This guide will break down the elements of an effective marketing plan and demonstrate how it can help you optimize your budget while planning your business strategies for maximum impact in your community. Plus, you’ll get access to a downloadable plan to start using as soon as today.

Download Your Real Estate Marketing Plan Template

How to Create Your Real Estate Marketing Plan

Your marketing plan should include details about your activities for the year, including budget, lead gen efforts, and social media outreach. Although, you’ll likely need to make adjustments throughout the year. Creating a strong initial plan will give you a solid foundation to start from, allowing you to modify as you see fit for your business. 

Step 1: Conduct a Market Analysis 

To effectively complete your real estate marketing plan template, it’s crucial to understand your market. Knowing how quickly homes sell in your area and identifying who is buying them will guide your marketing efforts and help determine your target market. 

To gather this information, conduct a thorough market analysis. During this phase, your goal is to: 

• Understand your demographics: Learn who lives in your area to figure out how to talk to your prospects, appeal to their interests, and make valuable connections to prospects considering purchasing in your market.
• Know your competitors: Audit agents sending flyers, using social media in your city, investing in signs, bus benches, billboards, and anything else you see in your community. Study who they are and how they’re marketing themselves. 
• Narrow down your geographic farm area: This will tell you where you should focus your business, the clientele you’ll be marketing to, and what methods you should utilize to reach your target audience.
• Learn the market stats: Understand the average days on market (DOM), absorption rates, median home prices, and home sizes, including local amenities. This will tell you what homes are selling, how fast, and for how much. Knowing this lets you effectively discuss your market with prospects.

Pro tip: Research your local community starting with your local MLS. You have access to your community’s data, so dive in and start researching your target market. Utilize other sources, like Realtors Property Resource (RPR), realtor.com, Homes.com, and even Zillow, to learn as much as possible about your area.

Step 2: Create Your Mission, Vision & Values Statement

Your mission, vision, and values (MVV) statement outlines where you want your real estate business to be in the future, how you’ll get there, and the values that drive you. It will help you clearly articulate your business philosophy, differentiate yourself in a competitive market, and build a strong and trustworthy brand that resonates with your ideal clients.

Here’s an overview of what each statement means, as well as an example of what it looks like. For more details, check our guide to crafting your own real estate MVV statement.

Pro tip: Now that you have all the elements to create your mission, vision, and values, print them and post them in your office so you can visualize them daily. These statements will drive every decision you make in your business.

Step 3: Discover Your Ideal Client 

Developing your client personas for buyers and sellers helps you build a brand that attracts your ideal clients. You need to understand who they are, their pain points, their goals, and the obstacles they face. Start by gathering as much data as possible about your geographic real estate farm area’s potential buyers and sellers. 

Here are some data points to consider: 

• Age
• Income
• Family size
• Own or rent? How long?
• Personal buying/selling history 
• Tech savviness
• Education level
• Values
• Hobbies
• Interests

Pro tip: If you’ve sold any homes, your ideal client most likely lives in your current sphere of influence (SOI). You can use polls and questions on your social media pages to stay engaged with your network and learn more about how your SOI sees you. Learn more tips on how to build your SOI.

Step 4: Learn Different Real Estate Marketing Strategies

Your marketing plan for real estate gives you many options to show off your expertise, adaptability, and knowledge of the real estate market. That said, a smart marketing strategy utilizes various marketing methods to create more than one lead gen system. Choose the channels that make the most sense for you and your target market.

Digital Marketing

• Online presence: Create your online profiles that allow you to be found online. Set up a system to ask clients to give you reviews.
• Social media: Facebook, Instagram, and LinkedIn allow you to interact with your clients, sphere of influence, and future clients with engaging content.
• Email marketing: One of the most efficient ways to connect with your database. Time spent building and nurturing your email list is time well spent.
• Website: One of the first things your potential clients will do is look for you online. Make sure they can find your beautifully designed website that gives them more information about who you are and who you serve.

Don’t feel the need to DIY your own site. Trust one of the expert real estate website builders we recommend, like Agent Fire, to design it for you. They will ensure you’re SEO-ready with an elegant, professional site that shows off all that you offer to the clients that work with you.

Traditional Marketing

• Direct mail: Direct email marketing campaigns are an excellent and cost-effective way to reach your specific neighborhoods with your marketing message.
• Print advertising: Real estate print advertising includes magazines, flyers, and brochures for your listings and brokerage. 
• Community engagement: Networking events and experiential marketing, combined with open houses are amazing ways to stay connected in person with your community.

Emerging Trends

• Virtual reality tours: Augmented reality technologies and virtual reality tours can expand your reach and put you at the forefront of certain demographics.
• Collaboration: Working with influencers is awesome for cross-pollinating databases and expanding your connections. Use influencers to grow your email list fast.

Step 5: Get Clear on Your Unique Selling Proposition

Your unique selling proposition (USP) is what makes you different from everyone else. To identify your USP, conduct a SWOT analysis on yourself, considering your Strengths, Weaknesses, Opportunities, and Threats. After you’ve completed your SWOT analysis, you will identify what makes you unique and be able to market yourself in the most effective way.

Here are some examples: 

• Example 1: Leveraging over 20 years of unmatched local expertise to navigate the luxury market, ensuring every client achieves their real estate dreams with unparalleled personal service and insider knowledge.
• Example 2: Bringing fresh energy and cutting-edge digital marketing strategies to the real estate market, I empower first-time homebuyers to navigate the buying process with confidence and ease.

Pro tip: It can be hard to conduct an audit on ourselves and our own business. Seek feedback from friends, family, colleagues, and past clients if you’re struggling to get started.

Step 6: Formulate a Budget for Your Marketing Plan

Several factors influence how much money you’ll spend on marketing and which channels you’ll use. However, a general guideline is to allocate around 10% of your monthly income for marketing expenses. Ultimately, it often depends on your target audience and where they are showing up. 

To get started, it’s important to establish some initial figures. Then, once you’ve put your plan into action, return to it after a few months and analyze your results. 

Step 7: Utilize Free Resources 

If you’re newer to the biz and don’t have much for a marketing budget at the moment, utilize some or all of these cost-saving strategies. This will help you keep more money in your pocket while getting the maximum exposure for your real estate business.

Step 8: Set Your Goals & Timeline

A crucial part of creating a marketing plan is establishing goals and timelines to help you achieve what you want in your business. This not only helps hold you accountable but also keeps you motivated. So, let’s get started building your dream business by writing down those goals and giving them deadlines. 

• Short-term Goal: Consider your annual, monthly, quarterly, and weekly goals. This should encompass the gross commission income (GCI) and the number of transactions you’d like to achieve by the end of the year. Then, break down your annual goal into smaller quarterly goals. 
• Long-term Goals: Consider where would you like your real estate business to be within the first five years. Then, look further out and consider what you want to accomplish in your real estate business within 10 years.

Pro tip: Reverse-engineer the results you want to achieve and draft action steps to help you get there. Plan out your perfect day by breaking up your day into blocks dedicated to completing certain tasks. Plan out how many phone calls you will make daily, how many emails you will send, etc. Your success lies in the details you set and implement to create your roadmap to get there.

Step 9: Create a Marketing Calendar 

Being hyper-aware of how you spend your time is one of the keys to success in real estate. That’s why creating a calendar is crucial to staying on top of your marketing efforts. Start by creating a month’s worth of content, then decide from there if you want to look ahead six months. 

This calendar can include: 

• Newsletters
• Social media content
• Direct mail campaigns
• Pop-bys 
• Holiday marketing

Pro tip: When you get a listing, you’ll need to tackle that marketing as it comes up. Plan open houses and any marketing to promote it at the time of your signed listing contract. To maximize its impact, send postcards such as, Just Listed and Just Sold.

Step 10: Implement Your Marketing Plan

Now that you’ve created your marketing strategy, it’s time to launch it and start bringing in more business. Each piece of content you deliver will boost your reputation in your area. Soon, you’ll see engagement on your posts, people in your DMs, and texts and phone calls from people in your community asking to meet for a cup of coffee to talk about listing their homes. 

• Here are some goals to keep in mind:
• Set aside some time to build out your social media content. 
• Set up any print advertising you have on your real estate agent marketing plan and get everything ready to deploy. 
• Make sure you have your landing pages set up to capture leads as they come in. 
• Don’t forget to automate responses to leads once they are entered into your CRM. 
• Make sure everything is running smoothly and make any corrections necessary.

Step 11: Track Your Progress

Congratulations! Your real estate agent marketing plan is up and running. Now you just need to monitor your progress and make adjustments when needed. Don’t panic if you don’t see a lot of leads come in initially. It takes time to develop that know, like, and trust factor. The more people who see you, your posts, and your marketing materials, the more they will feel like they know you. 

Tracking your metrics will give you a good idea of where your traffic is coming from and how well you or your team are converting. The more you know about your leads and your success at converting those leads, the more success you will achieve. 

Here is a short list of some of the most important metrics to track once you’ve implemented your real estate marketing plan:

• Website traffic
• Lead capture rate
• Conversion rate
• Response rate
• Cost per lead
• Cost per client
• Lifetime customer value
• Referral rates
• Engagement rates
• Click-through rate

Pro tip: Once you’ve got your marketing plan up and running, use tools like Google Analytics, Facebook Ads Manager, and your CRM analytics tools to monitor how effective your marketing is. Conversion rates will give you a lot of information about your return on investment. But also look at the length of time for conversions to get a better view of your overall marketing effectiveness. Remember to adjust your marketing efforts based on what your metrics tell you.

Why Is a Marketing Strategy Important? 

Working in real estate sales is just as much about marketing as it is about the properties we sell and the relationships we build. To keep your pipeline full, you need to have a plan in place, which is where your real estate agent marketing plan comes in. 

