So far in 2024, fewer homes are taking price cuts than in 2023, and this trend is on the verge of breaking below the 2023 lows in price cuts percentages. While weekly inventory is still falling, we have year-over-year growth in total active listing and new listings data. This calls into question a mortgage rate lockdown, as mortgage rates are also higher year over year.
What is all this data pointing to? We might have an average year in housing compared to the past four years! So, we need to be very mindful of the weekly data to get clues on the marketplace.
Price-cut percentage
Every year, one-third of all homes take a price cut before selling — this is a traditional housing activity. However, this data can move stronger in either direction when mortgage rates rise or fall aggressively.
A perfect example was in 2022: when housing inventory rose faster as demand crashed, the percentage of price cuts rose faster. After November of 2022, home sales stopped crashing and the price-cut percentage data has stabilized. Even when mortgage rates were approaching 8% last year, the number of homes taking price cuts was always 4% below the 2022 level. Currently, the price-cut percentage is less than 1% from breaking below the lows set in 2023. Demand is rising from a low bar, and total housing inventory levels are still historically low. This is the price-cut percentage for last week over the last few years:
2024: 30.1%
2023: 32.2%
2022: 18.3 %
Weekly housing inventory data
A really positive story for 2024 is that we have higher housing inventory year over year. It isn’t anything to write home about, but it’s a positive story nonetheless. I am a very pro-housing supply person and will feel much better about the housing market when we return to pre-COVID-19 levels for total active listings. Last week, inventory fell week to week but was up over this time last year. I am still hoping we get the seasonal bottom in inventory in February and not March of April.
Here is a look at last week:
Weekly inventory change (Feb. 2-9): Inventory fell from 497,389 to 494,862
Same week last year (Feb. 3-10): Inventory fell from 457,717 to 444,129
The recent inventory bottom was in 2022 at 240,194
The inventory peak for 2023 was 569,898
For context, active listings for this week in 2015 were 947,864
New listings data
The new listing data put a big smile on my face this week! For the first time in a while, this was a good week for new listing data. Over the last few years, we have been trending at the lowest levels ever, so seeing a positive week is great. Also, this brings into question the mortgage rate lockdown premise since mortgage rates are higher yearly. This is something I have been discussing for many months on CNBC.
Weekly new listing data for last week over the last several years:
2024: 51,875
2023: 44,533
2022: 45,594
Mortgage rates and the 10-year yield
The 10-year yield is the key for housing in 2024. In my 2024 forecast, I put the 10-year yield range between 3.21%-4.25%, with a critical line in the sand at 3.37%. If the economic data stays firm, we shouldn’t break below 3.21%, but if the labor data gets weaker, that line in the sand — which I call the Gandalf line, as in “you shall not pass” — will be tested.
This 10-year yield range translates to mortgage rates between 5.75%-7.25%, but this assumes spreads are still bad. The spreads have been improving this year so much that if we hit 4.25% on the 10-year yield, we still won’t see 7.25% in mortgage rates.
Last week was very interesting because we had a few Fed events to deal with. First there was the aftermath of Jay Powell’s 60 Minutes interview. Then the president of the Minneapolis Fed, Neel Kashkari, made statements about how the Federal Reserve policy isn’t as tight as people would believe, presenting his case in this article. However, just a few days later, Kashkari talked about how his gut tells him that two to three rate cuts are indeed in play. I discussed this turn of events with Editor in Chief Sarah Wheeler on the HousingWire Daily podcast.
The 10-year yield closed at the week high on Friday, even though the highly anticipated CPI revisions data showed that the inflation slowdown was accurate and no upward revisions were made.
Mortgage rates didn’t move around too much last week, ranging between 7.04% and 6.95%. However, as we can see, even with significant progress on the growth rate of inflation slowing down, mortgage rates are near 7% and the 10-year yield is still over 4%. My point on this topic has been clear for a while: the Fed hasn’t pivoted, and they have a highly restrictive policy against housing as they still believe in their COVID-19 housing policy keeping home sales trending near all-time lows.
Purchase application data
Last week, we had some confusion on purchase apps, as the unadjusted numbers showed 6% week-to-week growth. We don’t account for that data line ever; the actual numbers showed -1% week-to-week growth, and we are still showing negative 19% year-over-year data. Last year, we had better positive data as mortgage rates headed down toward 6% before rates started higher, so the year-over-year comps will get easier. However, if we had strong housing demand, purchase application data would easily be positive year over year and by double digits as well. For now, just think of a bounce from record lows in demand.
The year-to-date count is two positive reports and two negative purchase application reports. Since mortgage rates started to fall in November of 2023, we have had eight positive and two negative weeks after making some holiday adjustments. This has the potential to take the seasonal inventory bottom to March. However, I am hoping for the bottom in February.
The week ahead: It’s inflation week, plus retail sales and housing starts
We have a lot of data coming up: two inflation reports, retail sales, the builder’s confidence index and housing starts. The CPI inflation data will be exciting over the next six to seven months because we can start to see the rent factor kicking into higher gear to the downside. Even though the Fed says they don’t account for shelter when talking about rate cuts, lower inflation will bring more and more pressure on them to pivot and bring rates down. We will have tons of data lines to work from next week.
https://frankbuysphilly.com/wp-content/uploads/2024/02/AdobeStock_242562499.jpg6951200Frank Buys Phillyhttps://frankbuysphilly.com/wp-content/uploads/2017/10/Bo-Final-Logo.pngFrank Buys Philly2024-02-10 22:03:582024-02-10 22:03:58Why fewer homes are taking a price cut, even while inventory rises
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Our comprehensive guide to the best real estate marketing tools provides you with a helpful assortment of easy-to-use, effective marketing products to turn your business into a revenue engine in 2024. Equipped with the right real estate marketing tools, you’ll save time, scale faster, and attract more clients — all without having to learn 40 new complicated skills and programs. We know — you didn’t get into real estate for the love of marketing or tech. That’s why we’ve chosen the most feature-rich marketing tools with a focus on integration, automation, ease of use, practicality, and their potential impact on your bottom line.
Of all the real estate marketing tools out there, your website is the most foundational. Real estate agents today need outstanding websites — or, at the very least, highly functional ones — to both attract and communicate with clients. Ideally, your website should feature MLS listings, provide a lead capture form to usher visitors to your mailing list, display rave testimonials and feature behind-the-scenes tools to help you rank better on Google search.
Here are some options to help you build a strong real estate website:
Luxury Presence
This high-end website builder is used by most design-forward agents and brokerages for its stunning layouts, high-resolution video capabilities and a sleek luxury feel. If you target luxury buyers and sellers, it’s worth considering this investment, which also comes with the ability to choose a DIY or done-for-you build-out.
Best features:
IDX home search integration
Exclusive agent referral network
SEO and content marketing service add-ons
Starting price: $500/month
Visit Luxury Presence
Placester
This customizable real estate website builder has a few different options depending on your team’s size and marketing capabilities. The DIY option begins at $79 per month, but for $239 per month (plus a $500 setup fee) you can opt for a fully done-for-you model that includes a team of writers to publish weekly website content and social media posts to help you build your brand.
Best features:
Support team that assists with marketing tasks
IDX home search integration
Built-in CRM with autoresponder, drip email campaigns and email blasts
Starting price: $79/month
Visit Placester
Squarespace
This affordable, drag-and-drop website builder offers a wide variety of templated designs with a free trial. There’s no IDX integration or other industry-specific tools, but if you’re looking for a simple place for people to look you up, Squarespace is a great starting place for branding your business.
There’s no reason to build a beautiful real estate website if nobody can find your page. That’s why SEO software is one of the most valuable real estate marketing tools out there.
Ahrefs
Ahrefs is an SEO industry go-to that helps you audit and optimize your website copy to improve your Google ranking.
Best features:
All-in-one SEO toolset that grades your content according to its ranking potential
Rank tracker (see how you rank over time)
Site explorer to research your competitor’s backlinks and keyword ranking
Starting price: Free limited access, paid plans starting at $99/month
Visit Ahrefs
Semrush
Semrush offers more than 55 tools and reports to help you supercharge your SEO and content marketing efforts. Most notably for real estate marketing, the local SEO tool helps you figure out what people in your geographic area are searching for.
Best features:
Keyword research
On-page SEO performance ratings
Local SEO to get more searchers in your area
Starting price: $129/month
Visit Semrush
Lead generation tools
Once people find you, you must give them a way to express their interest. A lead capture form is the first place to start, but it’s better to use a few strategic marketing tools specifically for supercharging leads.
Zurple
Zurple is a marketing tool for real estate agents that helps them grow their database with high-quality leads. The suite captures local, purchase-ready leads through a branded IDX website that drives traffic to your services. You can also boost your lead generation with ads from search engines and social media. Once your leads are in the system, Zurple automatically sends a drip campaign of over 200 personalized emails and SMS messages tailored to each lead’s specific preferences. The tool also has built-in lead-tracking functionality, making it easier to identify where your leads are browsing online and send them curated information.
Best features:
Zip code-specific lead nurturing
Personalized email campaigns and marketing funnels
Behavioral analysis
Starting price: $799 setup fee, plus $309 per month
Visit Zurple
Smartzip
SmartZip specializes in seller leads, leveraging predictive analytics to help you identify likely sellers as early as six to 12 months before they list their property. It gives you a “first mover advantage”, providing robust follow-up tools that help you nurture potential seller clients with ease.
Best features:
Smart CRM
Home valuation landing pages (for value-driven lead capture)
You don’t have to be an influencer, but you do need to cultivate a social media presence. The more authentic, the better. Think of your social media audience as like the waiting room for your owned audience. Yes, they will find you on platforms like Instagram and Facebook first, but you want to encourage them to stick around and eventually join your email list using some of the other real estate marketing tools we list here.
Flick
Flick helps you write and schedule posts for Instagram, Facebook, LinkedIn and TikTok. Think of it like a copywriting assistant who can help you cut down your writing time in half, all for less than the cost of four lattes each month.
Best features:
AI-assisted caption finishing
Hashtag generator
Starting price: $14 per month
Visit Flick
Hootsuite
Hootsuite is a comprehensive social media scheduler, manager and analytics dashboard. It helps you schedule posts, monitor traffic and review engagement across multiple channels.
Best features:
AI content creation
Post time optimizer
Engagement tools
Ads insights
Starting price: $99 per month
Visit Hootsuite
Email marketing tools
Email is one of the best marketing tools for real estate agents. Unlike social media platforms, you aren’t at the mercy of an algorithm. Email gives you a direct line to customers who eagerly gave you their address. Choosing the right marketing platform will help you nurture a long-lasting relationship.
IXACT Contact
IXACT Contact is a robust real estate marketing tool and CRM solution. Its email capabilities include drip email campaigns and a monthly newsletter feature. Notably, it complies with CAN-SPAM and CASL regulations, helping you communicate with your clients worry-free.
Best features:
Unlimited sending
Branded email headers
Campaign insights
Template for E-cards and Just-Listed/Just-Sold email announcements
Starting price: Inquire for pricing
Visit IXACT Contact
Constant Contact
With a well-earned reputation, Constant Contact offers both a robust CRM solution as well as its bread and butter of email marketing. The platform’s email editor is highly intuitive with hundreds of templates to choose from. Its analytics-driven features help you track opens and clicks, plus give you additional tools like sign-up forms, surveys, polls and SMS integration to help build client engagement.
Best features:
AI-assisted content writing
Dynamic and functional templates
Mobile app for on-the-go management
Starting price: $12 per month
Visit Constant Contact
SMS real estate marketing tools
Freshsales is an AI-powered sales CRM that can serve as a helpful marketing tool for real estate agents.
Freshsales
The Freshsales suite offers a free CRM option for up to 3 users with 100 contacts, but the $15-per-month Growth subscription offers multichannel engagement with clients across text messages (SMS) and WhatsApp. This feature is crucial for personalizing customer experiences at scale, saving you time and energy while improving client engagement.
Best features:
SMS and WhatsApp nurture campaigns
AI-powered contact scoring
Mobile CRM
Starting price: $15 per month for Freshsales Growth
Visit Freshworks
Constant Contact Premium
Yes, Constant Contact is known for its emails, but did you know the Premium subscription also allows for SMS integration? If you want to build out your client relationships even more and establish faster methods of connection, take a look at migrating your list to Constant Contact where you can layer text communication on to your strategy.
Best features:
Up to 500 SMS text messages monthly
Custom list segmentation
Revenue reporting
Google Ads Manager
SEO recommendations
Starting price: $80 per month
Visit Constant Contact
Photo editing tools
You don’t have to be the world’s best photographer, but you should have a few basic photo editing tools up your sleeve. A number of free marketing tools exist for this purpose, but you may need to upgrade to a paid tool if you find yourself spending too much time editing and need a little boost.
Canva
Canva is super user-friendly and packed with real estate-specific templates. The drag-and-drop interface, plus a huge library of graphics and fonts, make designing your own mailers, postcards and social media posts a breeze. Canva is perfect for everything from new listings to brand promotion. You can start for free and explore premium features for more advanced options. It’s great for collaborative design projects with your team, works on any device, and has lots of images to choose from.
Best features:
Templates
Upload your brand colors and fonts
Premium license-free imagery
Starting price: Free
Visit Canva
Coffee and Contracts
Coffee & Contracts is like a social media toolkit for real estate agents. For $54 a month, you get loads of trendy, ready-made templates for all the big platforms like Instagram, Facebook, TikTok, and YouTube. It’s super organized, with a content database sorted by topic. The catch? The designs aren’t exclusive to you and there’s no automation for posting. But, it offers a handy content calendar and is quite a deal compared to hiring a social media manager or graphic designer (or both). It’s founded by real estate professional Haley Ingram, who understands the struggles agents may have with carving out time for social media marketing. Sign up for access to a treasure trove of digital marketing tools and some sweet discounts.
Best features:
Ready-made templates for Instagram, Facebook, TikTok and YouTube
Image licensing at varying tiers
Option to use a single login or multiple team logins
Access to a members-only Facebook group
Starting price: $54
Visit Coffee and Contracts
Video editing tools
In real estate, video tells a more compelling story than any other medium. Show your clients some beautiful, sweeping views from your listings or share educational videos on social with creative video content edited with the help of these tools.
Adobe Premiere Pro
For real estate agents looking to uplevel their video content and produce viral reels of surprising home flips, swoon-worthy luxury walkthroughs or other creative concepts, Adobe Premiere Pro offers a robust suite of video editing tools that creators can have some fun with.
Best features:
Advanced audio editing
Video flipping and blurring (for focus or privacy)
Access to educational resources
Voiceovers for property descriptions and commentary
Starting price: $22.99 per month
Visit Adobe Premiere Pro
Mojo
Elevate your property videos with professional flair. Mojo’s features include auto-captions, background removal and an extensive library of stock videos and royalty-free music.
Best features:
Professional font and text effects
Time-saving auto-captions
Custom dimensions
Starting price: $4.99 per month
Visit Mojo
Teleprompter
Teleprompter is a user-friendly app that displays pre-written scripts during recording, thereby reducing the need for retakes. It’s a great marketing tool for real estate agents who record market updates and brand themselves as thought leaders. Use it for property walkthroughs, client interviews, market commentary and more.
