Just this past week, a man claiming to be a real estate broker has been accused of stealing thousands of dollars in security deposits and down payments on properties that he did not own. Surprise, surprise: he used the internet to con eager buyers looking for great deals into forking over their hard turned money. Now, he’s on the run, but if he’s not caught then those buyers may be out of money and out of luck.
This type of news story is all too common, and it gives those who are actually using the internet to grow their real estate investing businesses and promote their properties a terrible reputation. While it is patently unfair, you may as well get used to the idea that a lot of people that you are working with may have a lurking suspicion in the back of their minds that you, as a virtual real estate investor, are getting ready to cash their checks and run.
So how to get around this problem? The answer is surprisingly simple: You need to be tangible. One of the things that makes people nervous about the internet is that so much of what goes on there, even in the business world, cannot be held in the hand. As a result, if you are easily visible and accessible, you will assuage many buyers’ fears about you even if you do most of your real estate investing online and may never meet your leads or your buyers face to face. One thing that will help a great deal is a real phone number that is linked to a real property. Having an office rather than an electronic answering service will help your clients feel like they are working with a real person.
You might also want to think about providing real references on your website. If you have done a great deal that worked out really well for the buyer, seller or, depending on your business model, both, then ask if you can refer potential clients to the parties involved in the deal. Speaking with someone who has already worked with you can help establish your credibility and honesty for concerned parties. Finally, provide plenty of information about yourself, and control that information. People are going to “google” you and your business, so make sure that you have a solid webpage with good contact information on it as well as a professional image on your publically-visible Facebook or other networking profiles. Establishing an image of yourself as a reliable real estate investor who is easy to reach and has a track record of responsible, successful investing will help uneasy buyers decide to work with you.
How do you get around the stigma that many buyers and sellers associate with internet-based real estate business? Do you think that this issue is becoming a thing of the past?
Thank you for reading! Your comments and questions are welcomed below.