Here are some key reasons why it’s important to focus on your marketing strategy:

• Client nurturing: It’s important to stay in touch with clients throughout the year. Building and maintaining relationships is a key element of being a real estate agent. 
• Community involvement: Showing your business is a part of the community, not just working in it, will help strengthen your brand image.
• Pipeline preparation: Getting in front of existing and prospective clients could help position you as a go-to resource in your community. 
• Brand awareness: The more familiar people are with you and your business, the more likely they’ll think of you when it’s time to buy or sell.

Frequently Asked Questions (FAQs)

What is the difference between a business plan and a marketing plan?

What type of marketing is best for real estate?

Should I charge for marketing a listing?

Your Take

Now that you’ve learned different real estate marketing techniques and how to implement them, you’re ready to hit the ground running. Use this guide to build a marketing plan that’s as dynamic as your business, revisiting and refining it every quarter to stay ahead. Don’t forget to download our real estate marketing plan template to streamline your path to growth. 

Have you used a marketing plan for your real estate business? Let me know in the comments.

The post The Ultimate Real Estate Marketing Plan: Template & How to Create appeared first on The Close.

Step 1: Decide if a Real Estate Brokerage Is Right for You 

Starting a real estate company comes with its own set of risks and demands. It takes a good chunk of time, money, and effort. Even if you’re pumped and ready to begin, it’s helpful to know what to expect. That way, you can stay focused and navigate the inevitable ups and downs that’ll come your way. Here are some pros and cons to help you decide.

Step 2: Evaluate Your Goals

To be successful at any difficult task, it’s important to set clear goals. It’s easy to daydream about what your ideal brokerage would look like, but figuring out what it takes to get there and making a solid plan will help make that dream a reality. Aside from the startup costs of opening a brokerage, consider the following factors:

Pro Tip: Take some time to put together a statement that outlines your mission (why you’re doing this), vision (what success looks like), and values (the principles you’ll stick to). It might feel like a small thing, but it’s super important for building a successful business. Every decision you make, every person you bring on board, and how others see your brokerage should all reflect the quality of that statement.

Step 3: Understand the Full Financial Picture 

The expenses associated with starting your own independent brokerage can fluctuate. So, check your state’s specific rules and fees for starting a business, as these can differ significantly. Here are some typical expenses when forming a brokerage.

If you need to upgrade to a real estate broker’s license or need continuing education, check out The CE Shop. This online education platform offers broker licensing in 21 states and continuing education for all 50 states and the District of Columbia. The CE Shop is known for its user-friendly interactive dashboards and outstanding learning tools. It also offers a pass guarantee.

Step 4: Learn About the Types of Brokerages 

It was the norm for every real estate brokerage to have a physical office. But with the rise of the internet, most agents work remotely. With this change, we’ve seen an increase in virtual real estate companies. Let’s take a look at some of the different brokerage options.

Real estate companies operate in many different ways. Therefore, it’s up to you to decide which of these styles you want to invest in. Some key considerations when deciding which office type best matches your operational goals are your location’s visibility, the local market activity and trends, and your competition. Also consider the cost and size of office space you need and what your ideal clients need in terms of location, conference rooms for closings, and accessibility. 

Step 5: Conduct a Market Analysis

The next step is to see if your dream brokerage fits into your chosen market. To do that, you must analyze the competition by evaluating the local firms’ market share. Look for gaps in their marketing and branding you can fill. Assess what the successful brokerages are doing right and what you could improve in their model and culture. Consider what’s missing that could add value to attract top agents, including technology, lead generation options, team-building assistance, and training and mentoring.

Do you need lead generation tools for your brokerage and agents? Look no further than CINC. Its AI assistant, Alex, is available 24/7 and will reach out to leads at the right time with a message that meets their needs. It also offers location-specific IDX websites for your listings which drives highly-targeted traffic to you. It also tracks where leads are in the buying cycle.

Step 6: Create a Business Plan for Your Brokerage

The next step is to create a business plan for your real estate brokerage. This is one of the most essential documents you’ll write for your business. Your plan should be thought out and researched. In addition to the steps in your real estate investment business plan, include commission splits and fees, agent training and services, and your talent recruitment strategy. Consider if you’ll add lead generation, technology, and your marketing and advertising resources. 

Also, weigh your commission split plan with what tools your brokerage will pay for. Your office plan, management structure, and policies and procedures should all be defined in the business plan.

Pro Tip: Figure out how much money you’ll need to keep the business afloat for at least two to six months without revenue—longer, if possible. Keep in mind that this is separate from your personal financial cushion that supports your life in the interim.

Step 7: Build Your Brand

When going through the process of how to start a brokerage for real estate, building your brand is an essential part. This gives you a chance to have some fun and get creative. Here are the core components of any strong brand:

• Your brokerage’s name: What you name your business is one of the most important decisions you’ll make. It’s the key to every great brand and will help drive brand recognition.
• Your brokerage’s logo: As a visual representation of everything your brand stands for, your brokerage’s logo is the second-most important element of your brand. This helps people recognize your brokerage even without hearing or seeing the name.
• Your brokerage’s slogan: A memorable slogan, also known as a tagline, can help get more leads and close more deals. This gives your audience an indication of how you operate and what it would be like to work with your brokerage.

Step 8: Finalize Business Essentials 

There are a few remaining essentials before opening your real estate brokerage. These include securing financing, obtaining necessary licenses and permits, and opening bank accounts. These steps are crucial before you can officially open your doors. Once everything is in order, you’ll be ready to launch your business! 

Secure Financing

Unless you own the real estate for a brick-and-mortar business, financing can be tricky in this industry since real estate brokerages don’t have large assets to lend against. If you are opening a virtual brokerage, without a proven track record or assets that you can put up for collateral, it can get tricky. Some franchises help secure or provide financing to their franchisees. 

Other funding avenues include bank and small business loans, private equity, and hard money lenders. Without a track record of operating a successful business, you can also seek startup funding from friends and family, bootstrapping through personal savings and reinvesting business revenue, and real estate crowdfunding.

Obtain Required Licenses & Permits

Review your state-specific requirements for licenses and permits for operating a brokerage as they vary from state to state. Aside from general business licenses and permits, you need to be compliant within the real estate industry. Reach out to your local and state associations and work with them to fill out the proper paperwork and pay the required bond and fees. 

Open Business Banking Accounts

Every business requires a bank account, but real estate companies also need escrow accounts for transaction deposits. These accounts help keep business funds separate from client funds, ensuring compliance for your brokerage. The escrow or earnest money deposits require separate accounts for each transaction.

Cover Your Legal Bases 

If you’re working with partners, it’s important to agree on revenue shares. Also, keep in mind that everyone is responsible for any expenses or losses that come up. Setting up as a limited liability company (LLC) could be a good option for your business, but check with a lawyer and CPA to figure out what’s best for your specific situation.

Buy or Lease Office Space

If you’ve opted to go the brick-and-mortar route, you’ll need office space. The cost of office space varies significantly based on location and whether you rent or buy. Here are a few tips to help you find a space that works. Start small. Consider coworking spaces or subleasing in offices with some technology infrastructure, such as internet access. Pay attention to aesthetics and make sure your space is well-furnished and professional. Choose a location that is convenient for agents and customers.

Step 9: Recruit & Retain Agents 

Try to get a decent mix of buyers and listing agents. Recruiting listing agents is more difficult than buyers agents or newbies. Investing the time, effort, and money into recruiting is worth it. Every new listing agent you recruit helps build your brand. Consider these tips as you get started:

Pro Tip: Review your non-compete agreement if you came from leadership in another brokerage. It may prevent you from reaching out to agents at your previous company for a period of time.

FAQs

What is a real estate brokerage earning potential?

What are some obstacles when opening a brokerage?

What is the difference between a broker and a brokerage?

Bringing It All Together

We’re just scratching the surface here but with this guide and the right motivation, financing, planning, and vision, you now know how to start a real estate brokerage firm. Have you been down this road before? Or maybe you have specific questions about your market or situation. Let us know in the comment section!

The post How to Start a Real Estate Brokerage in 9 Steps appeared first on The Close.

What Is a Rent-to-Own Home?

A rent to own home is a type of real estate investment when a tenant purchases the property they’re renting after a specific time. In this kind of deal, part of what the tenant pays in rent goes towards building equity in the home, or the owner credits it toward the purchase price. The terms of the rent-to-own contract outline the purchase price, the option period (when the tenant can exercise the option to buy), rent premiums, financing terms, and option fees. 

There are two ways a rent-to-own agreement can work for investors: 

• Investors looking to buy: The rent-to-own option allows you to lease a property with the intention of purchasing it in the future, saving you money, or working toward enhancing your credit score.
• Investors looking to sell: This lets you offload a property while covering costs. If you have a current tenant, you can opt to have them purchase the property while continuing to build equity. This is also useful with an incoming tenant interested in a rent-to-own option. 

Steps to Buying a Rent-to-Own Home 

There are many ways to find a rental when considering how to find rent to own homes. However, purchasing one requires a different approach. Once you’ve decided this is how you want to make a real estate investment, the next step is to familiarize yourself with how this works. Let’s take a look at the essential steps in buying a rent-to-own home:

Step 1: Decide if Rent-to-Own Is Right for You 

When considering your investment strategy, it comes down to what works for your finances. Rent-to-own presents certain advantages over traditional renting, but like most things, it also has drawbacks. Consider these pros and cons when making your decision.

