How It’s Actually Possible to Start Selling Investment
By Thomas` | November 7, 2008
How It's Actually Possible to Start Selling Investment
Property Today
If you're a real estate agent that does not sell multifamily
or other investment real estate at least some portion of the
time, then you're missing out on a great opportunity to
build your real estate business.
Moreover, I believe that any real estate agent can sell
multifamily property just by learning a few basics, whether
they're a novice to real estate investing or not.
Hey, when I started in real estate, I made the jump from
residential real estate to income property sales almost
immediately. Just six months into my real estate career I
sold a shopping center and made a $24,000 commission...and I
knew less about real estate investing then what you're about
to discover in this article.
But I digress.
The point is that you don't have to become a commercial real
estate specialist to sell rental property. Yes, commercial
expertise is necessary to service some properties, e.g.,
leasing, but ordinary real estate agents can typically
handle multifamily property transactions quite successfully,
and generally do when they want to. That's how I did it, and
so can you.
Moreover, don't sell yourself short. If you're a real estate
agent, then you are certainly in a great position to work
with income property sellers and buyers. Remember what we
learned about real estate, that it's a "contact sport".
Think about it. Investors walk and call in to real estate
offices, are previous customers, relatives, friends, and
neighbors. In truth, we're surrounded by potential real
estate investment customers.
Finally, strike the thought that any effort you make to sell
rental property won't be worth it. The untold secret about
investment property, what others would not want you to
discover, is that real estate investors typically purchase
more than one property over time. Moreover, unlike home
buyers (who purchase one house), real estate investors are
known to purchase multiple properties plus, are often
willing to sell for the "right price" because there's no
emotional attachment like with a home.
In other words, when you get the opportunity to work with
one investor on one transaction, you potentially are setting
the stage for multiple transactions.
Okay, now let's go down the list.
1) Make the Decision
Foremost, decide to make some portion of your real estate
business investment business. You don't have to sacrifice
residential. If you want to keep selling houses, great, just
don't get started with rental property half-heartedly. If
you need an incentive, bear in mind that investment
properties can easily generate multi-million dollar
transactions equal to three or four residential
transactions; therefore, a golden opportunity to bolster
your annual earnings in this troubled housing market.
2) Learn the Basics
Unlike residential property, where amenities like kitchen
size and school district are important to buyers, other than
how they impact rents, amenities generally mean little to
those who buy investment property. Real estate investing is
about the numbers.
As such, investors are less impressed by an agent's style
and panache than they are with the agent's ability to
discuss investment property and provide timely numbers and
reports. It's not about Armani and Mercedes. Listen. When an
investor asks, "What's the property's cap rate?" and you
have the answer, that's all you need to start making the
right kind of favorable impression that will keep the
investor from dumping you for your competition.
At the very least know how to compute capitalization rate
and gross rent multiplier and be able to create an APOD.
There are numerous websites devoted to real estate
investment definitions and formulas where you can learn what
you need easily, including my website.
3) Tool Up
Investing a few dollars for quality real estate investment
software that enables you to create cash flow, rates of
return, and profitability presentations is one of the best
tools you can procure for real estate investing, bar none.
Here's why.
Foremost, it makes a statement to investors that you work
with rental income property. Presenting quality reports with
concise financial data suggests to investors that you're
serious about investment property, can assist in a sound
buying decision, and might genuinely care about how the
investor spends his or her money. It's about winning
investor confidence.
Secondly, it tells your colleagues that you work with rental
income property. This benefits your business because it
gives you income property credibility and in turn can lead
to additional referral business.
Thirdly, you can learn about rental income property. Almost
by default, the formulas, returns, and reports generated in
real estate investment software tend to rub off. It's as a
customer of mine remarked, that my software contains
everything about real estate investing it took him 15 years
to learn. You get the idea.
4) Prepare
You're making a crucial mistake if you wait until you're
confronted by an investor to learn the terms or buy the
software. Urgency is always an issue when investors make the
decision to buy or sell investment property, and if they see
you pause or scramble for answers, they're not going to have
qualms about calling someone else. Winning or losing a sale
often rests solely on the perception a customer develops
within seconds during the first encounter. Don't blow it.
5) Promote
Finally, let people know that you work with multifamily
property. Foremost, call your residential customers and ask
whether they've considered investing in real estate.
Remember, investors are homeowners. Tell your relatives and
friends. Obviously, the more people that know you're
prepared and equipped to do a real estate analysis and run
rates of return for them, the better. I'm preaching to the
choir, here, of course, but I can't emphasize enough the
impact your preparation for investment real estate will have
on others.
Here's to your success
James Kobzeff is the developer of ProAPOD Real Estate
Investment Software . Ready to start working with investment
real estate today? Discover how to create rental property
cash flow, rate of return, and profitability analysis
presentations in minutes! Go to => http://www.proapod.com
Topics: Investing |
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