Best features:
Script display during recording
Editable scripts
Customizable reading speed
4K video recording on iOS
Multi-device remote control for tablets, phones, computers and smartwatches
Sync with Dropbox, Word, iCloud or Google Drive
Starting price: Free
Visit Teleprompter
AI tools
Lofty
Lofty is an all-inclusive AI-powered platform tailored specifically for real estate professionals. If you have a marketing need, it’s got the AI-assisted real estate marketing tool for you. Its tools for real estate agents include everything from team collaboration and productivity to lead generation and sales.
Best features:
AI-assisted smart CRM
Automated social media marketing and posting
“Smart Plans” for lead nurturing and conversion
User-friendly agent website with AI-assisted IDX home search
Catalyze AI uses predictive analytics to source leads that have inherited property that present a high likelihood of wanting to sell. The platform uses advanced data analysis, pulling from over 400 million data points within a 50-mile radius.
Best features:
Utilizes historical data, behavior analytics, event-driven data and real-time insights to provide predictive analysis
Predicts high-probability homes for efficient lead targeting
Keep track of your clients like the professional you are by leveraging the right client relationship manager (CRM). A CRM will help you streamline your sales processes, store client data, manage leads and keep track of how many times you’ve connected with every buyer or seller.
Market Leader
Market Leader offers an all-encompassing CRM that serves as one of the best real estate marketing tools for agents. Why? It focuses on client management and automation, featuring an intuitive dashboard for organizing client details and tracking your touchpoints with them over time. Market Leader’s CRM also integrates with more than 40 lead sources, including Zillow and Realtor.com
Best features:
Automated text and email alerts
MLS integration
Mobile CRM app
Lead conversion action plans
Starting price: Inquire for pricing
Visit Market Leader
Follow Up Boss
Follow Up Boss is meant for teams, helping yours to organize leads and prospects in one place. It Integrates with over 250 SaaS applications and lead sources.
Best features:
Mobile CRM app
Exceptional integration capabilities with different platforms like WordPress for websites and Zillow or SmartZip for lead generation
Top-notch flexibility, giving agents the freedom to choose their preferred tool integrations
Starting price: $69 per month
Visit Follow Up Boss
CINC
If you’re looking for a marketing solution that includes a CRM and lead nurturing, CINC is a feature-rich solution. It comes with automated lead routing and drip campaigns, plus expert-designed workflows to help you enhance productivity, and IDX website capabilities.
Best features:
AI-assisted responses
Automated drip campaigns
Mobile CRM app
Starting price: Inquire for pricing
Visit CINC
Event tools
Whether you’re hosting open houses, first-time homebuyer workshops or seasonal neighborhood events, you’ll need some event planning tools to help you invite and manage the guest list.
Luma
Luma is an iOS app and event page manager that features SMS invites, QR code check-ins and even weather forecasts, helping you make event organization rather seamless. Create shareable calendar pages, track attendance analytics and post themed updates to get your guests excited.
Best features:
Shareable calendars
SMS invites
QR code check-in
Analytics for tracking event page views, referrals and sales
Accepts all credit cards, plus Apple Pay and Google Pay, for paid events
Premium features include Zoom integration and up to 5,000 invitations weekly
Starting price: Free (with a 5% platform fee on tickets along with Stripe processing fee)
Visit Luma
Eventbrite
You might recognize this global ticketing platform, but it can also be a helpful marketing tool for real estate agents organizing both live or online events.
Best features:
Mobile ticket app
QR code check-in
Marketing tools and data insights
Waitlists
Secure payments
Starting price: Free
Visit Eventbrite
Parkbench
Parkbench is a platform that helps real estate agents host live, neighborhood-specific virtual events, thereby creating video content to post on social media and YouTube. The company’s goal is to help agents become “Local Leaders” in their communities, giving them exclusive rights to their neighborhood website (there’s a one-agent-per-community rule) and setting them up to become the go-to expert on all hyperlocal topics. Use Parkbench to interview local business leaders, discuss community news, spotlight your neighbors and more.
Best features:
Sponsoring your community’s website could help you rank on the first page of Google for local keywords
Scheduling assistance for interviews with local guests
Parkbench editors create shareable video clips from your interviews
Ongoing group coaching with other real estate agents
Starting price: $300 per month
Visit Parkbench
Real estate marketing tools: The full picture
There you have it: The best paid and free real estate marketing tools for agents. Finding the right mix of tools can help you revolutionize how you connect with potential clients, be more productive and, ultimately, grow your business. When you’re not stressed from handling admin and getting bogged down in tech, you can simply show up as yourself on social media and at real-life events. Using these tools to streamline your workflow helps you get in front of more potential buyers and sellers, and ultimately, close more deals.
The four Ps of marketing in real estate are product, price, place and promotion. Let’s dig in
Product: Another word for a product in real estate is simply the property. What is being sold or leased? This “P” includes not just the physical characteristics of the property (square footage, design, etc.) but also its added features like school district, acreage, views, proximity to amenities, etc.
Price: In real estate, the price isn’t always straightforward. Included in this “P” are the property’s current value, its property taxes and factors like who is financing the deal. You also have to consider market conditions, which always impact the price and demand.
Place: Another way to think of this “P” is “positioning.” It has to do with how you are positioning the property in the market. Of course, its physical location matters, but this category also relates to where you market the property. A luxury property might be shown by appointment only (and not by open house) or shown to luxury brokers at a broker’s open, with invites sent to the leading luxury agents in your area. Meanwhile, land might be marketed to enterprising buyers willing to build their dream home from the ground up. For instance, if you are selling a luxury property, is it being marketed on websites and at brokerages with relationships to luxury buyers?
Promotion: This “P” involves the marketing strategies used to sell or lease properties. Promotion encapsulates advertising, public relations, marketing collateral, digital marketing, media outreach, open houses, broker’s open, caravans,, showings, livestreams, 3-D virtual tours and all of the tools we included on this list of best marketing tools for real estate agents.
A CRM stands for “client relationship manager,” and it is a must-have marketing tool for real estate agents. It helps you capture leads and organize your contacts into lists (called “segments”) based on their interests and behavior. A good CRM aids in follow-up communications, tracking client interactions, and helping you nurture leads through your sales pipeline. The right CRM helps you make the most of your efforts, keeping you top-of-mind with your clients so that when they are ready to buy or sell, they think of you first.
Real estate marketing is most effective when it is a blend of digital and in-real-life (IRL) activities. First and foremost, focus on your reputation and building a personal brand around what types of clients and properties you work with. Once you define your niche, make your presence known by participating in community events, hosting learning opportunities for potential buyers and sellers, staying in touch with clients via a newsletter, and organically finding ways to bring up your work to anyone you think you can serve.
If you’re just starting out building your email list, you’ll want to start with your existing networks of friends, colleagues, fellow volunteers, club members, or sports enthusiasts. Tap the folks you went to high school or college with as well as your book club or rowing club teammates. The more networks you have, the better. People want to work with people they know and trust.
You can also buy real estate leads or cold-call in order to kickstart relationships with new prospective clients. However, focus on prospects that are within your local zip codes and have demonstrated interest — either through attending an event or entering their email address in Zillow or another lead capture website — in the services you offer.
A few tried-and-true real estate marketing methods include content marketing (sharing valuable, hyperlocal content like blogs, videos and infographics), networking and referrals, open houses, cold-calling and targeted ads. Offer to sit other agents’ open houses for them to meet active buyers. Don’t give up and continue being your authentic self — over time your reputation will precede you and people will learn they can trust you as a go-to resource.
Our methodology
HousingWire is the destination for industry leaders and decision makers to stay informed and stay ahead of what’s going on in the constantly evolving U.S. housing industry.
To determine which real estate marketing tools are best for industry professionals, HousingWire analyzed dozens of products and platforms, weighing the pros and cons of each alongside both quantitative and qualitative data like price, special features, ease of use, return on investment, client support, and customer reviews.
We crawled the web so you don’t have to, analyzing a wide sampling of reviews across social media, the Better Business Bureau (BBB) and online discussion forums.
That’s what echoed in Missouri native Ryan Haywood’s ears after his boss decided to slash his commissions—a “sales haircut,” as it’s bitterly known in the industry.
This notion of being penalized for success was perplexing for Ryan. Out of all the downsides of his job—the after-hours calls from his boss that he was expected to answer, dealing with poor management, and working up to 80 hours a week—this pay cut was the last straw. He didn’t realize it at the time, but this setback was about to unveil a path that would lead his family toward the future that Ryan and his wife Megan had dreamt about.
Ryan’s story that I’m about to share is not just a testament to his determination to build his wealth on his own terms. This story is about his strategic, practical approach to building a truly successful real estate company in the face of uncertainty, full of solid insights that every investor should hear.
Ryan’s Journey From Sales to Real Estate
It was the end of 2019. Ryan and Megan were in a period that should have been filled with anticipation and joy for their family as they awaited the arrival of their third child.
Instead, uncertainty loomed. Despite the lucrative nature of his job in the budding field of fiber optics, the instability and lack of appreciation left Ryan yearning for change. He was caught in a dilemma: a high-paying position that offered little in terms of job satisfaction and stability. And to make matters worse, the company he worked for just decided to cut a large chunk of his pay because he was making too many sales.
Ryan knew something had to change; he just hadn’t yet realized what that change would be. Shortly after receiving this news, Megan and Ryan had their third child. This meant Ryan was on paternity leave and suddenly had extra time on his hands. He wasn’t sure what his next steps would be—all he knew was that he couldn’t go back to the toxic workplace at his current 9 to 5 job.
It was during this time that Ryan’s wife Megan stumbled across a 30-day wholesaling challenge on Instagram and brought it up to Ryan. They had dabbled in real estate investing years prior with a couple of rentals but had been paying them very little attention. Ryan wasn’t initially interested in the idea of wholesaling, and the idea of a “30-day challenge on social media” seemed a bit like a gimmick at the moment, so he declined.
But after some thought and some persistence from Megan, he decided to give it a go. As it turns out, this challenge not only introduced him to the fundamentals of wholesaling but also ignited a passion for real estate that was previously untapped.
Initial Steps and Challenges
After pushing past his initial reluctance, Ryan went full steam ahead on trying to win the challenge—this meant landing your first wholesale deal within 30 days. This entailed driving for dollars to find distressed properties, reaching out to the homeowners (in Ryan’s case, via direct mail), and securing a purchase contract from the seller that Ryan would then assign to an end buyer.
Contrary to his later experiences, Ryan’s first deal came from word of mouth (in this case, that meant telling people around him at dinner what he was doing) and did not involve intricate negotiations directly with a seller. Instead, it was the process of learning on the fly—figuring out how to assess the value of properties and the cost of needed repairs with limited prior knowledge in this area.
Despite these initial uncertainties and the steep learning curve, Ryan’s persistence paid off when he secured his first real estate deal. This pivotal moment was not only a testament to the validity of his new career focus; it also resulted in a significant payoff, earning him an $8,500 finder’s fee.
Like many investors who came before him say, this deal was massively important. And not just because of the $8,500 check—that was just the icing on the cake. This deal was a proof of concept that wholesaling as a strategy works. In other words, the business model was proven right in front of his eyes.
Ryan admits he was still “terrified” of wholesaling at this point since he still had very little knowledge and understanding of the industry. Nevertheless, with the check in hand, he knew that this was the path forward for him and his family.
When the challenge was all said and done, Ryan ended up landing two deals in 30 days, totaling $28,500. This number was the base salary at his last job. He had successfully escaped the rat race and, as it turns out, would never set foot in his old office again.
Scaling Up and Embracing Technology
Ryan and Megan’s focus at that point then became getting more deals and repeating the process. From the very beginning, they knew that they wanted it to be a family venture, even packing up the kids and bringing them on business trips to ensure that everyone was benefiting from experiencing the lifestyle that was bringing them so much success.
They needed reliable, efficient tech to manage processes and allow them to actually find success while traveling to new markets and cities to explore investment opportunities. Thanks to DealMachine, the tech platform at the center of the 30-day challenge, they were able to travel while still building and working on their business.
Because of their adoption of technology, scaling came naturally for them. Wholesaling is a numbers game—to grow your business; you need more leads, more marketing, and people in key positions to help ensure a smooth pipeline. DealMachine helped them with all of this and then some, allowing the leads to keep flowing and marketing to continue on autopilot while Ryan and Megan focused on the most important parts of the business and spending time together as a family.
To get a deeper insight into how they scaled from getting their first few deals, here’s a breakdown of the numbers in the first couple years of their business:
First full year (2020): Achieved 73 wholesale transactions with no standard operating procedures (SOPs) or employees—just Ryan and Megan working together.
Following year (2021): Completed 113 wholesale transactions, indicating significant growth. This year also saw the introduction of a transaction coordinator (TC) and a salesperson, though they quickly quit. A new TC was hired, who eventually took on sales as well due to competence in this area.
Year after (2022): Conducted 45 wholesale transactions, which might seem like a decrease but was part of a strategic shift to focus on quality and integrate construction into their business model. The team grew to eight people, and the average assignment fee increased to $10,500.
Portfolio growth: From seven rentals in 2020 to 12 by the end of 2021, and then expanding their portfolio to 30 properties.
Financial highlights: In 2021, they grossed $575,000, and in 2022 broke over the million-dollar mark in revenue.
Operational shift: Started their own construction crew in 2022 to better control the renovation quality and timeline of their investment properties.
Networking and Community Building
In their pursuit of growing their business, Ryan and Megan Haywood not only built relationships with city officials but also mended fences with local real estate agents who were initially wary of wholesalers. Their efforts in renovating distressed properties across St. Joseph, Missouri, garnered Ryan the nickname “golden child” from the mayor, underscoring the impact of their work on the community’s fabric.
This special recognition from city leadership demonstrated the benefits of their strategic relationships, highlighting how working closely with city officials was instrumental in smoothing the path for their projects and fostering an environment of mutual benefit.
These partnerships proved to be highly important in navigating the complexities of real estate development, from regulatory compliance to accessing new opportunities that aligned with their mission to uplift the community. Because the city officials (people who are often the gateway to successfully securing permits and zoning for building projects around a city) could physically see that Ryan was creating positive change, they were happy to help him.
Some of these officials, with deep knowledge of the city’s housing, even became a source of leads for their business and guided them to properties and areas around St. Joseph that needed change. Alongside this, their engagement with agents eventually shifted from skepticism to collaboration as they demonstrated the value and professionalism they brought to the table with these relationships as well.
For Ryan and Megan, the lesson was clear: Building a network that includes both city officials and real estate professionals can significantly amplify an investor’s ability to effect positive change while scaling their business effectively.
Lessons Learned
Looking at Ryan Haywood’s journey through the real estate landscape, there are several lessons we can learn from them. By achieving over 400 deals so far, Ryan has not only showcased what’s possible with dedication and strategic planning but also exemplified the significance of adopting certain practices for long-term success.
Here are some key takeaways from his experience, each providing a blueprint for how to navigate the complexities of real estate investing effectively:
Embrace community engagement
Ryan’s success was significantly bolstered by building strong ties with community leaders and real estate professionals. This highlights the value of networking, not just for deal flow but for fostering a supportive ecosystem that can propel your business forward.
Leverage technology for efficiency
Utilizing a real estate tech platform allowed Ryan to scale his operations by streamlining the process of identifying and managing potential deals. For investors, embracing such technologies can enhance productivity, allowing more time to focus on strategic decision-making.
