The real estate industry isn’t immune to the effects of a recession, but that doesn’t mean you should throw in the towel and call it quits! Your real estate wholesaling business could very well see an uptick in revenue because sellers may be interested in getting an unwanted property out of their hands.
However, now is not the time to make hasty decisions or take significant risks regarding your financial resources. Let’s examine how recessions have affected the housing market in the past and discuss a few ways that you can expand your real estate wholesaling business in a recession.
Economic Downturns and the Real Estate Industry
Some economists state that we’re currently in a recession as economic activity slows down. In contrast, others say the recession will not truly begin until late 2023 or early 2024. Regardless of your stance on the issue, it’s in your best interest to position your real estate wholesaling business for success in any economic climate. While no one can predict the impact of a recession, we can observe how past recessions have affected the real estate industry.
Most people envision the Great Recession when considering how a recession will impact their business. During the Great Recession, the United States experienced the most significant home price decline compared to the four recessions prior.
Home prices drastically decreased due to the collapse of the housing market, during which lenders issued high-risk loans. As a result, record-breaking foreclosures ensued. However, over 4 million homes were sold at the height of the Great Recession, so there was still opportunity in the real estate market.
When examining the effects of recessions on the housing market, it becomes clear that the real estate wholesaling industry will remain profitable, and there is always the potential to expand your business so long as you continue to generate leads.
5 Recession Tips and Real Estate Wholesalers
Recessions present great opportunities for those willing to put in the hard work and come out on top. When competitors play it safe, you can outshine them by making the right choices at the right time. If you’re feeling uneasy about the recession, direct your energy towards actions you can take to make the most of an economic downturn. With these tips, your real estate wholesaling business can thrive, even in a recession.
Stay on the Lookout for New Opportunities
During a recession, activity in some housing market areas will decrease while others will increase. If you’re having trouble finding buyers in the local market, consider expanding your reach to nearby markets. However, many property owners will find themselves unable to maintain their homes, so you can consistently offer your real estate wholesaling services as a helping hand to those looking to get rid of their properties.
Invest in Marketing
Now is the time to ensure that your business is the talk of the town. When competitors cut costs to stay afloat, take advantage of this opportunity to invest in marketing and increase brand awareness. The easiest and least expensive way to get started is through social media marketing, primarily through high-quality videos and pictures. You can also expand your sphere of influence through lead-generating partnerships with professional cold callers, allowing you to contact qualified leads you may not find online.
Maintain Relationships with Existing Clients
Don’t burn bridges if you’re fortunate enough to have clients during this time. You may need to try a new approach with buyers and sellers. Demonstrate your ability to assist clients by finding lucrative opportunities and creative solutions in any market. Remember, it’s essential to maintain professional relationships, even when the economy isn’t working in their favor. When clients are in a better position, they will reward your loyalty.
Establish a Financial Safety Net
Having a financial safety net is always beneficial, especially when times are tough. Luckily, real estate wholesaling is relatively inexpensive compared to other business ventures. Whether the economy is up or down, you will allocate most of your financial resources toward lead generation. Whenever you profit from a deal, save a larger percentage for a rainy day and if you do spend money, ensure that you’re making well-informed investments that will benefit your company in the long run.
Connect with Clients in a Personable Manner
Even people who manage to stay afloat find recessions challenging. Remember that your clients are only human, and so are you. Rather than focus on the transactional nature of your client relationships, take the time to form a personable connection with them. Learn about their unique interests, lifestyle, and preferences. If you’re interested in connecting with clients in a new way, professional cold callers can always assist you by speaking directly to leads about their circumstances and provide you with a steady stream of qualified leads in any economy.
Thrive in Any Economy with Call Motivated Sellers
To start building your network, acquiring properties for your portfolio, and turning a profit, enlist the assistance of Call Motivated Sellers. Our team of professional cold callers saves you time and effort by vetting leads for your team. Informing interested buyers and sellers about the benefits of your wholesaling services, we’ll use our expertise to warm up leads, find the best prospects and set your sales team up for success. With cold callers on your side, you can leave the hard work of lead generation to us and focus on other aspects of your business.
Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads year-round. We have years of experience cold calling in the real estate industry and access to the best information for buyers, sellers, and agents to help you close more deals.
If you’re ready to leverage the power of cold calling for wholesaling, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!