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Must-Have Tools for Better Real Estate Listings
Thursday, 27. March 2025 01:00 o'clock
Must-Have Tools for Better Real Estate Listings
First impressions matter. A lot. As a real estate agent, you know this.
In today’s residential market, online listings are overwhelmingly the first impression you’ll get for a property. Potential buyers can rule out a property just based on the listing alone. If you’re struggling to get a nibble on a property, you can usually attract more buyers with improved listings.
Below, we’ll review real estate listing tools for better marketing, including top software for creating high-quality property listings.
Virtual Walkthroughs
During the COVID-19 pandemic, home buyers became absolutely spoiled by virtual walkthrough technology. It rapidly became a new expectation for high-quality listings.
Aside from attracting more attention to your listings, virtual tours can also protect you from wasted time. Most window shoppers are weeded out by a 3D walkthrough, and 360 tours also help buyers focus on properties that are likely to be a good fit. No one enjoys the walk of disappointment through a house that doesn’t meet their criteria.
At this point, the market is still thick with options to choose from, ranging from DIY 360 tours captured on your phone to specialized camera rigs. There are many alternatives to explore in both ways to capture your walkthrough and platforms to show it off.
Professional Photography
It’s easy to believe you don’t need separate photos if you already have a 3D tour, but the truth is that a lot of walkthrough software distorts the imagery and can be off-putting in 2D.
The best way to give potential buyers an accurate and appealing sense of the space is to combine a virtual walkthrough with professional-looking photography – the more photos the better. Buyers expect a detailed look at a home online so they can determine whether or not it meets their specific needs.
Notice we said “professional-looking.” Professional photography can be an excellent investment for certain properties. Using an expert means getting professional expertise in lighting, angles, and times of day, and they often have access to enhancement options like post-processing software and drone photography.
That said, sometimes a pro is out of the budget. Even if you go DIY, there are steps you can take to improve your real estate listing photos.
No matter how you approach it, a robust and high-quality set of imagery
Detailed Listing Data
There’s no such thing as too much data in today’s online listings. Just as people will filter potential properties by the images available, potential buyers expect to get a comprehensive picture of the home in the description.
Comprehensive descriptions are definitely the way to go. That being said, be strategic about what information goes where.
There are three sections of an online listing to consider: the headline, the description, and the features list. Think of those in the reverse order as a narrowing funnel for information.
The features list should be comprehensive. If potential buyers don’t see an item listed, they’ll often assume that the property doesn’t have it, and then you lose an interested party. At the same time, you need to make it easy to find particular points of interest. If the platform allows you to group certain features together, do so area by area. If it forces everything into one big list, try to put the most sought-after features at the top and the less critical ones at the end.
The detailed description should be several paragraphs highlighting anything that would attract someone to the home. Consider all the features of value or interest about the home’s amenities, layout, significant recent updates, outdoor space, and neighborhood, then narrow it down to the most attractive.
The headline should be a condensed “wow!” statement advertising the most attractive selling propositions of the home. When the platform doesn’t support a headline, use it as the one-sentence initial paragraph of your description. This will grab people’s attention and get them to read further.
Vivid Listing Copy
Optimizing your listing isn’t just about the information you include but how you frame it.
Once you’ve decided which features are worth highlighting in the written description, consider the overall picture you want to paint of the home. Consider:
- What is special about this property? How does it stand out from similar properties?
- What is the overall personality of the house?
- What would the average buyer love about it?
- How could this property solve likely buyers’ problems or improve their lives?
Now you know what you want to convey about both the big picture and the details. Frame the information as a pitch for what the home can offer the reader and paint a picture of their future lives after purchase. Be specific and choose evocative language. Use words like spacious, charming, cozy, peaceful, and sanctuary.
But above all, be truthful. Don’t use a word just because it sounds good. You want to paint an accurate picture or you risk setting up unrealistic expectations and wasting everyone’s time.
Real Estate Aggregator Sites
No matter how carefully you craft your listing, widespread distribution is the only way to actually increase lead generation with effective listing tools. This means posting your listings on real estate aggregator sites like Zillow and Trulia.
They’re not only the first stop for most buyers, but they’re also something of a hobby for the general public. Although rare, an outstanding listing can even go viral, attracting thousands of viewers.
These sites are the best way to broadcast your listing to a large audience. Unlike more generic marketing solutions that agents have used in the past, potential buyers will have the flexibility to filter results at a very specific level, which brings your property to the attention of the buyers who will take an active interest.
Stock Your Knowledge Toolbox with Online Courses
One of the most essential tools for successful real estate agents will always be knowledge. There are so many topics to master while trying to build a lucrative career in real estate, but sometimes education is easy to shove to the side in favor of the hustle.
That’s why online, self-paced courses like ours are the perfect solution for squeezing your education into your busy schedule. In addition to our popular pre-license courses, we have a huge catalog of approved continuing education courses in many states, including Texas, California, and Florida. Enroll today!
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Staging a Home on a Budget
Thursday, 13. March 2025 01:00 o'clock
Staging a home effectively can help attract buyers, but you don’t need a large budget to create a stunning presentation. As a real estate agent, you can benefit from knowing how to stage homes beautifully while staying within budget constraints. In this blog, we’ll share innovative and inexpensive staging techniques that will help you improve your property listings and drive successful sales.
What Is Staging?
Staging is preparing a home or property so that potential buyers can imagine themselves purchasing a property. There are various ways to do this, and it can be through redecorating, cleaning, rearranging furniture, and other aesthetic changes to positively showcase the home.
Your goal is to design an emotionally appealing, move-in-ready space that connects the buyer emotionally.
At first glance, home staging may seem nonsensical. Staging costs money and you’re trying to sell your home. However, trust us when we say that staging effectively can greatly increase any space’s sale price.
Why Is Staging Important?
Staging is essential to selling a house quickly. Real estate agents can't guarantee anything in a fluctuating market, but with a few aesthetic changes they can make a property stand out from other listings and even draw in higher bids.
- Connect Buyers to the Home - Update décor with welcoming, trendy styles to create an emotional connection between buyer and property and leave a lasting impression. Staging, according to buyer's representatives, made it easier for their clients to see themselves living there.
- Peak Online Interest - Recent data shows that most current home buyers start their search online. Staging photos can positively influence a buyer to see your home and submit an offer.
- Boost Perceived Value - Staging a property can enhance its appeal by reducing flaws and highlighting its strengths. This involves decluttering, updating window coverings, applying neutral paint, and arranging furniture. These small improvements can highlight the house's unique qualities and increase its perceived worth.
- Numbers Don’t Lie - Staging can cost an average of $700 to $2,000 depending on the homeowner's furniture condition. With an average investment of 1% of the sale price, 75% of sellers achieve a 5% to 15% ROI over the asking price. A recent survey shows staging can sell homes three to 30 times faster than non-staged competition and increase the sale price by up to 20%.
How Do You Stage a Home?
You don't have to break the bank to stage a house. There are cost-effective staging options available if you're selling your house. Here are some strategies that can help you make your property appear sale-worthy while saving money:
Talk to an Expert
Talk to an experienced real estate agent before compiling a long list of maintenance and repairs that might overwhelm you. An agent can help prioritize repairs and identify areas worth focusing on during a home showing, saving money on unnecessary repairs. They can also advise you on which features of your property will be noticed, resulting in a more efficient and cost-effective home-buying process.
