2019 was an amazing year.
In 2019, our members generated over 400,000+ leads to their Carrot websites. Not counting phone or text leads. Many of those leads turned into deals — deals that help you, our members, achieve personal and financial freedom, and save time in life for the things that matter most.
And that’s been our goal all along. :-)
So we’re extremely excited to work with you in 2020 and to help you crush your goals.
Here’s our guide on what to expect in 2020, crush your lead generation, and how to beat your fiercest competitors.
But first, check out our annual planning call…
What You Should Expect From The Real Estate Market In 2020
No one can perfectly predict what’s going to happen to the real estate market from one year to another…
But we can certainly make some educated guesses!
Here are a few reasonable expectations to have for 2020…
- Mortgage rates will stay low — Most predictions we can find for the 2020 market expect mortgage rates to either stay right where they are or to go even a touch lower. They’re currently at about 3.75%, but we might see that number dip to 3.6% or 3.5%.
- Prices will keep rising — Scarce inventory and high demand will keep housing prices on the up-and-up. Daryl Fairweather, chief economist for real estate brokerage Redfin, says, “Right now we aren’t seeing a ton of new listings. Without more listings coming on the market, there will be more competition starting off in early 2020 and that will lead to more price pressure.”
- Inventory will be scarce — There are a lot of reasons for scarce inventory, but one big and simple reason is that people are staying in one place longer than they used to. According to data from Redfin, the average homeowner stays in their home 13 years — up from just eight years in 2010. And in some cities, homeownership tenures are as high as 23 years.
- The industry will continue to advance technologically — In the last decade, we saw real estate investors and agents scramble to get their businesses online. Now, everyone is online and the industry is becoming increasingly digitized. 2020 might see companies like Zillow releasing and/or developing automated solutions for house buyers and sellers.
But what do those changes mean for your business?
Well, for investors and agents, it primarily means that you’ll be competing in a market that’s very similar to 2019’s market. Inventory will be scarce, the competition will be fierce, but deals will be extremely profitable.
In this vibrant market, some investors are shifting to buy-and-hold investing, others are trying to focus on doing bigger wholesale deals vs. more wholesale deals, and others still are teaming up with experts in their market (if you can’t beat em’, join em’).
As for real estate agents, it’s an important time to find your niche and stick to it. What market do you want to serve and what do you want to be an expert at? The more clearly you niche down, the better chance you’ll have of success (don’t niche down too far, though, or you’ll pinch your market into nothingness).
More specifically, here are 5 things we recommend you do to build lead generation throughout 2020 and make this your best year yet.
1. Consider collaborating with other real estate professionals
While your pride might take a hit, there’s something to be said for collaborating with other real estate professionals in your area of operation. When inventory is low but deals are big (the current situation), teaming up can be a win-win situation for everyone involved.
Investors might consider teaming up with other investors to find deals together and split profits 50/50. They can also team up with agents on a referral-and-commission basis. Many real estate agents won’t mind handing over referrals if they know they’re going to get a 10% or 20% commission.
Similarly, agents might consider building an agency or joining an already existing agency. They also might consider collaborating with investors to build commission or non-commission referral relationships — “you scratch my back, I’ll scratch yours.”
The market won’t always be this competitive, but while it is, the people who collaborate and team up with other experts are probably the ones who will stay standing over the long run.
2. Invest in long-term marketing strategies (like SEO)
At Carrot, we’ve witnessed the power of SEO first hand for building a thriving business. Many of our top-performing members consistently get traffic and leads right through Google search, without lifting a finger.
But, of course, you can’t get to the first page of Google without lifting a finger — that takes some work. Once you’re there, though, you’ll likely be there for a long time into the future, driving traffic, collecting leads, and beating your biggest competitors.
The best way to invest in your SEO throughout 2020 is to blog consistently on your website and get a high-quality site with the right tech stack (our Carrot sites are built to get you ranking on page one as fast as possible — learn more over here). Fortunately, with our Content Pro or Advanced Marketer plans, you don’t have to write your own blog posts, we’ll provide SEO-ready content for your site every single month. All you have to do is:
- Choose the site you want to add the articles to
- Choose the timeframe to schedule the articles (we recommend 1xweek)
- Choose the first date to publish the first article
- Hit “Add Content Pack” and you’re done!
Depending on how competitive your market is, you may or may not see results from your SEO efforts within the next 6 months… but as the famous saying goes, “The best time to plant a tree was 10 years ago. The next best time is right now.”
So get started on building your website’s SEO — you’ll be glad you did when you’re pulling in traffic and leads on autopilot a year from now.
3. Get active on social media
We spend a lot of time talking about how powerful social media is for marketing your real estate business.
With it, you can build brand awareness, generate leads, and even close deals or offer referral commissions to your audience. In fact, we have an entire article dedicated to helping you grow your social media following and leverage that following for your business.
The biggest challenge that most people face when starting to post consistently on social media is not having the time to post. We recommend recording videos (video content performs better anyways) with real estate advice, interesting anecdotes, or testimonials. You can then use our VideoPost feature to turn that video into a blog post with the click of a button (which will add some good SEO juice to your website).
You can also use a tool like Buffer or Hootsuite to schedule your social media posts — that way, you can just set time aside one day per week to schedule them all at once and forget about it the rest of the week.
4. Focus on doing more profitable deals
In a market with tight inventory but high demand, there’s a lot of profit to be made on the deals that you do find. So you might consider trying to focus on doing fewer high-profit deals rather than focussing exclusively on deal volume.
There are two basic ways to increase the profitability of a deal.
A) Make more money on each deal (i.e. increase your wholesaling fee) or,
B) Save more money on the frontend (advertising costs, for instance).
Ideally, you’ll use a little of both of those strategies to more profitable deals. SEO, while a longterm strategy, is one way to decrease your cost-per-lead and thus your overhead.
You can also get yourself a high-converting website (like Carrot) that is built to convert visitors like clockwork — losing leads, after all, is a sure-fire way to increase overhead and advertising costs.
Additionally, consider re-examining your current wholesaling fee. Are you charging as much as you could be charging?
Remember, house flippers are making a pretty penny in this high-demand, low-inventory market and they likely won’t mind paying a little extra to the people who find those hard-to-come-by deals for them.
How much do other wholesalers in your area charge? Do you have a similar price tag? If not, you might consider increasing your fee.
5. Start delegating (or delegate more)
I don’t know a single highly successful real estate investor who doesn’t delegate at least a little bit. If you want to build a million-dollar business, you need help from other people.
What tasks could you easily start delegating? And if you already delegate, is there anything else you could take off your plate to spend more time on mission-critical tasks?
Are you struggling to delegate tasks? Listen to this episode of the CarrotCast.
Carrot Members Generated Over
70,000 Leads Last Month
Is your real estate website producing results?
2020 could bring with it some seriously big success for your real estate business.
And we hope that it does!
But the only way that’s going to happen is if you intentionally build a business that thrives in the current low-inventory, high-demand market. That means collaborating with other professionals, investing in long-term marketing strategies (like SEO), getting active on social media, finding more profitable deals, and delegating menial tasks.
Over time, with hard work, you’ll build the business of your entrepreneurial dreams. And if you put your head down and do what’s necessary, 2020 is going to be an exciting stepping stone.
Let us know what your plan is for 2020 in the comments!