the give up of November the countrywide affiliation of Realtor’s will launch its 0.33 zone file for 2007, in an effort to show expenses and income in primary metropolitan regions of latest single own family homes. The authorities, notoriously slow as usually, will likely take a piece longer. however right here is there facts that they do have right now:we will see from the real estate facts and the associated graph that sales are down extensively on a yr over yr foundation. We must also word that the 2Q2007 discern of 243 is initial, that’s why it’s far italicized. you can view the real actual estate facts here.We utilized a proprietary facts picks (www.DataChoices.com) algorithm to analyze this records. we are ignoring present domestic income for this record. the primary object we noted was that 0.33 area and fourth area information seems skewed – which led us to believe predictions in this quick time body could be difficult. nevertheless we endured to extrapolate information and our preliminary outcomes appears to suggest a backside in February of 2008.as with every predictions they may be subject to being grossly wrong and are simplest evaluations. nonetheless, just as with our strong dollar task, we are able to maintain to screen and replace the state of affairs. If we’re right approximately the bottom we can clearly imply that in future reviews. And if we are incorrect then the complete world will understand! analyzing actual estate information is similar to reading any shape of demographic statistics – data which may be critical on your career! And at information choices we like to investigate information and come up with alternatives!
As constantly we stand on integrity and hard work.if you would love to be emailed whenever this report is updated sincerely enter your e-mail cope with below and click the submit button. We may send different articles and gadgets that can hobby you inside the close to destiny!electronic mail deal with:10/25/2007 update:U.S. Census released initial figures (with high margin for blunders) that indicate that new unmarried family domestic sales multiplied almost 5 percentage from ultimate month but are nonetheless a whopping twenty 3 percent below final years yr thus far figures! The median sales charge became $238,000 and the common sales charge became $288,000. (a variety of humans are careworn by way of median versus average. we are operating on a data picks high-quality Index in an effort to assist explain this)The October income file can be launched on November 29th.We consider the maximum crucial information launched within the modern report is that the most important quantity of houses selling are in the $200,000 – $three hundred,000 range through a long way! preliminary figures for September show that thirty 4 percent of new houses bought had been in this fee range. the second highest grouping through charge seems to be statistically tied in one of a kind classes: homes under $200,000 in price and houses within the $300,000 – $four hundred,000 range. these other corporations bought at about 1/2 the quantity of these inside the top group.this could indicate that listing homes inside the $250,000 variety may have the excellent hazard of promoting presently, although there may be actually no guarantee that the fashion for this rate variety will continue. nonetheless focused on consumers who can afford this form of residence and dealers who’re promoting this sort of house can be a better alternative for the actual property agent than throwing darts at a board. nevertheless, it’s far worth citing that these preliminary housing numbers represent an stock of more than 8 months at the contemporary income pace. Our common opinion stays unchanged at this point.See the weblog for current news on country wide and the way mortgage defaults affected them!
actual property recovery might also happen quickly!
riding visitors to your real estate website
After developing your real estate internet site, even within the early degrees, it’s far essential in an effort to let the arena recognise that it’s miles on-line. whilst you keep in mind the amount of opposition online differentiating your website thru advertising and marketing is one as a way to permit you obtain almost on the spot consequences.considering that budgets for letting people realize approximately your site actual estate website might not allow for a incredible Bowl commercial it helps to be creative and think of what actions will result in business. A remarkable advertising blitz will pressure site visitors, get conversions, and even make your phone ring!All of these strategies will generate the buzz important to get commercial enterprise so make an effort to ensure that each one is completed cautiously for optimum outcomes.
1ec5f5ec77c51a968271b2ca9862907d past clients – Touching past customers is always a good manner to show up some business. Letting your beyond customers realize which you have a website up is a tremendous touch factor in which you’ll have the possibility to invite for business. you could even point out that you put the website together to offer higher statistics for the ones customers they wanted to refer to you. Highlighting an area for your internet site for testimonials together with your beyond clients is a brilliant way to show you care approximately them and how willing you’re to share the experience of other beyond clients.
Press release – There are some of great press launch agencies obtainable like PR web wherein you could trouble a press launch of your website. don’t make your press release an advert; make it newsworthy so your release has the possibility to be picked up by way of newsworthy sources.
submit to the search engines like google and yahoo – although the search engines like google are superior they won’t but recognize approximately your website. filing your website to the principal search engines offers them the opportunity to discover more approximately your web page so as to proportion it with everybody appearing searches.
published cloth – inspite of all the modern-day techniques, it nevertheless facilitates to use conventional media. put your internet address for your month-to-month publication, magazine advertisements, and your house flyers. offering a effective name to movement at the side of your internet cope with will supply all of the keen eyes who see your web address a reason to visit.