Be Strategic Where You Paint
Even if the entire property needs painting, by focusing on the key sections first, you can cut money and work costs. This means the places that prospective buyers usually look out for, such as the kitchen, master bedroom, foyer, and outside. Maintaining clean and fresh rooms can significantly boost the property's perceived value, especially if you're financially limited. Painting these rooms yourself can save you even more money.
Be Thrifty - Borrow Furniture
Borrowing furniture from friends or family members can fill empty rooms in your home. They may have unused pieces in their attic or basement. Some sellers may have extra pieces they can rent out for staging. This is better than buying new furniture that buyers may not like. It saves money and increases the house's value at no cost.
Clean, Clean, Clean
Regular dusting, mopping, sweeps, and washing of all areas is crucial for potential buyers, especially if they have their own pets. During a showing, make sure your property is clean and presentable for possible buyers, including your pets, to make a good impression.
Clean every nook and cranny of your property to impress buyers. Hide chipped paint with a coat and replace old carpets with fresher ones. Ask someone to assess your work before a showing to ensure your work is present. This can be done for free if you are smart about it.
Keep the Right Atmosphere
Don't close off your house from the outside after it has been thoroughly cleaned. Properties with a lived-in feel are more appealing to buyers. Make use of natural light. It's free, after all!
What Are the Best Decor and Accessories for Staging Your Home?
Successful home staging involves decluttering and depersonalizing the space, but adding final touches can make the home more appealing to buyers. Here are our top ten decor and accessories for staging your property:
- Mirrors - Mirrors are excellent at reflecting light and making a place appear brighter and bigger.
- Plants - Greenery, whether real or fake, adds life to homes. Bouquets and small potted plants add visual appeal to shelves and surfaces. Even larger plants can add interest to empty corners and spaces.
- Pillows - An easy way to give personality to a neutral furniture piece with vibrant accent pillows and soft fabrics.
- Candle, Baskets, and Fruit bowls - A few decorative items can bring character to your home. Use candles and fruit bowls for vignettes that highlight desirable architectural features like alcoves and built-ins. Baskets are excellent storage alternatives.
- Lamps - Lighting significantly enhances a space's ambiance. Lamps are essential to fill in any dark areas. Dark corners make a home appear smaller and less inviting.
- Artwork - The right artwork can enhance the aesthetic appeal of a home. It's crucial to ensure that staging artwork is neutral and suitable for any and all buyers.
- Rugs - Rugs are a great way to define a space, especially in an open concept house. They bring intimacy and personality.
- Slipcovers - Décor must be neutralized and depersonalized while staging a house. For bold furniture with colors or patterns, slipcovers can be an affordable solution to neutralize it while it's on the market, making it a more appealing option.
- Trays -Trays are versatile home décor pieces that offer warmth and charm while organizing smaller objects on a big surface for a less cluttered appearance.
- Fresh bedding - Create a cozy atmosphere by investing in some fresh linens and bedding.
Further Your Real Estate Career With VanEd
It doesn't have to be expensive to stage a home. A little imagination and ingenuity can go a long way. If you’re an agent looking to get experience in staging and selling homes, VanEd offers pre-licensing and continuing education courses that are efficient and cost-effective. Maximize your career aspirations by checking out our catalog today!
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Georgia Real Estate Exam - Practice Questions, Locations, & Pass Rates
Thursday, 12. December 2024 01:00 o'clock
The journey to acquire your Georgia real estate license is exciting and challenging. We understand that preparing for the Georgia Real Estate Exam can be incredibly stressful. The exam is the final barrier between a hopeful real estate professional and their dream job.
With an average real estate salary of $97,794 in Georgia, it is no wonder why real estate has become such a popular career choice. Depending on experience, real estate agents can make a salary of anywhere from $50,103 to over $190,000.
To become a real estate agent in Georgia and represent buyers and sellers in the real estate transaction process, a candidate must complete the following steps:
- Complete 75 Hours of Approved Pre-License Education
- Pass the Course Final Exam
- Submit Fingerprints & Pass a Criminal Background Check
- Pass the Georgia Real Estate License Exam
- Find a Sponsoring Broker to Work Under
- Complete the Licensing Application
Let’s take a closer look at this process. In this blog, we’ll provide all the information you need to better understand the Georgia Real Estate Salesperson Exam. We’ll even include essential study materials and answers to the top FAQs.
Before Registering for the Exam
Before a candidate can register to take their Georgia Real Estate Exam, they must complete 75 hours of pre-licensing education. This course covers all the topics required to become a licensed real estate salesperson. Topics include license law, law of agency, regulations, and real estate finance.
How Do You Schedule Your Exam?
To schedule your exam online, first, you’ll need to access PSI's website.
Internet scheduling is available 24 hours a day. To schedule online, you must pay by credit card and complete your pre-license education at an approved school.
To schedule, log onto PSI's website and create an account. Select the examination and enter the ID number that the Commission provided to you. Your record will be found, and you will now be ready to pay and schedule for the exam. Once you select the desired test site, available dates will appear.
If you have problems or wish to schedule by phone or have questions, contact PSI at 800-733-9267. You can also schedule your exam by mail. Look up instructions on this PSI document.
How Much Does It Cost to Take the Georgia Real Estate Exam?
The candidate must pay a $121 fee for a salesperson examination fee. If scheduling your appointment online, you must pay the total amount via credit card when scheduling the exam.
You can take the Georgia salesperson exam as many times as you need to pass. Each attempt costs $121. Exam fees are nonrefundable.
You can also pay via cashier's check.
Georgia Real Estate State Exam Locations: Where Do You Take the Georgia Real Estate Exam?
Students must take their salesperson exams at a designated PSI testing center. The list of test locations is below.
PSI
3505 Koger Blvd., Suite 175
Duluth, GA 30096
Get DirectionsPSI
The Pavillions at East Lake Shopping Center
2100 Roswell Road (State Route 120), Suite 2128
Marietta, GA 30062
Get DirectionsH&R Block Office
2891 N. Decatur Rd, Suite D, E, and F
Decatur, GA 30033
Get DirectionsOpen Arms Outreach Inc.
385 Glynn Street North
Fayetteville, GA 30214
Get DirectionsPSI
6394 Zebulon Road, Suite 102
Macon, GA 31220
Get DirectionsPSI
The Chatham Center, Orlean Building
6001 Chatham Center Drive, Suite 155
Savannah, GA 31405
Get DirectionsHow Many Questions Are on the Georgia Real Estate Exam?
The Georgia Real Estate Salesperson Examination consists of 152 total questions. To pass, you need to answer 75% of the questions correctly.
The exam is broken up into two distinct sections, the National Portion and the State-Specific portion. Students will need to pass each of these sections to pass the exam.
How Hard Is the Georgia Real Estate License Exam?
The exam can be challenging, but it is not something that should intimidate students. We created a national real estate exam prep course to help students pass their first time!
Georgia Real Estate Test Practice Questions
Want a sneak peek at some of the questions you’ll face? While you won't see these exact questions on the Georgia Real Estate Salesperson Examination, they'll give you a good idea of the types of questions you can expect.
- Baird bought two rectangular lots, each of which measures 244' x 250'. Approximately how many total acres will be in the two lots combined?