Buying Rent-to-Own

Selling Rent-to-Own

Step 2: Assess Your Needs 

Before jumping into rent to own properties, the next step is assessing your needs for this type of investment. Doing this helps save you time and allows you to zone in on particular locations and property types. Consider the following points: 

Step 3: Choose a Location

So, if you’re wondering, “How do I find rent to own homes?” your next step is to explore your location options. To start searching on your own before working with a real estate agent, browse real estate listing sites to get a feel for what’s out there and what you like. Here are some sites that help you find homes rent to own:

Step 4: Conduct a Market Analysis 

To gain insights into a property’s income potential and be able to negotiate the purchase price, perform a comparative market analysis (CMA). This data will help you determine whether a property will likely generate positive or negative cash flow, which is crucial information for making real estate investment decisions. Key insights the analysis will give you include:

Whether buying or selling a property, conducting a CMA will give you the information you need to make a good investment. No matter your reason for choosing rent to own, you should do everything you can to understand whether there will be a return on your investment. 

Step 5: Negotiate Terms

Negotiating the terms of your agreement is a crucial part of how you can rent to own a home. These agreements should clearly specify how and when the home’s purchase price will be determined and the type of agreement being made. There are two main ways to establish the purchase price before signing the lease: 

• You can agree on a fixed purchase price at the beginning of the contract, which may be higher than the current market value
• Or, you decide on the price at the end of the lease term based on the market value at that time

Pro Tip: Establishing a fixed purchase price can be beneficial in markets where home prices fluctuate or are rising, allowing you to anticipate potential future appreciation.

In the two types of rent-to-own agreements, it’s possible to lease a home for one to three years, with the option to buy at the end of the term. The different agreements you can make are: 

• Lease option: You have the flexibility to opt out of purchasing the home after the lease ends.
• Lease purchase: Both the buyer and homeowner must commit to proceeding with the sale at the end of the lease term. 

Carefully review the terms and conditions explaining the differences between a lease option and a lease purchase. Be cautious with a lease purchase since it commits you to eventually buying the property, which could lead to financial strain if the purchase time comes before you’re truly ready.

Step 6: Review & Sign the Rent-to-Own Agreement

Before signing the contract, look at the terms and conditions in the lease option or lease purchase agreement. Pay close attention to important stuff like how long the rental period is, the option fee, how much you’ll pay each month, and any responsibilities for repairs and maintenance. Being informed from the get-go can help avoid problems for you and the landlord/seller later on. Here are some key things to think about before you put pen to paper:

• Examine the contract details: Review deadlines, option fees, rent payments, purchase price determination, exercising the option to buy, pet policies, maintenance responsibilities, homeowner association dues, property taxes, and additional maintenance requirements.
• Consult a real estate attorney: Seek advice from a real estate attorney to understand your rights and responsibilities as an investor. Consider negotiating particular clauses before signing; consider alternatives if the agreement doesn’t favor you.
• Research the property: Conduct thorough research on the property before committing. Order an independent appraisal, perform a property inspection, verify up-to-date property taxes, and check for any liens. These steps inform your decision on whether the property is worth investing in.
• Investigate the seller’s background: Obtain a title report to confirm taxes are up-to-date, property ownership, and equity.
• Ask questions promptly: Understand the circumstances that would make you lose the option to purchase. Certain contracts may revoke this right for late rental payments or failure to provide a written notice of your intention to buy.

Step 7: Pay the Option Fee to the Seller

Once you’ve signed the contract, the next step on how to rent to own a house is to pay the option fee. This fee is paid upfront to the seller and is nonrefundable. It’s negotiable but typically ranges from 2% to 7% of the home’s purchase price. Paying this option fee gives you the exclusive right to buy the property in the future.

Step 8: Fulfill the Monthly Rental Payments

Once your lease starts, you’ll begin making the monthly rent payments. Usually, part of that payment goes toward saving up for the future down payment on the house. Because of this, rent-to-own payments are generally higher than the current market rate since they include contributions towards potentially buying the home later on.

Online payment portals are beneficial for both landlords and tenants. A platform like PayRent makes it easier if you’re a landlord to manage communication with the tenants. Or if you’re a tenant, to stay on top of your rent payments conveniently. This streamlines the process and helps both parties maintain important documents and records, which can be useful when finalizing the rent-to-own purchase agreement.

Step 9: Initiate the Mortgage Application Process

When the rental period ends, you can either go for a mortgage to buy the property or decide not to buy it. Funding has to be secured by the end of your lease purchase agreement to keep your exclusive rights to the home and any rent credit you’ve built up. If you choose to purchase the home, you’ll start the standard mortgage application process to get financing. 

Just a heads up—if you sign a lease purchase agreement, you’re legally required to follow through with buying the home, or you’ll lose your option fee and any additional contributions made toward a down payment. Also, the homeowner can take legal action for breaking the contract.

Frequently Asked Questions (FAQs)

What’s the difference between rent-to-own and mortgage?

What is the main reason to avoid renting to own?

Is it always better to own or rent?

Bringing It All Together

Many people want to invest in real estate, but getting started can be challenging. Rent-to-own homes offer an effective way to secure a home without the complications of a traditional mortgage, allowing you to jumpstart your investment portfolio. Use our guide to learn how to get rent to own homes and determine if this strategy is right for you. 

We encourage you to share your thoughts in the comments—whether you are considering a rent-to-own option or have already taken this route.

The post How to Find Rent-to-Own Homes: An Investor Guide appeared first on The Close.

What Is House Flipping?

If you’re getting into real estate investing, there are many different strategies for building your portfolio. One approach is house flipping, which involves purchasing a home that needs repairs or renovations. After updating the property, you resell it or hold onto it and rent it out. Fix-and-flip investments are among the most popular choices since the goal is to buy low and sell high, increasing your profit margins. If you resell, there is no tenant management.

How to Find Houses to Flip in 7 Ways

Finding and purchasing a property to renovate is often more complex and time-consuming than buying a home for full-time living. Buying the right property at the right price, ideally below market value, maximizes profits. That’s why knowing where to search for these properties is crucial. Here are the steps to find homes to flip.

1. Visit Online Real Estate Listing Sites

One of the easiest and most popular ways to find houses to flip is through real estate listing websites. They’re user-friendly and give you lots of info about properties and the local market, which helps you spot good houses to flip.

While these popular sites are great, if you’re serious about learning how to flip houses, you should look for sites that focus on preforeclosures, for sale by owner (FSBO) listings, and auctions. These properties are usually listed at lower prices than similar ones and are often sold “as is.” 

Here are a few of the top websites to look for homes to flip:

To search for properties amid foreclosure, check out Foreclosure.com or use the widget below. Foreclosure.com has over 1.3 million listings in various stages of the foreclosure process, including fixer-uppers and as-is deals. Search for homes in your location and get property data for only $39.80 per month. This can help you learn how to find cheap houses to flip and increase your profitability and return on investment (ROI).

2. Meet With Real Estate Professionals

When asking yourself, “How do you find houses to flip?” Local real estate pros are a valuable resource for anyone looking to find houses to flip. This includes agents, brokers, wholesalers, or mortgage brokers. They’ve got the inside scoop on the local market, know the best neighborhoods for flipping, and can keep you updated on properties that might be a good fit.

Here’s how each type of real estate professional can help you find properties to flip:

Pro Tip: Once you’re ready to sell your fix and flip property, hire a real estate agent to help you—unless you decide to become a real estate agent yourself. Getting a real estate license can help you immerse yourself in the real estate world and maximize your profits.

3. Manually Search for Potential Properties

Even though most real estate transactions start with online listings, this isn’t the only way to find cheap houses to flip. While offline strategies take more time and effort than searching online or speaking with real estate professionals, they can be a lucrative way to find properties to flip. These are the primary offline strategies that real estate investors use to find potential flip properties:

• Public records: Search public records for properties with delinquent mortgage payments. This indicates that the homeowners may be in financial trouble, so they may be open to receiving an offer to buy their home. Public records can be found at your local government office, but most agencies have an online presence where you can view and request records.
• Tax records: This is another way to find homeowners who haven’t paid their mortgages, which may motivate them to sell their homes. Check your state’s Secretary of State website for details about how to view or access this information.
• Probate court: Probate properties are usually neglected homes because they’ve been left to someone who doesn’t want the responsibility. Attending probate court can put you in direct contact with someone with a home they want to get rid of without the hassle of listing it on the market.
• Driving for dollars: This means actively driving through local neighborhoods and searching for distressed properties that could be flipped. It can be time-consuming and challenging, but it’s a great strategy to find off-market properties and essentially eliminate a competing investor from making an offer.

An ideal way to find leads without spending hours on manual searches is by using REDX, a prospecting platform that searches through thousands of databases. It provides the most updated and accurate information on FSBO properties, preforeclosures, and expired listings. It even includes an easy-to-use contact management system to stay on top of all communications and potential deals.

4. Engage in Networking

Building a network is a core element of any successful real estate investing business. The more connected you are with your network, the more likely they will send you potential properties. For example, other local real estate investors are the most likely people to find distressed properties, and it may not be the right fit for their current financial or business goals. A few simple ways to connect with other flippers and investors include: 

• Associations: The Real Estate Investors Association (REIA) has local chapters in most states and cities. 
• Local events: Do a simple search for fix and flip groups and events on Google or Meetup.
• Real estate networking platforms: Websites like REIClub have searchable directories to help you find local groups and events.
• Social media: Search for Facebook groups for investors and flippers, or search for social media profiles that talk about renovations and home flipping.

Important Note: The more people who know that you are a flipper and want to buy worn-down properties to renovate, the more easily you’ll be able to find and contact home sellers. You’ll also be able to find mentors who can help guide your decisions and minimize the learning curves of investing.

5. Implement Marketing & Advertising Strategies

Learning how to market and advertise your business and target distressed properties can be challenging for new investors, but there are various ways to go about it. In fact, marketing and advertising as a home flipper is not much different from marketing as a real estate agent. Both methods involve pinpointing your audience and implementing a plan to reach them and bring awareness to your business.