Adopt a mission-driven approach
Having a clear mission, such as improving the community, can differentiate you in a crowded market. Ryan’s focus on revitalization projects earned him the “golden child” nickname, underscoring the impact of aligning business goals with community values.
Final Thoughts
Ryan Haywood’s path in real estate is a compelling story of strategic growth, innovation, and impactful community engagement. His progression from executing individual deals to achieving over 400 transactions is not merely a story of personal success but a blueprint for investors aiming to elevate their business practices.
Haywood’s story highlights the critical role of embracing technology to streamline business operations, the power of networking in your local community and beyond to unlock new opportunities, and the impact that can come from fostering both business growth and community development.
For investors looking to replicate Ryan’s success, the key takeaway is the value of strategic adaptability—integrating new tools/methods and pushing forward while also remaining rooted in the community’s welfare and having a bigger “why.” This story shows that achievements in real estate require not just good financial judgment but a vision that extends beyond personal gain.
This article is presented by DealMachine
DealMachine empowers real estate professionals to discover and invest in off-market properties with ease, offering a comprehensive app that guides you every step of the way. From identifying potential investments to instantly accessing high-quality homeowner data for informed decision-making, we make investing simple and effective. Click to start expanding your portfolio today!
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.
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The portal wars are heating up. In an attempt to reach residential listing portal supremacy, CoStar Group (the parent company of Apartments.com and Homes.com) will air four advertisements during this Sunday’s broadcast of Super Bowl LVIII between the San Francisco 49ers and the Kansas City Chiefs.
“The Super Bowl is a deep part of American culture and it grabs a disproportionate share of everyone’s mind,” Andy Florance, the CEO of CoStar Group, said. “So, it is the best place to get attention on a brand.”
One of the ads will be for Apartments.com, while the other three will feature Homes.com, CoStar’s residential listing platform. All four ads will feature celebrities, including Jeff Goldblum, Dan Levy and Heidi Gardner, as well as a blink-and-you’ll-miss-it cameo from Florance.
When it came time to select talent for the ads, Florance said Levy and Gardner, who starred and co-wrote in Saturday Night Live’s Zillow skit in February 2021, were no-brainers.
“Dan Levy and Heidi Gardner are two incredible talents, and they are clearly in tune with the way America looks at real estate online,” Florance said.
He noted that both Levy and Gardner helped to write CoStar Group’s Super Bowl ads.
CoStar said it plans to continue running the commercials throughout the rest of 2024, including during major TV broadcasts like the Oscars and the NBA playoffs.
The company has been hyping the Super Bowl ad spots through a series of consumer-facing ads on YouTube featuring Levy, Gardner and rapper Lil Wayne. The advertisements promise “a powerful new home-shopping platform,” and end with the date of this coming Sunday.
“We began by teasing the commercials, and particularly the talent and the celebrities in the commercials, to create interest, and that will drive a little more attention to the commercials when they run in the Super Bowl,” Florance said.
In a video discussing its marketing strategy, also released this week, CoStar tells real estate agents that it plans to run the Homes.com ads on streaming platforms, broadcast TV and digital radio, as well as during major events. It also notes that it has spent roughly $1 billion to “drive 80 billion impressions” and reach “more than 90 percent of households.”
“No other competitor comes close to our investment to drive leads to all agents,” the video states.
Part of this investment, Florance said, was to build content on roughly 21,000 neighborhoods across the U.S., as well as nearly 100,000 high schools, elementary schools and middle schools.
“When people buy a home, they are not just buying a home, they are buying into a community,” Florance said.
The firm is no stranger to large marketing spends. In 2015, CoStar spent $100 million in consumer marketing to promote the revamped Apartments.com site.
“I think now everyone is familiar with ‘Change your apartment, change your world,’ and Jeff Goldblum playing Brad Bellflower, but that was a big bet for us. We invested a lot in that and we are investing three or four times as much in this campaign,” Florance said. “People spend a lot more money on their home than they spend on beer or Doritos, so it’s important that our marketing is commensurate with how important real estate is in people’s lives.”
CoStar, which has long been known as a commercial real estate listing giant, began making a play for a slice of the residential listing pie when it acquired Homesnap and Homes.com in 2020 and 2021, respectively.
In September 2023, Homes.com recorded more than 100 million unique monthly visitors, a 1,290% year-over-year increase, according to the firm. Meanwhile, Realtor.com reported 74 million unique monthly visitors and Redfin recorded 52 million unique visitors in Q2 2023. The massive jump in unique monthly visitors propelled Homes.com to the No. 2 spot among the most-visited residential real estate platforms, trailing only longtime leader Zillow.
Looking ahead, Florance feels it is only a matter of time before Homes.com overtakes Zillow.
“We are confident that we have built the best site possible for both the agents, and the home buyers and seller,” Florance said. “We’ve climbed from No. 5 or 6 to No. 2, but we are just beginning to market our brand to consumers. This is the next stage in the development of Homes.com. We are playing the long game.”
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A Zillow analysis of U.S. Census Bureau data released Friday shows that the youngest group of prospective homebuyers, Generation Z, are bucking a larger trend by moving to California.
Even as California lost nearly 215,000 residents to net migration in 2022, census data also shows that the Golden State saw a net increase of almost 44,000 Gen Z adults (people born between 1996 and 2004, excluding students) who moved there from other states.
Across all age groups, California led all states for net out-migration in 2022, but it ranked second behind only Texas (77,000) for the highest net in-migration of Gen Z residents.
Zillow pointed out that California is not the only state with a relatively high cost of living that has attracted younger residents even as net migration among other age groups has declined or remained flat.
A cost-of-living index maintained by the Missouri Economic Research and Information Center found that California was the third most expensive state last year (trailing only Hawaii and Massachusetts). Washington, Colorado and Virginia also ranked among the bottom half of states in terms of affordable living, but they joined California among the 10 states with the highest net in-migration among Gen Z.
“Compared to all interstate movers, Gen Z adults who moved to California, Washington, Colorado or Virginia were more likely to have a four-year college degree, more likely to be serving in the military, and more likely to work in tech,” Edward Berchick, principal population scientist at Zillow, said in a news release.
Zillow also found that 77% of the Gen Z adults who moved to these four states are renters. And each of these states, according to census data, had higher monthly rental housing costs than the U.S. median price of $1,300 — led by California at $1,856 per month.
“Gen Z movers are likely drawn to the job opportunities in these states, despite the higher costs of housing,” Berchick added. “They may also be in a stage of life where they’re willing and able to be flexible in their standards of living while starting their careers.”
Gen Z remains a small slice of the homebuyer market at 4%, according to a 2023 report from the National Association of Realtors (NAR). That share rose from 3% a year earlier. And Gen Z accounts for the largest share of single female homebuyers at 31%, NAR reported.
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Last year was a challenging one for reverse mortgage business activity, and it likely hit no one harder than the industry’s front-line loan originators.
After enduring challenges stemming from higher interest rates, stricter qualifications and broader industry consolidation, loan officers seem to be optimistic about how things have progressed in the early portion of 2024.
This is according to a series of RMD interviews with six reverse mortgage originators from across the U.S., including the states of California, Washington, Florida, Wisconsin and South Carolina.
‘Night and day’ difference
When posed with the simple question about how business is going so far this year, David Heilman — principal for HomeGrown Financial in Mount Pleasant, South Carolina — characterized the difference between early 2024 business and the same time last year as “night and day.”
“I don’t know if there’s really anything to really point to [why that’s the case],” Heilman said. “I’ve certainly seen more inquiries already. Typically, this is a slower time for me; January and February have always been slower months. In springtime, people start moving again, but so far in 2024 I feel like I’ve at least been getting more proposals out, which as we all know, results in more applications eventually.”
In Green Bay, Wisconsin, Jim Cullen of University Bank reports a similar trend.
“The year’s off to a good start,” he said. “I noticed toward the latter part of last year, getting into December, that for whatever reason, things started to pick up. I was getting some more direct inquiries and a few more referrals, so things started to get moving a little bit.
“Over the holidays, people are kind of tuned out, but once we got through to the New Year, more things are cooking.”
The change is a welcome one, since 2023 may have been Cullen’s “poorest year of 19 years in this business,” he explained. “I will confess that it was a struggle all year long.”
‘Active’ and ‘steady’ interest
Chris Bruser
Roughly 1,400 miles away, the phone continues to ring for Chris Bruser, reverse mortgage specialist at Mutual of Omaha Mortgage in Tampa. Bruser primarily operates through referrals and has seen consistent levels of inbound interest, he said.
“My financial planner business still continues to be very active,” he said. “But for me, I do a lot of [Home Equity Conversion Mortgage (HECM)] for Purchase. Obviously, we’ve got a lot of active adult communities down here, and we’re still building them. So, I’m really continuing to focus on the active adult market for what we call the “lifestyle home loan,” commonly known as HECM for Purchase.”
Roughly 2,000 miles from Tampa in the Denver area, Bruce Simmons of American Liberty Mortgage reports that things are off to a “steady” start in 2024.
“As far as the interest in reverse mortgages, it has been steady,” he said. “But the challenges are still there as far as qualifying people to get enough proceeds. Those are the biggest challenges, and even when they do have enough income, sometimes they may say it’s not really worth it right now.”
Inconsistent interest rate forecasts have made things challenging in his business, but different kinds of marketing — including a refocusing exercise on his existing marketing efforts — have helped to improve things, Simmons explained.
“It’s starting out with some really good momentum,” he said. “A lot of my prospecting and strategic activities come into focus during the very first part of the year, and I’ve seen my pipeline get larger as a result of my activities, for sure. My outlook is very positive. I’m trying to increase my production over last year by a factor of two, probably.”
Down in the Los Angeles area, Tom O’Donoghue of Reverse Loans Now reported that his results in January were ahead of expectations.
“I just see a huge difference in the volume coming in,” he said. “My projections for January were that I would get eight new leads, and I ended up with 11. I was anticipating just two new applications, and I ended up with four. No fundings yet, but I am anticipating going into the end of this month, in February, that we should have three fundings, and then we should still have a good pipeline going into March. So, this definitely [makes for] a huge Improvement for myself.”
Dealing with challenges
Like others, O’Donoghue reported a challenging 2023, so much so that it shook his confidence, but speaking to mentors he respects in this space helped to give him perspective as he headed into business this year, he explained.
A lot of the business challenges last year did not seem to come from a lack of interest among potential customers, he said. Running the numbers for people illuminated terms that revealed either zero or not enough benefit based on rates and principal limit factors, but that has slowly started to shift.
“Toward the end of the year and the beginning of January when the numbers started to change, we [ran numbers] for people that we could get off the fence to move forward, and new leads that came in where homes were free and clear,” O’Donoghue said. “So, that helped get people off the fence as well.”
https://frankbuysphilly.com/wp-content/uploads/2024/02/2024newyear_unsplash.jpg8301245Frank Buys Phillyhttps://frankbuysphilly.com/wp-content/uploads/2017/10/Bo-Final-Logo.pngFrank Buys Philly2024-02-09 21:11:442024-02-09 21:11:44Reverse mortgage originators report good starts to 2024 business
Mr. Cooper Group was profitable in 2023, a year marked by its acquisition of Home Point Capital and Roosevelt Management Co., along with the fallout from a cyberattack. Mr. Cooper’s strong performance was mainly due to its servicing business, which benefited from a higher interest rate environment.
During a call with analysts on Friday morning, company executives addressed some of the concerns raised by Treasury Secretary Janet Yellen, who said this week that U.S. regulators are monitoring risks stemming from nonbank mortgage lenders, especially failures resulting from market strains.
Dallas-based Mr. Cooper is expected to reach $1.1 trillion of unpaid principal balance (UPB) in mortgage servicing rights (MSR) by the end of March, a target announced in July 2021 when the portfolio was at $650 billion.
“While the overall portfolio has grown considerably, and we expect it to grow by another 25% this year, only half of it is owned MSR. The other half is subservice for a number of clients,” vice chairman Chris Marshall told analysts. “If there are any limitations on concentration, I think it would be focused more on people, on owned MSR. So, I think we have quite a bit of room for us to grow before that becomes a concern for anybody.”
At the end of December, Mr. Cooper had $992 billion in MSR, up 14% year over year. Of that total, 59% was in owned MSR, 5% was in special servicing and 35% was in subservicing. According to Marshall, the company seeks a balance of 50% owned MSR and 50% subservicing.
“And if you look, in total, we’re still in kind of a single-digit market share,”Chairman and CEO Jay Bray said. “It’s a scale business. You have to build and invest in technology. So, we don’t have any concerns about continuing to grow the platform. The key for us is sustainability.”
Executives also added that, in terms of capital, the target for the companyis “so much far ahead of what is required of banks”that “it’s not a concern,”according to Marshall. “I can’t even imagine it becoming anything of a conversation. (…) You should think of us as having a rock-solid balance sheet.”
Overall, Mr. Cooper delivered $500 million in net income in 2023. Its almost $1 trillion servicing portfolio generated $869 million in pretax operating income last year. And by funding $12.6 billion in loans, it had a $100 million pretax operating income.
“A key theme for 2023 was operating leverage. We grew the portfolio at a double-digit pace during the year while at the same time cutting costs companywide,” Bray said. “In fact, since 2018, we’ve cut servicing costs by 30%.”
Bray said the company will return its focus to equity, which is expected to grow to 14% to 18% by the end of 2025, compared to its current level of 12.5%.
Cyberattack, changes in leadership
Mr. Cooper generated $46 million in net income in the fourth quarter. That compares to $275 million in the third quarter of 2023 and $1 million in Q4 2022 when it had a negative mark-to-market of $58 million.
The earnings in Q4 2023 included, among other things, mark-to-market net hedges of $41 million and $27 million related to a cyberattack it suffered in October. The company had the data of nearly 15 million current and former clients exposed in a hacking incident, which resulted in at least four class-action suits.
Despite the cyber incident, the company kept its servicing and origination businesses profitable. With 4.6 million customers, the servicing division brought in $229 million in pretax operating income in Q4, compared to $301 million in Q3.
Meanwhile, the originations division — which focuses on acquiring loans from correspondent originators and refinancing existing loans in the direct-to-consumer channel — brought in $10 million in pretax operating income in Q4, compared to $29 million in the previous quarter.
“Bear in mind that these numbers were impacted by the cyber event,” Marshall said. “Excluding that impact, we estimate EBT [earnings before taxes] would have doubled. For similar reasons, refi recaptures dipped slightly during the quarter but are now back up over 80%.”
The company’s total funded volume declined to $2.7 billion in Q4, down from $3.4 billion in the previous three-month period. Cash-out refinances represented 61% of the total, followed by purchase loans (25%), second-lien refinances (12%) and rate-and-term refinances (2%).
In January, the company announced Mike Weinbach, a former Wells Fargo and JPMorgan Chase executive, as its new president. He is succeeding Marshall, who was named executive chairman at servicing fintech Sagent.
Mr. Cooper’sliquidity reached $2.4 billion in Q4, with $571 million in unrestricted cash.
Anywhere Real Estate named Joseph Z. Lenz to its board of directors, the company announced on Thursday. The appointment will be effective starting Feb. 13, 2024.
Lenz currently serves as managing director and co-head of research for credit solutions at TPGAngelo Gordon, a prominent global asset manager with more than $200 billion in assets. As a result, the Anywhere board will expand from 12 to 13 directors under the helm of Chairman Michael J. Williams.