- 2.8
- 3.2
- 5.6
- 7.0
- A person has been using a property for a long time. That person's rights have been determined to supersede those of the fee simple owner. This is called which of the following?
- escheat
- homestead
- eminent domain
- adverse possession
- A property has been condemned by the city so that the land can be used to build a better approach to the municipal hospital's emergency entrance. Which of the following powers is the city exercising?
- power of attorney
- police power
- eminent domain
- escheat
- A salesperson deliberately shows a buyer homes in only one subdivision where many people of the buyer's religious faith live. Has the salesperson violated any law?
- Yes, because a salesperson must show a prospective buyer homes in at least three different areas.
- Yes, because a salesperson cannot discriminate on the basis of religion when showing property to a buyer.
- No, because the salesperson's broker is responsible for any violations of law.
- No, because there was no intent to discriminate on the basis of race or national origin.
- A licensee who works for ABC Realty obtains a listing. Two days later, the licensee began working for XYZ Realty. Which of the following is true regarding this listing?
- The listing is transferred to XYZ Realty.
- The licensee is entitled to compensation when she begins working for XYZ Realty.
- The listing remains with ABC Realty.
- The listing is automatically terminated.
Answers: 1. A; 2. D; 3. C; 4. B; 5. C
What Should You Expect on the Day of Your Georgia Real Estate Test?
On the exam day, candidates should report to the test center thirty (30) minutes before the examination.
Candidates must register for the exam with their first and last name as it appears on their government-issued identification. They must provide two forms of identification and sign a roster to confirm their identity.
Valid primary forms of identification:
- driver's license with a photograph
- state identification card with a photograph
- passport
- military identification card with a photograph
The secondary form of identification must show your name and signature.
- credit card with signature
- social security card with signature
A candidate may bring a non-programmable calculator into the exam room. All other personal items must be stored elsewhere. Watches, hats, wallets, and keys must be stored in the facility locker.
Candidates take their exams on a computer at the test center. You do not need computer experience or typing skills to take your exam. Applicants have four (4) hours to answer 152 questions. They must pass with at least 75%.
Don't Forget These Calculations!
These calculations are not available at the test center and should be memorized.
Candidates may use the following information in making mathematical calculations on the real estate examinations unless otherwise stated in the text of the question:
- 43,560 square feet/acre
- 5,280 feet/mile
- Round off calculations (where applicable)
What to Bring on Exam Day
On exam day, candidates must bring two forms of identification. Calculators are permitted so long as they are non-programmable.
If a cell phone goes off in a locker, the applicant will not be allowed to finish their exam.
What Is NOT Allowed on Exam Day
You don’t want to get in trouble, or worse, asked to leave, on test day! Here are a few things you don’t want to take into the exam room.
- Reference materials
- Cell phones or other electronic devices
- Food or drinks
- Visitors or guests
- Firearms
How to Pass Your Georgia Real Estate License Exam
At VanEd Real Estate School, we make passing your exam simple with our National Real Estate Exam Prep Course Program, which contains a full review of your pre-license courses and various practice questions that you will find on the exam.
Georgia Real Estate Test Results
After completing the Salesperson examination, you will report to the testing supervisor to receive your score report. This score report shows your result for your examination and gives diagnostic scoring information for any topics you did not pass.
After passing the examination, you receive a Certification of Accuracy Statement, and the Georgia application information filed with PSI.
If you fail the exam, the administrator cannot reschedule you for another exam. You must register online, over the phone, or through the mail.
Get Started With VanEd
Ready to ace your Georgia Real Estate Salesperson Exam? Our comprehensive online exam prep course is designed to prepare you with the knowledge and strategies you need to succeed.
Still need to get your pre-license education? Enroll today and take the first step towards a rewarding career in real estate!
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Holiday-Themed Email Campaigns for Real Estate Agents 
Thursday, 5. December 2024 01:00 o'clock
Holiday-Themed Email Campaigns for Real Estate Agents
The holiday season offers a unique chance for real estate agents to connect with their clients and prospects in a meaningful way. You can stand out in their inboxes by crafting engaging and festive real estate agent email campaigns and building stronger relationships.
Here are some tips to help your real estate marketing efforts stand out through memorable holiday email campaigns that resonate with your audience.
1. Identify Your Target Audience
To make your real estate email marketing effective, you must first identify who you are targeting. Consider segmenting your email list into categories like first-time homebuyers, sellers, investors, or past clients. Tailor your messages to each group based on their specific needs and past interactions.
For example, emails to first-time buyers might focus on the benefits of purchasing a home during the off-peak season, while emails to investors could highlight potential investment opportunities with a year-end tax advantage.
Segmenting your audience ensures that your messages are relevant and valuable, increasing the likelihood of engagement.
2. Create Engaging Subject Lines
The subject line is your first opportunity to capture attention, so make it festive and intriguing. Use holiday-themed words or emojis to create a sense of excitement or exclusivity.
Think beyond generic phrases like “Happy Holidays” and opt for something that reflects your message’s unique value proposition, such as:
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"🎄 Find Your Perfect Holiday Home!"
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"New Year, New Home? Let’s Make It Happen!"
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"‘Tis the Season for a Real Estate Deal 🎁"
Additionally, you should A/B test different subject lines to see which resonates best with your audience, and remember to keep them short to ensure they display properly on mobile devices.
3. Use Holiday Designs and Visuals
So, you’ve caught the recipient’s attention with your powerful subject line, and they open your email— how can you increase your chances of them keeping your email open? Use high-quality images that evoke warmth and joy to attract the reader. Incorporate seasonal designs that align with your brand — think snowflakes, holiday lights, or images of homes decorated for the season.
Consider adding dynamic elements like GIFs to create movement and draw attention to your CTA. Ensure your designs are mobile-friendly, as many recipients will view your emails on their smartphones. Personal touches, like a photo of your team wishing clients happy holidays, can also make your emails more relatable and engaging.
4. Craft Compelling Email Content
After grabbing attention with your subject line and visuals, don’t disappoint the reader. Ensure your email content delivers value. Begin with a warm holiday greeting that sets the tone. Use storytelling to connect emotionally with your audience — share a holiday market update, a festive decorating tip, or a heartwarming client success story.
Make sure to keep the content focused on your readers' needs. Offer tips for staging homes during the holidays, provide information about local holiday events, or highlight a special holiday promotion.
Moreover, include clear calls to action (CTAs), such as “View Our Holiday Listings,” “Get Your Free Home Valuation,” or “Schedule a Holiday Consultation.” Make sure this CTA stands out visually and is easy to click.
5. Share Holiday Market Insights
One unique way to provide value during the holiday season is by sharing market insights that are relevant to your audience. Use this opportunity to educate your subscribers on why the holiday season can be an ideal time to buy or sell a home.
For example, there is often less competition, and serious buyers are more active during this period. Highlight local market trends, such as rising demand for specific property types or neighborhoods, to help clients make informed decisions.
Offer insights like, “Why Holiday Homebuyers Are More Serious” or “How to Take Advantage of Year-End Tax Breaks on Real Estate.” Sharing timely and valuable information positions you as a knowledgeable and trusted advisor.
6. Highlight Holiday Events and Community Involvement
Show your local expertise by highlighting upcoming holiday events or activities in the community. Create a curated list of festive events like holiday markets, tree-lighting ceremonies, or charity drives. This not only provides value to your audience but also establishes you as a community-focused agent.