Pay consistent with click on – an awesome pay in line with click campaign (strive Google AdWords or Yahoo advertising) will drive severe targeted site visitors in your website. For fine results ship your commercials deep within your internet site to pages that maximum closely resemble what they searched for. maintaining an ongoing pay per click on campaign will come up with splendid site visitors and leads year spherical. using site visitors to a real estate internet site is all approximately balance. Having traffic from a spread of different resources will make certain that you acquire constant outcomes day in and day out. when you find that one supply of visitors is resulting in higher conversions than some other, make the effort to devote even more time and energy in that route to sincerely catapult your fulfillment.
How to Do a Sales Pitch in Commercial Real Estate
In commercial real estate, you will undertake a variety of presentations, in a variety of circumstances. Most of them are business-like in nature, focusing on the needs of the tenant, the property buyer, or the property seller.
Get to the core issues
Each of these groups has unique property requirements and points of focus. It is their needs which must be identified and clearly addressed in the sales pitch or presentation. Many successful commercial real estate agents will have a preliminary meeting with the client or customer so that they can identify key issues and concerns. This allows the commercial agent to return to the client or customer in a few days with a well structured proposal that addresses the needs of the customer or client.
It’s all about THEM, not YOU!
When you design an investment or commercial property proposal for presentation, the document should be 90% regards the property and the client. Frequently you see this rule disregarded or broken with the proposal document being largely regards the agency and the personnel.
Rarely is the property transaction a simple matter of the property rental, the property price, or the physical elements of the property. In most situations, it is the combination of these things which must satisfy a fundamental equation of need that the customer or client has. In getting them to this fundamental need, you will identify an element of pain that the customer or client is experiencing. This is what you focus on.
They are Experienced
It is interesting to note that many clients and customers in commercial real estate are reasonably comfortable in circumstances of business negotiation. This means they may not tell you the total big picture or all the elements of a transaction until they are ready. Conversation and connection in the presentation process should be biased towards the client or customer using well selected questions which allow the agent to interpret the body language coming from the client’s response.
When you believe you have identified the element of clients pain related to the property transaction, you start to magnify the problem in terms of today’s market, then offering stable and logical solutions that your real estate agency business can provide to the client or customer. Invariably, the commercial real estate transaction in today’s market centres on financial matters such as:
High vacancy factors
Other property choices and chances are available
Underperforming leases
Unstable cash flow
Unstable tenancy mix
Tenanted conflict
Escalating building operating costs
A shift in demographics which exposes the property to a unstable future
Mortgage payment pressures
Age of the asset
Needs for refurbishment or extension
Competition properties attracting tenants away from the subject property
This type of information and interpretation requires your intimate knowledge of the local region. This is by both property type and by location. This is the higher value that you bring to the customer or client. Being able to distinctly define local market awareness is a major advantage in any commercial real estate presentation or sales pitch. You must be seen as the best knowledgeable solution to the problem.
From Experience
After many years working exclusively in the commercial real estate industry, I found that my unique skill was in market knowledge and the display of that in any formal presentation to the client. Being able to talk about market trends and financial performance in a solid and sound way will help the client understand that they need your services. Coupling that with your extensive and relevant database of enquiry clearly shows the client that they need you.
A fantastic commercial real estate presentation is a function and balance of lots of things. Things like:
A well established pre-planning process is a strategic advantage for every commercial real estate presentation. Strategy is everything in commercial real estate. Every property presentation requires planning.
Making sure you are asking the right questions of the client or prospect. Plan your questions relative to the subject property so that you help the client think about opportunity and changes that are possible.
Using your market knowledge and giving good answers. Have a variety of market facts and trends available to call on. Feed them into your presentation; facts are always useful. They can also be used as a channel to direct the discussion when the client is forcing you to justify your approach or your experience. Confidence and control must be the basic rule of your property presentation. When the client takes control of the presentation you have lost.
Using your experience in the marketplace so that you are telling relevant stories of success in similar properties. Stories of other properties will always interest of the client.
Making sure your personal presentation is optimised for the connection in the presentation. It can be that you are using a combination of the proposal document, the marketing document, and computer slide presentation, samples of your database, photographs of the subject property projected on to slides, and photographs of comparable properties projected on to slides.
Choosing the placement of people at the table or strategically positioning them in the room is always important. Much has been written about where you should sit relative to the client. The basic rule is adjacent to the client rather than across an area of barrier such as a table. Being within arm’s reach allows you to pass documentation to the client at the appropriate time. Documentation should not be provided to the client until you are ready for them to review it; otherwise it is a distraction of their attention.
