As a real estate investor that is still around since 2003, I define my business model as the rule of P.A.A.R, Prediction, Assumption, Adaption and Reaction. Real estate isn’t that complicated a business. Prices go up I focus on sellers and opportunities to sell, prices go down, I focus on buyers and opportunities to buy.My humble prediction is we’re coming to a point that is ideal for both buyers and sellers. Sellers that haven’t used their homes as banks (finally) have the ability to sell if they bought somewhere in the neighborhood of 2003 in many areas. The cost of a mortgage in most Phoenix Metro Areas is below the cost to rent. As prices continue to rise, more traditional sellers will come to market and buyers will continue to come to market both locally and out of state.The assumption then is we have years coming of real estate activity, which is great for us agents! My current adaption to what I foresee in the market is to expand and expand as quickly as I can. Move heavily into advertising, both print and online, actively recruit top agents from other companies to my team, and organize the systems and procedures necessary to properly manage the productivity of leads and agents.
As an investor/developer, I’ve gone through times of both feast and famine. The famine has taught me that residual income is very important to my personal survival and I expect all agents should consider taking this concept to heart. My personal path as an investor has been to move towards building my property management portfolio but the lesson for other agents may be to always maintain and nurture their contact database so they may have consistent income no matter the market.
Finally, in the adaption portion of the process it’s most important to understand your personal profile. If you know where you succeed and lack as a business personality you can then appropriately align team members for running your business properly. My reaction is then to study my strategies, determine the successes and failures and 6 months from now I’ll reassess and start the process again!