“We are pleased to welcome Joe Lenz to the Anywhere Board of Directors,” Williams said in a statement. “Anywhere is committed to maintaining a high-caliber and diverse Board, and we are confident we will benefit from Joe’s notable business experience. We are thankful for the continued support of TPG Angelo Gordon, and we look forward to working with Joe upon his joining the Board as we continue to guide and support the Anywhere leadership team.”
Lenz has extensive experience helping companies navigate investments across different capital structures, as well as investor and legal affairs. Previously, Lenz served as a board member of Northern Oil and Gas, a publicly traded energy investment platform. He now serves as a board member for Secure Energy, a privately held energy broker.
Lenz received his bachelor’s degree in philosophy, politics and economics from the University of Pennsylvania in 2010.
As part of Lenz’s appointment, Anywhere Real Estate entered into a cooperation agreement with TPG Angelo Gordon and funds managed by that firm.
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Minnesota-based real estate investment trust Two Harbors has hired industry veteran Kyle Kilpatrick to lead its newly created mortgage originations division, which is part of the company’s strategy to retain borrowers from its servicing portfolio when interest rates drop.
“He has experience building direct-to-consumer channel products and businesses from scratch,” Bill Greenberg, president and CEO of Two Harbors, said in an interview. “We are building out the team to fill all those functions to be able to make loans and, as we said, hopefully beginning to take locks in the second quarter sometime.”
A 30-year mortgage industry veteran, Kilpatrick started as executive vice president of originations at Two Harbors in November. Before that, he spent nearly a year as EVP of direct lending at Go Mortgage and served for eight years as president of consumer direct at Lending.com, a Finance of America company.
“We have this opportunity, given where our portfolio is and where interest rates are, to build something from scratch, and we can make it entirely custom fit to our business,” Greenberg said. “We don’t have to buy something that other people have made that doesn’t fit very well and that’s upside-down on costs.”
Two Harbors’ origination business will hedge its servicing portfolio of $216 billion in unpaid principal balance (UPB) as of Dec. 31, 2023. That’s how things work at other companies in the mortgage space, such as Mr. Cooper, Rithm Capital and Pennymac. Two Harbors’ primary strategy, however, isn’t to compete with large players for new customers.
“A lot of those guys spend a lot of money on advertising and outreach to people to try to find borrowers that they can refinance or make second liens,” Greenberg said. “We have borrowers we know very well that we can just call. The so-called lead generation is captive to our ecosystem already.”
For now, most of the company’s borrowers have no incentive to refinance. The weighted average coupon rate for its servicing portfolio was at 3.45% in the fourth quarter, signaling a low risk of prepayments. Meanwhile, the 30-year fixed mortgage rate was 6.9% as of Thursday afternoon, according to HousingWire’s Mortgage Rates Center.
While rates are still high, Two Harbors will work with second liens and home equity products through its origination business.
Journey to originating loans
Two Harbors was created in 2009, in the wake of the Great Recession, as prices for most assets, including mortgage-backed securities (MBS), started to fall and became an investment opportunity.
The company began investing in agency and legacy subprime MBS. Over time, it got involved in other asset classes, such as single-family rental properties and commercial real estate lending. (The latter division was subsequently spun off into a REIT).
Mortgage servicing rights (MSR) became a target in 2013, and by 2020, the company had chosen to focus on agency MSR and agency MBS. According to Greenberg, the premise was that “diversification sounds good only in theory” since “investors wanted to diversify themselves, but they didn’t want the investment vehicles themselves to diversify” for them.
Between 2017 and 2018, the company crossed the mark of 500,000 servicing units. At this level, conventional wisdom says it’s most cost-effective to bring servicing in-house, Greenberg said. At that time, Two Harbors sought a platform to acquire. It debuted in the servicing business in October 2023 by acquiring RoundPoint Mortgage Servicing LLC.
“One of the most interesting characteristics about Roundpoint was that it was agency [MSR] only. It had no government servicing, no Ginnie Maeexposure, which has different regulatory risks and different economics,” Greenberg said.
“It also didn’t have a lot of servicing on the platform — it was servicing some assets from its parent company, which was going to move back up to the parent before it transferred to us,” he added. “So, it just had a small amount of true third-party subservicing. It was sort of an empty shell waiting for someone to come and put all their servicing on the platform.”
Two Harbors also wanted to ensure that whatever vehicle it purchased had its licenses to originate loans. It had become clear to executives that in the valuation of MSRs, the recapture economics should be included.
“This one has been known for a long time, but it had never been explicitly included in the cash flows of mortgage servicing until the last couple of years,” Greenberg said. “And so we knew that in order to get the most value out of our servicing asset, some amount of recapture capabilities was going to be very important to our efforts.”
After integrating with Roundpoint, Two Harbors is expected to have 500 employees in four offices in New York, Minnesota, South Carolina and Texas.
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Real estate farming, otherwise known as geo-farming, is a dependable lead generation method that can help to create a steady pipeline of real estate leads and clients in your area. Real estate farming is a slow-burn strategy where consistency and intentionality matter, but when it’s done right, your efforts can yield long-ranging results when guided by a community-first approach. If you want to add effective real estate farming tips, tools and tactics to your marketing arsenal, our guide will show you how it’s done.
Real estate farming, or geo-farming, is a lead generation strategy in which the agent focuses on a specific geographic area. Common real estate farming ideas include direct outreach via mail, email or direct mailers, but you can also host neighborhood social events, sponsor seasonal events and provide helpful real estate information resources to your community.
The main idea is to put you, your team or brokerage in front of community members regularly, thereby establishing your brand and positioning yourself as a local expert and trusted resource. Real estate farming also includes traditional marketing methods like sending direct mailers, knocking on doors and nailing your locally relevant social media presence.
Why should I try real estate farming?
Real estate agents rarely use farming as their only marketing approach, but the ones who use it successfully credit real estate farming for the longevity of their business. Remember — most of the time, buyers and sellers may not be actively looking for your services, but when they are, real estate farming ensures you are always top of mind.
Like all marketing, real estate farming is psychological. The well-established rule of seven explains that consumers typically work with a brand or service only after repeated exposure to it. Clients are more likely to pick up the phone and call you after seeing your name on multiple mailers, business cards and signs. And after winning business in a small geographic area, your referral business begins to build upon your success.
Real estate farming tools
Whether hosting open houses, first-time homebuyer workshops or seasonal neighborhood events, these tools will help you become a go-to local expert.
Luma
Starting price: Free (with a 5% platform fee on tickets along with Stripe processing fee)
Luma is an iOS app and event page manager that features SMS invites, QR code check-ins and even weather forecasts, helping you make event organization seamless. Create shareable calendar pages, track attendance analytics and finally, post themed updates to get your guests excited.
Best features:
Shareable calendars
SMS invites
QR code check-in
Analytics for tracking event page views, referrals and sales
Accepts all credit cards, plus Apple Pay and Google Pay, for paid events
Premium features include Zoom integration and up to 5,000 invitations weekly
Learn More
Eventbrite
Starting price: Free
You might recognize this global ticketing platform, but it can also be a helpful marketing tool for real estate agents organizing live and online events.
Best features:
Mobile ticket app
QR code check-in
Marketing tools and data insights
Waitlists
Secure payments
Learn More
Parkbench
Starting price: $300 per month
Parkbench is a platform that helps real estate agents host live, neighborhood-specific virtual events, thereby creating video content to post on social media and YouTube. The company aims to help agents become “Local Leaders” in their communities, giving them exclusive rights to their neighborhood website (there’s a one-agent-per-community rule) and setting them up to become the go-to expert on all hyperlocal topics. Use Parkbench to interview local business leaders, discuss community news, spotlight your neighbors and more.
Best features:
Sponsoring your community’s website could help you rank on the first page of Google for local keywords
Scheduling assistance for interviews with local guests
Parkbench editors create shareable video clips from your interviews
Ongoing group coaching with other real estate agents
Learn More
Lofty
Starting price: Inquire
Lofty is an all-inclusive AI-powered platform tailored specifically for real estate professionals. If you have a marketing need, it’s got the AI-assisted real estate marketing tool for you. Its tools for real estate agents include everything from team collaboration and productivity to lead generation and sales.
Best features:
AI-assisted smart CRM
Automated social media marketing and posting
“Smart Plans” for lead nurturing and conversion
User-friendly agent website with AI-assisted IDX home search
Learn More
Catalyze AI
Starting price: $360 per month
Catalyze AI is a unique real estate marketing solution for the data-driven agent. The AI-driven tool uses predictive analytics and a dataset of over 400 million data points to identify promising leads who have recently inherited property. It also pulls from event data, historical trends, behavioral analytics and other information, then provides lead suggestions for you within a 50-mile radius.
Best features:
Uses historical data, behavior analytics, event-driven data and real-time insights to provide predictive analysis
Predicts high-probability buyers and sellers for efficient lead targeting
Access to 400 million data points
Learn More
Constant Contact
Starting price: $12 per month
With a well-earned reputation, Constant Contact offers a robust CRM solution and its bread and butter of email marketing. The platform’s email editor is highly intuitive, with hundreds of templates to choose from. Its analytics-driven features help you track opens and clicks, plus it provides additional tools like sign-up forms, surveys, polls, and SMS integration to help build engagement.
Best features:
AI-assisted content writing
Dynamic and functional templates
Mobile app for on-the-go management
Learn More
Real estate farming: a step-by-step strategy
Every real estate agent has their own approach to real estate farming, but a few common parallels exist:
Step 1 — Choose your farm area carefully
Selecting your farm area comes down to combining your personal preferences and industry “green flags” that signal an area is worth investing resources into.
A good turnover rate shows that people are moving in and out of the neighborhood with enough regularity that there will be continued opportunities for business. Gorgeous communities with large estates and expansive, landscaped yards might not yield the best return on your time. Why? Because there are fewer homes per square acre and buyers typically tend to own their homes for more extended periods in such neighborhoods.
In contrast, starter-home neighborhoods might give you better results because there is more activity and a greater need for people to upsize once they’ve outgrown their house. But these rules aren’t written in stone — dig into your area and MLS data before making any decisions.
Size and accessibility+–
Finally, understand what makes your farm area unique. Which companies and job sites are located nearby? How are the school districts? What attracts people to this area, and where do they want to live? Be able to name the best grocery stores, community recreation centers, places of worship, nature centers and shopping areas.
Also, know about specific local initiatives and incentives, like land trusts, environmental regulations, property developments, or upcoming renovation projects. For instance, are they expanding a local walking trail, building a new multi-use apartment complex, or adding a new redlight camera in a nearby intersection? These may seem like minor details, but they’ll matter considerably in future clients’ lives.
Step 2 — Understand your farm’s demographics
Now it’s time to learn about your customer. Research who lives in the area; are they families, retirees or young professionals? Identify who might be looking to move into the area and who might be planning to leave, including families needing larger homes or empty nesters looking to downsize.
Step 3 — Study the sales data
You’ve already studied data to select your farm area, but now is the time to zero in on more specifics. You should look at:
Average price and days on the market (DOM): Know the area’s average listing and selling prices, plus how long properties typically sit on the market.
Current inventory: Monitor the current homes available for sale, including the types of homes, price ranges and unique property features.
Price trends: To understand market dynamics, consider how prices have changed over time for different property types like single-family homes or condos.
Listing vs. sales price: Help your clients understand how much negotiation room they might have in upcoming transactions. A large gap between listing and selling prices (in either direction) can inform your understanding of supply and demand.
Step 4 — Plan your outreach
Now that you know who is in your area, their needs, and what the financial data shows, you can start planning and budgeting for your marketing strategy.
Plan for a mix of in-person, digital and physical outreach methods. Start with simple email and SMS (text) campaigns, utilizing lead nurturing software like Constant Contact and Real Geeks to organize and track every digital outreach attempt or “touch.”
Establishing early digital communication with your prospects establishes their expectation that they will hear from you throughout the year (with their consent and opt-in, of course). Maintaining an open line of digital communication through email and text will also be your method of reaching them when announcing Open Houses and other events.
Then comes the in-real-life (IRL) fun. Give new clients the chance to meet you in person at a community movie night, a seasonal holiday parade or a local sports game. If you want to be truly memorable, come up with a signature event you and your team host every year, quarter or month.
For example, Carr describes her company’s monthly ice cream social in the same YouTube interview. On the last Friday of every summer month, her brokerage rents an ice cream truck to host a pop-up event at a community park within her farming area. The experience is memorable, she says, reminiscent of the days an ice cream truck used to drive through her neighborhood as a kid.
If a nostalgic ice cream night isn’t your thing, send an annual gift like a holiday cookie tin, a yearly calendar, a summer beach towel or a back-to-school coffee mug tastefully featuring your brokerage’s branding. Postcards, door hangers, and other marketing collateral will require a smaller investment, allowing you to reach more community members. An informative community newsletter, Facebook group or community website can provide consistent value and become a go-to resource for nearby residents.
Most importantly, build predictability. Pick activities you know you can follow through on consistently. Try thinking of your outreach plan in terms of annual, quarterly, monthly, weekly, and ad-hoc initiatives that whet your prospects’ appetite for more interactions with you. It could look something like this:
Mail “Just Sold” postcards to neighbors whenever you broker a successful sale or purchase.
Step 5 — Calculate your budget and expected ROI
Each of the above ideas comes with an investment of time, money, or both. For instance, Carr budgets between $5,000 to $8,000 for each of her brokerage’s quarterly events, totaling $32,000 annually.
Of course, you can deploy several free real estate marketing tools, including Facebook groups and cost-effective, lead-generating websites with community-focused content.
Bottom line: Know how much you’re willing to spend across all areas — digital marketing ads, marketing collateral, in-person events, novelty items, event rentals, etc. — and determine how many homes you’d need to sell to recoup a return on that investment.
With your plan, budget and knowledge in hand, it’s time to start farming. Begin by introducing yourself to the community, attending local events and gradually rolling out your planned activities. Consistency is key. Be patient and persistent; your efforts will help cultivate a strong presence within your chosen real estate farming area.
Step 7 — Track and nurture leads
As you develop momentum and add leads to your database, set up a system for regularly tracking and nurturing your relationships. Remember — contacts within your farming area are distinct from others in your CRM; they live in a geographically distinct area (likely your neighborhood!), so your messaging should be more personalized and community-focused.
When nurturing leads, tailor your communication to meet your prospects’ needs. Just think, what would your neighbor want to hear? Find natural opportunities to mention market trends in the area, community announcements, events and helpful real estate advice. Keep a detailed record of your interaction with potential clients in your farm area. Include phone calls, emails, door-knocking visits and events, and their responses to your direct mail and email campaigns.
Over time, review your interaction records periodically to evaluate which methods are most successful in engaging potential clients. Notice how often people reply to your emails, what information resonates with them, and how many attend your events. Refine your approach based on what the data shows.
Real estate farming isn’t the kind of marketing strategy that yields overnight results. Give yourself a year of consistent effort before throwing in the towel or trying a new farming area. Budget-wise, give yourself a year of runway. Evaluate your results monthly and quarterly, looking at the big picture after a year. Only then can you truly decide whether geo-farming gave you the desired results.