Here are some of the most effective ways to market yourself and find properties to flip:

6. Look Into Auctions

Most real estate auctions sell bank-owned houses, foreclosed, short sales, or in preforeclosure. This makes them an ideal place to find homes to flip because starting bids are usually well below market value, and the final sale amount only depends on your budget and your competition. Real estate auctions can happen in person or online. 

7. Monitor Change of Life Circumstances

Instead of searching specifically for distressed properties, pay attention to changes in life circumstances in local neighborhoods to target potential deals. Major events happen, like divorce, death, an inheritance, or changes in the executor of an estate. Although this is an unfortunate situation, it creates an opportunity for home flippers to find profitable properties. 

Property ownership is often automatically changed, and the person who inherits the house may not be able to pay for the mortgage or property taxes. If you can connect with these leads at the right time, you are more likely to get a great deal on a home and reduce the costs of flipping a house.

Catalyze AI is an event-driven predictive analytics tool. It accurately predicts the buying cycles of consumers and homeowners by analyzing hundreds of millions of data points, therefore providing property leads that are more likely to need an investor’s help.

Frequently Asked Questions (FAQs)

How long does it take to flip a house?

What is the 70% rule in house flipping?

Is it still profitable to flip houses?

What are the pros & cons of flipping houses?

Bringing It All Together 

Now that you have your answer to “How do you find houses to flip?” you can hit the ground running. Using a combination of methods we gave you in this guide will help you build your investment portfolio and become a pro house flipper in no time. 

Do you already use some of these techniques? Let us know in the comments!

The post How to Find Houses to Flip for Profit in 7 Ways appeared first on The Close.

Bonus: Download Our FREE Lease Termination Letter Template

Reasons to Send a Lease Termination Letter

Terminating a lease can happen for various reasons and should be handled with care. Sending a lease termination letter is a key step in this process, as it formally initiates the cancellation of the lease agreement. Make sure to document all of your communications with tenants during this time in case you need to provide written evidence of the reason for the termination. Here are some common reasons you might need to send a tenant lease termination letter:

• End of the lease 
• Violation of the lease 
• Sale of the property 
• Illegal activity 
• Default on rent payments 
• Condition of the property

Pro Tip: Before you send the letter, take some time to review the lease. Look for specific clauses related to termination, like how much notice you need to give or conditions. It’s also a good idea to familiarize yourself with the local and state landlord-tenant laws to stay compliant. Doing this first prevents potential legal issues and clarifies your obligations and rights according to the lease.

Items to Include in Your Lease Termination Letter

When ending a lease—whether because of expiration, violations, or for any other reason—writing a clear and comprehensive termination of lease notice is important for both landlords and tenants. Use this guide to craft an effective letter that adheres to legal standards and communicates the necessary information. From verifying legal requirements to drafting the final signature, each step is designed to ensure that the process of ending a lease is conducted smoothly and professionally.

Opening Statement

The opening statement of your rental termination notice should be respectful and clearly address the tenant. This way, you set a professional tone and make your intention clear right from the beginning. Use the tenant’s full name and add a subject line above the greeting. While this isn’t necessary, it’s another strategy to get the tenant’s attention and communicate the importance of the notice. Here are a few examples:

Date of Notice 

Always include the date you’re writing the letter to avoid any timeline mix-ups. Timing is essential when informing a tenant about a change in their lease, especially the end of a lease. Knowing your local laws regarding timeframes for different notices will help keep a positive relationship and avoid any pushback from tenants. 

Pro Tip: Maintain proper documentation for your records, showing dates of communication, so that they are easily accessible if you need to show proof. 

Your Contact Information

It’s crucial to make it clear who the message is from so they take it seriously. Include your name if you’re the landlord or the name of your property management company. This way, the tenant knows how to get in touch with you if they need to.

• Phone number
• Email address
• Physical address 

Tenant Information

Since this is not a general letter, it’s important to include the information about the tenant whose lease is being canceled. This helps address the tenant directly so they know the letter is intended for them. The following tenant information should be included in the letter: 

• Tenant’s full name 
• Address of the rental property
• Contact information

Termination date 

A significant detail to include in a notice of termination of lease is the effective date of the termination. Tenants typically sign a lease at the beginning of their rental term, which specifies their lease’s start and end date. Including this information in your notice reminds them of the lease terms they previously agreed to. If the lease ends before the agreed-upon lease end date, you must include proper documentation allowing you to break the lease early. 

Reason for Termination

Provide a clear reason in your termination of lease agreement letter that meets legal and ethical standards and helps maintain a transparent relationship with your tenant. Whether the termination is due to lease violations, the end of the lease term, or other reasons, specifying this prevents misunderstandings and potential disputes. Refer to any relevant parts of the lease and cite state laws supporting your decision to terminate.

One of the most common reasons why landlords terminate leases is due to bad tenants who refuse to comply with set agreements. To avoid such tenants, it is crucial to screen your tenants thoroughly. Taking the time to screen tenants can save you the trouble of dealing with a bad tenant in the future and going through long eviction processes.

TurboTenant provides robust features like rental listing syndication, online rent collection, lead management, and expense tracking to help you screen tenants thoroughly and find the best ones for your properties. The intuitive design of TurboTenant’s tools and resources consistently enhances usability and efficiency for landlords and tenants, making it a go-to solution for effective property management.

Procedure for Vacating

In your lease termination form letter, clearly outline what the tenant needs to do before vacating the property. Include details on how the property should look when they leave, the exact date they need to be out, and any other lease requirements they need to take care of. Providing this detailed information helps everything go smoothly and cuts down on any arguments about the property’s condition or getting the deposit back.

Pro Tip: Always give the tenant straightforward instructions on how to return the keys. Specify where and how to drop them off and when they need to do it by. This can help avoid any issues with lost keys and make the handover between tenants easier.

Security Deposit Process

When you send your lease termination notice, explain how the tenant will get their security deposit back. Let them know when they can expect to receive it, what might cause you to deduct anything, and how you’ll make the payment. Clarity is really important for both sides and helps wrap things up smoothly without unnecessary complications or legal challenges.

A platform like PayRent will help you manage tenant communications and streamline your revenue. Take advantage of many tools and features to simplify your business, such as collecting rent and security deposits, screening tenants, managing documents, collecting e-signatures, and accepting online applications. 

Closing Statement

Finalize your lease termination letter by inviting the tenant to chat if they have any questions or concerns. This helps keep things friendly and can make the transition smoother for everyone involved. Reiterating your direct contact info makes it easy for them to reach out, which helps avoid misunderstandings and allows you to resolve any issues quickly.

Signature

The sample lease termination letter includes a space for your signature at the end. This adds a personal touch and validates the letter as an official document. Add your printed name and title to keep things professional and clear. 

When & How to Send a Lease Termination Letter

The timing for sending a lease termination letter depends on the reason for ending the lease. Sticking to the right timeframe and following the necessary steps based on the circumstances is important. Here are some times you will send a lease termination letter:

• Before a lease renewal
• At the end of a month-to-month lease
• During the middle of a lease (when there is a clause in the lease that allows it)

Since leases are legally binding, terminating a lease early must follow a specific process, making the delivery time crucial. These are the primary delivery methods:

• Certified mail: Provides a documented record of sending and receipt, which helps prevent disputes over notice or timing of notice.
• Email or e-signature software: Manually requesting a read receipt when sending via email will notify you that the tenant has received the documents. Even better, e-signature platforms timestamp the document every step of the way for more secure delivery.
• In-person delivery: Personal delivery lacks documentation, so consider asking for a signed acknowledgment of receipt from the tenant.

Legal Factors to Consider When Terminating a Lease

If you’re a landlord, there will be times you’ll have to deal with complex legal considerations when terminating a lease. Handling the process correctly is crucial, respecting your tenant’s rights while meeting your legal obligations. Here are some key legal considerations to keep in mind while terminating a lease:

• Adherence to lease agreements: You’re required to strictly follow the terms outlined in the lease agreement. Any deviation can result in disputes and potential liabilities.

• Notice requirements: Laws typically require landlords to give a specific notice period before the lease ends (often 30 to 60 days).
• Reasons for termination: Some areas require a valid cause, such as nonpayment of rent, lease violations, or the landlord’s need to occupy the property.
• Protected classes: Laws may offer additional protections for certain groups, such as the elderly or disabled, influencing how leases can be legally terminated.
• Security deposits: State laws usually determine the timeframe for returning security deposits, commonly 30 to 60 days after lease termination. If deductions are made for damages beyond normal wear and tear or unpaid rent, you must provide an itemized statement outlining the deductions.
• Eviction process: If tenants don’t vacate voluntarily after a lease is terminated, you may need to initiate an eviction, which involves clearly stating legally valid reasons for eviction, filing an eviction notice, and attending a court hearing if the tenant contests the eviction.

Pro Tip: To avoid legal repercussions, consult with a real estate attorney to make sure you stay compliant with local laws. Working with an attorney will also help you understand both the specific terms of lease agreements and the broader landlord-tenant laws that apply in your area. 

Frequently Asked Questions (FAQs)

Can I write my own termination letter?

What should not be written in a lease termination letter?

Can I evict a tenant without a court order?

Bringing It All Together 

Writing an effective lease termination letter is a crucial skill that safeguards your real estate investment and rights while giving clear instructions and expectations to your tenants. Follow the structure, guidelines, and examples provided in this guide to create your own template that you can use whenever you need it. Do you have any tips for terminating a lease? Share your experience in the comments below.

The post How to Write a Lease Termination Letter appeared first on The Close.

