Real Estate Business Models

SUPER GUIDE: Real Estate Business Models

The Super Guide about Real Estate Business Models is a complete guide on how things work in the real estate market and how real estate websites operate.

Table of content

1. Introduction
2. Overview Of The Real Estate Industry
   1. How The Real Industry Works
      1. Development
      2. Sales And Marketing
      3. Brokerage
      4. Property Management
      5. Lending
      6. Professional Services
3. What Is Real Estate Business?
   1. Types Of Real Estate Business
      1. Land
      2. Residential
      3. Commercial
      4. Industrial
   2. Examples Of Successful Real Estate Businesses
      1. Real Estate Maximums (Re/Max)
      2. Century 21
      3. Keller Williams
      4. Coldwell Banker
      5. Era
   3. How Profitable Is Real Estate Business?
   4. What Type Of Real Estate Business Revenue Can You Expect?
      1. Residual Income
      2. Profit
      3. Business Operation Payments
      4. Commissions
   5. How Much Does It Cost To Start A Real Estate Business?
      1. Pre-Licensing Real Estate Classes And Training
      2. Real Estate Examination And Licensing Fees
      3. Real Estate Broker Fees
      4. Real Estate Membership Dues
      5. Business Expenses
      6. Marketing Costs
      7. Real Estate Continuing Education
   6. What Are The Benefits Of Starting A Real Estate Business?
      1. Cash Flow
      2. Tax Breaks And Deductions
      3. Appreciation
      4. Build Equity And Wealth
      5. Portfolio Diversification
      6. Real Estate Leverage
      7. Competitive Risk-Adjusted Returns
      8. Inflation Hedge
4. What Is Real Estate Business Model?
5. Real Estate Business Models To Consider
   1. Real Estate Agents
      1. What Is A Real Estate Agent?
      2. What Is A Realtor?
      3. Real Estate Agent Vs. Real Estate Broker
      4. What Does A Real Estate Agent Do?
         1. What Does A Real Estate Agent Do For A Buyer?
         2. What Does A Real Estate Agent Do For A Seller?
   2. Wholesaling
      1. What Is Real Estate Wholesaling?
      2. Example Of Real Estate Wholesaling
      3. Succeeding In Real Estate Wholesaling
      4. Real Estate Wholesaling Vs. Flipping
   3. Wholetailing
      1. What Is Wholetailing?
      2. How Is Wholetailing Different From Wholesaling?
      3. How Is Wholetailing Different From Traditional
      4. The Advantages Of Wholetailing Real Estate
   4. Buy And Hold Investing
      1. What Is Buy-And-Hold Real Estate?
      2. Buy And Hold Vs. Flipping
      3. Types Of Buy-And-Hold Real Estate
         1. Vacation Rentals
         2. Single-Family Homes
         3. Turnkey Real Estate
         4. Multifamily Buildings
         5. Commercial Real Estate
      4. Advantages Of Buy-And-Hold Real Estate
         1. Monthly Recurring Rental Income
         2. Property Appreciation Long-Term
         3. Potential Hedge Against Inflation
         4. Significant Tax Benefits
   5. Drawbacks To Buy-And-Hold Real Estate
      1. Illiquid
      2. Property Management
      3. Market Cycles
      4. Changing Neighborhoods
   6. House Flipping
      1. What Is House Flipping?
      2. How House Flipping Works
      3. House-Flipping Advantages And Disadvantages
         1. Pros
            1. Could Make A Decent Profit
            2. Find A New Part- Or Even Full-Time Job
            3. Help Improve Neighborhood Values
            4. Diversify Your Investments
         2. Cons
            1. Homes Will Likely Have Significant Issues
            2. Potential For Legal Issues
            3. The Home Might Not Sell Quickly
            4. Lots Of Pressure
      4. Why Start Flipping Houses?
      5. Where To Start
         1. Not Enough Money
         2. Not Enough Time
         3. Not Enough Skills
         4. Not Enough Knowledge
         5. Not Enough Patience
      6. How To Start A House-Flipping Business
         1. Write A Business Plan
         2. Grow Your Network
         3. Choose A Business Entity
         4. Obtain An Ein, Insurance, Permits, And Licenses
         5. Find Suppliers And Contractors
         6. Assemble A Team.
         7. Obtain Financing
         8. Source Your Deal
      7. What Is A House Flipping Business Plan?
         1. Why You Need A Business Plan For Flipping Houses
         2. Important Steps In Your Fix-And-Flip Business Plan
      8. Executive Summary (Mission Statement)
      9. Team Dynamic
      10. Swot Analysis
      11. Opportunity
      12. Market Analysis
      13. Financing And Projections
      14. Growth Strategy
      15. Lead Generation And Marketing