Tip #2: Start simple
When you start real estate farming, sending a “Just Sold” postcard when you sell a new house can be a powerful way to debut your services to a new community. A simple postcard announcing new sales serves the community in two ways: 1) It updates them on their neighborhood’s latest average home value, and 2) It introduces them to a new agent (you) should they decide to sell their home soon.
Tip #3: Focus on quality and consistency—not just quantity
There’s a difference between consistency and quantity. Don’t just “spray” your farming area with impersonal, generic postcards to try and reach a massive number of prospects. Similarly, don’t sacrifice quality simply to try and mail something once a week. Be intentional. Choose methods you can execute well and commit to a cadence you can sustainably maintain.
Maybe your sweet spot is a monthly or quarterly summary of every home you’ve sold in your targeted area rather than a postcard for every sale. Or perhaps you prefer mailing seasonal cards for holidays, school breaks and special community events instead of linking your mailers to sales. Whatever your strategy, pick something you know you can commit to — and become known for it.
According to recent National Association of Realtors data, only 26% of home buyers are first-timers. So, if you’re already offering first-time homebuyer workshops in your local community, broadening such events to include activities that all community members can participate in will help you reach a broader demographic of buyers and sellers.
Tip #4: Get resourceful
Don’t limit yourself to the most expensive mailers or big-budget events. You can start real estate farming by simply introducing yourself to parents at your child’s school. One pair of realtors, Alissa and Katy of the Hustle Humbly Podcast, mention that simply serving as secretary of your local Parent Teacher Association (PTA) or another community group “counts” as farming since it provides natural, conversational opportunities to bring up your work and answer prospective clients’ questions.
Farming in real estate refers to focusing your marketing and networking efforts on a specific geographic area or community (often the one you live in) to establish a brand presence and generate new leads.
Begin by selecting a suitable real estate farming area, first understanding its demographics and studying its sales data to inform your outreach. Next, plan annual, quarterly, monthly, weekly and ad-hoc outreach methods that you can do consistently every year. Make one or two ideas your “signature” events and become known for them. Plan your budget accordingly, knowing what kind of return on investment (ROI) you need to make your efforts worthwhile. Then, consistently engage with the community and roll out your plan.
Demographic farming is like geo-farming but focuses more on factors like age, family size and income level. Geo-farming considers demographic factors, but demographic farming focuses primarily on such lifestyle conditions to target an ideal customer base. For instance, a luxury real estate agent focusing on unique, upscale homes might concentrate more on demographics because their target client — an independently wealthy entrepreneur — is motivated more by finding rare properties and less so by considerations like school districts and proximity to community centers.
https://frankbuysphilly.com/wp-content/uploads/2024/02/Real-Estate-Farming-using-geotargeting.png6751200Frank Buys Phillyhttps://frankbuysphilly.com/wp-content/uploads/2017/10/Bo-Final-Logo.pngFrank Buys Philly2024-02-09 01:27:332024-02-09 01:27:33Real estate farming: Become the go-to agent in your area using these tips, tools & strategies
Why fewer homes are taking a price cut, even while inventory rises
So far in 2024, fewer homes are taking price cuts than in 2023, and this trend is on the verge of breaking below the 2023 lows in price cuts percentages. While weekly inventory is still falling, we have year-over-year growth in total active listing and new listings data. This calls into question a mortgage rate lockdown, as mortgage rates are also higher year over year.
What is all this data pointing to? We might have an average year in housing compared to the past four years! So, we need to be very mindful of the weekly data to get clues on the marketplace.
Price-cut percentage
Every year, one-third of all homes take a price cut before selling — this is a traditional housing activity. However, this data can move stronger in either direction when mortgage rates rise or fall aggressively.
A perfect example was in 2022: when housing inventory rose faster as demand crashed, the percentage of price cuts rose faster. After November of 2022, home sales stopped crashing and the price-cut percentage data has stabilized. Even when mortgage rates were approaching 8% last year, the number of homes taking price cuts was always 4% below the 2022 level. Currently, the price-cut percentage is less than 1% from breaking below the lows set in 2023. Demand is rising from a low bar, and total housing inventory levels are still historically low. This is the price-cut percentage for last week over the last few years:
Weekly housing inventory data
A really positive story for 2024 is that we have higher housing inventory year over year. It isn’t anything to write home about, but it’s a positive story nonetheless. I am a very pro-housing supply person and will feel much better about the housing market when we return to pre-COVID-19 levels for total active listings. Last week, inventory fell week to week but was up over this time last year. I am still hoping we get the seasonal bottom in inventory in February and not March of April.
Here is a look at last week:
New listings data
The new listing data put a big smile on my face this week! For the first time in a while, this was a good week for new listing data. Over the last few years, we have been trending at the lowest levels ever, so seeing a positive week is great. Also, this brings into question the mortgage rate lockdown premise since mortgage rates are higher yearly. This is something I have been discussing for many months on CNBC.
Weekly new listing data for last week over the last several years:
Mortgage rates and the 10-year yield
The 10-year yield is the key for housing in 2024. In my 2024 forecast, I put the 10-year yield range between 3.21%-4.25%, with a critical line in the sand at 3.37%. If the economic data stays firm, we shouldn’t break below 3.21%, but if the labor data gets weaker, that line in the sand — which I call the Gandalf line, as in “you shall not pass” — will be tested.
This 10-year yield range translates to mortgage rates between 5.75%-7.25%, but this assumes spreads are still bad. The spreads have been improving this year so much that if we hit 4.25% on the 10-year yield, we still won’t see 7.25% in mortgage rates.
Last week was very interesting because we had a few Fed events to deal with. First there was the aftermath of Jay Powell’s 60 Minutes interview. Then the president of the Minneapolis Fed, Neel Kashkari, made statements about how the Federal Reserve policy isn’t as tight as people would believe, presenting his case in this article. However, just a few days later, Kashkari talked about how his gut tells him that two to three rate cuts are indeed in play. I discussed this turn of events with Editor in Chief Sarah Wheeler on the HousingWire Daily podcast.
The 10-year yield closed at the week high on Friday, even though the highly anticipated CPI revisions data showed that the inflation slowdown was accurate and no upward revisions were made.
Mortgage rates didn’t move around too much last week, ranging between 7.04% and 6.95%. However, as we can see, even with significant progress on the growth rate of inflation slowing down, mortgage rates are near 7% and the 10-year yield is still over 4%. My point on this topic has been clear for a while: the Fed hasn’t pivoted, and they have a highly restrictive policy against housing as they still believe in their COVID-19 housing policy keeping home sales trending near all-time lows.
Purchase application data
Last week, we had some confusion on purchase apps, as the unadjusted numbers showed 6% week-to-week growth. We don’t account for that data line ever; the actual numbers showed -1% week-to-week growth, and we are still showing negative 19% year-over-year data. Last year, we had better positive data as mortgage rates headed down toward 6% before rates started higher, so the year-over-year comps will get easier. However, if we had strong housing demand, purchase application data would easily be positive year over year and by double digits as well. For now, just think of a bounce from record lows in demand.
The year-to-date count is two positive reports and two negative purchase application reports. Since mortgage rates started to fall in November of 2023, we have had eight positive and two negative weeks after making some holiday adjustments. This has the potential to take the seasonal inventory bottom to March. However, I am hoping for the bottom in February.
The week ahead: It’s inflation week, plus retail sales and housing starts
We have a lot of data coming up: two inflation reports, retail sales, the builder’s confidence index and housing starts. The CPI inflation data will be exciting over the next six to seven months because we can start to see the rent factor kicking into higher gear to the downside. Even though the Fed says they don’t account for shelter when talking about rate cuts, lower inflation will bring more and more pressure on them to pivot and bring rates down. We will have tons of data lines to work from next week.
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The 22 must-have real estate marketing tools for 2024
Vetted by HousingWire | Our editors independently review the products we recommend. When you buy through our links, we may earn a commission.
Our comprehensive guide to the best real estate marketing tools provides you with a helpful assortment of easy-to-use, effective marketing products to turn your business into a revenue engine in 2024. Equipped with the right real estate marketing tools, you’ll save time, scale faster, and attract more clients — all without having to learn 40 new complicated skills and programs. We know — you didn’t get into real estate for the love of marketing or tech. That’s why we’ve chosen the most feature-rich marketing tools with a focus on integration, automation, ease of use, practicality, and their potential impact on your bottom line.
In this article
Overview: The best real estate marketing tools of 2024
Best real estate marketing tools
Luxury Presence
Placester
Squarespace
Ahrefs
Semrush
Zurple
SmartZip
Flick
Hootsuite
IXACT Contact
Constant Contact
Freshsales
Constant Contact Premium
Canva
Coffee & Contracts
Adobe Premiere Plus
Mojo
Teleprompter
Lofty
Catalyze AI
Market Leader
Follow Up Boss
CINC
Luma
Eventbrite
Parkbench
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Website building tools
Of all the real estate marketing tools out there, your website is the most foundational. Real estate agents today need outstanding websites — or, at the very least, highly functional ones — to both attract and communicate with clients. Ideally, your website should feature MLS listings, provide a lead capture form to usher visitors to your mailing list, display rave testimonials and feature behind-the-scenes tools to help you rank better on Google search.
Here are some options to help you build a strong real estate website:
Luxury Presence
This high-end website builder is used by most design-forward agents and brokerages for its stunning layouts, high-resolution video capabilities and a sleek luxury feel. If you target luxury buyers and sellers, it’s worth considering this investment, which also comes with the ability to choose a DIY or done-for-you build-out.
Best features:
Starting price: $500/month
Visit Luxury Presence
Placester
This customizable real estate website builder has a few different options depending on your team’s size and marketing capabilities. The DIY option begins at $79 per month, but for $239 per month (plus a $500 setup fee) you can opt for a fully done-for-you model that includes a team of writers to publish weekly website content and social media posts to help you build your brand.
Best features:
Starting price: $79/month
Visit Placester
Squarespace
This affordable, drag-and-drop website builder offers a wide variety of templated designs with a free trial. There’s no IDX integration or other industry-specific tools, but if you’re looking for a simple place for people to look you up, Squarespace is a great starting place for branding your business.
Best features:
Starting price: $16/month
Visit Squarespace
7 best website builders for real estate agents, brokers and brokerages
SEO tools
There’s no reason to build a beautiful real estate website if nobody can find your page. That’s why SEO software is one of the most valuable real estate marketing tools out there.
Ahrefs
Ahrefs is an SEO industry go-to that helps you audit and optimize your website copy to improve your Google ranking.
Best features:
Starting price: Free limited access, paid plans starting at $99/month
Visit Ahrefs
Semrush
Semrush offers more than 55 tools and reports to help you supercharge your SEO and content marketing efforts. Most notably for real estate marketing, the local SEO tool helps you figure out what people in your geographic area are searching for.
Best features:
Starting price: $129/month
Visit Semrush
Lead generation tools
Once people find you, you must give them a way to express their interest. A lead capture form is the first place to start, but it’s better to use a few strategic marketing tools specifically for supercharging leads.
Zurple
Zurple is a marketing tool for real estate agents that helps them grow their database with high-quality leads. The suite captures local, purchase-ready leads through a branded IDX website that drives traffic to your services. You can also boost your lead generation with ads from search engines and social media. Once your leads are in the system, Zurple automatically sends a drip campaign of over 200 personalized emails and SMS messages tailored to each lead’s specific preferences. The tool also has built-in lead-tracking functionality, making it easier to identify where your leads are browsing online and send them curated information.
Best features:
Starting price: $799 setup fee, plus $309 per month
Visit Zurple
Smartzip
SmartZip specializes in seller leads, leveraging predictive analytics to help you identify likely sellers as early as six to 12 months before they list their property. It gives you a “first mover advantage”, providing robust follow-up tools that help you nurture potential seller clients with ease.
Best features:
Starting price: $500 per month
Visit Smartzip
Related Article:
The ultimate guide to real estate lead generation ideas for 2024
Social media tools
You don’t have to be an influencer, but you do need to cultivate a social media presence. The more authentic, the better. Think of your social media audience as like the waiting room for your owned audience. Yes, they will find you on platforms like Instagram and Facebook first, but you want to encourage them to stick around and eventually join your email list using some of the other real estate marketing tools we list here.
Flick
Flick helps you write and schedule posts for Instagram, Facebook, LinkedIn and TikTok. Think of it like a copywriting assistant who can help you cut down your writing time in half, all for less than the cost of four lattes each month.
Best features:
Starting price: $14 per month
Visit Flick
Hootsuite
Hootsuite is a comprehensive social media scheduler, manager and analytics dashboard. It helps you schedule posts, monitor traffic and review engagement across multiple channels.
Best features:
Starting price: $99 per month
Visit Hootsuite
Email marketing tools
Email is one of the best marketing tools for real estate agents. Unlike social media platforms, you aren’t at the mercy of an algorithm. Email gives you a direct line to customers who eagerly gave you their address. Choosing the right marketing platform will help you nurture a long-lasting relationship.
IXACT Contact
IXACT Contact is a robust real estate marketing tool and CRM solution. Its email capabilities include drip email campaigns and a monthly newsletter feature. Notably, it complies with CAN-SPAM and CASL regulations, helping you communicate with your clients worry-free.
Best features:
Starting price: Inquire for pricing
Visit IXACT Contact
Constant Contact
With a well-earned reputation, Constant Contact offers both a robust CRM solution as well as its bread and butter of email marketing. The platform’s email editor is highly intuitive with hundreds of templates to choose from. Its analytics-driven features help you track opens and clicks, plus give you additional tools like sign-up forms, surveys, polls and SMS integration to help build client engagement.
Best features:
Starting price: $12 per month
Visit Constant Contact
SMS real estate marketing tools
Freshsales is an AI-powered sales CRM that can serve as a helpful marketing tool for real estate agents.
Freshsales
The Freshsales suite offers a free CRM option for up to 3 users with 100 contacts, but the $15-per-month Growth subscription offers multichannel engagement with clients across text messages (SMS) and WhatsApp. This feature is crucial for personalizing customer experiences at scale, saving you time and energy while improving client engagement.
Best features:
Starting price: $15 per month for Freshsales Growth
Visit Freshworks
Constant Contact Premium
Yes, Constant Contact is known for its emails, but did you know the Premium subscription also allows for SMS integration? If you want to build out your client relationships even more and establish faster methods of connection, take a look at migrating your list to Constant Contact where you can layer text communication on to your strategy.
Best features:
Starting price: $80 per month
Visit Constant Contact
Photo editing tools
You don’t have to be the world’s best photographer, but you should have a few basic photo editing tools up your sleeve. A number of free marketing tools exist for this purpose, but you may need to upgrade to a paid tool if you find yourself spending too much time editing and need a little boost.
Canva
Canva is super user-friendly and packed with real estate-specific templates. The drag-and-drop interface, plus a huge library of graphics and fonts, make designing your own mailers, postcards and social media posts a breeze. Canva is perfect for everything from new listings to brand promotion. You can start for free and explore premium features for more advanced options. It’s great for collaborative design projects with your team, works on any device, and has lots of images to choose from.
Best features:
Starting price: Free
Visit Canva
Coffee and Contracts
Coffee & Contracts is like a social media toolkit for real estate agents. For $54 a month, you get loads of trendy, ready-made templates for all the big platforms like Instagram, Facebook, TikTok, and YouTube. It’s super organized, with a content database sorted by topic. The catch? The designs aren’t exclusive to you and there’s no automation for posting. But, it offers a handy content calendar and is quite a deal compared to hiring a social media manager or graphic designer (or both). It’s founded by real estate professional Haley Ingram, who understands the struggles agents may have with carving out time for social media marketing. Sign up for access to a treasure trove of digital marketing tools and some sweet discounts.