Bonus: Download Our FREE Late Rent Notice Template

Download the template and edit in Canva

Reasons to Send a Late Rent Notice Letter

Protecting the investment is an integral part of being a landlord. So, when tenants miss their rent payment, it can lead to long-term consequences. By sending them a late rent notice, you not only let them know that their nonpayment has become an issue but also protect yourself from avoidable issues because of their missed payment. Send a late rent notice for the following reasons:

• Monetary loss for hiring lawyers to begin the eviction process 
• Court fees to file an eviction lawsuit
• Time lost to pursue a tardy tenant and to investigate how to evict a tenant
• Mental strain from letting someone stay in your property for free while waiting to get paid

Pro Tip: Always keep records of signed lease documents so that you can produce them upon request. These documents should reflect the lease terms that the tenant agreed to when renting from you, including when rent is due and whether or not they would incur a late fee if they miss a payment.

Items to Include in Your Late Rent Notice 

As a landlord, sending notices to tenants—whether for late rent, maintenance issues, or rent increases—is part of the job. When you send out a notice, covering all your bases is crucial. Although a late rent notice is not the same as an eviction notice or initiating eviction proceedings, it does serve as a warning for your tenant. Generally, a rent late notice template should include the following information:

Tenant Information

Since this is not a general letter regarding your property, it’s important to include the information about the tenant you’re informing about missed rent. This feature helps address the tenant directly so they know the letter is intended for them. The following tenant information should be included in the letter:

• Tenant’s full name 
• Address of the rental property
• Contact information

Your Contact Information

When you’re trying to reach out to a specific tenant, it’s crucial to make it clear who the message is from so they take it seriously. Include your name if you’re the landlord or the name of your property management company. This way, the tenant knows how to get in touch with you if they need to.

• Phone number
• Email address
• Physical address

Date of Notice 

Whenever you’re informing a tenant about matters related to their lease, giving them plenty of notice is essential. Knowing your local laws regarding timeframes for different notices will help keep a positive relationship and avoid any pushback from tenants (I’ll talk more about these laws below). Always include the date on any letter you send to ensure that you comply as a landlord and maintain proper documentation for your records. 

Lease-specified Rent Due Date

A significant detail to include in a past-due rent notice letter is the original due date. Tenants typically sign a lease at the beginning of their rental term, which specifies the amount and date that rent is due every month. Including this information in your notice serves as a reminder of the lease terms they previously agreed to and can also help prevent future late payments.

Current Unpaid Balance

Although your tenant may already be aware that they missed their monthly rent payment, the amount should be included in your notice letter. Clearly outlining the amount owed eliminates the possibility of confusion about what is expected of the tenant. You would also include a late fee if you have one in place. 

Pro Tip: If you do not have a late fee in place but your state allows one, consider implementing this new process to hold your tenants more accountable for making their payments on time.

Mode of Payment

When you enter into a contract with a tenant, the acceptable modes of payment should be outlined in the lease. When a tenant doesn’t make a payment, remind them of the options to pay rent, which could include regular mail, in-person drop-off, or online payment. Resending their signed lease could be helpful if they don’t have their copy handy. 

Using online rent payment services is an excellent way to reduce the chances of late rent payments and simplify the rent collection process. These platforms enable you to send invoices, accept various payment methods, and send automatic payment reminders.

A platform like PayRent will help you manage tenant communications and streamline your revenue. Take advantage of many tools and features to simplify your business, such as collecting rent, screening tenants, managing documents, collecting e-signatures, and accepting online applications. 

Consequences of Not Paying

If your tenant isn’t willing or able to make their rent payment, it’s essential to let them know what comes next, which might lead to eviction. If you don’t clearly explain these steps, your tenant might not take the notice seriously, and that could hold up your ability to take further action. Familiarize yourself with the processes and timelines specific to your state so that if eviction becomes necessary, you have already taken the proper steps.

Signature Acknowledgement 

Include a spot for your signature at the bottom of your notice letter. This is necessary to finalize your agreement and keep it for your records. Don’t forget to leave a spot for the date of signing. Using real estate software for investors is a great way to collect signatures, keep track of documents, and communicate with your tenants. 

When & How to Send a Late Rent Notice

Certain states require landlords to deliver a late rent notice in specific ways, such as certified mail or in-person delivery. In contrast, others allow the notice to be sent via email. Some states have five-day legal grace periods, while others have caps on late fee amounts.

• Failure to pay rent five to seven days after the due date 
• If you’re considering eviction 
• When your tenant does not attempt to pay the rent 

The details on how to deliver a late rent notice should always be in the lease agreement. Since late rent notices can be time-sensitive, the date and delivery time are crucial, so remember to review your agreement and state laws to determine the best way to notify your tenant. These are the primary delivery methods:

• In-person delivery: Personal delivery lacks documentation, so consider asking for a signed acknowledgment of receipt from the tenant upon delivery.
• Overnight postal service: This ensures timely delivery but lacks proof of receipt. Following up via phone or email could help secure confirmation that the tenant received your notice.
• Certified mail:: Provides a documented record of sending and receipt, which helps prevent disputes over receiving notice or its timing. Include the date and send the notice well in advance so it arrives within the required period.

Days to Pay Rent or Quit by State

You can start eviction if your tenant doesn’t comply with your notice. Just check your state’s rules about how long you need to give them to pay the rent they owe. You have the right to evict them if they don’t pay the past-due rent within that timeframe. Check out your state in the list below to learn your state-specific laws and details and see how many days they have to pay:

3 Days

• California
• Florida
• Idaho
• Iowa
• Mississippi
• Montana
• New Mexico
• North Dakota
• Ohio
• South Dakota
• Texas
• Utah
• Wyoming

5 Days

• Arizona
• Arkansas
• Delaware
• Illinois
• Louisiana
• New Jersey
• Oklahoma
• Rhode Island
• South Carolina
• Tennessee
• Virginia
• West Virginia

7 Days

• Alabama
• Alaska
• Georgia
• Kentucky
• Maine
• Michigan
• Nebraska
• Nevada
• New Hampshire

9 Days

• Connecticut
• Hawaii

10 Days

• Colorado
• Indiana
• Kansas
• Maryland
• North Carolina
• Oregon
• Pennsylvania

14 Days

• Massachusetts
• Minnesota
• New York
• Vermont
• Washington
• Wisconsin

None

• Missouri

Important Note: Most timeframes do not include Saturdays, Sundays, and holidays.

Frequently Asked Questions (FAQs)

What is the longest you can be late on rent?

Does email count as a written notice?

Does email count as a written notice?

Bringing It All Together

If you’ve been having a tough time letting your renters know about their missed or late payments, keep a late rent notice example on hand. Make sure to be as detailed as possible, but don’t consider it a replacement for a formal eviction notice. A solid and well-written late rent notice will help you get the response you’re looking for from your tenants. 

Have you had to send late rent payment notices? Leave us your best tips below!

The post Landlord Guide: How to Write a Late Rent Notice Template appeared first on The Close.

• Appfolio: Best for mobile-friendly management 
• Avail: Best for independent landlords 
• DoorLoop: Best for various property types
• Rentec Direct: Best for rental websites 
• Rent Manager: Best for an all-in-one solution 
• PayRent: Best for rent collection and tenant management
• TurboTenant: Best for advertising

The Close’s Top Picks for Property Management Software

Benefits & Features of Property Management Software

Making your business run smoother can help you save time, manage money better, and keep tenant records in order. That’s why picking the right rental software for small business can really make a big difference. Let’s take a look at the perks of the features available with your chosen software.

• Listing management
  • The ability to post available listings easily gets you greater listing exposure.
  • Centralized property details allow you to make adjustments or updates to listings.
• Applicant screening
  • A proper and neutral screening process keeps it fair for all.
  • Helps with handling tenant applications and ensuring they meet the rental requirements.
• Lease management
  • Create and file lease documents with ease.
  • Simplifies communication and timelines to strengthen tenant/landlord relationships.
• Accounting
  • Helps ensure the property has a healthy cash flow.
  • Can easily collect rent payments.
• Marketing
  • Capture and manage leads.
  • Showcase services offered and stand out from the competition.
• Reports
  • All property data is kept in one place.
  • Provides insight into property trends.

Appfolio: Best for Mobile-friendly Management

Pros

• Extensive customer support
• Mobile app
• Accounting and reporting solutions

Cons

• No pricing listed on website
• No online signature tools
• No free trial

The Close Score

4.9

Pricing:

5.0

General Features:

5.0

Advanced Features:

5.0

Customer Service:

5.0

Customer Rating:

4.3

Expert Score:

3.7

out
of

5

Why I Chose Appfolio

From accounting to marketing and everything in between, AppFolio is a top choice because of its user-friendly interface and impressive features. The mobile app makes it super easy to access and manage your properties on the go. You can customize your free website, access tenant and owner portals, manage maintenance requests, and so much more. One standout feature is the AppFolio Stack Premium Integrations, which lets you link your favorite property management tools to AppFolio. This helps you increase efficiency and manage your business from one central system.

Additional Features

• AI Leasing Assistant: Having AI assistance increases your ability to respond instantly to leasing inquiries, book showings, qualify leads, cross-sell units, and more. 
• Leasing CRM: A CRM is one of the best ways to stay organized and on top of communication. This feature will boost your efficiency with a funnel for leasing agents and allow oversight for managers. 

Avail: Best for Independent Landlords

Pros

• Free subscription plan
• User-friendly platform
• Online marketing, digital lease signing, online rent payment, and maintenance tracking

Cons

• No 24/7 customer support
• No mobile app
• No free trial for the paid subscription plan

The Close Score

4.9

Pricing:

4.5

General Features:

5.0

Advanced Features:

5.0

Customer Service:

4.5

Customer Rating:

4.4

Expert Score:

5.0

out
of

5

Why I Chose Avail

If you’re a DIY landlord handling your properties or portfolio solo, this one’s for you! Avail is unique in that its free plan encompasses a ton of features that make it easy to find tenants, sign leases, check credit histories, and collect rent all in one place. However, if you need more features, you can upgrade to the paid version, which includes services like applicant screening, online rent payments, and maintenance tracking. Avail helps support and educate independent landlords through a wealth of educational resources on its site, making operating or scaling your businesses easy.