Make sure that your proposal is simple and yet well directed with a clearly defined outcomes of sale or lease. Many proposal documents in commercial real estate are much too wordy so the main messages are lost and not clearly defined. The best proposals are less wordy and more illustrative. The best balance of a commercial real estate proposal is a mixture of 25% words, 25% pictures, 25% graphs, and 25% white space. This becomes a document which is clearly read and understood.
Combine good illustrations and photographs of the subject property into the proposal or presentation so that any lengthy descriptions or paragraphs are broken up. This will keep interest of the client in your documentation.
Make sure that your marketing package is value for money, and yet reaching the target market that the property serves or needs to attract. All too often, we see examples of generic marketing by the commercial real estate agent to the broader and less specific marketplace. Showing the client that you clearly know and will attract best the target market will always help your conversion to a potential listing. Be very specific about the target market and how you will reach it.
Ensure that your commission costs are fair and reasonable for the location. In most circumstances, discounting your commission should not be an option as it will make you poor and remove or detract from your enthusiasm for the sale or lease. ‘Cheap’ means ‘cheap and without focus’ and the client needs to know this. The property deserves better. You are not cheap because you are the best and you do a great job. A fair commission is always paid for a positive property outcome.
Always provide testimonials that are relevant to the property transaction. When you combine relevant history and details of happy customers into your presentation you will make the client feel more comfortable.
Always display clear and sound market knowledge that impresses the client relative to their property. This will include extensive awareness of comparable properties that compete with the subject property. You should be able to talk solidly about property prices, comparable rents, rental growth, returns on investment, changes to the future demographics of the area, and properties in the immediate precinct of relevance. In many cases, it pays to walk around the local area just prior to any property presentation so that you bring immediate and clear pictures of the precinct to the discussion. Many times this has been of significant advantage in my presentation processes. Talking about neighbouring properties localises the client and their thought processes.
Come up with a variety of ways to serve the client. Innovation and relevance will always impress. In today’s market, this is relatively easy considering the marketing opportunities and tools provided by the internet & technology. Be proactive in your property promotion processes so that the listing for sale or lease stands uniquely different in its marketing campaign from the others in the area. This does not have to be expensive to the client or to your office, given that the internet and electronic technology is historically cost effective. In today’s market, the traditional methods of publicising the property in the property pages of the local paper, is becoming much less important in the marketing campaign. Most commercial property buyers and tenants research the market from the Internet first and foremost.
Almost every property agency will say that they have excellent communication and connection skills to support the property promotion process. From experience, this is largely incorrect and typically the average commercial salesperson or leasing person will exercise ordinary communication channels with the client. Put yourself in the shoes of the client. They expect and deserve frequent updates on the promotion of the property even when nothing is happening or when the adverts are producing little response. When a property campaign is not producing the results, it is important that you act or adjust with alternative recommendations and strategic changes to the promotional campaign for the client to consider. Rarely would you get to the property campaign correct in the first week. It is in this time that you must consider fine tuning the promotion process so that the target market is being reached in a timely and effective way. This means that every property enquiry generated from your promotions must be tabulated so that you understand what channels of marketing work most effectively with the property in question.
When addressing the client or the client group in a formal property presentation, the answers and information you give must be delivered well and provide relevant solid property knowledge, in a practiced and professional delivery. Any sales or presentation tools relative to the property must be relevant and you should know how to use them with exceptional skill. Fumbling and faking information is not tolerated by the client.
So there you have it. These are some of the key skills to use in a commercial real estate presentation. Whilst many real estate agents think that they are the best alternative in the market to promote sell and rent commercial property, the reality is they do not get the message across when it matters most in front of the client.
To be the best commercial real estate agent in your area, you must show that you are just so, and you do this in the first 10 minutes of the time that your presentation takes. The client will have formed an opinion by then.
Be prepared to walk away from any demands for discounting that the client or customer demands. In this market they need a great commercial real estate agent providing a great job; discounting is not an option. Show pride in your services and walk away when the client demands discount in marketing or lower commissions.
##Need More Help?##
John Highman is a prominent investment real estate speaker and coach that helps real estate agents and real estate brokers globally to improve their commercial real estate market share and close more sales and leasing deals. He himself is a successful real estate agent that has specialised in commercial, industrial, and retail real estate of all types for over 30+ years.
Whether you specialise in real estate sales, leasing, or investment, John has the tools that can help you and your office succeed in your market.