Additionally, showcase any community involvement you or your team have during the holidays, such as participating in charity events or sponsoring local activities. This builds trust and strengthens your relationship with clients by showing your commitment to the community.
7. Offer Exclusive Holiday Deals or Gifts
Everyone loves a good deal, especially during the holidays. Therefore, offer exclusive promotions or gifts to your subscribers, such as discounted home staging services, a free consultation, or a holiday-themed gift for referrals.
Practice using scarcity and urgency to encourage quick action, like “Limited-Time Offer: Free Staging Consultation for December Listings!”
Make it clear what the recipient needs to do to take advantage of the offer — whether it's scheduling a call, signing up for a service, or referring a friend. Exclusive deals and gifts attract attention, incentivize engagement, and foster loyalty.
8. Send Personalized Holiday Greetings
Holiday greetings are a simple yet effective way to connect with your audience on a personal level. Personalized email marketing that addresses the recipient by name and reference-specific interactions is more likely to be opened and appreciated.
Send a warm, personalized message that acknowledges your clients' past relationship with you, whether they bought or sold a home, referred friends, or engaged in other ways. For example, you can include a heartfelt note expressing your gratitude for their support throughout the year and wishing them a joyful holiday season.
9. Encourage Social Media Engagement
Use your holiday email campaigns to boost engagement on your social media channels. Cross-promoting your social media channels within your emails helps build a stronger online presence and keeps your audience engaged across multiple platforms.
Make sure to encourage recipients to follow you for more holiday content, such as decorating tips, local event highlights, or home-buying guides. Include direct links to your social media profiles, and consider running a holiday-themed contest or giveaway that requires following or sharing.
Become a Real Estate Agent With VanEd
Ready to take the next step in your real estate career? VanEd offers the fastest and most effective way to become a real estate agent! Gain the skills, knowledge, and support you need to succeed in today's competitive market. Explore our online Real Estate License courses and start your real estate journey by the new year.
Happy holidays and happy emailing!
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What is the Best Online Real Estate School in California?
Friday, 22. November 2024 01:00 o'clock
What Is the Best Online Real Estate School in California?
Starting a real estate career in California requires the right education—and with so many online options, choosing the best school can feel overwhelming. A quality online real estate school offers flexible, accredited courses that fit your schedule while preparing you to pass the California real estate exam.
In this blog, we’ll break down three of the top online real estate schools in California, so you know which is best for you. We will look at accreditation, customer service, student reviews, packages, and prices so you can make an informed choice and start your career with confidence.
VanEd Real Estate School
Why Choose VanEd?
Our first choice for a California real estate school is VanEd.
Since 1997, VanEd Real Estate School has been a trusted real estate education provider. Their courses are 100% online-based. Students have access to their coursework anytime and can complete their modules anywhere. This model is attractive to students who have full-time jobs or busy personal lives. Students take the course at their own pace.
VanEd offers features such as:
- Downloadable PDF Coursework
- Payment Plans
- Professional Instructors
- Ability to do courses anytime, anywhere
- California State-Specific Exam Prep
- Live Customer Service
- Top-Rated Courses
Accreditation
VanEd California Real Estate School provides everything you need to get a California real estate license online. The 135-hour pre-license course meets the current CDRE education requirements needed to become a licensed real estate agent. Courses are also approved by CDRE, ARELLO, IDECC, and other education organizations. Get your license online, anywhere, and on any device. Provider ID: #S0656
Packages And Prices
VanEd has two available course packages. The first option includes the essentials needed to get your license. The second option provides an additional license exam prep to prepare you for the exam.
One of the most exciting parts of purchasing a real estate package from VanEd is the ability to purchase the course using a payment plan. You can start for as low as $50 and schedule your course payments for later.
Customer Service
VanEd is known for providing outstanding customer service. Reviews repeatedly mention the helpfulness of this staff. This staff is available to students for anything ranging from technical support to coursework assistance.
Reviews
The most critical opinions to consider when looking for a real estate school are ratings from current and past students. Here are what recent students had to say about VanEd in their Google reviews.
VanEd Real Estate School has received an average rating of 4.5 out of 5 stars from 216 student reviews.
Agent Campus by 360training Real Estate School
Why Choose 360training?
Our second-place real estate school pick is 360training Agent Campus California Real Estate School.
Agent Campus by 360training is a top choice for real estate professionals looking to start a new career or enhance their already existing skills. With over 25 years of experience, they offer certified online courses for real estate agents and brokers, making it simple to take and pass their courses.
360training California Real Estate School offers the following features in their courses:
- Trusted by millions of learners for accredited training
- Easy-to-follow course content
- Courses accessed at any time
- Online chat and toll-free customer support
- Go at your own pace
- Approved and accredited course content
California real estate courses from 360training extend beyond licensing to exam prep, post-license, and continuing education. They provide education for agents, brokers, and appraisers in the industry. Their California course catalog includes training in the following real estate careers:
- Real estate licensing
- Real estate license exam prep
- Continuing Education for Agents, Appraisers, and Brokers
- Post-License Education
- Appraisal courses
This wide variety of courses makes 360training an ideal school for real estate agents who plan to grow within the real estate industry. After licensing, students can take CE courses or advance their career by taking broker or appraiser courses on a familiar platform.
Accreditation
360training Agent Campus California Real Estate School is approved and accredited. AgentCampus by 360training's Sponsor ID is #6242.
Packages and Prices
360training Agent Campus California Real Estate School has two available pre-license course packages. The difference between the two is that the premium package includes exam prep.
Customer Service
Unlike VanEd, you cannot speak directly to an instructor if you have course-related questions while taking the 360training Agent Campus California Real Estate course. However, technical and customer support is open 24/7 through chat or the toll-free phone number.
Student Reviews
360training currently has a 4.1 review from almost 3,000 ratings on Trustpilot. Here is what some customers had to say about their California real estate courses:
- Mac writes, “The lessons are precise and informative. Being able to go at your own pace is much better than older versions. Also information in new sections is current and up-to-date.”
- Richard writes, “This was a simple process but a little bit time consuming. Still, 90 minutes for this certification that can be obtained in the comfort or your own home. Win!”
Colibri Real Estate
Why Choose Colibri Real Estate?
Formerly known as Real Estate Express, Colibri Real Estate offers online and app-based real estate education, assisting over 350,000 students in launching their careers on their website.
They offer the following courses:
- Real Estate Licensing
- Post-Licensing
- Exam Prep
- Broker
- Continuing Education
- Mortgage Licensing
Colibri Real Estate launched its live stream classes in response to the global pandemic. Live stream classes enable students to participate in pre-licensing, post-licensing, and continuing education courses. Students are able to access real-time classes without ever needing to physically attend the classroom.
Colibri Real Estate offers a "Pass Or Don't Pay" money-back guarantee if you do not pass your real estate exam after several tries in certain states. They also offer a live Q&A with real estate experts and other interactive features to their course packages.
Accreditation
Colibri is accredited in the state of California.
Packages and Prices
Colibri Real Estate provides a diverse range of course packages with additional features at each tier. The courses get more involved, and the customer service improves as they become more expensive.
