Use The Internet To Supercharge Your Real Estate Business
Buying and selling real estate is the most straightforward business out there. It’s also one of the few industries that rely on brokers that haven’t been disrupted by the Internet. Not yet, at least.
But that’s soon about to change. New platforms and algorithms are set to change the way people buy, sell or invest in property. Here are some of the ways this industry is changing and the tools you can use to supercharge your real estate venture.
Crowdfunding real estate projects seems to be everywhere now. It’s a market that’s experiencing a boom and more investors are getting curious about the potential to pool money and invest in physical property. The model is very similar to other crowdfunding sites, but with the added complexities of buying, maintaining, and renting out a property. The SEC has rules in place for investors who take to crowdfunding platforms, so using these sites should get easier over the years.
One of the biggest issues with the real estate market has been the lack of liquidity. You can sell a multi-billion dollar company in less than a month, but you can’t sell a residential flat unless you’ve been seeing buyers for half a year. The average time it takes to sell a house is now 57 days, but in some cases you could be waiting for a year or more. That’s not suitable to everyone. Services like Quick Move Now offer that liquidity and let buyers sell on short notice. This simplifies the market and lets homeowners move on quickly when they want to sell.
Online private lending is bound to change the way the industry operates. Peer-to-peer lending could let people gain access to bridging loans, better rates and higher yields on their investment. It’s a concept that has already gained some ground in the UK. Landbay and LendInvest allow British investors to lend directly to property-owners. These service let investors gain better yields while offering funds to buyers with bad credit history or a need for quick funding. You can expect these services to crossover to the United States soon.
Renting out a spare room or a whole villa on AirBnB has some serious potential for entrepreneurs. Some have even made six-figures from their property portfolio. It’s not easy by any means, but if you’ve got experience buying, maintaining and operating a rental property, it’s a good business opportunity for sure. AirBnB has done for the rental market what Uber did for public transport. These are not fads, but fundamental shifts in the market.
As more people shift to cities and get smartphones, the traditional models that applied to real estate will become obsolete. Brokers and appraisers are already facing a lack of demand for their services. To create and sustain a business in the real estate industry, your business will need to adapt to these new tools and platforms. Use them to your advantage and create a valuable service for your customers.
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