      16. Goals And Objectives
      17. Competition
      18. Exit Strategies
      19. The 70% Rule In House Flipping
          1. How Does The 70% Rule Work?
          2. What If The Offers Made Using The 70% Rule Gets Rejected?
      20. Common House-Flipping Mistakes
          1. Inadequate Funds
          2. Poor Time Management
          3. Inexperience
          4. Lack Of Education
          5. Impatience
   7. Remote Investing
      1. What Is Remote Real Estate Investing?
      2. The Rise Of Remote Real Estate Investing
      3. Why Remote Real Estate Investing Is Growing
      4. Is Remote Real Estate Right For You?
      5. How To Start Remote Real Estate Investing?
      6. Online Platforms You Can Use
         1. Flipscout
         2. Roofstock
         3. Fundrise
      7. Best Remote Real Estate Investing Apps
         1. Matterport
         2. Dealcheck
         3. Airbnb
      8. Advantages Of Remote Real Estate Investing
         1. Opens Investors To Opportunities Across The Country
         2. Save Time And Energy Traveling Back And Forth To A Property
         3. Invest In Multiple Properties At Once
      9. Disadvantages Of Remote Real Estate Investing
         1. You Can’t Always Respond To Problems Yourself
         2. You Have To Do More Research
         3. You’re At The Mercy Of Other Real Estate Professionals
   8. Real Estate Listing Marketplace Business
      1. Critical Features Of Real Estate Listing Marketplace Business
         1. Go Beyond Just High-Quality Images
         2. Highlight The Usp Of Every Property
         3. Testimonials
         4. Property Value Calculation
         5. Home Loans
         6. Talk To An Expert
      2. Process For Buyers
      3. Process For Sellers
      4. Popular Real Estate Listing Websites
      5. Revenue Model
         1. Subscription Fees
         2. Featured Listing
      6. Secondary Revenue Stream
      7. Business Model Canvas Of Real Estate Listing Marketplace Business
   9. Brrrr
      1. What Is The Brrrr Method?
         1. Buy
         2. Rehab
         3. Rent
         4. Refinance
         5. Repeat
      2. Brrrr Method Example
      3. How The Brrrr Method Works
      4. Who Is The Brrrr Method Best For?
      5. What Kind Of Properties Are Best For The Brrrr Method?
      6. How To Do The Brrrr Method
         1. First Step: Buy Rehab Property
         2. Second Step: Rehab Property
         3. Third Step: Rent Property
         4. Fourth Step: Refinance Property
            1. Appraisal
            2. New Term Loan
         5. Step Five: Repeat
      7. Brrrr Method Pros & Cons
         1. Brrrr Strategy Pros
            1. Potential For Returns
            2. Building Equity
            3. Top-Grade Tenants
            4. Economies Of Scale
         2. Brrrr Strategy Cons
            1. Expensive Loans
            2. Rehabilitation
            3. Waiting Period
            4. Appraisal Risk
      8. How To Finance Brrrr Properties
         1. Conventional Bank Loans
         2. Local Bank Loans
         3. Private Lenders
         4. Hard Money Lenders
      9. Refinancing Your Brrrr
         1. Conventional Financing
         2. Commercial Financing
      10. Alternatives To The Brrrr Method
   10. Hybrid Agent/Investor
       1. What Is Hybrid Real Estate?
       2. The Hybrid Real Estate Agent First Strategy
       3. The Hybrid Real Estate Investor First Strategy
       4. Advanced: Adding A 3rd Option
          1. Sell Fast For Cash
          2. List For Top Dollar
          3. Fix And List
       5. Why Hybrid Estate Agencies Are The Future Of The Industry
       6. Pros And Cons Of Becoming A Hybrid Real Estate Broker
          1. Hybrid Real Estate Brokerage Pros
          2. Hybrid Real Estate Brokerage Cons
6. Example Of Real Estate Business Model
   1. The Zillow Business Model
      1. How Zillow Makes Money
         1. Homes
         2. Mortgages
         3. Internet Media And Technology (Imt)
      2. Zillow’s Business Model Canvas
         1. Zillow’s Customer Segments
         2. Zillow’s Value Propositions
         3. Zillow’s Channels
         4. Zillow’s Customer Relationships
         5. Zillow’s Revenue Streams
         6. Zillow’s Key Resources
         7. Zillow’s Key Activities
         8. Zillow’s Key Partners
         9. Zillow’s Cost Structure
      3. Zillow’s Swot Analysis
         1. Zillow’s Strengths
         2. Zillow’s Weaknesses
         3. Zillow’s Opportunities
         4. Zillow’s Threats
   2. The Strike Business Model
      1. Strike’s Founding Story
      2. How Does Strike Make Money?
      3. Strike Funding, Revenue & Valuation
