Real estate companies that managed survive the recession will become highly productive, more efficient, with stronger teams operating and increased transparency for the good of the industry.This is according to Stan Ross, chairman of the University of Southern California Lusk Center for Real Estate.According to Mr. Ross, there is a good chance that by the end of this year we are going to see some solid real estate companies that will be setting example on how to be profitable, creative, ethical and honest at the same time.In other words, as painful as it is, the recession is going to weed out the weak, the lazy and the dishonest. Will some companies are going to go under that are none of the above? Of course. On the other hand, we cannot expect the recession to be fair; it is an economic process, not a fair trial with jury.However, the majority of the strongest will get stronger and there are plenty of lessons for all of us to learn.The strongest companies learned to rely more on technology and less on human capital. Personally our company witnessed unprecedented use of eFaxes, VoIP phones and social networking.There is a clearly visible trend to do more outsourcing, as less and less real estate companies are able to have everything under their roof. Even if it could be perceived as counterintuitive, hiring help in most cases is cheaper, not more expensive, especially when professional firms are cutting their fees.Think of such areas as accounting, legal and marketing services. Having an in-house full-time or even part-time accountant will cost you tens of thousands dollars a year. Hiring a help only when you need is going to save you tens of thousands, because you pay only for the project that has a clear time-frame. Simple Google search will reveal an astonishing amount of qualified accountants and marketers that are willing to work around your schedule or remotely.According to Mr. Ross, developers, homebuilders, property managers, investors and lenders should reorganize, restructure and flatten their organizations and take a hands-on approach to decision-making.Mr. Ross says it’s also the time to increase liquidity, which could be done by selling assets to create a cash cushion. “Market your unsold inventory more aggressively. Centralize your accounts payable to strictly manage your cash outflows. Understand your receivables,” he says.He also suggests to more tightly control costs, now is a good time to “re-bid everything.”
I agree. excellent points about strong comapnies.Thanks for sharing.
A really key point in this article is social networking....
Look at the statistics on socialnomics... https://www.youtube.com/watch?v=NhPgUcjGQAw
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A really key point in this article is social networking....
Look at the statistics on socialnomics... https://www.youtube.com/watch?v=NhPgUcjGQAw