When you get your first real estate investing website, one of the first questions you have to ask yourself is "How can I make this website deliver the best results for me?"
Real estate investing has many business models - buying houses, buying notes, short sales, fixing and flipping, wholesaling. And a lot more. Or you can combine different business models in your business.
Likewise, your website must be able to adapt to suit your individual needs and accommodate your business model or models. Let us take a look at some of the most popular business models:
Real estate investing business models
1) Buying Houses
This is the most popular business model. Most real estate investors buy houses. Buying houses forms the basic foundation of most real estate investing businesses.
Buying houses can include buying them in retail, cash or terms.
2) Selling Houses
Most people who buy houses also sell them. Again, you could be selling houses on retail, or on terms such as lease options or rent to own.
This is also popularly known as flipping houses. It involves locating distressed properties that usually need repair. And you get a big discount when you buy these houses. You then turn around and flip it to another investor who will do the repairs and sell or rent it out.
You end up making a little money from just a little effort. You can flip houses without ever having to own them.
The fastest was to generate a healthy cash flow in real estate investing is wholesaling. Sometimes you can make the deal happen with just a few hundred dollars.
Another popular business model is to buy houses, fix them, then put tenants for positive cash flow.
5) Buying notes
This is another business model popular with real estate investors. By buying notes, you bypass the need to own the property and instead become the lender.
6) Commercial real estate
This covers a wide variety of approaches, such as apartments, shopping centers, land and so on.
A lot of real estate investors combine both residential and commercial real estate investing. Residential real estate involves residential houses, whereas commercial real estate does not include residential single family houses.
7) Other business models
As a real estate investor, once in a while you find yourself involved in other business models.
i) Private money
When investing in real estate, sometimes you need to look for private money investors to finance your deals.
This means you actively look for private money investors and lenders as part of your business.
ii) Short sales
Most people who buy and sell houses find themselves having to negotiate with lenders to accept less than they are owed for the house. This short sale process usually becomes part of most people's business model.
iii) Loan modification
In the recent years this has become quite popular. Lots of real estate investors are also licensed agents and mortgage brokers.
So what types of websites for real estate investing are there on the market?
First of all, when shopping for a real estate investor website, it is important to choose a website that is flexible enough to be adapted to suit your individual needs. Preferably, you should not have to spend more money to adapt it.
In other words, your website must be able to accommodate any business model easily and quickly. So you will not have to buy another website if your business model changes in future.
Interactive real estate investor websites
These websites are fully adaptable and offer complete customization and adaptability capabilities. Changing a business model can be done with one click of the mouse.
The websites are also fully customizable to allow them to be fully adaptable to suit any business model.
The following business models are allowed by interactive real estate investor websites
1) Websites for buying houses
This website comes completely equipped with everything you need to buy houses. The website presents you to motivated sellers as the most credible person to buy their house.
The end result is that you get leads that are fully pre-screened for you with deals already pre-negotiated for you by the website.
Then you will only spend a few minutes to decide if to pursue the deal or to let it go. You can then make offers right from the virtual back office and control the closing process from your back office.
2) Websites for selling houses
These websites are fully equipped with all features you need to sell houses. You simply list your houses from the virtual back office and manage the whole process from there.
It also allows potential buyers to join your buyers list as they view your properties. A buyers list is one of the most important assets when you are selling houses. You can get a buyer just by sending an email brochure to your buyers list.
Of course, social media come integrated on the websites so they can recommend your properties through Facebook, Google Plus, Twitter, etc.
This website can quickly be adapted for renting houses, lease to own, and so on.
3) Websites for wholesaling houses
This website is equipped for the real estate investor that wholesales houses.
These websites also have buyers lists and social media integrated into them.
4) Websites for seeking private money
This business model can be selected with a single click of the mouse. Your website will automatically change to one for attracting private money investors.
5) Websites for buying notes
You can also convert your website for buying notes. Again it's completely equipped for this business model by default.
6) Websites for investing in apartments
You can quickly adapt your website for investing in apartments with just a few clicks.
Should your website have more than one business model?
My first real estate teacher had a website that carried everything she did - teaching, buying houses, selling houses, wholesaling, renting, offering hard money and seeking private money investors.
According to her, it worked just fine.
My next guru strongly emphasized that you should never mix buying houses, selling houses or seeking private money. You must separate these business models.
I personally do not support mixing business models on the same website. I once lost a wholesale deal worth over $10,000 because I listed the deal on my website for buying houses. I had provided my business card with my website to a motivated seller. Then I went ahead and listed her house on my website as a wholesale deal.
I located a buyer, we set up the closing date and my buyer wired the money to the title company. When the seller saw what I was making from her house, she refused to go to closing. I would not have lost this deal if I had kept the business models separate.
Do you have to buy more than one website for your real estate investing business?
If you do need to have separate websites for each business model, then you must buy more than one website.
If you can get away with having a one stop shop type of website, then you can have just one website. With Interactive real estate investor websites, you have no limitations on how you can adapt your website. You can mix business models in one website as you choose, or dedicate each website for each business model.
Ultimately, you must choose a website that accommodates your business models without conflict.
Interactive real estate investor websites offer a broad range of choices for different types of websites for real estate investing as well as customization capabilities. Learn how a good choice for a website can affect the success of your real estate investing business, and how to close more deals using less time, money and effort.