Best features:
Starting price: $54
Visit Coffee and Contracts
Video editing tools
In real estate, video tells a more compelling story than any other medium. Show your clients some beautiful, sweeping views from your listings or share educational videos on social with creative video content edited with the help of these tools.
Adobe Premiere Pro
For real estate agents looking to uplevel their video content and produce viral reels of surprising home flips, swoon-worthy luxury walkthroughs or other creative concepts, Adobe Premiere Pro offers a robust suite of video editing tools that creators can have some fun with.
Best features:
Starting price: $22.99 per month
Visit Adobe Premiere Pro
Mojo
Elevate your property videos with professional flair. Mojo’s features include auto-captions, background removal and an extensive library of stock videos and royalty-free music.
Best features:
Starting price: $4.99 per month
Visit Mojo
Teleprompter
Teleprompter is a user-friendly app that displays pre-written scripts during recording, thereby reducing the need for retakes. It’s a great marketing tool for real estate agents who record market updates and brand themselves as thought leaders. Use it for property walkthroughs, client interviews, market commentary and more.
Best features:
Starting price: Free
Visit Teleprompter
AI tools
Lofty
Lofty is an all-inclusive AI-powered platform tailored specifically for real estate professionals. If you have a marketing need, it’s got the AI-assisted real estate marketing tool for you. Its tools for real estate agents include everything from team collaboration and productivity to lead generation and sales.
Best features:
Starting price: Schedule a demo to inquire
Visit Lofty
Catalyze AI
Catalyze AI uses predictive analytics to source leads that have inherited property that present a high likelihood of wanting to sell. The platform uses advanced data analysis, pulling from over 400 million data points within a 50-mile radius.
Best features:
Starting price: $360 per month
Visit Catalyze AI
SEE ALSO: Revamp your real estate game with AI tools
Lead nurturing tools
Keep track of your clients like the professional you are by leveraging the right client relationship manager (CRM). A CRM will help you streamline your sales processes, store client data, manage leads and keep track of how many times you’ve connected with every buyer or seller.
Market Leader
Market Leader offers an all-encompassing CRM that serves as one of the best real estate marketing tools for agents. Why? It focuses on client management and automation, featuring an intuitive dashboard for organizing client details and tracking your touchpoints with them over time. Market Leader’s CRM also integrates with more than 40 lead sources, including Zillow and Realtor.com
Best features:
Starting price: Inquire for pricing
Visit Market Leader
Follow Up Boss
Follow Up Boss is meant for teams, helping yours to organize leads and prospects in one place. It Integrates with over 250 SaaS applications and lead sources.
Best features:
Starting price: $69 per month
Visit Follow Up Boss
CINC
If you’re looking for a marketing solution that includes a CRM and lead nurturing, CINC is a feature-rich solution. It comes with automated lead routing and drip campaigns, plus expert-designed workflows to help you enhance productivity, and IDX website capabilities.
Best features:
Starting price: Inquire for pricing
Visit CINC
Event tools
Whether you’re hosting open houses, first-time homebuyer workshops or seasonal neighborhood events, you’ll need some event planning tools to help you invite and manage the guest list.
Luma
Luma is an iOS app and event page manager that features SMS invites, QR code check-ins and even weather forecasts, helping you make event organization rather seamless. Create shareable calendar pages, track attendance analytics and post themed updates to get your guests excited.
Best features:
Starting price: Free (with a 5% platform fee on tickets along with Stripe processing fee)
Visit Luma
Eventbrite
You might recognize this global ticketing platform, but it can also be a helpful marketing tool for real estate agents organizing both live or online events.
Best features:
Starting price: Free
Visit Eventbrite
Parkbench
Parkbench is a platform that helps real estate agents host live, neighborhood-specific virtual events, thereby creating video content to post on social media and YouTube. The company’s goal is to help agents become “Local Leaders” in their communities, giving them exclusive rights to their neighborhood website (there’s a one-agent-per-community rule) and setting them up to become the go-to expert on all hyperlocal topics. Use Parkbench to interview local business leaders, discuss community news, spotlight your neighbors and more.
Best features:
Starting price: $300 per month
Visit Parkbench
Real estate marketing tools: The full picture
There you have it: The best paid and free real estate marketing tools for agents. Finding the right mix of tools can help you revolutionize how you connect with potential clients, be more productive and, ultimately, grow your business. When you’re not stressed from handling admin and getting bogged down in tech, you can simply show up as yourself on social media and at real-life events. Using these tools to streamline your workflow helps you get in front of more potential buyers and sellers, and ultimately, close more deals.
Frequently asked questions
What are the 4 P's of marketing in real estate?
The four Ps of marketing in real estate are product, price, place and promotion. Let’s dig in
What is a CRM for Realtors?
A CRM stands for “client relationship manager,” and it is a must-have marketing tool for real estate agents. It helps you capture leads and organize your contacts into lists (called “segments”) based on their interests and behavior. A good CRM aids in follow-up communications, tracking client interactions, and helping you nurture leads through your sales pipeline. The right CRM helps you make the most of your efforts, keeping you top-of-mind with your clients so that when they are ready to buy or sell, they think of you first.
What marketing works for real estate?
Real estate marketing is most effective when it is a blend of digital and in-real-life (IRL) activities. First and foremost, focus on your reputation and building a personal brand around what types of clients and properties you work with. Once you define your niche, make your presence known by participating in community events, hosting learning opportunities for potential buyers and sellers, staying in touch with clients via a newsletter, and organically finding ways to bring up your work to anyone you think you can serve.
If you’re just starting out building your email list, you’ll want to start with your existing networks of friends, colleagues, fellow volunteers, club members, or sports enthusiasts. Tap the folks you went to high school or college with as well as your book club or rowing club teammates. The more networks you have, the better. People want to work with people they know and trust.
You can also buy real estate leads or cold-call in order to kickstart relationships with new prospective clients. However, focus on prospects that are within your local zip codes and have demonstrated interest — either through attending an event or entering their email address in Zillow or another lead capture website — in the services you offer.
A few tried-and-true real estate marketing methods include content marketing (sharing valuable, hyperlocal content like blogs, videos and infographics), networking and referrals, open houses, cold-calling and targeted ads. Offer to sit other agents’ open houses for them to meet active buyers. Don’t give up and continue being your authentic self — over time your reputation will precede you and people will learn they can trust you as a go-to resource.
Our methodology
HousingWire is the destination for industry leaders and decision makers to stay informed and stay ahead of what’s going on in the constantly evolving U.S. housing industry.
To determine which real estate marketing tools are best for industry professionals, HousingWire analyzed dozens of products and platforms, weighing the pros and cons of each alongside both quantitative and qualitative data like price, special features, ease of use, return on investment, client support, and customer reviews.
We crawled the web so you don’t have to, analyzing a wide sampling of reviews across social media, the Better Business Bureau (BBB) and online discussion forums.
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How Ryan Haywood Used Investing and Deal Generation As a Way to Build Communities and Wealth
“You’re making too much money.”
That’s what echoed in Missouri native Ryan Haywood’s ears after his boss decided to slash his commissions—a “sales haircut,” as it’s bitterly known in the industry.
This notion of being penalized for success was perplexing for Ryan. Out of all the downsides of his job—the after-hours calls from his boss that he was expected to answer, dealing with poor management, and working up to 80 hours a week—this pay cut was the last straw. He didn’t realize it at the time, but this setback was about to unveil a path that would lead his family toward the future that Ryan and his wife Megan had dreamt about.
Ryan’s story that I’m about to share is not just a testament to his determination to build his wealth on his own terms. This story is about his strategic, practical approach to building a truly successful real estate company in the face of uncertainty, full of solid insights that every investor should hear.
Ryan’s Journey From Sales to Real Estate
It was the end of 2019. Ryan and Megan were in a period that should have been filled with anticipation and joy for their family as they awaited the arrival of their third child.
Instead, uncertainty loomed. Despite the lucrative nature of his job in the budding field of fiber optics, the instability and lack of appreciation left Ryan yearning for change. He was caught in a dilemma: a high-paying position that offered little in terms of job satisfaction and stability. And to make matters worse, the company he worked for just decided to cut a large chunk of his pay because he was making too many sales.
Ryan knew something had to change; he just hadn’t yet realized what that change would be. Shortly after receiving this news, Megan and Ryan had their third child. This meant Ryan was on paternity leave and suddenly had extra time on his hands. He wasn’t sure what his next steps would be—all he knew was that he couldn’t go back to the toxic workplace at his current 9 to 5 job.
It was during this time that Ryan’s wife Megan stumbled across a 30-day wholesaling challenge on Instagram and brought it up to Ryan. They had dabbled in real estate investing years prior with a couple of rentals but had been paying them very little attention. Ryan wasn’t initially interested in the idea of wholesaling, and the idea of a “30-day challenge on social media” seemed a bit like a gimmick at the moment, so he declined.
But after some thought and some persistence from Megan, he decided to give it a go. As it turns out, this challenge not only introduced him to the fundamentals of wholesaling but also ignited a passion for real estate that was previously untapped.
Initial Steps and Challenges
After pushing past his initial reluctance, Ryan went full steam ahead on trying to win the challenge—this meant landing your first wholesale deal within 30 days. This entailed driving for dollars to find distressed properties, reaching out to the homeowners (in Ryan’s case, via direct mail), and securing a purchase contract from the seller that Ryan would then assign to an end buyer.
Contrary to his later experiences, Ryan’s first deal came from word of mouth (in this case, that meant telling people around him at dinner what he was doing) and did not involve intricate negotiations directly with a seller. Instead, it was the process of learning on the fly—figuring out how to assess the value of properties and the cost of needed repairs with limited prior knowledge in this area.
Despite these initial uncertainties and the steep learning curve, Ryan’s persistence paid off when he secured his first real estate deal. This pivotal moment was not only a testament to the validity of his new career focus; it also resulted in a significant payoff, earning him an $8,500 finder’s fee.
Like many investors who came before him say, this deal was massively important. And not just because of the $8,500 check—that was just the icing on the cake. This deal was a proof of concept that wholesaling as a strategy works. In other words, the business model was proven right in front of his eyes.
Ryan admits he was still “terrified” of wholesaling at this point since he still had very little knowledge and understanding of the industry. Nevertheless, with the check in hand, he knew that this was the path forward for him and his family.
When the challenge was all said and done, Ryan ended up landing two deals in 30 days, totaling $28,500. This number was the base salary at his last job. He had successfully escaped the rat race and, as it turns out, would never set foot in his old office again.
Scaling Up and Embracing Technology
Ryan and Megan’s focus at that point then became getting more deals and repeating the process. From the very beginning, they knew that they wanted it to be a family venture, even packing up the kids and bringing them on business trips to ensure that everyone was benefiting from experiencing the lifestyle that was bringing them so much success.
They needed reliable, efficient tech to manage processes and allow them to actually find success while traveling to new markets and cities to explore investment opportunities. Thanks to DealMachine, the tech platform at the center of the 30-day challenge, they were able to travel while still building and working on their business.
Because of their adoption of technology, scaling came naturally for them. Wholesaling is a numbers game—to grow your business; you need more leads, more marketing, and people in key positions to help ensure a smooth pipeline. DealMachine helped them with all of this and then some, allowing the leads to keep flowing and marketing to continue on autopilot while Ryan and Megan focused on the most important parts of the business and spending time together as a family.
To get a deeper insight into how they scaled from getting their first few deals, here’s a breakdown of the numbers in the first couple years of their business:
Networking and Community Building
In their pursuit of growing their business, Ryan and Megan Haywood not only built relationships with city officials but also mended fences with local real estate agents who were initially wary of wholesalers. Their efforts in renovating distressed properties across St. Joseph, Missouri, garnered Ryan the nickname “golden child” from the mayor, underscoring the impact of their work on the community’s fabric.
This special recognition from city leadership demonstrated the benefits of their strategic relationships, highlighting how working closely with city officials was instrumental in smoothing the path for their projects and fostering an environment of mutual benefit.
These partnerships proved to be highly important in navigating the complexities of real estate development, from regulatory compliance to accessing new opportunities that aligned with their mission to uplift the community. Because the city officials (people who are often the gateway to successfully securing permits and zoning for building projects around a city) could physically see that Ryan was creating positive change, they were happy to help him.
Some of these officials, with deep knowledge of the city’s housing, even became a source of leads for their business and guided them to properties and areas around St. Joseph that needed change. Alongside this, their engagement with agents eventually shifted from skepticism to collaboration as they demonstrated the value and professionalism they brought to the table with these relationships as well.
For Ryan and Megan, the lesson was clear: Building a network that includes both city officials and real estate professionals can significantly amplify an investor’s ability to effect positive change while scaling their business effectively.
Lessons Learned
Looking at Ryan Haywood’s journey through the real estate landscape, there are several lessons we can learn from them. By achieving over 400 deals so far, Ryan has not only showcased what’s possible with dedication and strategic planning but also exemplified the significance of adopting certain practices for long-term success.
Here are some key takeaways from his experience, each providing a blueprint for how to navigate the complexities of real estate investing effectively:
Embrace community engagement
Ryan’s success was significantly bolstered by building strong ties with community leaders and real estate professionals. This highlights the value of networking, not just for deal flow but for fostering a supportive ecosystem that can propel your business forward.
Leverage technology for efficiency
Utilizing a real estate tech platform allowed Ryan to scale his operations by streamlining the process of identifying and managing potential deals. For investors, embracing such technologies can enhance productivity, allowing more time to focus on strategic decision-making.
Adopt a mission-driven approach
Having a clear mission, such as improving the community, can differentiate you in a crowded market. Ryan’s focus on revitalization projects earned him the “golden child” nickname, underscoring the impact of aligning business goals with community values.
Final Thoughts
Ryan Haywood’s path in real estate is a compelling story of strategic growth, innovation, and impactful community engagement. His progression from executing individual deals to achieving over 400 transactions is not merely a story of personal success but a blueprint for investors aiming to elevate their business practices.
Haywood’s story highlights the critical role of embracing technology to streamline business operations, the power of networking in your local community and beyond to unlock new opportunities, and the impact that can come from fostering both business growth and community development.
For investors looking to replicate Ryan’s success, the key takeaway is the value of strategic adaptability—integrating new tools/methods and pushing forward while also remaining rooted in the community’s welfare and having a bigger “why.” This story shows that achievements in real estate require not just good financial judgment but a vision that extends beyond personal gain.
This article is presented by DealMachine
DealMachine empowers real estate professionals to discover and invest in off-market properties with ease, offering a comprehensive app that guides you every step of the way. From identifying potential investments to instantly accessing high-quality homeowner data for informed decision-making, we make investing simple and effective. Click to start expanding your portfolio today!
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.
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CoStar’s billion-dollar marketing spend to include four Super Bowl ads
The portal wars are heating up. In an attempt to reach residential listing portal supremacy, CoStar Group (the parent company of Apartments.com and Homes.com) will air four advertisements during this Sunday’s broadcast of Super Bowl LVIII between the San Francisco 49ers and the Kansas City Chiefs.
