Growing a real estate business is no small feat.
The task can seem intimidating, with many uncertainties.
How do you build an effective team? How do you outsmart competitors in this cutthroat industry?
This hurdle separates those who dabble in property investment from true real estate entrepreneurs. If you don’t know how to grow your venture sustainably, reaching this level may remain just a dream.
But it doesn’t have to be that way. This podcast—the second in my Generational Gains series with my son Carson Herlean—shows some insights into how Carson is growing his real estate business at just 20 years old.
He shares his experiences, failures, and learnings after his first year of getting into Real Estate while working 30-50+ hours weekly on Infinite Banking.
Check out the video podcast below. And read on for some larger takeaways discussed underneath.
Harnessing the Power of Partnerships in Real Estate
Greg’s journey in real estate investing reveals that strategic partnerships are pivotal, something he learned en route to closing more than $1.5 billion in transactions. Partnerships provide mentorship and are a great source of capital to invest in real estate.
These alliances could be with fellow investors, contractors, or even savvy real estate agents well-versed in local market dynamics.
The essence of these partnerships extends beyond pooling resources and splitting profits. It involves capitalizing on each partner’s unique skills and industry knowledge to benefit mutually.
An investor might bring financial muscle, while a contractor lends expertise to property renovations.
In Greg’s experience, nurturing solid relationships with contractors is key to efficient property management and successful deals.
Clear communication about project timelines, costs involved, and expected quality standards are all critical elements discussed upfront before any work commences.
Beyond clear lines of communication, though, there’s another factor at play—respect. Mutual respect forms the foundation of enduring professional ties as it fosters trustworthiness, ultimately leading to more fruitful collaborations.
Diversity within your team not only brings different perspectives but also helps cover various aspects necessary for running a thriving real estate business—from legal matters through marketing strategies right down to customer relationship management systems.
To harness the full potential of your diverse team, however, requires leadership qualities like empathy, active listening, and a willingness to learn new things together.
With such attributes at the helm, teams become more adaptable and resilient, facing challenges head-on and accelerating growth and overall profitability.
Choosing Your Battleground – Selecting Location for Your Real Estate Business
The significance of location in the real estate industry is a point that both Carson and Greg Herlean consistently underscore. The father-son duo chose California as their base, leveraging its vibrant market conditions to grow their business.
However, they maintain that success isn’t tied down to any specific locale; it can be achieved anywhere with determination and strategic planning.
In real estate investing, your chosen battleground significantly influences potential customer demographics, property values, competition level, and local regulations, among other factors.
To determine the best spot for your firm, it is important to do a thorough exploration and evaluation. This includes studying local housing market trends, demographic data such as population growth rates or income levels, zoning laws, etc.
- Potential Customer Demographics: Understanding who lives in the area you’re considering will help shape marketing strategies aimed at attracting home buyers or renters.
- Property Values: Knowledge about current house prices can guide investment decisions regarding buying off-market properties or selling existing ones.
- Competition Level: Knowing how many other real estate agents work within your target region could influence pricing structures when looking to sell a property.
- Zoning Laws: Familiarizing yourself with these ensures compliance while avoiding legal pitfalls during development projects.
Gaining ground across multiple locations also offers a viable strategy, according to Greg’s experience. By doing so, investors can spread risk while capitalizing on various market dynamics, which include vacation rentals, tourist hotspots, commercial properties, and bustling city centers, each offering unique advantages.
Remember, there are no shortcuts to building a strong foundation of knowledge and industry skills vital for navigating through the ups and downs of any given market condition.
Mastering the Art of Outperforming Competitors in Real Estate
In real estate, standing out from your competitors is a feat that demands dedication and strategic planning. Greg’’s approach to this challenge hinges on one fundamental principle: work harder than everyone else.
The idea here isn’t just about putting in more hours but also maximizing those hours for productive tasks such as researching potential properties or meticulously analyzing every deal detail.
He offers many ways to outpace the competition, such as forming a real estate LLC or investing in real estate with an SDIRA to avoid capital gains taxes.
He also emphasizes the use of content marketing strategically. Create informative content marketing materials tailored toward potential customers’ needs. A great example comes from the company Greg founded, Horizon Trust. The website is an educational resource for all things about self-directed IRAs; of course, much of the information is focused on investing in real estate. For more, check out the Horizon Trust blog for some inspiration.
Your aim should be delivering useful information while subtly promoting your services—creating an ideal balance between education and promotion.
Maintaining this delicate equilibrium will not only drive traffic towards your site but establish trust among readers, who may then turn into leads, fueling lead generation activities effectively without resorting to hard-sell tactics often employed by less savvy real estate professionals.
FAQs: Growing a Real Estate Business
How can I expand my real estate business?
Expanding a real estate business requires strategic partnerships, market research, and strong organization. Learning from industry veterans like Greg Herlean can also provide valuable insights.
Which real estate business is most profitable?
The profitability of a real estate venture varies greatly. Rental properties, flipping houses, and commercial property investments are potentially lucrative options.
Can you make a million a year in real estate?
Achieving such earnings in real estate is possible, but it depends on factors like location, investment strategy, market conditions, and individual effort.
Is real estate a profitable business?
Certainly. Real Estate can be highly profitable with the right strategies for buying low-cost properties and selling or renting them at higher prices. However, success demands hard work and savvy decision-making.