A flurry of new laws are forcing real estate investors to adapt or be regulated out of their niches or entire businesses. Here’s what you need to know…

These are just some of the recent legal issues, new rulings and proposed laws that might make you want to restructure how you do business, your real estate investment strategy, and where you invest.

ADA Lawsuits

ADA lawsuits have been crippling businesses for years. This is especially true in California where they are rife and there are many professional ‘hitmen’ who are making a full time living from suing business owners. Yes, equality is important and so is providing reasonable facilities to those with disabilities. Yet, some of the mandates put on businesses now may catch you by surprise. Some investors may have thought they were in the clear by only operating online. A recent lawsuit against Domino’s pizza changes that. The supreme court shutdown an appeal by the company which is being sued by a blind man who says he couldn’t use their website.

Education

A recent suit against a real estate education company linked to two reality TV stars may shake up some of the many giant guru businesses that have popped up over the past decade. This is not a new concept. Though it is a warning to be very careful about the information you provide to others, and the legal risks of sharing real estate investing education. Especially if you are charging for it.

Hiring Help

The California Trucking Association just filed a new lawsuit appealing new rulings that could kill off 70,000 member jobs. The new employment rules aim to make it difficult for Californian companies to hire independent contractors instead of full time employees with benefits and protections under that classification. It is also an issue for Uber and giants like Apple and Amazon whose workforce includes many remote workers and contractors. There may have been some bad actors forcing contractors to work like employees. Though a new law of this severity could also kill off much of the progress made in the gig economy and millions of jobs. All while making it less desirable to hire people. Real estate investors may find a work around in asking their freelancers if they have a company they can bill as an outside vendor and service provider instead.

Taxes

Real estate investors also need to watch out for new taxes. If Bernie Sanders wins the 2020 presidential election he says he’ll implement a new 25% tax on house flippers, a vacant property tax, and new tax rate of 52% for high income earners. Investors may be able to avoid many of these bankrupting new taxes by switching from buy and hold and flipping houses to real estate wholesaling instead.

Rent Controls

California and New York have recently brought in sweeping new rent controls and protections for tenants that may prevent them from being evicted. That dramatically increases risk for lenders on properties there, and could put buy and hold investors in the red for a very long time. Expect this to push more to investing in other states in 2020.

 

How can property wholesalers beat all of the deafening marketing noise out there today in order to close on more acquisitions and flips?

The amount of advertising noise out there is at epic proportions today. It’s coming from constantly blaring screens, in vehicles, on signs, and is being beamed into our palms and on our wrists. Soon smart glasses will pop up ads literally right in front of our eyeballs so we can’t ignore them. That can make it tougher and tougher (and more expensive) to stand out, get noticed and compete. Even if you repeat everything you did last year, your results may be way down due to the rise in noise. So, whether you are a real estate education guru or brand new investor focusing on wholesaling, how do you break through it?

Make it Personal

The tendency today is for marketers to just blast, blast, blast messages out. There is far less focus on handling the incoming. Too many drop the ball on replying and following up with leads in those most valuable first five minutes. It’s not just hot leads either, but the growing amount of interactions that are happening online. Maybe you can’t compete on content and volume on social, but you can do better at really engaging and strengthening personal ties. If you tried to compliment someone or speak to them in the street and they ignored you, would you buy from them? How would you relay your feelings about them to others? Yet, real estate investors and brands frequently fail to respond to likes and comments on Facebook, Instagram and other social platforms. It’s no different. Spend less time firing at them, and more time in real conversations.

Make it Real

So much is happening virtually online. Yet, that is only making real life engagement, relationships and activities scarcer. Stand out by getting together in person and building real connections whenever possible.

Make the Most Noise

If the above doesn’t appeal to you, then at least make the most noise. It may be easier and more affordable than you think. At least if you use the data available and target well. You can achieve great market saturation with a dense and targeted multimedia approach. You can hit them with mail, email, Facebook ads, signs, and be there every time they search the internet.

Make the Most of Your Marketing Team

Many businesses are still struggling to get a handle on the new remote working environment. You can now affordably recruit the top talent in the world and get just what you need from them on an on-demand basis. Yet, so many are still trying to micromanage their operations. That’s like signing Lebron James and then keeping him on the bench. Or insisting he shoot your way if he is ever on the court, even if you’ve never made a half court shot or dunked. Sounds crazy, but that’s what the bulk of brands are doing. They don’t know what they don’t know about the game. They don’t have the level of expertise in the details that their players do. Yet, they wonder why they aren’t scoring more. Find great talent and get out of their way fast so they can clock up the wins for you. You don’t need to dictate how they throw, as long as the data is going up on the scoreboard.