“The Super Bowl is a deep part of American culture and it grabs a disproportionate share of everyone’s mind,” Andy Florance, the CEO of CoStar Group, said. “So, it is the best place to get attention on a brand.”
One of the ads will be for Apartments.com, while the other three will feature Homes.com, CoStar’s residential listing platform. All four ads will feature celebrities, including Jeff Goldblum, Dan Levy and Heidi Gardner, as well as a blink-and-you’ll-miss-it cameo from Florance.
When it came time to select talent for the ads, Florance said Levy and Gardner, who starred and co-wrote in Saturday Night Live’s Zillow skit in February 2021, were no-brainers.
“Dan Levy and Heidi Gardner are two incredible talents, and they are clearly in tune with the way America looks at real estate online,” Florance said.
He noted that both Levy and Gardner helped to write CoStar Group’s Super Bowl ads.
CoStar said it plans to continue running the commercials throughout the rest of 2024, including during major TV broadcasts like the Oscars and the NBA playoffs.
The company has been hyping the Super Bowl ad spots through a series of consumer-facing ads on YouTube featuring Levy, Gardner and rapper Lil Wayne. The advertisements promise “a powerful new home-shopping platform,” and end with the date of this coming Sunday.
“We began by teasing the commercials, and particularly the talent and the celebrities in the commercials, to create interest, and that will drive a little more attention to the commercials when they run in the Super Bowl,” Florance said.
In a video discussing its marketing strategy, also released this week, CoStar tells real estate agents that it plans to run the Homes.com ads on streaming platforms, broadcast TV and digital radio, as well as during major events. It also notes that it has spent roughly $1 billion to “drive 80 billion impressions” and reach “more than 90 percent of households.”
“No other competitor comes close to our investment to drive leads to all agents,” the video states.
Part of this investment, Florance said, was to build content on roughly 21,000 neighborhoods across the U.S., as well as nearly 100,000 high schools, elementary schools and middle schools.
“When people buy a home, they are not just buying a home, they are buying into a community,” Florance said.
The firm is no stranger to large marketing spends. In 2015, CoStar spent $100 million in consumer marketing to promote the revamped Apartments.com site.
“I think now everyone is familiar with ‘Change your apartment, change your world,’ and Jeff Goldblum playing Brad Bellflower, but that was a big bet for us. We invested a lot in that and we are investing three or four times as much in this campaign,” Florance said. “People spend a lot more money on their home than they spend on beer or Doritos, so it’s important that our marketing is commensurate with how important real estate is in people’s lives.”
CoStar, which has long been known as a commercial real estate listing giant, began making a play for a slice of the residential listing pie when it acquired Homesnap and Homes.com in 2020 and 2021, respectively.
In September 2023, Homes.com recorded more than 100 million unique monthly visitors, a 1,290% year-over-year increase, according to the firm. Meanwhile, Realtor.com reported 74 million unique monthly visitors and Redfin recorded 52 million unique visitors in Q2 2023. The massive jump in unique monthly visitors propelled Homes.com to the No. 2 spot among the most-visited residential real estate platforms, trailing only longtime leader Zillow.
Looking ahead, Florance feels it is only a matter of time before Homes.com overtakes Zillow.
“We are confident that we have built the best site possible for both the agents, and the home buyers and seller,” Florance said. “We’ve climbed from No. 5 or 6 to No. 2, but we are just beginning to market our brand to consumers. This is the next stage in the development of Homes.com. We are playing the long game.”
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California’s high costs aren’t deterring Gen Z from moving there: Zillow
A Zillow analysis of U.S. Census Bureau data released Friday shows that the youngest group of prospective homebuyers, Generation Z, are bucking a larger trend by moving to California.
Even as California lost nearly 215,000 residents to net migration in 2022, census data also shows that the Golden State saw a net increase of almost 44,000 Gen Z adults (people born between 1996 and 2004, excluding students) who moved there from other states.
Across all age groups, California led all states for net out-migration in 2022, but it ranked second behind only Texas (77,000) for the highest net in-migration of Gen Z residents.
Zillow pointed out that California is not the only state with a relatively high cost of living that has attracted younger residents even as net migration among other age groups has declined or remained flat.
A cost-of-living index maintained by the Missouri Economic Research and Information Center found that California was the third most expensive state last year (trailing only Hawaii and Massachusetts). Washington, Colorado and Virginia also ranked among the bottom half of states in terms of affordable living, but they joined California among the 10 states with the highest net in-migration among Gen Z.
“Compared to all interstate movers, Gen Z adults who moved to California, Washington, Colorado or Virginia were more likely to have a four-year college degree, more likely to be serving in the military, and more likely to work in tech,” Edward Berchick, principal population scientist at Zillow, said in a news release.
Zillow also found that 77% of the Gen Z adults who moved to these four states are renters. And each of these states, according to census data, had higher monthly rental housing costs than the U.S. median price of $1,300 — led by California at $1,856 per month.
“Gen Z movers are likely drawn to the job opportunities in these states, despite the higher costs of housing,” Berchick added. “They may also be in a stage of life where they’re willing and able to be flexible in their standards of living while starting their careers.”
Gen Z remains a small slice of the homebuyer market at 4%, according to a 2023 report from the National Association of Realtors (NAR). That share rose from 3% a year earlier. And Gen Z accounts for the largest share of single female homebuyers at 31%, NAR reported.
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Reverse mortgage originators report good starts to 2024 business
Last year was a challenging one for reverse mortgage business activity, and it likely hit no one harder than the industry’s front-line loan originators.
After enduring challenges stemming from higher interest rates, stricter qualifications and broader industry consolidation, loan officers seem to be optimistic about how things have progressed in the early portion of 2024.
This is according to a series of RMD interviews with six reverse mortgage originators from across the U.S., including the states of California, Washington, Florida, Wisconsin and South Carolina.
‘Night and day’ difference
When posed with the simple question about how business is going so far this year, David Heilman — principal for HomeGrown Financial in Mount Pleasant, South Carolina — characterized the difference between early 2024 business and the same time last year as “night and day.”
“I don’t know if there’s really anything to really point to [why that’s the case],” Heilman said. “I’ve certainly seen more inquiries already. Typically, this is a slower time for me; January and February have always been slower months. In springtime, people start moving again, but so far in 2024 I feel like I’ve at least been getting more proposals out, which as we all know, results in more applications eventually.”
In Green Bay, Wisconsin, Jim Cullen of University Bank reports a similar trend.
“The year’s off to a good start,” he said. “I noticed toward the latter part of last year, getting into December, that for whatever reason, things started to pick up. I was getting some more direct inquiries and a few more referrals, so things started to get moving a little bit.
“Over the holidays, people are kind of tuned out, but once we got through to the New Year, more things are cooking.”
The change is a welcome one, since 2023 may have been Cullen’s “poorest year of 19 years in this business,” he explained. “I will confess that it was a struggle all year long.”
‘Active’ and ‘steady’ interest
Roughly 1,400 miles away, the phone continues to ring for Chris Bruser, reverse mortgage specialist at Mutual of Omaha Mortgage in Tampa. Bruser primarily operates through referrals and has seen consistent levels of inbound interest, he said.
“My financial planner business still continues to be very active,” he said. “But for me, I do a lot of [Home Equity Conversion Mortgage (HECM)] for Purchase. Obviously, we’ve got a lot of active adult communities down here, and we’re still building them. So, I’m really continuing to focus on the active adult market for what we call the “lifestyle home loan,” commonly known as HECM for Purchase.”
Roughly 2,000 miles from Tampa in the Denver area, Bruce Simmons of American Liberty Mortgage reports that things are off to a “steady” start in 2024.
“As far as the interest in reverse mortgages, it has been steady,” he said. “But the challenges are still there as far as qualifying people to get enough proceeds. Those are the biggest challenges, and even when they do have enough income, sometimes they may say it’s not really worth it right now.”
Inconsistent interest rate forecasts have made things challenging in his business, but different kinds of marketing — including a refocusing exercise on his existing marketing efforts — have helped to improve things, Simmons explained.
The West Coast
In the Pacific Northwest, Frank Borg of Fairway Independent Mortgage Corp. says that business in the Seattle area is also off to a decent start this year.
“It’s starting out with some really good momentum,” he said. “A lot of my prospecting and strategic activities come into focus during the very first part of the year, and I’ve seen my pipeline get larger as a result of my activities, for sure. My outlook is very positive. I’m trying to increase my production over last year by a factor of two, probably.”
Down in the Los Angeles area, Tom O’Donoghue of Reverse Loans Now reported that his results in January were ahead of expectations.
“I just see a huge difference in the volume coming in,” he said. “My projections for January were that I would get eight new leads, and I ended up with 11. I was anticipating just two new applications, and I ended up with four. No fundings yet, but I am anticipating going into the end of this month, in February, that we should have three fundings, and then we should still have a good pipeline going into March. So, this definitely [makes for] a huge Improvement for myself.”
Dealing with challenges
Like others, O’Donoghue reported a challenging 2023, so much so that it shook his confidence, but speaking to mentors he respects in this space helped to give him perspective as he headed into business this year, he explained.
A lot of the business challenges last year did not seem to come from a lack of interest among potential customers, he said. Running the numbers for people illuminated terms that revealed either zero or not enough benefit based on rates and principal limit factors, but that has slowly started to shift.
“Toward the end of the year and the beginning of January when the numbers started to change, we [ran numbers] for people that we could get off the fence to move forward, and new leads that came in where homes were free and clear,” O’Donoghue said. “So, that helped get people off the fence as well.”
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Mr. Cooper delivers $500M profit in 2023, addresses Yellen’s concerns with nonbanks
Mr. Cooper Group was profitable in 2023, a year marked by its acquisition of Home Point Capital and Roosevelt Management Co., along with the fallout from a cyberattack. Mr. Cooper’s strong performance was mainly due to its servicing business, which benefited from a higher interest rate environment.
During a call with analysts on Friday morning, company executives addressed some of the concerns raised by Treasury Secretary Janet Yellen, who said this week that U.S. regulators are monitoring risks stemming from nonbank mortgage lenders, especially failures resulting from market strains.
Dallas-based Mr. Cooper is expected to reach $1.1 trillion of unpaid principal balance (UPB) in mortgage servicing rights (MSR) by the end of March, a target announced in July 2021 when the portfolio was at $650 billion.
“While the overall portfolio has grown considerably, and we expect it to grow by another 25% this year, only half of it is owned MSR. The other half is subservice for a number of clients,” vice chairman Chris Marshall told analysts. “If there are any limitations on concentration, I think it would be focused more on people, on owned MSR. So, I think we have quite a bit of room for us to grow before that becomes a concern for anybody.”
At the end of December, Mr. Cooper had $992 billion in MSR, up 14% year over year. Of that total, 59% was in owned MSR, 5% was in special servicing and 35% was in subservicing. According to Marshall, the company seeks a balance of 50% owned MSR and 50% subservicing.
“And if you look, in total, we’re still in kind of a single-digit market share,” Chairman and CEO Jay Bray said. “It’s a scale business. You have to build and invest in technology. So, we don’t have any concerns about continuing to grow the platform. The key for us is sustainability.”
Executives also added that, in terms of capital, the target for the company is “so much far ahead of what is required of banks” that “it’s not a concern,” according to Marshall. “I can’t even imagine it becoming anything of a conversation. (…) You should think of us as having a rock-solid balance sheet.”
Overall, Mr. Cooper delivered $500 million in net income in 2023. Its almost $1 trillion servicing portfolio generated $869 million in pretax operating income last year. And by funding $12.6 billion in loans, it had a $100 million pretax operating income.
“A key theme for 2023 was operating leverage. We grew the portfolio at a double-digit pace during the year while at the same time cutting costs companywide,” Bray said. “In fact, since 2018, we’ve cut servicing costs by 30%.”
Bray said the company will return its focus to equity, which is expected to grow to 14% to 18% by the end of 2025, compared to its current level of 12.5%.
Cyberattack, changes in leadership
Mr. Cooper generated $46 million in net income in the fourth quarter. That compares to $275 million in the third quarter of 2023 and $1 million in Q4 2022 when it had a negative mark-to-market of $58 million.
The earnings in Q4 2023 included, among other things, mark-to-market net hedges of $41 million and $27 million related to a cyberattack it suffered in October. The company had the data of nearly 15 million current and former clients exposed in a hacking incident, which resulted in at least four class-action suits.
Despite the cyber incident, the company kept its servicing and origination businesses profitable. With 4.6 million customers, the servicing division brought in $229 million in pretax operating income in Q4, compared to $301 million in Q3.
Meanwhile, the originations division — which focuses on acquiring loans from correspondent originators and refinancing existing loans in the direct-to-consumer channel — brought in $10 million in pretax operating income in Q4, compared to $29 million in the previous quarter.
“Bear in mind that these numbers were impacted by the cyber event,” Marshall said. “Excluding that impact, we estimate EBT [earnings before taxes] would have doubled. For similar reasons, refi recaptures dipped slightly during the quarter but are now back up over 80%.”
The company’s total funded volume declined to $2.7 billion in Q4, down from $3.4 billion in the previous three-month period. Cash-out refinances represented 61% of the total, followed by purchase loans (25%), second-lien refinances (12%) and rate-and-term refinances (2%).
In January, the company announced Mike Weinbach, a former Wells Fargo and JPMorgan Chase executive, as its new president. He is succeeding Marshall, who was named executive chairman at servicing fintech Sagent.
Mr. Cooper’s liquidity reached $2.4 billion in Q4, with $571 million in unrestricted cash.
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Anywhere Real Estate appoints new board member
Anywhere Real Estate named Joseph Z. Lenz to its board of directors, the company announced on Thursday. The appointment will be effective starting Feb. 13, 2024.
Lenz currently serves as managing director and co-head of research for credit solutions at TPG Angelo Gordon, a prominent global asset manager with more than $200 billion in assets. As a result, the Anywhere board will expand from 12 to 13 directors under the helm of Chairman Michael J. Williams.
“We are pleased to welcome Joe Lenz to the Anywhere Board of Directors,” Williams said in a statement. “Anywhere is committed to maintaining a high-caliber and diverse Board, and we are confident we will benefit from Joe’s notable business experience. We are thankful for the continued support of TPG Angelo Gordon, and we look forward to working with Joe upon his joining the Board as we continue to guide and support the Anywhere leadership team.”
Lenz has extensive experience helping companies navigate investments across different capital structures, as well as investor and legal affairs. Previously, Lenz served as a board member of Northern Oil and Gas, a publicly traded energy investment platform. He now serves as a board member for Secure Energy, a privately held energy broker.
Lenz received his bachelor’s degree in philosophy, politics and economics from the University of Pennsylvania in 2010.
As part of Lenz’s appointment, Anywhere Real Estate entered into a cooperation agreement with TPG Angelo Gordon and funds managed by that firm.
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Two Harbors CEO speaks on strategic origination business
Minnesota-based real estate investment trust Two Harbors has hired industry veteran Kyle Kilpatrick to lead its newly created mortgage originations division, which is part of the company’s strategy to retain borrowers from its servicing portfolio when interest rates drop.
“He has experience building direct-to-consumer channel products and businesses from scratch,” Bill Greenberg, president and CEO of Two Harbors, said in an interview. “We are building out the team to fill all those functions to be able to make loans and, as we said, hopefully beginning to take locks in the second quarter sometime.”