Additional Features

• FastPay: With Avail FastPay, landlords can manage rental income with next-day expedited rent payment processing.
• Rent price analysis: This provides valuable information, including a rent estimate for your property, rent benchmarks for adjacent rentals, and county rent trends.

DoorLoop: Best for Various Property Types

Pros

• Easy-to-use interface
• Ability to sync your finances with QuickBooks
• Integrated CRM system

Cons

• Vacancy reports unavailable
• No free trial and subscription plan
• Expensive pricing structure

The Close Score

4.7

Pricing:

3.0

General Features:

5.0

Advanced Features:

5.0

Customer Service:

5.0

Customer Rating:

4.6

Expert Score:

5.0

out
of

5

Why I Chose DoorLoop

DoorLoop doesn’t just limit you to residential and commercial properties. It allows you to manage various types of properties, such as community associations, workforce housing, student housing, and mobile homes. It’s also a global platform, making handling any property, international location, and currency easy. You get all the great features of other property management software for small companies, such as listing your vacant units online, accepting rental applications, running tenant screening and background checks, and collecting rent.

Additional Features

• Integrations: DoorLoop integrates with thousands of software from accounting to calendar platforms, including Calendly, QuickBooks Online, Zapier, Pipedrive, Zoom, and DocuSign.
• Bank sync: This is powered by Plaid, allowing you to integrate your bank account, credit card, or debit card with DoorLoop to easily categorize and reconcile your transactions.

Rentec Direct: Best for Rental Websites

Pros

• 14-day free trial offered
• General ledger accounting and robust reporting system
• Tenant portal

Cons

• No free subscription plan
• No live chat support
• Customer service not available 24/7

The Close Score

4.7

Pricing:

3.5

General Features:

5.0

Advanced Features:

5.0

Customer Service:

4.0

Customer Rating:

4.4

Expert Score:

4.6

out
of

5

Why I Chose Rentec Direct

Rentec Direct offers a free, responsive, professional real estate website that fully integrates with your software to publish vacancies quickly. It also allows tenants to pay rent online and gives them and owners one-click access to their portals for easy communication and speed. Your property management website includes a custom web address, fully customizable pages, multiple mobile-compatible themes, and Google Analytics support. This offers a great way to promote your company and brand.

Additional Features

• Work order: It enables users to assign vendors, attach photos, bids, and invoices, and contact owners to report maintenance issues.
• QuickBooks import: Rentec Direct is a property management software that integrates with QuickBooks and offers a QuickBooks compatible export of reports, so you can easily import your Rentec data, like general ledger and financial reports, into QuickBooks.

Rent Manager: Best for All-in-One Solution

Pros

• Free demo offered
• 24/7 call center add-on
• Certificate program

Cons

• No bank syncing in the basic plan
• Add-on fees for integrations
• Monthly minimum between $200 and $500 depending on plan

The Close Score

4.6

Pricing:

3.0

General Features:

5.0

Advanced Features:

5.0

Customer Service:

4.5

Customer Rating:

4.4

Expert Score:

4.6

out
of

5

Why I Chose Rent Manager 

Rent Manager has everything you need to run your business all in one place. No matter what kind of properties you have, Rent Manager has got you covered. It offers comprehensive training, website building, complete accounting and reporting resources, intuitive marketing, and mobile tools, among many other features. While there is a monthly minimum, you can choose the package type that works best for your needs.

Additional Features

• ILS Advertising: Internet listing service (ILS) integrations push your unit and property information from your database onto various ILS platforms. All data changes in Rent Manager are automatically updated on each ILS site. 
• Rent Manager Certification: Comprehensive training covering areas including bookkeeping, day-to-day tasks related to property management, scripting, and more. You can access award-winning training at your fingertips regardless of your portfolio size. 

PayRent: Best for Rent Collection & Tenant Management

Pros

• Specific settings per property
• Online rental applications
• E-signature capability

Cons

• No property listing abilities
• No third-party integrations
• No property maintenance management

The Close Score

4.5

Pricing:

3.5

General Features:

4.7

Advanced Features:

4.5

Customer Service:

3.0

Customer Rating:

4.0

Expert Score:

3.7

out
of

5

Why I Chose PayRent

When it comes to property management, keeping your finances organized and having high-quality tenants is necessary to generate income. Luckily, PayRent helps you do just that. Landlords input their tenants’ payment requirements and the system automates payment reminders, adds late fee penalties, and blocks partial payments. Tenants can also set up recurring payments to make sure they get money in on time. Plus, PayRent includes tenant screening features like credit reporting and applications to ensure whoever is living in your property is financially qualified to be there.

Additional Features

• RentDefense: A feature available only on PayRent that protects landlords from lost or late rent. It includes scheduled payments, backup payment method, and bank balance verification.
• Lender partnerships: PayRent works with 75+ lenders to finance rehab, repairs, renovations, and portfolio expansion.

TurboTenant: Best for Advertising

Pros

• Custom rental applications
• Lease generation
• Rent collection system
• Free plan for landlords

Cons

• No CRM integrations
• Limited customer support hours
• No print advertising add-ons
• No team collaboration tools

The Close Score

4.3

Pricing:

3.8

General Features:

3.5

Advanced Features:

4.5

Customer Service:

5.0

Customer Rating:

4.4

Expert Score:

4.6

out
of

5

Why I Chose TurboTenant

One of the most difficult parts of property management is filling vacancies in your property to maximize ROI. TurboTenant makes this a breeze by offering comprehensive marketing and advertising at the click of a button. Create a listing description with TurboTenant’s AI-powered tool, upload your property images, and then syndicate your listing to over 25 listing websites. That should do the trick in finding qualified tenants! Once you find tenants, TurboTenant’s all-in-one system helps manage them with screening, leases, maintenance, and more.

Additional Features

• Rent collection: Set automatic reminders, late rent fees, and reoccurring payments for tenants.
• Tenant screening: Get a full background check for tenants, including credit and eviction checks.

Property Management Software vs Property Management CRM

Property management software: Designed for the ongoing needs of current managers, like syndicating listings, managing maintenance, and collecting rent online. 

Property management CRM: Focuses on managing leads and contacts, which helps property managers and investors find and maintain high-quality tenants.

Frequently Asked Questions (FAQs)

What is small business property management software?

Who should use property rental management software?

Can you use Excel for property management?

What is the best CRM for property management?

Methodology: How I Chose the Best Property Management Software

Our expert researchers, agents, writers, and editors at The Close researched and reviewed dozens of property management solutions for small businesses. We considered dozens and chose the top seven based on pricing structure, features, and reviews. 

Other factors we examined to evaluate the best property management software for small businesses include the following:

• Pricing (20%)
  • We evaluated the cost of each software, the price of each subscription package, the value of the features provided, and whether it offers a free trial.
• Property Management Features (30%)
  • Based on various property management features offered that help landlords and property managers list and market properties, screen tenants, generate leases and reports, and track financials.
• Tenant Communication Features (15%)
  • Based on various tenant communication features offered that help landlords and property managers to engage and connect with their tenants.
• Ease of Use (10%)
  • Based on how easy it is to navigate the provider interface and if it provides hassle-free transactions and communication between property owners and tenants.
• Help & Support (5%)
  • We looked into the convenience and attainability of customer service for technical support, onboarding, and training.
• Customer Rating (10%)
  • Based on customer feedback for each program, with particular attention given to reviews of the product and popularity of the provider, to certify the software meets user satisfaction.
• Expert Score (10%)
  • Expertise in the field and firsthand experience with the providers allow us to evaluate the standout features, value for the money, and ease of use of property management software.

Your Take

So, what is the best property management software? It depends on what you need! No matter what you choose, the right property management software will streamline your processes, keep your files and reports organized, and build strong relationships with your tenants. Use our list to choose a provider that best meets your needs and gives your business a competitive edge. What is a property management software feature that you can’t live without? We’d love to hear it in the comments below! 

The post 7 Best Property Management Software for Small Business appeared first on The Close.

Bonus: Download Our FREE Rent Increase Letter Template

Reasons to Send a Rent Increase Letter

Owning property means you have to be able to assess your investment and make adjustments as needed. Rent increases occur for many reasons, including market fluctuations, rises in costs, and to create property appreciation. Landlords often send out rent increase letters to tenants for these common reasons:

• Cover carrying costs or increase cash flow: If your expenses have risen significantly, raising rent is necessary to maintain positive cash flow.
• Generate higher return on investment (ROI): After doing a rental market analysis (RMA), new rental property owners might find they’ve set their rent lower than others in the area. If they bump up the rent to match the market rates, it could really improve their property’s ROI.
• Negotiate lease renewal:: During rental seasons, when demand is low, landlords can offer tenants a deal with a minimal increase in rent. This strategy can effectively encourage tenants to stay longer, which helps landlords maintain a steady cash flow and reduces the risk of extended vacancies once the lease expires.
• Retain great tenants: Offer smaller rent increases to encourage good tenants to stay, enhancing your property’s long-term success.
• Dissuade lease renewal: If you don’t want the tenant to renew the lease, consider raising the rent to a higher price.
• Tenant inheritance: When purchasing a property with existing tenants, a rent increase may be necessary to align with your financial goals.

Pro Tip: Raising the rent can be a useful strategy to prompt undesirable tenants to vacate, but the most effective approach is to prevent bad tenants by conducting thorough initial applicant screening. Utilize tools for comprehensive tenant screening, including credit, criminal, and eviction checks, to ensure you choose the right tenants from the start.

Items to Include in Your Letter to Raise Rent

A letter notifying a tenant of a rent increase should include clear and easy-to-understand information while complying with all legal requirements. Although the specific dates for sending these letters will vary based on the terms of the rental agreement, each letter should include the same essential components.

