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How To Prepare Your Real Estate Business For Success in 2021

How can you prepare your real estate investing business for success in 2021?

2020 has been a crazy year, and this next year is almost certainly going to feel the impact of its predecessor in a few different ways.

But none of them are going to destroy your investing business and none of them should scare you into getting a 9-5 job, especially if you prepare accordingly.

From my own research, experts are expecting that interest rates will continue to decrease, home prices will slump by about 6% (YoY), demand for low- and mid-priced rentals will remain steady, and a recession that’s not caused by the real estate market will hit within the next year.

With that in mind, here are three things you can do to prepare your investing business for success in 2021.

Want Call Porters Help in 2021? Let’s Do This!

1. Buy Rentals While Mortgage Rates Are Low

Mortgage rates at historic lows: Opportunities for financial planners and clients | Financial Planning

Mortgage rates are close to all-time lows right now (around 2.7%).

And as someone who makes a business of buying and selling homes, it’s a great time to purchase rentals. Many sources predict that mortgage interest rates are going to see an even greater decline in 2021, but no one can predict the future.

It’s best to make most of the situation right now rather than counting on the future.

So buy as many high-quality rentals as you can over the rest of 2020. No matter where the market goes, people are still going to need somewhere to live — and in a recession, many of them are going to prefer renting over buying.

It might not be a great time to sell, but it’s a great time to expand your real estate portfolio!

2. Systematize Your Business

How have you felt about running your business this year?

Has it been overwhelming? Exhausting? Draining?

If those are words that you use to describe the management of your real estate business, I’m here to tell you… there’s a better way.

Although entrepreneurship is always going to require our best, running or even growing a business doesn’t need to feel like banging your head against a wall.

The key is to create systems and processes that allow your business to run without you… or at least, mostly without you.

Who is answering the phone for your business? Who is coordinating deals? Who is building your buyer’s list? Who is creating contracts and speaking with sellers?

If you answered “me” to all of those, then it’s time to start building a business that serves you rather than enslaves you.

Call Porter can help. 🙂

3. Expect a Recession

More than 70% of economists think a US recession will strike by the end of 2021 | Markets Insider

Most experts are expecting an economic recession to hit sometime in 2021 — in fact, many economists have said that we’re already in one.

The question is, how will that impact the real estate market?

More importantly, what does it mean for your business?

In most recessions, the cost of homes go down (in the Great Recession, prices decreased by 25%!). Fortunately, every recession is different and since this one is caused by a pandemic, it likely won’t be as bad as that.

“Damage to housing will probably not be as bad as the Great Recession, as the pandemic is a non-economic factor and the economy is fundamentally healthy,” said Tenpao Lee, Ph.D., a professor of economics at Niagara University.

Luxurious houses in over-developed areas will probably take the biggest hit while rural and suburban home prices might actually increase.

It’ll likely be a decent year for rentals — particularly single-family homes in rural areas — but not a good year for selling properties.

As all great investing advice goes, buy while the market is low and hold onto those assets.

But enough from us!

Obviously, no one can perfectly predict the real estate market… so what do YOU think is going to happen?

Let us know in the comments!

Want Call Porters Help in 2021? Let’s Do This!