Customer Service
The more you pay for each course, the more support you can access from the Colibri Real Estate team. Students with the more expensive packages have access to live streaming courses, instructor Q&A, live exam crammer study sessions, and access to real estate professionals five days a week. These are not available to students at the lower two levels.
Lower levels can call or email a state-approved course expert and expect a response in approximately one business day.
Student Reviews
Colibri Real Estate School has received an average rating of 4.2 out of 5 stars from 86 students.
Start Your Real Estate Journey With VanEd
In conclusion, finding the best online real estate school in California is key to building a strong foundation for your real estate career, whether you're starting with pre-licensing or expanding your knowledge with continuing education. With comprehensive courses, flexible scheduling, and expert guidance, VanEd is here to support you at every step of your journey. Ready to take the next step? Explore our California pre-licensing courses today and invest in your future as a successful real estate professional. Visit our website today and enroll now to kickstart your career!
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How To Host Open Houses During the Holidays
Thursday, 14. November 2024 01:00 o'clock
Winter open houses can be a headache, but with the right planning and festive touches, they can turn into a golden opportunity to showcase a home's charm and attract motivated buyers during the holiday season. They also provide one secret weapon that you don’t get any other time of year: a home-for-the-holidays theme.
Below, we’ll explore why you should consider a holiday-themed open house for your listings and provide a step-by-step guide for success.
Reasons to Host Holiday Open Houses
The end-of-calendar holidays aren’t exactly prime season for real estate open houses. Before we even get into how to host holiday open houses, let’s start with “Why?”
#1: We Work with What We’ve Got
You probably wouldn’t choose December, of all months, to market someone’s house, but sometimes that’s just the way the gingerbread crumbles.
If you’re contemplating real estate open houses before the holidays, chances are that your timing isn’t flexible. And if you have to sell a house before the new year, you’re going to need to make use of all the marketing tools in your arsenal.
#2: Winter is For Serious Buyers
People who are going to open houses in between holiday events and gift shopping are almost guaranteed to be motivated buyers. You’re not going to get a whole lot of lookie-lous.
That’s something to keep in mind if turnout is thin – you may not see many visitors, but the ones that show up are likely ready to spend money.
#3: Festive Days Make Houses Homey
Nothing says “home” like holidays. Most people have strong sense memories of this time of year, which provokes feelings of nostalgia and happiness.
In other words, holiday open houses give you an advantage you won’t get at any other time of the year: the seasonal staging will predispose buyers to the sort of emotional experience that you normally have to work hard to manufacture.
Step-by-Step Guide to Successful Holiday Open Houses
Once you’re committed to a holiday open house, how do you make sure the event is a success?
Step 1: Schedule Early
We’ve all been a last-minute shopper in the midst of the holiday party season, so you know that the last two weeks of December are busy for everyone. You’re unlikely to snag buyers’ attention, and the sellers may have events to work around. And that’s not even starting on your own plans.
It’s better to schedule your holiday open houses early in the season – late November to early December. That’s late enough in the year to take advantage of festive decorations but early enough not to be trampled by everyone’s social schedule.
Step 2: Deck the Halls (Mindfully)
Nothing makes a house more homey than holiday décor.
Some guidelines to make sure your decorations enhance the appeal to potential buyers without distracting them:
- Stick with simple and classic decorations, avoiding anything gaudy or gimmicky. White Christmas lights and stockings – yes. Inflatable Santa or tons of Christmas miniatures – no.
- Lean more heavily on winter imagery than religious imagery – for example, use wreaths and boughs instead of mangers or menorahs.
- Avoid overdoing it. You don’t want your decorations to be so cluttered or busy that it’s all visitors see.
- Decorate the mantle, if there is one. Leaving it undecorated will look wrong.
Check out our article on holiday staging for more tips!
Step 3: Be Flexible If the Weather is Frightful
In most cities, winter is a crapshoot for weather. As the date of your open house approaches, keep a very close eye on the weather for any storms or inclement conditions.
It’s better to push the date of your open house than hold it on a day when everyone would rather stay home. However, if you do have to reschedule, make sure to broadcast the information on all channels – potential buyers will not be pleased if they brave the weather to find no one’s home.
Step 4: Prep for Safety and Comfort
On the day of the open house, you need to arrive early and create a cozy, welcoming atmosphere. That includes:
- Shoveling and salting the path to the door and any outdoor areas where visitors may want to go (if necessary).
- Setting out a snow-catching mat at the front and back to keep the floors relatively dry (if necessary).
- Warming up the house so it feels comfortable and cozy. If there’s a fireplace, consider lighting it up to show it off and contribute to the fantasy.
- Infusing the home with the scents of the season. Think pine, cinnamon, gingerbread, and anything else that might evoke coming home after a snowball fight.
- Play festive holiday music. As with the decorations, keep it simple, agnostic, and at a volume that won’t distract people.
- Offer festive snacks and beverages to contribute to the seasonal cheer and encourage people to linger and explore.
Step 5: Extend the Cheer
You might see fewer people attending open houses in the last two weeks of December, but you can bring it to them! Let's face it: eventually, we all need a break from our relatives, and some potential buyers will use that time to do a little holiday real estate browsing.
Once your holiday open house is wrapped up, record a video tour of the house before you turn off the lights and music and pack all the decorations away. This will allow you to get the most out of all your hard work by showing off the home at its holiday best for anyone who couldn’t make it in person.
Hold off sharing your tour until after the real open house has come and gone – no spoilers for potential guests! But for the best effect, post it far and wide during that dead pre-vacation period when most people are just killing time in the office. You can leave it up on listing pages well through New Year’s.
Get The Gift of Knowledge
From winter open house tips to drone photography, there are always new topics to tackle if you’re going to stay on top of your career. At the same time, it can be hard to juggle the learning with the hustle.
Our online self-paced real estate courses allow you to improve your knowledge and meet your state’s continuing education requirements without missing a beat. You can fit state-approved curriculum into your schedule whenever and wherever it’s most convenient for you. Check out your state’s CE courses and enroll today!
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Holiday Social Media Strategies For Real Estate Agents
Thursday, 7. November 2024 01:00 o'clock
As the holiday season approaches, real estate agents can leverage this time of festivities and cheer as a golden opportunity to amplify their brand visibility and engagement through tailored social media marketing.
As people are more active online and in a festive mood, strategically leveraging social media can transform the way you connect with potential clients and peers. But how can this be achieved? In this blog, we’ll go over different real estate social media marketing strategies you can practice to help you succeed this holiday season!
Holiday Social Media Strategies for Real Estate Marketing
Here’s how you can optimize your social media strategy for the holiday season.
Identify Your Target Audience
The first step in effective social media marketing during the holidays is to identify and understand your target audience. Who are they? What are their holiday aspirations? Are they looking to buy or sell during this busy season, or perhaps just gathering information for future moves?
You can segment your audience into specific groups by analyzing past interactions, demographic data, and engagement patterns. This segmentation allows you to tailor your messages and campaigns to resonate more profoundly with different parts of your audience, whether they are first-time homebuyers, sellers, or those looking for holiday home decor tips.
Choose the Right Platform
Not all social media sites are created equal, especially when it comes to real estate marketing. Facebook and Instagram are the “go-to’s” for visual postings and targeted ads, providing ample space for showcasing holiday-themed home tours or live Q&A sessions.
