Once a month we showcase expert advice from smrtPhone partners. This article was written by Shauna O’Reilly from Left Main REI, a powerful and user-friendly CRM system for real estate investors.
Inflation is on the rise, gas prices are skyrocketing, grocery prices are jarring – but what does that mean for real estate investors?
With a spike in consumer costs, it’s easy to speculate that we’ll see a spike in both house prices and offers. It’s prime time to be investing, but naturally the competition is tough – all while inflation has reached a record high, currently sitting at 8.3%. Prices haven’t been at these levels in 40 years, so holding onto cash could be a terrible idea, as it’s technically only decreasing in value. Investing in something as stable as real estate might give you the opportunity to have your cash increase in value. But how do you go about making the right investment?
The Value of Good Data Management & Automation
Arguably the most important factor in making a solid investment is tracking your business’s data and managing it well. Knowing property value estimates, upkeep costs, and offers already made at the click of a button can make you an operational beast. Right now it’s especially important to know your facts and be able to make decisions fast to stay ahead of your competitors.
CRM (Customer Relationship Management) software can track and organize all your data and automate a large portion of your business. Through different dashboards you can know where your leads are coming from, understand their demographics, and get the information you need to provide the winning offer.
Add automation on top of data organization and analysis to reach the next level. Whether it’s setting up call, text, or email sequences that push you ahead of competitors or creating task sequences for your team to boost productivity, the right CRM software and customizable integrations automate these factors in a way that maximize business efficiency, improving the profitability of every deal.
It’s important to stay ruthless with your lead and opportunity sources during this time. The best way to see results is to have the first contact with a homeowner armed with a depth of tracked data that puts you at an advantage.
Sales Data is Key
Another important factor is managing your sales pipeline properly. The stakes are high and you don’t want to leave a lead or opportunity behind. Storing the right data gives you a competitive edge – not only about investment opportunities but about the inner workings of your company. Numbers don’t lie and will give you real insight on your pipeline, processes, and people.
Do you know how long it took for your sales team to follow up with a lead and when it happened? Or what percentage of leads converted to an opportunity? Are you adjusting your follow-up based on homeowner personality and needs? These questions only begin to scratch the surface of the insights a capable CRM can offer. The ability to pull metrics, KPIs, and other data can radically affect your business’s success. The goal is to make data-based decisions quickly, and your CRM should be the central tool in helping you do that.
Understanding the Impact of Inflation on Your Business
If your business starts to feel crushed by the weight of inflation, it could be because you’re being charged more for the general costs it takes to run your business. It’s important to take a step back and examine your past costs versus current costs. Then you know exactly when and how much you should be raising your own prices to keep ahead of inflation.
Managing your disposition properly during times of inflation is crucial to your success. To go from an average investor to a competitive investor, you must be constantly aware of interested buyers and offers, tracking needed financing and available private money, as well as gross and net profits on top of expenses. There will be companies that shut down. But if you track your business’s data and know what’s working and what’s not, you’ll be able to expand and thrive, even under times of pressure.
During times like these, it’s extremely important to stay competitive however you can, and you can only truly do that by tracking and understanding your data.
About Left Main REI
Left Main REI’s stable CRM system provides clarity in times of uncertainty and gives you the ability to grow and scale your business. With Left Main, you have a 30,000-foot view of your company at your fingertips. Take advantage of our Leads, Acquisitions, Marketing, Disposition and Sales Dashboards to track and understand your data and incorporate free integrations to automate your business. To learn more about all you can accomplish, visit our website at leftmainrei.co and book a free demo with our team.
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