Real Estate is Marketing, Period.

There are many components to a successful real estate deal. There are contracts, title insurance, deposits, and inspections, just to name a few. And there are even more components involved in a successful real estate business. But when it comes down to it, real estate can be boiled down to a few basic concepts.

Real Estate is Marketing.

That might seem a bit too simple. How can that be? It must be oversimplified for sure, right? Nope, it’s that simple. If you need proof, ask your friends and family for a good real estate agent. In less than a day, you will be swamped with over a dozen realtors and brokers who will be happy to help you with all your housing needs. This is not just evidence of fierce competition in providing real estate services in your local area. It is also evidence to what is necessary in generally doing business in real estate. You have to declare your intent as effectively, efficiently and to as many people possible. And that is Marketing.

What about the famous saying “Location, Location, Location”? That is indeed the golden principle of real estate, but one cannot acquire properties in prime locations without effective and strategic marketing. Competition will mostly likely be fierce for these properties. And the business with the superior marketing has the enormous advantage of finding such properties before anyone else. Superior marketing also brings in a larger pool of eager quality buyers/renters, which can increase profits along with a significantly shorter holding/vacancy period.

What about Contracts and Tax strategies? You need to a solid up-to-date contract and your tax strategies should be tailored in advance depending on your real estate deals. But that’s why you have competent lawyers and accountants on your team. Surround yourself with the best professionals you can and they will not only take care of these for you (that’s their job), but also educate you.

What about Lenders? Real Estate is a Deal-Based industry. Now, depending on the economic times, it differs how good of a deal you must present to get funding. There are always going to be creative ways in getting deals and funding. But in the end, good continuous marketing is going to be the one bringing in those good deals reliability. As long as you have good deals, you are going to find funding. In fact, if you are not able to obtain funding, you can safely assume your deals aren’t good deals and your marketing needs to be refined.

A Real Estate Business is a Volume Business.

Let’s say for instance, your deal falls apart. I know it’s scary and heart-breaking, but this regularly happens to even the experienced real estate investors. Sure, they screen and construct their better deals, but it is the reality in a deal-based industry that deals do fall a part. Maybe the location wasn’t that good, you tried out attorneys and other professionals who weren’t up to the job, or you just couldn’t find funding.

So what to do? You are going to move on to the next deal, of course Real estate is a volume business. Good deals should be flowing into your business whether they are falling a part or not. And that’s what marketing does for you. For instance, you may have buyers who regularly buy multiple properties, but you may have to find more new sellers and vise versa. Even if you are employing a buy-and-lease strategy you have to market your properties continuously, so they are fully leased and remain profitable.

And lastly, if you’re marketing is so good and bringing in so many great deals that your business cannot handle all of them, you can refer good deals out and negotiate a fee. This could be another income stream to your business.

Effective and Efficient Marketing, not Expensive Marketing.

Just because you have small budget does not mean you cannot market your business properly. There are all sorts of marketing for every budget level. The Important thing is that your marketing is effective and efficient, not just expensive. We live in a world where a 3 minute video can be viewed by millions of people online, and that video could have been made for nothing at all. Your Marketing can be done equally as cheap or twice as effective, and it is only limited by your creativity and passion.

Marketing brings in deals and contacts. Deals bring in profits. It’s that simple.