Conversely, LinkedIn is ideal for networking with other professionals and sharing more detailed content like market analysis or expert advice. Evaluate where your audience spends most of their time and focus your efforts there to maximize engagement.
Create Engaging Holiday Content
Content is king, and during the holidays, it should celebrate the season. Tailor your content to not only highlight listings but also to share holiday decorating tips, local events, or holiday home safety guidelines.
Use high-quality real estate photos and videos to make your posts visually appealing. For example, a video tour of a home decorated for the holidays can spark much more interest and interaction than standard home photos.
Hand-picked related content: Learn more about capturing high-quality real estate images by reading our blog on Real Estate Photography Trends now.
Additionally, engage your audience with holiday contests (more on this below), such as photo submissions of their holiday decorations, with a prize related to home improvement or a consultation session.
Collaborate With Local Businesses
The holiday season is the perfect time to collaborate with local businesses to expand your reach and provide mutual benefits through cross-promotion. Partner with local decor stores, event planners, or even local eateries and feature them in your social media posts.
For example, share a post from a local restaurant’s holiday menu with a caption about the joys of dining out during the festive season in your community. This not only helps promote local businesses but also positions you as a community-focused agent, enhancing your local reputation.
Moreover, you could collaborate with local businesses that complement your real estate services, such as home improvement stores or local decorators, to run joint promotions. This could be special discounts or services for new homeowners during the holiday season.
Promote these partnerships on your social media to enhance community ties and provide value to your followers. Highlighting customer testimonials about these services can further boost credibility and attract new clients.
Host Giveaways or Contests
Engage your audience by organizing giveaways or contests on your social media platforms. Choose attractive prizes that resonate with the holiday spirit or are useful in the real estate context, such as home decor items or gift cards to local home improvement stores.
Don’t forget to clearly define the contest rules and use eye-catching visuals to promote it. Additionally, encourage participants to share their own festive home photos as part of the contest to increase interaction and personal investment.
Host Informative Webinars
Provide value by hosting webinars covering topics relevant to current and aspiring homeowners during the holidays. For example, you could discuss market trends, home maintenance in winter, or holiday decorating tips. Make sure to collaborate with internal or external experts on the topics you are discussing to show credibility.
Moreover, promote these webinars on your social media platforms to draw in a larger audience. Engage participants with live Q&A sessions to address specific concerns and enhance interactive engagement.
Create Holiday-Themed Neighborhood Guides
Develop content that showcases what different neighborhoods have to offer during the holiday season. This could include local events, the best house decorations, or unique holiday shopping opportunities.
This type of content not only informs but also engages potential clients by giving them a taste of community life. Include resident interviews or guest posts from local figures to provide personal insights and deepen the local connection.
Leverage User-Generated Content
Encourage your social media followers to share their own holiday stories related to home buying, selling, or decorating to create engagement. For example, create a hashtag specific to this campaign (e.g., #HomeForTheHolidays2024) and ask followers to use it when posting their stories.
Feature these stories on your profiles and offer small incentives for the best post or story each week. This approach not only increases engagement by involving your audience directly but also provides authentic, relatable content that humanizes your brand and strengthens community bonds.
Start the New Year With VanEd
Remember, the key to success in holiday social media marketing is engagement. Keep your content festive, informative, and interactive to ensure your audience feels connected and valued.
However, before skyrocketing your social media marketing engagement, make sure you’re well-versed in all things real estate. If you’re going into the new year without a real estate license, make it your New Year's resolution to get your real estate license and start your new career!
Fortunately, VanEd offers the fastest and most effective way to become a real estate agent through our Real Estate License online courses. With over 50,000 pre-licensing students since 1997, VanEd is one of the most trusted schools in the country offering online real estate classes.
VanEd students can complete their courses quickly and pass their real estate exams for the first time by taking advantage of our modern, effective online course delivery. Additionally, the cost of our pre-license courses is very competitive and represents a significant saving compared to brick-and-mortar classroom schools.
Ready to start the new year with a bang? Sign up today!
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8 Steps to Building a Real Estate Team
Thursday, 24. October 2024 02:00 o'clock
Are you thinking about building a real estate team? You've likely reached a stage in your career where managing everything on your own is no longer feasible. However, assembling a real estate team requires specific skills and careful planning.
This journey will test your abilities in managing people and workloads. Making informed decisions can help you share your responsibilities while growing your business. To guide you through this process, we’ve compiled eight essential steps to help you build real estate team success.
1. Analyze Your Current Situation
Before you begin, ask yourself: Are you ready to build a real estate team? Assess your resources and mental preparedness to delegate and lead. Evaluate the market conditions to ensure your decision aligns with external factors.
This analysis will help you understand your current numbers, leading to more informed decisions. Knowing your strengths and weaknesses is the first step toward building a solid foundation.
2. Set Clear Goals
Setting specific, clear goals is crucial for understanding your current position and future aspirations. Examine the number of leads, listings, and local population statistics to determine how many team members you need.
Establishing goals will also help you identify the necessary systems and tools to support your team. With clear objectives, you can create a roadmap for success, ensuring that everyone is aligned and working towards common targets.
3. Develop a Real Estate Team Structure
A well-defined organizational structure is vital for a real estate team's success. Determine the roles and responsibilities of each team member to avoid overlaps and ensure efficiency.
Decide whether you need a showing assistant, a buyer’s agent, or perhaps an IT expert to manage your website. Clearly outline the hierarchy and reporting lines within your team. This clarity will help your team understand their roles and work together seamlessly.
4. Invest in Technology and Tools
Investing in technology and tools is indispensable for building a real estate team. Utilize customer relationship management (CRM) systems, marketing automation tools, and real estate-specific software to streamline operations.
Technology can help you manage leads, track performance, and enhance communication within your team. Leveraging the right tools allows you to improve efficiency and provide better services to your clients.
5. Establish Strong Leadership and Real Estate Team Management Practices
Effective leadership is the backbone of a successful real estate team. Develop strong leadership and management practices to guide your team toward achieving their goals.
Focus on clear communication, regular feedback, and continuous training to keep your team motivated and on track. As a leader, your ability to inspire and manage your team will significantly impact your team's performance and success.
6. Implement a Marketing and Lead Generation Strategy
A robust real estate marketing and lead generation strategy is essential for a thriving real estate team. Develop a comprehensive plan that includes online and offline marketing tactics to attract and retain clients.
Utilize social media, content marketing, and SEO to enhance your online presence. A well-executed marketing strategy will generate leads and ensure a steady stream of business for your team.
7. Keep Evaluating and Adjusting
Building a real estate team doesn’t end with hiring the right people. Continuously evaluate your team’s performance to ensure they are meeting their targets. Translate your goals into measurable metrics and monitor progress regularly.
If certain team members are not performing as expected, identify the reasons and address them promptly. Regular evaluation and adjustments are essential for maintaining a high-performing team.
8. Know When to Let Go
Building a competent team involves trying different options and making tough decisions. Give your recruits a fair chance to prove themselves, but don’t hesitate to let go of underperforming members. It’s crucial for the survival of your team and the success of your business.
Making tough decisions is part of leadership, and sometimes, it’s necessary to ensure the overall health of your team.
Real Estate Team Development With VanEd
Remember, building a team is a continuous process that requires patience, evaluation, and adaptability. With clear goals and effective strategies, your real estate team can achieve success and contribute significantly to your business growth.