Today John Highman gives workshops and keynotes to real estate agents and
Top 7 Fears of Real Estate Investors Today & How Syndication is the Answer to Your Problems
As a real estate investor, are you suffering from this massive, global economic meltdown, or are you one of the thousands of investors who are actually taking advantage of this “Perfect Real Estate Storm” of opportunity?
You see, with unemployment rising, bank foreclosures skyrocketing and prices in most markets falling more than half from their peak, many investors believe that the market is dead. These investors are running around like a chicken without a head, desperately trying to close deals as they struggle to manage their existing portfolios.
If you’re one of them, then it’s no wonder why most investors today are packing their bags and leaving the market afraid! After all, in a recent survey polling residential investors, it was discovered that real estate investors today have many reasons to be scared.
The Top 7 Fears of Real Estate Investors Today
1. Lack of Cash — Personal incomes are dropping. Unemployment is nearing record highs. Renters in most markets are defaulting. Credit card companies are cutting the amount of cash available even for those who have amazing credit scores and always pay back on time.
2. Lack of Confidence – Many investors are lacking confidence in their ability to get through the next three years of this huge downturn. For example, many investors are finding that it’s taking months to close a property deal. If you’re working short sale strategies, because banks are so burdened with offloading inventory, you could wait six months just to receive a BPO (Broker’s Price Opinion).
3. Loan Challenges – A friend of mine couldn’t even refinance his house for a lower mortgage payment than what he’s paying right now because the household income dropped since his wife’s death. If he can’t refinance his home for a lower payment, what do you think your chances of getting a loan are? What’s more, banks have raised down payment requirements on residential and commercial properties to as much as 40%.
4. Can’t Find Deals – The majority of housing and condo sales are foreclosures, as homeowners don’t want to sell now and lose all the value that they put into the house.
5. Not Enough Buyers – Yes, incentives like the tax credit are beginning to enter the market. Yes, we are starting to see a reduction in new inventories. The key word is “starting.” Yet in many markets, investors are finding a lack of buyers even at bargain prices!
6. Takes Too Much Time – Many old-hat real estate investors are spending their days and nights trying to close deals. Most of their time is spent late at night on their computers, or traveling around the country hopping from one airport to the next, in hopes of getting that six- or seven-figure real estate deal done, just to be disappointed again and again.
7. Lack of Knowledge – Old-hat investing requires you to understand negotiation strategies, NLP mind tricks, what’s-working-now techniques, contracts, and how to adapt to opportunities in more than one marketplace, using more than one investing strategy.
Now, I can completely understand these fears of old-hat investors. In fact, the probability is extremely high that investors operating in that fashion will be in the poor house by Christmas, unless they harness the power of real estate investing syndication.
How can real estate syndication solve your problems?
As National Business Credit Expert Thomas Kish says, “Real estate investing syndication drastically reduces the risk and barriers to entry for creating a business of your dreams that is typically unknown to 99% of us.”
What Real Estate Syndication Is and How It Will Help You
The idea of real estate syndication is pretty simple. I define it as matchmaking. It’s the ultimate joint venture investment business.
You partner with investors who have money to invest in the market, but do not have the expertise required for setting up and closing real estate deals. The money lenders want to limit their exposure with a stronger assurance of profits, and lend money to syndicators or private investors who secure their interest against prime investment real estate.
This enables the syndicator to do a number of deals by leveraging multiple investment partners, rather than using their own credit or cash to try and do a single deal.
Now you, as the syndicator, put the deal together and receive a significant share of the profits (between 20% and 50%) without having to invest your own money. Using your knowledge and business skills, you drive the entire real estate investing syndication business model forward.
By operating this way you can:
o Build a formidable reputation
o Do more deals by leveraging this concept
o Create a fortune for yourself without using your own money
o Become a major player in the market without risking any of your own capital
In other words, when you transform your investing business into a syndicator, you create a win/win/win for everyone involved.
How Real Estate Investing Syndication Has Helped Others Grow a Six-Figure Investing Business with Little Time and Effort
o Using these techniques, with only 10 hours of time invested into a deal, my client Jay Redding syndicated his first commercial real estate property in Indiana earned $250,000 of cash and equity profits.
o Following this methodology within 5 weeks, Certified Financial Planner, my client Michelle Agar syndicated her first group of 5 investment properties in Edmonton, Alberta, earning her $269,000 in profits.
o Re-inventing himself as a real estate syndicator, with just 10 hours of effort, my client Robert Beagle closed his first real estate deal and made over $61,000 in profits on a property he had never seen!
Once you grasp the concepts, you will be on your way to becoming financially independent as a syndicator and you will have an enjoyable, recession-proof business that begins to work for you for the rest of your life.
Real estate investment syndicator Brad Wozny, has transacted over $14 million