   3. The Redfin Business Model
      1. How Redfin Makes Money
         1. Real Estate Brokerage
         2. Redfin Instant Buyer Program (Redfin Now)
         3. Partner Fees
      2. Redfin’s Business Model Canvas
         1. Redfin’s Customer Segments
         2. Redfin’s Value Propositions
         3. Redfin’s Channels
         4. Redfin’s Customer Relationships
         5. Redfin’s Revenue Streams
         6. Redfin’s Key Resources
         7. Redfin’s Key Activities
         8. Redfin’s Cost Structure
      3. Redfin’s Swot Analysis
         1. Redfin’s Strengths
         2. Redfin’s Weaknesses
         3. Redfin’s Opportunities
         4. Redfin’s Threats
   4. The Knock Business Model
      1. Short History Of Knock
      2. How Does Knock Make Money?
      3. Knock Funding, Valuation & Revenue
   5. The Opendoor Business Model
      1. A Brief History Of Opendoor
      2. How Does Opendoor Work?
      3. How Opendoor Makes Money
         1. Service Fees
         2. Add-On Services (Mortgage, Title, Etc.)
         3. Home Sales
      4. Funding And Valuation Of Opendoor
      5. Opendoor’s Business Model Canvas
         1. Opendoor’s Customer Segments
         2. Opendoor’s Value Propositions
            1. Value Proposition For Sellers
            2. Value Proposition For Buyers
         3. Opendoor’s Channels
         4. Opendoor’s Customer Relationships
         5. Opendoor’s Revenue Streams
         6. Opendoor’s Key Resources
         7. Opendoor’s Key Activities
         8. Opendoor’s Key Partners
         9. Opendoor’s Cost Structure
         10. Opendoor’s Competitors
      6. Opendoor’s Swot Analysis
         1. Opendoor’s Strengths
         2. Opendoor’s Weaknesses
         3. Opendoor’s Opportunities
         4. Opendoor’s Threats
   6. The Compass Business Model
      1. What Is Compass Real Estate?
      2. Short History Of Compass
      3. How Does Compass Work?
      4. How Does Compass Make Money?
         1. Sales Commission
         2. Bridge Loan Service
      5. Understanding The Compass Value Proposition
      6. Understanding The Compass Marketing Flywheel
      7. Compass Funding, Valuation & Revenue
   7. The Offerpad Business Model
      1. Short History Of Offerpad
      2. How Offerpad Works
      3. How Does Offerpad Make Money?
         1. Service Fees
         2. Sales Profit
      4. Offerpad Funding, Valuation & Revenue
   8. The Exp Realty Business Model
      1. What Is Exp Realty?
      2. A Short History Of Exp Realty
      3. What Is Exp Realty’s Business Model?
         1. The Value Proposition
         2. Customer Segments
         3. Customer Relationships
         4. Channels
         5. Revenue Streams
      4. What Is Exp Realty’s Commission Split?
   9. Keller Williams’ Business Model
   10. Apartments.Com Business Model
       1. What Is Apartments.Com?
       2. How Apartments.Com Make Money
          1. Diamond
          2. Platinum
          3. Gold
          4. Silver
          5. Tenants
          6. Credit Card Fees
          7. Charges — Mobile App
   11. Trulia Business Model
       1. How Does Trulia Make Money?
          1. Subscription Plans
          2. Ad Serving
7. Main Challenge To Real Estate Business Models
8. Future Of The Estate Agency Business Model
9. Guide To Creating A Real Estate Business Plan
   1. Why Create A Real Estate Business Plan?
   2. How To Start A Real Estate Business
      1. Get A Crm
      2. Craft Your Ideal Personal Plan
      3. Align Your Business Plan
      4. Build A Consistent Marketing Plan
      5. Get A Website
      6. Prospect Consistently
      7. Nurture Leads
      8. Have Good Time Management
   3. How To Grow Your Real Estate Business
      1. Leverage Your Sphere Of Influence
      2. Start Networking
      3. Use Zillow And Similar Sites To Your Benefit
      4. Find Out The Cost Of Google Ads In Your City
      5. Run Facebook Ads
      6. Optimize Your Website For Organic Search
      7. Start Blogging
10. Conclusion

Read an excerpt from this Real Estate Business Models Super Guide:

“In recent years, there has been a considerable expansion in the scope of online real estate business models. These models cut down on or do away with the need for human interaction altogether, while simultaneously increasing access to clients. Customers are content with real estate listing websites since the user interfaces of these sites are appealing and concise”

This is must-have knowledge for entrepreneurs and business model analysts, and consultants if you want to dominate business models, this super guide was made especially for you.