To get you and your team on the right path for your real estate career, take real estate courses from a trusted provider like VanEd. VanEd provides top-notch education and training for all areas of real estate. Whether you need Online Real Estate License Courses or Real Estate Continuing Education Courses, VanEd has you covered.
Our online course offerings allow for a self-paced learning experience, with the flexibility to complete the course from any location, be it home or office. We have a dedicated team of instructors who are practicing and experienced industry professionals, and they are available to assist you.
Sign up today to begin your journey!
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The Basics of Active Real Estate Investing in 2024
Friday, 18. October 2024 02:00 o'clock
Active real estate investing can be a tough but lucrative endeavor if done correctly. With the real estate market constantly evolving, it's important for investors to stay informed and adaptable. Whether you're a seasoned investor or a newcomer to the real estate scene, understanding the basics of active investing is the key to success. This blog will explore the fundamentals, strategies, and current trends to help you navigate the world of active real estate investing in 2024 and beyond.
What Is Real Estate Investing?
Real estate investing is the purchase, lease, or sale of land, real estate, and real property for the purpose of earning money. There are three main types of active real estate investing:
- Residential Investing - Residential real estate includes a wide range of housing types, including single-family homes, townhouses, condos, and multi-family residences. Essentially, buildings used for living and not for work are categorized as residential real estate. If the property has more than four units, however, it is considered commercial real estate.
- Commercial Investing - Commercial real estate is the most straightforward category in real estate investing. It includes any property that is used for business, such as offices, retail spaces, or residential properties with more than four units
- Industrial Investing - Industrial real estate is a small but mighty category of real estate investing and consists of anything used for industrial business purposes. Common examples of this are shipping and storage warehouses, factories, and powerplants.
How Do You Make Money With Active Real Estate Investing?
The real estate industry has been appealing to people wanting to diversify their investments and build wealth. In fact, in June 2023, investors bought nearly 26 percent of all sold single-family homes. Purchasing real estate gives you three main ways to make money:
Rent
Rent is the most common form of income from real estate. Continuous rental payments from residences, commercial buildings, and warehouses can add money to your bank account with minimal effort.
To keep the entirety of the rent payment, you'll want to act as the landlord. Keep in mind you will be responsible for fixing repairs or any other issues that come up. Consider hiring a property management company if the work of being a landlord seems excessive. Management companies often take part of the rent as payment.
Appreciation
Appreciation is the increase in property value over time, often a result of a developing or more popular area. For example, a house bought for $300,000 could sell for $100,000 more in many years without any additions to the property.
While appreciation will give you a larger return on your initial investment, your revenue will come as a lump sum, and returns are not guaranteed. Remember that you’re still responsible for maintaining properties before selling, so you will have to invest time and money into the property as it appreciates in value. You might consider renting out a property for a regular return and then selling it for appreciation once the property value increases.
Interest from Loans
Earning money from loan interest is trickier for individuals and is more often used by private equity firms. Essentially, the investor will loan money to a real estate developer, who will have to pay back with interest. The income the investor garners comes from the loan’s interest. Different types of loan investment include:
- Senior Debt
- Junior Debt
- Mezzanine Debt
The loans can also be secured or unsecured. Secured loans protect the investor in case of foreclosure or project shutdown.
What Are the Most Effective Real Estate Investing Strategies in 2024?
Investment opportunities come in many forms and work depending on an individual's skills. There are three main types of active real estate investing strategies:
- House Flipping - Though popularized on television, house flipping isn’t as glamorous as it seems. Flipping is the process of purchasing a home, then making renovations and improving the home’s value to sell it at a better price. While that may sound easy, understanding the real estate market is crucial for investors to make informed decisions. Poor house flipping can lead to overspending and cause the property to be overvalued.
- Rental Properties - Rental properties offer steady income but require time investment. Finding tenants is the challenge. You need to check income, background, and compatibility before approving them to rent your property. To lease your property to tenants, you need a lawyer to draft a lease agreement and arrange rent payments, property maintenance, and evictions. A real estate property management company can handle this, but you will have to share your rental income with them.
- Airbnb & VRBO - Airbnbs and VRBOs are a new form of real estate investing that offers short-term rentals in private homes. Investors often rent properties through Airbnb or VRBO due to benefits like booking management and customer service. Airbnbs can generate per-night fees, while VRBOs can generate more income due to longer-term vacation requirements. Both options offer positive aspects for property management. Airbnb can double property profits by booking with many guests, but there's no guarantee guests will book, and some associations and apartment management companies may forbid guests. Research local amenities and avoid breaking rules before listing properties.
What is Active Versus Passive Real Estate Investing?
While they sound very similar, there are a few major differences between active and passive real estate investing. Let’s break it down below.
Active Investing
Active real estate investing is when an investor is hands-on. To find homes that fit their investment goals, active real estate investors research the market, choose properties, and negotiate with the seller. An active real estate investor may also take direct responsibility for the property management following the closing. They handle rent payments and repairs, advertise the property for lease, check potential tenants, and handle repairs.
The advantages of active real estate investing include minimum fees, maximum control, and direct tax benefits. However, it necessitates market knowledge, a knowledge of landlord-tenant legislation, and an understanding of rental property management. Due to the significant amount of capital invested in down payments for properties, less liquidity is required. But, when every investment is actively managed, it becomes difficult to grow and diversify a portfolio.
Passive Investing
When an investor invests money in a real estate venture, like self-storage, and hires a third party to handle the majority of the work, this is passive real estate investing. A private real estate investment's sponsors or property managers will create and carry out the business strategy, find and purchase real estate that fits the investment requirements, secure affordable financing, and manage the property's daily operations.
Even passive real estate investors must, however, engage in some level of activity. For example, they must regularly study financial performance reports and analyze offering memorandums for crowdfunding and private equity self-storage opportunities.
Benefits of investing in passive real estate include access to investment-grade assets, better diversification, less expertise in managing investments, and more liquidity in publicly traded REITs. With everything, passive investing has its drawbacks, including less control over investments, higher administrative costs, fees paid to third parties, and splitting profits.
What Are the Risks and Considerations for Real Estate Investing?
Real estate offers potential for cash flow, tax benefits, and property appreciation, but investors must be aware of risks like market changes and tenant challenges. Being prepared to manage these risks can help develop strategies that reduce risk and protect against losses.
The following real estate investment risks should be taken into account if you're considering a big investment:
- General Market Risks - Economic conditions can lead to decreased rental revenue and property values due to tighter lending requirements, decreased consumer confidence, and job losses. To lower this risk, be aware of economic indicators, avoid excessive debt during market highs, keep cash-on-hand, and diversify your assets.
- Location Risks - Property value is influenced by factors like crime rates and school quality, as well as regional variables. To protect investment homes, explore local dynamics like development plans and employment prospects and get to know the prospective area.
- Property Risks - Potential structural issues with the foundation, roof, plumbing, or electrical systems may require significant modifications and lead to costly, unforeseen expenses. Ignoring these may worsen the issue and necessitate greater repairs. Before buying a house, hire a qualified inspector to reduce risk and consider backing out if structural issues are found.
