One of the basic questions you have to answer when you get a real estate investing website is “How do I get my website configured to get the best results?”
There are many business models in real estate investing – buying houses, buying notes, short sales, fixing and flipping, wholesaling. And a lot more. Or your business can be a combination of different business models.
Your website must be easily adaptable to suit your business needs to achieve maximum profitability. Here are a few popular business models in real estate investing:
Real estate investing business models
1) Buying Houses
This is the most popular business model. Most real estate investors buy houses. The basis of most real estate investing businesses is buying houses.
Buying houses can include buying them in retail, cash or terms.
2) Selling Houses
Almost everyone who buys houses also sells them. Just like buying houses, you could be selling them on retail or terms, such as lease options.
Most people call wholesaling “flipping houses”. In this case, you locate houses in distress that need repair. And you get a big discount when you buy these houses. You then sell it to another property investor who fixes it up and sells it or rents it.
You end up making a little money from just a little effort. You can flip houses without ever having to own them.
In real estate investing, wholesaling is the fastest way to generate a healthy cash flow while spending little to no money. A few hundred dollars is sometimes all you need to make a deal happen.
Another popular business model is to buy houses, fix them, then put tenants for positive cash flow.
5) Buying notes
Other investors specialize on buying and selling notes. Essentially by owning a note, you become the lender and do not have to own the property.
6) Commercial real estate
This covers a wide variety of approaches, such as apartments, shopping centers, land and so on.
Some real estate investors combine both commercial and residential estate. Residential real estate involves residential houses, whereas commercial property does not include residential single family houses.
7) Other business models
When you are investing in real estate, you sometimes find yourself having to be involved in other aspects of the business that are not really separate business models.
i) Private money
When investing in real estate, sometimes you need to look for private money investors to finance your deals.
For this reason you have to actively look for private money investors to finance these deals.
ii) Short sales
As part of real estate investing, you sometimes find yourself negotiating with lenders to accept less than what is owed on the property. This process is called short sale and forms a part of most property investors businesses.
iii) Loan modification
Loan modification has become popular in the recent years. Lots of 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. Changes like that should not cost you any money.
In other words, the website you choose must be able to accommodate your changing business needs and models. 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.
If none of the default business models suits your needs, you can then adapt it to suit your individual needs.
The following business models are allowed by interactive investor websites
1) Websites for buying houses
These websites come equipped with everything you need to buy houses. You are presented to motivated sellers as the most credible person to buy their houses.
As a result, you get leads that are fully pre-negotiated and pre-screened for you.
You will only need a few minutes to decide if this is a deal or not, and follow up or let it go as needed. 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
This website comes completely equipped with all the features you need to sell your houses quickly. 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. One of the most valuable assets when selling houses is a buyers list. A simple email to your buyers list can get you a buyer the same day.
Of course, they also come integrated with social media so that people can recommend your properties to their friends through Facebook, Google+, Twitter, etc.
These websites are also adaptable 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.
Social media and buyers lists also come integrated on these websites.
4) Websites for seeking private money
You can choose this business model with a single click from the virtual back office. This automatically changes to a website for attracting private money investors.
5) Websites for buying notes
You can also convert your website for buying notes. It comes fully equipped with this capability.
6) Websites for investing in apartments
You can quickly adapt your website for investing in apartments with just a few clicks.
Should you combine business models in your website?
I once had a real estate teacher whose website contained everything she did – teaching, buying houses, selling houses, wholesaling, renting, offering hard money and seeking private money investors.
She said it worked fine for her needs.
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. This once cost me a deal worth over $10,000 because I had listed a wholesale deal on my website for buying houses. I had provided my business card with my website to a motivated seller. Since my intention was to wholesale the deal, I listed it on my website and sent it to my buyers list.
I quickly got a cash buyer for it, and he wired money to the closing title company. When the seller saw what I was making from her house, she refused to go to closing. If I had kept the business models separate, I could not have lost this deal.
Must you have more than one website for your real estate business?
If you need to separate your business models on separate websites, then you must buy more than one website.
You can get away with having only one website if your needs can be accommodated by having different business models on the same website. Interactive real estate investor websites do not offer any limitations as to how you can adapt your website. You can accommodate multiple business models if you choose, or have each website for each business model.
The choice for type of website you choose really depends on you and if your business models can conflict with each other if you use one website for them.