It's all about lead generation in the real estate industry. "Getting someone to agree to a coffee meeting is only the first step in obtaining leads." writes John Heckers in a great article for Colorado Biz Magazine.

Cultivating networking partners is an important aspect of business growth.  A networking partner is an acquaintance in the business world through which you can generate leads that you might not otherwise get. This partnership is a two-way street, so make sure you get to know the person before doing business with them.  A coffee meeting is a great way to build trust and begin a long-term networking relationship.

Heckers offers "Nine ways to make the most of your coffee meeting, otherwise all you get is Starbucks and a lighter wallet."

1.)    It's not all about you.  Ask what you can do to help them in their goals.  This is a quicker way to get the information (and potential leads) you want.

2.)    "Don't go for the jugular" counsels Heckers.  You have to establish trust and a relationship before someone opens their rolodex to you.

3.)    Give your 30-second elevator speech, not "War and Peace". Make it conversational, hit only the details you need and keep it under two minutes.

4.)    Ask "Who do you know to whom I should be speaking?"  DON'T ask if they know someone because unless they live in a cave, of course they know people.

5.)    Counteract a negative response of "Gee, I don't know anyone" with suggestions of types of acquaintances they might know including neighbors, coworkers, people they've met while networking, vendors, etc.

6.)    Closing:  At the end, thank them for their time and exchange cards.  "Ask your networking partner to keep you informed of their progress, and ask if they'd like to be kept informed of yours.  If the networking partner has been helpful, suggest that you two meet again in a couple of weeks." suggests Heckers.

7.)    Leave Communication Open:  At the close, tell them you'd be happy to give them a call if you come up with more information and then ask them to do the same.  And then make sure you follow through!

8.)    "Don't be too nice though," says Heckers. If you refer contacts to the networking partner, follow up on those people you sent to see how things were handled.

9.)    Don't Waste Valuable Time:  "If it has been two meetings and you still are not getting any reciprocity from a new networking partner, broom 'em. Don't waste your time continuing to meet with someone who is stingy or unhelpful. It may sound harsh, but your time is valuable." writes Heckers.

Your coffee meeting can be a valuable tool or a complete waste of time, says Heckers.  It's important to know the difference and make your time count.

Read more at ColoBiz.com

photo credit: Jonathan Rubio

Posted in Real Estate Industry Trends, Lead Generation

Real Estate Investment Trust (REIT) companies will be investing in more 100k+ single family homes in 2012.

"For the first time you will see billions of dollars coming in from publicly traded and non-publicly traded REIT's into single family homes." predicts Greg Rand, CEO of OwnAmerica.com. "It's the most significant trend in residential real estate for 2012."

A Real Estate Investment Trust company uses pooled money from investors to invest in real estate.  Usually REIT's invest in commercial real estate and multifamily projects but, in today's market, the demand for rentals is going up along with rents and apartment complex values. Single family homes are a better value plus they are more "liquid" in terms of being able to sell them easier than a huge apartment complex.

"REIT's have been in existence for decades, and there are exactly none that are invested in the single family home sector." explains Rand.   But the industry is all abuzz with this new trend.  "The main things holding REITs back are (a) some laws and regulations that need to be ironed out, and (b) a field operation that can select, acquire, rehab, lease and manage the portfolio."

Rand predicts that real estate companies and individual agents who ready themselves for this next trend will see their business grow dramatically in the next few years as the competition among residential REITs heats up.  

"This is bigger than new construction. Bigger than corporate relo. Bigger even than distressed property. This is billions in transaction volume. Do you think it is worth preparing for? If you are reading this in January 2012 and take action, you are ahead of the curve." says Rand.

Read Rand's blog at OwnAmerica.com.

Watch Rand on Fox Business News

photo credit: Jonathan D. Blundell

Posted in Real Estate Investing, Real Estate Industry Trends

All the signs are there, says National Association of REALTORS® Chief Economist Lawrence Yun. "More jobs, rising rents, a rising stock market, and continuing high affordability conditions are combining to get more people into the market."

In the Residential Market, the bargains might not be as good this year, but conditions remain favorable for buyers.  NAR predicts a 5 percent increase in home sales this year.

REALTOR® Magazine asked its readers to predict where the best source of business will be in 2012.

These three areas may be good places to focus on in the coming year:

1.       International Investors may be a new source of income.  With the debt crises in Greece, Spain, Italy and other countries, foreign buyers continue to stream steadily into the U.S.   

"NAR's 2011 Profile of International Home Buying Activity shows foreign households bought $82 billion worth of residential real estate last year, up from $66 billion in 2010." states the article.