A 30-year mortgage industry veteran, Kilpatrick started as executive vice president of originations at Two Harbors in November. Before that, he spent nearly a year as EVP of direct lending at Go Mortgage and served for eight years as president of consumer direct at Lending.com, a Finance of America company.
“We have this opportunity, given where our portfolio is and where interest rates are, to build something from scratch, and we can make it entirely custom fit to our business,” Greenberg said. “We don’t have to buy something that other people have made that doesn’t fit very well and that’s upside-down on costs.”
Two Harbors’ origination business will hedge its servicing portfolio of $216 billion in unpaid principal balance (UPB) as of Dec. 31, 2023. That’s how things work at other companies in the mortgage space, such as Mr. Cooper, Rithm Capital and Pennymac. Two Harbors’ primary strategy, however, isn’t to compete with large players for new customers.
“A lot of those guys spend a lot of money on advertising and outreach to people to try to find borrowers that they can refinance or make second liens,” Greenberg said. “We have borrowers we know very well that we can just call. The so-called lead generation is captive to our ecosystem already.”
For now, most of the company’s borrowers have no incentive to refinance. The weighted average coupon rate for its servicing portfolio was at 3.45% in the fourth quarter, signaling a low risk of prepayments. Meanwhile, the 30-year fixed mortgage rate was 6.9% as of Thursday afternoon, according to HousingWire’s Mortgage Rates Center.
While rates are still high, Two Harbors will work with second liens and home equity products through its origination business.
Journey to originating loans
Two Harbors was created in 2009, in the wake of the Great Recession, as prices for most assets, including mortgage-backed securities (MBS), started to fall and became an investment opportunity.
The company began investing in agency and legacy subprime MBS. Over time, it got involved in other asset classes, such as single-family rental properties and commercial real estate lending. (The latter division was subsequently spun off into a REIT).
Mortgage servicing rights (MSR) became a target in 2013, and by 2020, the company had chosen to focus on agency MSR and agency MBS. According to Greenberg, the premise was that “diversification sounds good only in theory” since “investors wanted to diversify themselves, but they didn’t want the investment vehicles themselves to diversify” for them.
Between 2017 and 2018, the company crossed the mark of 500,000 servicing units. At this level, conventional wisdom says it’s most cost-effective to bring servicing in-house, Greenberg said. At that time, Two Harbors sought a platform to acquire. It debuted in the servicing business in October 2023 by acquiring RoundPoint Mortgage Servicing LLC.
“One of the most interesting characteristics about Roundpoint was that it was agency [MSR] only. It had no government servicing, no Ginnie Mae exposure, which has different regulatory risks and different economics,” Greenberg said.
“It also didn’t have a lot of servicing on the platform — it was servicing some assets from its parent company, which was going to move back up to the parent before it transferred to us,” he added. “So, it just had a small amount of true third-party subservicing. It was sort of an empty shell waiting for someone to come and put all their servicing on the platform.”
Two Harbors also wanted to ensure that whatever vehicle it purchased had its licenses to originate loans. It had become clear to executives that in the valuation of MSRs, the recapture economics should be included.
“This one has been known for a long time, but it had never been explicitly included in the cash flows of mortgage servicing until the last couple of years,” Greenberg said. “And so we knew that in order to get the most value out of our servicing asset, some amount of recapture capabilities was going to be very important to our efforts.”
After integrating with Roundpoint, Two Harbors is expected to have 500 employees in four offices in New York, Minnesota, South Carolina and Texas.
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Real estate farming: Become the go-to agent in your area using these tips, tools & strategies
Real estate farming, otherwise known as geo-farming, is a dependable lead generation method that can help to create a steady pipeline of real estate leads and clients in your area. Real estate farming is a slow-burn strategy where consistency and intentionality matter, but when it’s done right, your efforts can yield long-ranging results when guided by a community-first approach. If you want to add effective real estate farming tips, tools and tactics to your marketing arsenal, our guide will show you how it’s done.
In this article
What is real estate farming?
Real estate farming, or geo-farming, is a lead generation strategy in which the agent focuses on a specific geographic area. Common real estate farming ideas include direct outreach via mail, email or direct mailers, but you can also host neighborhood social events, sponsor seasonal events and provide helpful real estate information resources to your community.
The main idea is to put you, your team or brokerage in front of community members regularly, thereby establishing your brand and positioning yourself as a local expert and trusted resource. Real estate farming also includes traditional marketing methods like sending direct mailers, knocking on doors and nailing your locally relevant social media presence.
Why should I try real estate farming?
Real estate agents rarely use farming as their only marketing approach, but the ones who use it successfully credit real estate farming for the longevity of their business. Remember — most of the time, buyers and sellers may not be actively looking for your services, but when they are, real estate farming ensures you are always top of mind.
Like all marketing, real estate farming is psychological. The well-established rule of seven explains that consumers typically work with a brand or service only after repeated exposure to it. Clients are more likely to pick up the phone and call you after seeing your name on multiple mailers, business cards and signs. And after winning business in a small geographic area, your referral business begins to build upon your success.
Real estate farming tools
Whether hosting open houses, first-time homebuyer workshops or seasonal neighborhood events, these tools will help you become a go-to local expert.
Luma
Starting price: Free (with a 5% platform fee on tickets along with Stripe processing fee)
Luma is an iOS app and event page manager that features SMS invites, QR code check-ins and even weather forecasts, helping you make event organization seamless. Create shareable calendar pages, track attendance analytics and finally, post themed updates to get your guests excited.
Best features:
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Eventbrite
Starting price: Free
You might recognize this global ticketing platform, but it can also be a helpful marketing tool for real estate agents organizing live and online events.
Best features:
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Parkbench
Starting price: $300 per month
Parkbench is a platform that helps real estate agents host live, neighborhood-specific virtual events, thereby creating video content to post on social media and YouTube. The company aims to help agents become “Local Leaders” in their communities, giving them exclusive rights to their neighborhood website (there’s a one-agent-per-community rule) and setting them up to become the go-to expert on all hyperlocal topics. Use Parkbench to interview local business leaders, discuss community news, spotlight your neighbors and more.
Best features:
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Lofty
Starting price: Inquire
Lofty is an all-inclusive AI-powered platform tailored specifically for real estate professionals. If you have a marketing need, it’s got the AI-assisted real estate marketing tool for you. Its tools for real estate agents include everything from team collaboration and productivity to lead generation and sales.
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Catalyze AI
Starting price: $360 per month
Catalyze AI is a unique real estate marketing solution for the data-driven agent. The AI-driven tool uses predictive analytics and a dataset of over 400 million data points to identify promising leads who have recently inherited property. It also pulls from event data, historical trends, behavioral analytics and other information, then provides lead suggestions for you within a 50-mile radius.
Best features:
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Constant Contact
Starting price: $12 per month
With a well-earned reputation, Constant Contact offers a robust CRM solution and its bread and butter of email marketing. The platform’s email editor is highly intuitive, with hundreds of templates to choose from. Its analytics-driven features help you track opens and clicks, plus it provides additional tools like sign-up forms, surveys, polls, and SMS integration to help build engagement.
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Real estate farming: a step-by-step strategy
Every real estate agent has their own approach to real estate farming, but a few common parallels exist:
Step 1 — Choose your farm area carefully
Selecting your farm area comes down to combining your personal preferences and industry “green flags” that signal an area is worth investing resources into.
A good turnover rate shows that people are moving in and out of the neighborhood with enough regularity that there will be continued opportunities for business. Gorgeous communities with large estates and expansive, landscaped yards might not yield the best return on your time. Why? Because there are fewer homes per square acre and buyers typically tend to own their homes for more extended periods in such neighborhoods.
In contrast, starter-home neighborhoods might give you better results because there is more activity and a greater need for people to upsize once they’ve outgrown their house. But these rules aren’t written in stone — dig into your area and MLS data before making any decisions.
Size and accessibility+–
Finally, understand what makes your farm area unique. Which companies and job sites are located nearby? How are the school districts? What attracts people to this area, and where do they want to live? Be able to name the best grocery stores, community recreation centers, places of worship, nature centers and shopping areas.
Also, know about specific local initiatives and incentives, like land trusts, environmental regulations, property developments, or upcoming renovation projects. For instance, are they expanding a local walking trail, building a new multi-use apartment complex, or adding a new redlight camera in a nearby intersection? These may seem like minor details, but they’ll matter considerably in future clients’ lives.
Step 2 — Understand your farm’s demographics
Now it’s time to learn about your customer. Research who lives in the area; are they families, retirees or young professionals? Identify who might be looking to move into the area and who might be planning to leave, including families needing larger homes or empty nesters looking to downsize.
Step 3 — Study the sales data
You’ve already studied data to select your farm area, but now is the time to zero in on more specifics. You should look at:
Step 4 — Plan your outreach
Now that you know who is in your area, their needs, and what the financial data shows, you can start planning and budgeting for your marketing strategy.
Plan for a mix of in-person, digital and physical outreach methods. Start with simple email and SMS (text) campaigns, utilizing lead nurturing software like Constant Contact and Real Geeks to organize and track every digital outreach attempt or “touch.”
Establishing early digital communication with your prospects establishes their expectation that they will hear from you throughout the year (with their consent and opt-in, of course). Maintaining an open line of digital communication through email and text will also be your method of reaching them when announcing Open Houses and other events.
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Then comes the in-real-life (IRL) fun. Give new clients the chance to meet you in person at a community movie night, a seasonal holiday parade or a local sports game. If you want to be truly memorable, come up with a signature event you and your team host every year, quarter or month.
For example, Carr describes her company’s monthly ice cream social in the same YouTube interview. On the last Friday of every summer month, her brokerage rents an ice cream truck to host a pop-up event at a community park within her farming area. The experience is memorable, she says, reminiscent of the days an ice cream truck used to drive through her neighborhood as a kid.
If a nostalgic ice cream night isn’t your thing, send an annual gift like a holiday cookie tin, a yearly calendar, a summer beach towel or a back-to-school coffee mug tastefully featuring your brokerage’s branding. Postcards, door hangers, and other marketing collateral will require a smaller investment, allowing you to reach more community members. An informative community newsletter, Facebook group or community website can provide consistent value and become a go-to resource for nearby residents.
Most importantly, build predictability. Pick activities you know you can follow through on consistently. Try thinking of your outreach plan in terms of annual, quarterly, monthly, weekly, and ad-hoc initiatives that whet your prospects’ appetite for more interactions with you. It could look something like this:
Mail “Just Sold” postcards to neighbors whenever you broker a successful sale or purchase.
Step 5 — Calculate your budget and expected ROI
Each of the above ideas comes with an investment of time, money, or both. For instance, Carr budgets between $5,000 to $8,000 for each of her brokerage’s quarterly events, totaling $32,000 annually.
Of course, you can deploy several free real estate marketing tools, including Facebook groups and cost-effective, lead-generating websites with community-focused content.
Bottom line: Know how much you’re willing to spend across all areas — digital marketing ads, marketing collateral, in-person events, novelty items, event rentals, etc. — and determine how many homes you’d need to sell to recoup a return on that investment.
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Step 6 — Start farming
With your plan, budget and knowledge in hand, it’s time to start farming. Begin by introducing yourself to the community, attending local events and gradually rolling out your planned activities. Consistency is key. Be patient and persistent; your efforts will help cultivate a strong presence within your chosen real estate farming area.
Step 7 — Track and nurture leads
As you develop momentum and add leads to your database, set up a system for regularly tracking and nurturing your relationships. Remember — contacts within your farming area are distinct from others in your CRM; they live in a geographically distinct area (likely your neighborhood!), so your messaging should be more personalized and community-focused.
When nurturing leads, tailor your communication to meet your prospects’ needs. Just think, what would your neighbor want to hear? Find natural opportunities to mention market trends in the area, community announcements, events and helpful real estate advice. Keep a detailed record of your interaction with potential clients in your farm area. Include phone calls, emails, door-knocking visits and events, and their responses to your direct mail and email campaigns.
Over time, review your interaction records periodically to evaluate which methods are most successful in engaging potential clients. Notice how often people reply to your emails, what information resonates with them, and how many attend your events. Refine your approach based on what the data shows.
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Real estate farming: Tips and best practices
Tip #1: Think long-term
Real estate farming isn’t the kind of marketing strategy that yields overnight results. Give yourself a year of consistent effort before throwing in the towel or trying a new farming area. Budget-wise, give yourself a year of runway. Evaluate your results monthly and quarterly, looking at the big picture after a year. Only then can you truly decide whether geo-farming gave you the desired results.
Tip #2: Start simple
When you start real estate farming, sending a “Just Sold” postcard when you sell a new house can be a powerful way to debut your services to a new community. A simple postcard announcing new sales serves the community in two ways: 1) It updates them on their neighborhood’s latest average home value, and 2) It introduces them to a new agent (you) should they decide to sell their home soon.
Tip #3: Focus on quality and consistency—not just quantity
There’s a difference between consistency and quantity. Don’t just “spray” your farming area with impersonal, generic postcards to try and reach a massive number of prospects. Similarly, don’t sacrifice quality simply to try and mail something once a week. Be intentional. Choose methods you can execute well and commit to a cadence you can sustainably maintain.
Maybe your sweet spot is a monthly or quarterly summary of every home you’ve sold in your targeted area rather than a postcard for every sale. Or perhaps you prefer mailing seasonal cards for holidays, school breaks and special community events instead of linking your mailers to sales. Whatever your strategy, pick something you know you can commit to — and become known for it.
According to recent National Association of Realtors data, only 26% of home buyers are first-timers. So, if you’re already offering first-time homebuyer workshops in your local community, broadening such events to include activities that all community members can participate in will help you reach a broader demographic of buyers and sellers.
Tip #4: Get resourceful
Don’t limit yourself to the most expensive mailers or big-budget events. You can start real estate farming by simply introducing yourself to parents at your child’s school. One pair of realtors, Alissa and Katy of the Hustle Humbly Podcast, mention that simply serving as secretary of your local Parent Teacher Association (PTA) or another community group “counts” as farming since it provides natural, conversational opportunities to bring up your work and answer prospective clients’ questions.
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Real Estate Farming FAQs
What does farming mean in real estate?
Farming in real estate refers to focusing your marketing and networking efforts on a specific geographic area or community (often the one you live in) to establish a brand presence and generate new leads.
How do I start real estate farming in my neighborhood, city or town?
Begin by selecting a suitable real estate farming area, first understanding its demographics and studying its sales data to inform your outreach. Next, plan annual, quarterly, monthly, weekly and ad-hoc outreach methods that you can do consistently every year. Make one or two ideas your “signature” events and become known for them. Plan your budget accordingly, knowing what kind of return on investment (ROI) you need to make your efforts worthwhile. Then, consistently engage with the community and roll out your plan.
What is demographic farming in real estate?
Demographic farming is like geo-farming but focuses more on factors like age, family size and income level. Geo-farming considers demographic factors, but demographic farming focuses primarily on such lifestyle conditions to target an ideal customer base. For instance, a luxury real estate agent focusing on unique, upscale homes might concentrate more on demographics because their target client — an independently wealthy entrepreneur — is motivated more by finding rare properties and less so by considerations like school districts and proximity to community centers.
What is a good turnover rate for real estate farming?
Generally speaking, real estate agents advise aiming for neighborhoods with at least a 6% turnover rate for the highest probability of success.
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