- Negative Cash Flow Risks - Real estate investing aims to generate positive cash flow, but overestimating rental revenue or other expenses can lead to negative cash flow, lowering returns. To avoid this, investors should accurately estimate costs before purchasing a home, have sufficient cash-on-hand if expenses exceed expectations, or consider raising rent.
- Vacancy Risks - A rental property's vacancy can negatively impact its profitability, especially considering continued bills for utilities, insurance, taxes, mortgage, and upkeep. To minimize vacancy, set competitive rates, develop relationships with renters, and advertise for new tenants efficiently. This will attract excellent tenants and minimize vacancy, ensuring the property's long-term stability and profitability.
- Tenant Risks - Tenants pose risks to properties like damage, missed payments, neglect of maintenance issues, keeping unauthorized occupants, and violating lease agreements. Tenant screening is crucial for investment protection, ensuring tenant dependability through credit and background checks. An effective lease agreement with obligations and consequences is essential.
- Financial Risks - Real estate investors often use loans to finance, boosting returns but also posing risks like financial losses or foreclosure and interest rate fluctuations impacting cash flow and loan costs. Only take loans that you can afford to repay. Be ready for fluctuations, and keep emergency cash-on-hand.
Get Your Real Estate License and Start Investing Today
The truth is that active real estate investing requires a lot of knowledge about real estate and the real estate market. Start your career in real estate investment by first getting your real estate license online. At VanEd, we offer state-mandated real estate pre-license courses to help you obtain your license and pass your state's real estate exam. Visit our full catalog of courses available on our website today!
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The Basics of Passive Real Estate Investing in 2024
Thursday, 10. October 2024 02:00 o'clock
When most people think of real estate investing, they think of house flipping, rental properties, and Airbnb. But this is only one category of real estate investment. Your knowledge of real estate investing basics is only complete once you understand all the options.
Below, we’ll explore active versus passive real estate investing. What distinguishes the two strategies? Which one is for you? And what are your options in the world of passive real estate investing?
Active vs. Passive Investing
In general, there are two types of investment: active investing and passive investing. At the root, the difference is “hands-on” versus “hands-off,” but if we apply those concepts a little differently when we’re talking about real estate investment strategies than when we’re talking about stocks or commodities.
In the stock market, active investing means that someone manages the investment in a hands-on way – buying and selling frequently. Even if the one doing the management is a professional working on behalf of the client, it’s still considered active investing. Passive investment means that little buying or selling goes on at all – the investor sits on the stock for extended periods of time.
Lay people often see all real estate investing as passive because, from a labor perspective, we often talk about owning a rental property as providing “passive income from real estate.” But there’s a difference between passive income and passive investment.
When we use the terminology of real estate investment strategies, we distinguish active from passive based on the degree of control and ownership an investor has over specific property.
Active real estate investing involves owning specific property and managing it for a profit. You might rent for income, flip the property to another seller, or simply profit later when your real estate appreciates in value. Even if you hire a third party to do the daily boots-on-the-ground work, it’s considered active investing if you make the strategic decisions for properties you can point to as “yours.”
You can learn more about the active real estate investing basics in this article.
In passive real estate investing, you’re disconnected from strategic decisions, and you may not even be able to claim ownership of the property your money’s invested in. You’re just putting up capital and getting a return if there’s one to be had. It’s more like owning stock, but you’re investing in real estate rather than a company.
It’s easier to understand when you look at examples of different types of passive real estate investments.
What is Passive Real Estate Investing?
When you participate in passive real estate investing, you provide capital to an investment professional who, in turn, selects real estate investments and makes strategic decisions to create a profit. Sometimes, a passive real estate investor has remote ownership over a property, but sometimes, they don’t.
The biggest downside of passive real estate investing is that it usually involves large sums of money that are tied up for long periods, so it's not always accessible to the general public.
Below, we’ll talk about four types of passive real estate investment available in 2024: private equity funds, Opportunity Funds, REITs, and online real estate investment platforms.
Private Equity Funds
A private equity fund is an investment model where multiple investors pool their money to be managed as an investment over an extended period.
In most cases, private equity funds have a manager playing a direct, active role in managing the equity fund's investments. Because of the active role of the fund's manager, investors are not required to be directly involved.
The downside of private equity funds is that they are difficult to join. The minimum investment to join a private equity fund is typically around $100,000, but it can be much higher. Private equity funds use a "two and twenty" model, meaning they charge a 2% annual management fee and an additional 20% fee on any profits that the fund earns.
Opportunity Funds
An Opportunity Fund is an investment model where investors pool their money to invest in Qualified Opportunity Zones. Opportunity Zones are tracts of low-income communities where the government encourages private investments to improve the neighborhood.
By law, the government requires 90% of an Opportunity Fund to go toward improving the impoverished areas with new buildings and the redevelopment of previously unused properties.
Those who invest in Opportunity Funds can receive substantial capital gains tax incentives for their investments. An Opportunity Fund allows an investor to defer taxes on their capital gains until 2026. This typically translates into a 10-15% reduction in tax liability on their deferred gains, depending on how long they hold the investment. If the investment is held longer than ten years, any capital gains earned from Opportunity Fund investments will be excluded from any capital gains taxes.
Real Estate Investment Trusts (REITs)
A REIT is a company that makes equity investments in commercial real estate. Investors purchase shares of this company and as it gains equity, they get passive income from real estate in the form of dividends.
Unlike a Private Equity or Opportunity Fund, some REITs allow ordinary investors to take advantage of passive real estate investing.
Legally, a REIT must earn 75% of its gross income from real estate and invest 75% of its assets in real estate. They also have to distribute at least 90% of their taxable income to their investors each year.
There are three main types of REITs: private, publicly traded, and public non-traded.
Private REITs
Similar to Private Equity Funds, private REITs are limited to investors with high net worth, as they have high minimums and high fees (usually around 15%). They also require that the investor be able to invest large sums of money for long periods.
Publicly Traded REITs
Publicly traded REITs are registered with the SEC and traded in the stock market.
In contrast to private REITs, publicly traded REITs have no investment minimum other than the price of the share. This makes them easily accessible to the public.
The downside is that they're also one of the more volatile real estate investments since they're correlated to the public markets.
Public Non-Traded REITs
Considered the middle ground between a private REIT and a publicly traded one, non-traded REITs are registered with the SEC like publicly traded REITs, but they're not traded on the stock market. They’re less liquid than traded REITs but that makes them more stable.
Public non-traded REITs can be either open or restricted, and their investment minimums can vary.
Online Real Estate Platforms
Online real estate platforms are the easiest way for individual investors to take advantage of real estate investing. With online real estate platforms, you can either choose to invest in a single investment or a diversified portfolio of real estate.
Some investment platforms only offer debt investments, while some offer both debt and equity investments.
Make sure to research the right platform for your situation, as they each have their own requirements and capabilities.
Take Your Knowledge Further
Novices are sometimes drawn to passive real estate investing because it seems like it requires less real estate knowledge than active real estate investments.
This isn’t entirely true. To maximize the returns of passive real estate investment, it helps to have enough financial and real estate background knowledge to distinguish a good investment from a bad one.
One way to acquire advanced real estate knowledge is to study real estate pre-license curriculum. Earning a real estate license can be very useful for a savvy real estate investor, but even if you have no intention of completing the process, you’ll get a solid foundation of real estate knowledge to draw from as you make investment decisions.
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