2.       Distressed Inventory:  "Affordable housing in inner-ring suburbs or center city areas may be real estate's sweet spot in 2012," says Brian Block, broker-associate with ­RE/MAX Allegiance in Virginia, "because buyers today aren't looking just for bargains, they're looking for convenience and lifestyle amenities."

3.       Rental Property:  With homeownership still a distant dream for many Americans, more people are renting, vacancies are down and rents are on the rise in most areas.  "That's why many real estate companies have shifted their business model to include rental and property management." says the article.

Real estate agent Bill Bloomberg is now focusing on high-end rentals, working with both owners and tenants.  He feels this has helped him retain clients.

"If a listing isn't selling, it's usually because of price. However, most owners are going to try to switch to another agent first to see if that will make a difference," Bloomberg says. "Presenting an option such as renting can prevent that from happening."

This also attracts renters to a nicer neighborhood that might currently be beyond their reach but might be something they might be able to afford later when the economy improves.

"Today's renters could well become buyers of the future." states the article, "The majority of renters (63 percent) say they are at least somewhat likely to purchase a home in the future. Among them, young adults (age 18 to 24) have the strongest aspirations for home ownership, according to an NAR survey of 3,793 adults conducted by Harris Interactive and released in January 2011."

Read the full article at REALTOR® Magazine.

photo credit: tompagenet

Posted in Real Estate Industry Trends, Lead Generation

The Real Estate Standards Organization (RESO), is hoping to adopt a formal dictionary for use of data standards across the industry.

The Data Dictionary is a project by RESO to define a consistent way to count square footage, numbers of rooms etc.  But given the number of multiple listings across the country, over 900, this has proven to be a challenge.

"Born out of a National Association of REALTORS® effort to create a common way for the industry to share data -- known as the Real Estate Transaction Standard -- RESO has developed as a separate company to drive industry adoption for data standards." writes Glenn Roberts, Jr. for Inman News. " The group has developed bylaws and intellectual property agreements, and is awaiting federal approval for its ability to gather funds from its members." The RESO states they are very close to having the first Data Dictionary across the country.

REALTOR.com is among a group of organizations across the country giving their input into the project.  According to Rebecca Jensen, Chairperson of the RESO Board, "The Data Dictionary will describe various common field names in MLS entries, provide definitions for those fields, note data types, and may also outline which values are allowed to be entered into those fields."

The purpose of the project was to create an easier way to enter data and make it less confusing for the consumer.   Developers were seeking a "plug and play" type of model  that could potentially open doors for more innovation, writes Roberts, but experts are concerned that lengthy approval processes will delay the project from becoming an industry standard.

The Data Dictionary helps define common fields, but local MLS's will still be able to use their local terminology on top of the standard definitions.

Read the full story at Inman News.

photo credit: quinn.anya

Posted in Real Estate Industry Trends

It's the New Year and it's time to get back to work.  What is your game plan for 2012?  Goal setting is an important aspect of business but it's hard work. 

Gerry Michaels, a REALTOR® in Gettysburg, Pennsylvania, has some great tips for setting your business goals in 2012.

1.  Buy into the concept of goal setting:  You have to believe in it to make it work.

2.  What do you want to Accomplish?  "Simple yet very important," says Michaels.  Really think about what goals are important to you and your business.  Be specific about what it is you are trying to accomplish.

3.  Set realistic goals:  Setting yourself up for failure will only have a negative impact on everything you do.  "For example, if you are a Realtor in your second year and this past year you completed 10 sales, don't set next year's goal for 100 completed sales." says Michaels. " In reality that goal is not going to be met. Try something like, I will increase my sales by 20%, and I will do that by learning how to blog, adopting a video sales presentation etc."

4.  Challenge Yourself:  Don't set your goals too high, but be sure to challenge yourself as well.  Set the bar high, but attainable.

5.  Work as a team:  Team up with someone in your office who has similar goals.  "Sometimes just having someone to be accountable to, inspires the motivation needed when things get dicey and the temptation to give up arises." suggest Michaels.

6.  Write it down!  And place them in a visible spot where you see them daily for motivation.  "Writing down goals in a notebook and stashing them away in a desk drawer is not going to produce results." says Michaels. "Place them on the fridge, next to your bathroom mirror, or  try putting them in a nice frame and placing them right there on your desk for you and your co-workers to see."

Setting the goals may be the easiest part, but sticking to them takes hard work.  "Encourage others to embark on a goal setting program;" says Michaels, "inspiring others is also self-inspiring."

Read the full blog post on Active Rain.

photo credit: wbaiv

Posted in Real Estate Industry Trends, Lead Generation