Your Contact Information

When you’re putting together your rent increase notice, start by adding your name if you’re the landlord or the name of the property management company. This keeps things professional and helps the tenant quickly see who the letter is from, making it more engaging than a plain old page or envelope. Also, be sure to include the following information so that the tenant can easily contact you if needed:

• Phone number
• Email address
• Physical address

Date the Letter Is Written 

When you’re raising the rent for your tenants, it’s essential to give them plenty of notice. This keeps a positive relationship between you and your tenants and is also required by law in many states. For example, in New York, if someone’s on a yearly lease, you must give them a 60-day notice. On the other hand, Idaho only requires a 30-day notice. Including the date in your message shows that you’re following the rules and trying to make things as easy as possible for everyone.

Greeting 

This small but significant detail can greatly influence how a tenant perceives and responds to your rent increase letter. Some landlords opt for a generic greeting, such as “Dear Tenant,” but I recommend using the tenant’s first name instead. Addressing them by name feels more personal and encourages open communication, while a generic greeting can come across as robotic and impersonal.

Consider adding a subject line right above the greeting. While this isn’t necessary, it’s another strategy to get the tenant’s attention and communicate the importance of the notice. Here are a few examples:

Body of the Letter 

If you’re wondering how to explain a rent increase to a tenant, the body of the letter is the place to do it. This is where you also have the most room for flexibility in your tone. Opt for being strictly professional or adopting a more informal style, depending on your preferences and relationship with the tenants. Whether you write a few paragraphs or keep your message concise, there are some essential details that you should include, such as:

• Current amount of rent
• Amount of rent increase
• The date the rent increase will take effect
• Payment methods accepted 
• Date rent is due 
• How to submit rent payments if changes are being made 
• Rental property address
• Notice of other terms of tenancy that are changing or remaining the same

Pro Tip: Adding a phrase or paragraph expressing gratitude for the tenant’s cooperation and offering a point of contact for inquiries also shows your desire to support them through what could be a difficult change.

Closing Remarks 

When learning how to write a letter to raise rent, it’s important to consider how you will close out the message. Use the same tone you’ve maintained throughout, keeping it professional and positive. The closing remarks should be simple, using phrases like “Sincerely,” “Thank you,” or “All the best.” Below that closing line, add your name, a space for your signature, and your title to keep it a proper letter.

Tenant Acknowledgement

Last but certainly not least, you should always get tenant acknowledgment for the information you share about their lease terms. This is necessary to finalize your agreement and keep it for your records. At the bottom of your rent letter, include a spot for signatures for yourself if you’re the landlord and for the tenant. Don’t forget to leave a spot for the date of signing. Using real estate software for investors is a great way to keep track of documents and communicate with your tenants.

Using a platform like PayRent will help you manage tenant communications and streamline your revenue. Take advantage of many tools and features to simplify your business, such as screening tenants, accepting online applications, collecting rent, managing documents, and collecting e-signatures.

Important Note: If your tenant does not agree to the new terms of their lease, you will need to inform them of their options, which would include moving out at the end of their lease.

When & How to Send a Letter to Increase Rent

Since most leases don’t automatically renew, you and your tenants need to sign a new lease with updated terms and pricing before the original one expires. Check your state’s regulations on how to let tenants know about rent changes so that you give the required amount of notice. While raising rent usually happens when an annual lease ends or a property is being rented out, it may be necessary to send a letter at one of the following times: 

• Prior to a lease renewal
• At the end of a month-to-month lease
• During the middle of a lease (only legal if there is a clause in the lease that allows it)

Since rent increases can be time-sensitive, the date and delivery time are crucial. These are the primary delivery methods: 

• Certified mail: Provides a documented record of sending and receipt, which helps prevent disputes over notice or timing of notice. Include the date and send the notice well in advance so it arrives within the required period. For example, send it at least five days before a 60-day notice to avoid any timing issues. 
• Email or e-signature software: Manually requesting a read receipt when sending via email will notify you that the tenant has received the documents. Even better, e-signature platforms timestamp the document every step of the way for more secure delivery. 
• In-person delivery: Personal delivery lacks documentation, so consider asking for a signed acknowledgment of receipt from the tenant.

Legal Factors to Consider When Increasing Rent

Now that you know how to write a rent increase letter, be sure to learn the legal factors in your area. Landlord-tenant laws vary from state to state and come with specific requirements for both parties. If you’re a landlord, it’s important to stay informed and follow these laws, especially when it comes to raising rent and giving notice. Rent increases apply to both month-to-month rentals and longer leases, but notice requirements differ depending on the lease type.

Rent control regulations exist in some states to limit how much landlords can increase their rental prices. Take California, for instance—landlords can only raise the rent by 5% each year, plus another 5% for cost-of-living adjustments, which means the total max increase is 10%. But when it comes to setting the initial rent for new tenants, there aren’t any rules. So, as a landlord, you need to figure out the right rent to charge from the beginning of your investment journey.

Frequently Asked Questions (FAQs)

Can you negotiate a rent increase with a tenant?

What is the most a landlord can raise rent?

If my tenant moves out rather than accept a rent increase, what do I do next?

Bringing It All Together

Investing in real estate comes with both challenges and exciting opportunities, especially when it comes to setting your own prices and controlling your income. By using the tips above and downloading our sample rent increase letter, you can send a rent increase notice that is simple and efficient. Are you a landlord? We’d love to hear about your tenant communication processes in the comments below.

The post How to Write a Rent Increase Letter + Free Template appeared first on The Close.

What Are Commercial Tenant Improvements (TI)?

Commercial TI, also known as commercial leasehold improvements or build-outs, are changes or repairs a landlord makes to their property as part of the lease agreement to meet a tenant’s specific needs and requirements. These renovations can range from minor cosmetic changes to significant upgrades. The primary purpose of a TI is to create a customized and functional space that is tailored to the tenant’s business needs and operations. A few examples of tenant improvement projects include the following:

• Building or removing walls 
• Heating, ventilation, and air conditioning (HVAC) 
• Adding doors and windows
• Interior or exterior painting
• Adding partitions or rooms (e.g., dental offices, doctor offices, or office spaces)
• Adding a drive-thru or changing the parking lot (e.g., food service)
• Changing or adding lighting
• Electrical work
• Flooring or carpeting

Important Note: Any removable items or changes that don’t provide value to the property are not considered part of TI. This would include decorations, furniture, or electronics.

How to Implement Commercial Tenant Improvements 

Setting up a great workspace is key to the success of any business. Before you make any updates or changes, familiarize yourself with the process. Here are the steps to learn how to make commercial improvements when needed.

Step 1: Assess Your Needs

Before starting any improvement project, the first step is assessing the needs and restrictions, aside from taking care of normal wear and tear. Doing this helps create effective, efficient, and tailored commercial TIs that meet the business’s unique needs. Consider the following points: 

• Create a clear plan that outlines the changes 
• Determine optimal layout and design for the space 
• Consider the functionality of the space
• Materials and equipment required
• Outline budgetary constraints

Step 2: Learn the Types of Commercial TI Agreements

Commercial tenant improvements seem pretty straightforward, but there is still some confusion about how they actually work. Like any other real estate deal, landlords and tenants agree in various ways. Here are the four most common types of tenant improvement agreements:

Important Note: Many other details can vary within these improvement agreements. For example, the landlord may pay for the TIs directly or offer a tenant reimbursement for improvements. As a tenant, getting a business or tenant improvement loan might be the best choice if you have to pay for the renovations before getting reimbursed.

Step 3: Weigh the Pros & Cons 

Consider the tax benefits when looking at the pros and cons of tenant improvement agreements. You might wonder, “Who pays for tenant improvements?” and “Who gets the tax benefit?” Whoever handles the improvements can write off the costs on their business taxes. So, if the landlord takes care of it, they get the tax breaks, and if the tenant does the work, the tenant gets those benefits. Just remember to chat with your tax advisor before claiming deductions on commercial leasehold improvements.

Each type of improvement has pros and cons, depending on who is overseeing the project, who is paying for it, and the possible side effects of renovations to your space. Check out the table below to know the pros and cons of each type of commercial tenant improvement:

Step 4: Get Familiar With the Top Improvements

If you’re a commercial landlord or a tenant looking to rent a space, knowing what improvements are most in demand can really make a difference. Features like energy-efficient lighting and up-to-date security systems are huge draws. Remember these popular upgrades for your rental property to attract and retain great tenants while maximizing your investment returns.

Sustainable Solutions 

Green initiatives are gaining popularity in commercial tenant improvements, with businesses seeking eco-friendly materials and energy-efficient technologies to reduce their environmental footprint. Some examples of sustainable solutions are the following:

• Using solar energy or panels as a primary source of electricity
• Installing green roofs or walls to improve insulation and air quality
• Adding large electrochromic glass windows 
• Providing recycle bins
• Using low-flow plumbing fixtures to reduce water consumption

Flexible Workspaces 

The demand for flexible and adaptable workspaces has increased significantly with the changing nature of work office spaces. Businesses are now looking for commercial spaces that can easily be reconfigured and scaled up or down according to their needs. This allows them to create an environment conducive to productivity and growth while saving on costs and space utilization. If you want to make your workspace more flexible, consider implementing the following design elements:

• Create call rooms to minimize disruptions to other employees.
• Install sound-absorbing products like panels or acoustic ceiling tiles to reduce noise from other areas.
• Make use of natural lighting and add shades that can filter light effectively.
• Choose furniture and storage options that are movable and adjustable to support different work arrangements.

