With the ever-changing nature of our real estate markets, real estate agents are beginning to hear the sound of new commission streams. “Cap Rate” and “Cash-on-Cash Returns” are two terminology that some realtors have avoided or avoided altogether. Only the “clever” and “numbers-oriented” utilise these terms to decide whether or not a Real Estate acquisition is a “Good Deal.” The bulk of our realtor colleagues went to real estate school because they were enthralled by the prospect of selling real estate and earning a good livelihood.
“Times are a Changing,” as they say. Even if you live in a Hot Market where residential real estate sells in 2-3 days, there is an old way of thinking about real estate that is becoming obsolete by the day….. Investors in residential real estate.
This astute group of real estate investors is ushering in a new age in real estate and real estate investment! The Dow Jones and NASDAQ families’ insane volatility is no longer acceptable. Investors who are unable to embrace their forefathers’ financial methods throw caution to the wind in search of higher returns in their Roth or IRA accounts. These are risk-takers who are frequently aggressive. Today’s real estate investors are focused on quick fix-and-flips, significant appreciation, and consistent monthly cash flow. Serious Investors are turning to locations outside their own backyards to other places that show better promise and bigger profits after cutting their teeth on investing in their own hometowns.
You might wonder how this older adult views their investing options. To begin with, these stealth hunters range in age from 28 to 68 years old. From Donald Trump’s magical presence on “The Apprentice” to the “Rich Dad-Poor Dad” book series, young real estate entrepreneurs are making their dreams come true at a rate of 3-5 purchases each year! Have I gotten your attention yet? The average investor has decent to excellent credit. Excellent financial reserves or secret cash resources of partners eager to make the deal materialise at almost any cost The best-kept truth is that these investing creatures move in groups. You are pretty near behind where you see each other.
In other words, they know who you need to know in order to expand your investor database. If the real estate expert performs an excellent job, satisfied customers are likely to refer a large number of their peers. Their usual real estate business, not simply their investment clientele. Face it, if you can show your customers how capable you are with their greatest personal real estate investment, don’t you think they’ll trust you more than their “trusted real estate experts” when it comes to buying a basic home, condo, or beach house?
What if you haven’t been concentrating on real estate investment? And you’re thinking, “Well, this all sounds very wonderful, so let’s try it.” The first question to ask yourself is who have your clients been working with or investigating their real estate investing alternatives with in the last three to four months. Six out of ten consumers have pondered or have actually began investing in real estate before their realtor has even had a chance to blink. Have I gotten your attention yet? Consider this: in less than a year, I improved my annual commissions by 30% simply by establishing myself within my major customer database.
I just informed them that I was ready, willing, and able to assist them with their “Investment Realty” requirements. During the first year, I discovered that if I could create an atmosphere where my customers could learn more about real estate investment, they would be grateful in a number of ways…. Most significantly, they would call me before creating a contract and ensure that I was a part of any arrangement involving a real estate purchase. Within a short time, 30 percent had risen to 45 percent and beyond. Even if you don’t want to extend your customer base, at the very least consider defending the territory you’ve invested so much effort and money to keep. If, on the other hand, you’re considering a career in real estate and want to know how to prepare yourself for market growth that is expected to continue well beyond 2025, here are a few recognised facts regarding how real estate investors may boost their businesses.
1. Real estate investors may be found almost anywhere. By successfully tapping into your present database, you might see a 20-30% boost in annual commissions.
2. Real estate investors will be loyal to the expert who assists them in completing their investing education. Workshops, mentoring groups, and locating “golden bargains” in your market all have a significant influence!
3. Investing in Real Estate Investors does not have to mean you have to give up your “traditional” residential realtor job. You are wiser than the ordinary realtor in the market if you are a real estate investing specialist.
4. Mortgage specialists are straining to find decent property bargains for real estate investors, so when you can place one in a solid deal, the recommendations will start to come even more.
5. Real estate investors are more concerned with your personal time away. Investors often prefer to browse for discounts Monday through Friday before the “Weekend Warrior” investors arrive. This equates to more regular operating hours and days for you and your company.
6. Real estate investors have shorter buy-sell cycles than primary house buyers, resulting in more transactions in less time.