Smart Technologies

Integrating cutting-edge smart technologies revolutionizes commercial spaces, significantly increasing efficiency and technological advancement. Think: Internet of Things (IoT) devices, automated systems, and Artificial Intelligence (AI)-powered tools. This transformation is a significant shift in how businesses operate, enabling them to streamline their processes and enhance productivity. Here are some examples of smart technologies that can make your workspace more advanced:

• Smart screens like Zoom and Microsoft Teams improve the video conferencing experience.
• Smart desks can automatically adjust height to enhance ergonomic well-being for employees.
• Occupancy sensors can detect real-time occupancy levels and automatically adjust lighting, heating, and ventilation systems.
• IoT devices include smart locks, entry control systems, and network monitoring tools.

Important Note: Trade fixtures are not the same as improvements. Improvements are more permanent renovations affixed to the property, which stay when the tenant leaves. Tenants cannot remove improvements, but they can remove trade fixtures, like window air conditioner units, furniture, and signage.

Step 5: Establish a Budget 

One of the most important steps in planning for commercial TIs is setting a realistic budget that incorporates all the necessary costs. To avoid unexpected costs or delays down the road, set extra funds aside and work with contractors and designers to create a thorough plan that outlines all the expenses. 

By establishing a realistic budget and clearly understanding the expenses, you’re setting yourself up to complete your tenant improvement project within your financial means and meet expectations. Some of the costs included in a budget are:

• Construction 
• Materials 
• Permits 
• Design fees

Step 6: Negotiate the Improvements

Landlords and tenants have the ability to negotiate tenant improvements since they aren’t required or restricted by law. Use the “improvements and alterations clause” section of the lease to negotiate the build-out allowance or other features of an improvement. Here are some things to keep in mind when negotiating: 

• State of the real estate lease market: Does the current market favor tenants or landlords? If there are many options for commercial space, that could allow for more leverage in negotiations.
• Length of the lease: The longer a tenant commits to staying in the building, the more likely the landlord will pay for improvements.
• Cost of rent: The higher the rent, the more likely the landlord will pay for improvements.
• If a business has historically drawn many customers, the landlord will be more inclined to pay for repairs.
• Timeline: Delays on large projects are inevitable, so ensure the projected timeline has a margin. Planning for this upfront can prevent obstacles to running a business efficiently.
• Type of agreement: Although the landlord usually pays for a commercial build-out, both parties should agree on the payment method.
• Management of the renovation: When landlords manage a renovation, there is more opportunity for mistakes and delays. When tenants manage a renovation for their business, they are typically more involved and can prevent increased fees and timeline delays.
• Payment requirements: Landlords typically want tenants to use the allowance for labor, materials, and construction, but there are other additional costs. Remember to budget for design consultation fees, legal fees, and material delivery costs.

Pro Tip: It’s better to negotiate before the renovations begin to set everyone up for success. However, if the tenant improvements exceed the allowances, negotiating to increase the amount or adjust the rent price will be necessary.

Step 7: Hire an Architect & Contractor

If you’re renovating a commercial space, hire a commercial tenant improvement contractor and an architect to oversee the design and construction to meet the needs of the business and comply with local regulations. These experts manage all aspects of your tenant improvement project, from its initial architectural planning to the final touches of the building process, ensuring that everything is completed to the highest possible standards. While both will be able to guide with building codes, permits, and structure modifications, here are the key differences between the two: 

• Architects: They are experts in design and create functional, secure, and visually appealing spaces. They play a key role in bringing a vision to life and an atmosphere that reflects a brand and supports business operations.
• Contractors: They are experts in infrastructure upgrades, interior finishes, and project management. They’re essential to executing the vision and design. 

Step 8: Obtain Permits

Before making any improvements to a property, it’s important to know the extent of the work and whether you’ll need permits from local authorities. Permits may be required for structural changes, electrical or plumbing work, or other modifications. Not following local building rules can lead to fines, legal issues, and potential liability for any damages or injuries caused by the work. Consult with the architects and contractors that you’re working with, or reach out to your local authorities. 

Step 9: Start on the Construction Phase

During the construction phase, the long-anticipated work is finally completed. This project phase is super important and needs good management to keep things running smoothly. How long this phase takes can vary based on the complexity of the project, but keeping everything on schedule is key to the whole project’s success. Once this phase is complete, the business can open for regular operations. 

Important Note: If permits were required for some work, you may need to have a building inspector visit the property to make sure that the work was done to code and is approved.

Why Are Commercial TIs Important?

Commercial TIs are a win-win for landlords and tenants because they help make the most of the space and boost profits. Landlords strengthen their relationships with tenants by designing a space that helps tenants thrive, leading to longer lease agreements. On the flip side, if commercial spaces don’t cater to what businesses need, the impact can be serious, like high turnover and lower rental income. Let’s look at why these improvements are so important for landlords and tenants:

Frequently Asked Questions (FAQs)

Can a tenant remove improvements?

Are tenant improvements an operating expense?

What is the difference between tenant improvement and building improvement?

Bringing It All Together 

In commercial real estate, tenant improvements are common, especially in the office, retail, and medical industries. Now that you have a better understanding of commercial tenant improvements, you’ll be able to meet the needs of your tenants and form long-lasting business relationships with successful lease terms. 

Do you have any success stories to share about making improvements to your property?

The post Commercial Tenant Improvements: A Complete Guide for Investors appeared first on The Close.

What Is a Real Estate Franchise? 

A real estate franchise is a unique business model allowing an individual to buy into an established real estate brokerage brand. When you buy a franchise, you get the license to use their marketing materials, training, and support while paying a fee to the company. The franchisor often gives you tools to grow the brokerage with recruiting materials and other systems. It’s a great way to start your business without starting from scratch. 

Steps to Buy a Real Estate Franchise

If you’re looking to take your knowledge and expertise in real estate to the next level, starting your own office is a great option—provided you have the resources and determination to make it happen. Going the franchise route will help you get started faster, but it’s important to understand the process first. Here’s a rundown of the steps you’ll need to take to learn how to buy a real estate franchise whenever you’re ready.

Step 1: Decide if a Real Estate Franchise Opportunity Is Right for You 

Franchises have several advantages—brand recognition and established real estate brokerage services like processes, procedures, and software already in place, so you won’t have to figure everything out yourself. The whole point of buying real estate franchises is to tap into a proven business model and systems that help you grow your brokerage with less risk than if you were doing it independently. Some pros and cons of owning a franchise include:

Evaluate if franchising is the route you want to take rather than opening an independent brokerage or owning stock in a company. Start by asking yourself why you want to own a real estate office and remember the potential risks, rewards, finances, and effort it takes to manage and keep everything running smoothly. 

Step 2: Choose a Location & Office Type

In the past, it was the standard for every real estate brokerage to have a physical office. However, with the growth of the internet, many agents now work remotely, leading to the increase of virtual real estate companies. Clients are less likely to stop by offices, making a visible location less critical. Take a look at some of the differences between the two:

With real estate companies operating in many different ways, it’s up to you to decide which style you want to invest in. Some key considerations when deciding which office type include:

• Agent experience 
• Accessibility and visibility
• Market activity and local market trends 
• Competition 
• Client needs 
• Office cost and space 

Step 3: Research Companies & Choose a Franchise

Real estate franchises vary significantly, much like the agents associated with them. Start by doing your research to find the right fit for your values, budget, territory, and long-term plans. Don’t forget to consider factors such as brand recognition, available resources, and the services offered. With so many real estate franchises out there, your finances and location will help you narrow down your choices.

• Request Franchise Disclosure Documents (FDDs)
• Review financial details
• Speak with current franchisees
• Research and read reviews about the company

Once you’ve done your due diligence, you’ll have all the information you need to decide what brokerage aligns with your goals. Now, you are ready to move forward with financing and are one step closer to owning your brokerage! 

Step 4: Secure Financing 

To finalize your franchise purchase, you must secure your financing. Contacting a lender is the best way to get more detailed information on your financing options and determine what will work best for you. If you know other people in the industry who have opened a franchise, reach out to them and ask what worked and what didn’t work for them. Some financing options include: 

• Franchiser financing 
• Small business loans
• Home equity loans
• Traditional bank loans 
• Cash

Pro Tip: Before securing financing to move forward with the purchase, you should have already reviewed your financial situation. This way, you know you’re ready to go when you decide on the company you want to buy into. If your finances are not quite there yet, consider working with a financial advisor to get your finances in order and prepare to reach your goal.

Step 5: Sign the Franchise Agreement & Buy the Franchise

Now that you’ve researched which franchise to move forward with and secured financing, it’s time to sign the franchise agreement and seal the deal. Once you’ve signed the agreement and paid the fees, celebrate your new business venture as a franchisee owner! After that, you’ll kick off your training process to get your office up and running.

Important Note: Putting your investments in a holding company adds protection. Speak with your accountant and lawyer to determine if creating a franchise real estate corporation would be best. 

Step 6: Recruit & Retain Agents

Real estate franchises should already have established systems and materials in place to help you bring agents on board. This initial support can help you get started. However, after you have recruited agents to your brokerage, it’s essential to focus on their retention by addressing their needs throughout their real estate careers.

Pro Tip: Review your non-compete agreement if you came from leadership in another brokerage. It may prevent you from reaching out to agents at your previous company for a period of time.

Costs of Investing in a Real Estate Franchise

One of the biggest differences between starting your own independent brokerage and buying into a franchise is the initial cost. Franchisors have their set standards for pretty much everything, from the office space to the furniture, equipment, and software. Because of this, expect to spend more upfront to meet the brand’s requirements.

Frequently Asked Questions (FAQs)

Is it better to buy a franchise or open an independent brokerage?

What do you do if the franchise territories are sold out?

What is the fastest growing real estate franchise?

Bringing It All Together

There are many factors to consider when deciding to open your own brokerage. However, this can be an excellent opportunity to advance your real estate career. Define your goals and values to ensure that you choose a company that aligns with your vision. If you have any experience with franchising that you would like to share, please leave a comment below!

The post How to Buy a Real Estate Franchise in 6 Steps appeared first on The Close.