Investing In Real Estate
Investors
By John Roush
With the never-ending changes in our
Real Estate Markets real estate professionals are
starting to pay attention to the sound of new commission streams of income. Some
realtors have either shied away or ran-away from such terms as “Cap Rate,” &
“Cash-on-Cash Returns.” Terms that only the ‘smart’ and ‘numbers-oriented people
use to determine if a Real Estate purchase is a “Good Deal”, or not. A
majority of the realtor brethren attended real estate school because they are
excited and passionate about the promise of selling real estate and making a
fantastic living. That being said “Times are a Changing.” Even if you live in a
Hot Market where residential real estate sells
in 2-3 days there is an old approach to real estate that is growing faster by
the day…..Residential Real Estate Investors.
This deft group of real estate
investors is taking real estate and the real estate investment world into a new
era! No longer accepting the crazy volatility of the Dow Jones and NASDAQ
families. Unwilling to accept the investment practices of their fore-fathers
these Investors throw caution to the wind for returns above the traditional 5-6%
in their Roth or IRA accounts. These Investors are bold and oftentimes
aggressive. Today’s Real Estate Investors are all about the fast fix-n-flip, high appreciation, and rock solid
monthly cash-flows. Cutting their teeth on investment in their own home-towns is
only the beginning as the Serious Investors turn to points outside their own
back-yards to other regions that demonstrate greater promise and higher returns.
You may say well how does this older adult view their investment opportunities?
For starters the age of these stealth hunters ranges from 28 to 68. From
“Rich Dad-Poor Dad” book series to Trumps magical
presence on “The Apprentice,” the young real estate
entrepreneurs are making their dreams happen to the tune of 3-5 acquisitions a
year! Got your attention now? The typical Investor has good to great credit
scores. Excellent cash reserves or hidden resources of partners with
cash, and a willingness to make the deal happen at nearly any cost. The best
kept secret of all is that these investing beasts travel in packs. Where you see
one another is very close behind. In other words they know the people that you
need to know to grow your investor database even larger. If the real estate
professional does a
good job the happy clients are likely to refer many of their fellow-investors.
Not just investor clients but their regular every-day real estate business. Face it, if you can demonstrate to
your clients how adept you are with their largest personal purchase of real
estate, then wouldn’t you suppose they will be over their “trusted real estate
advisors” opinion on
buying a basic home, condo or beach house?
So what if you haven’t been focused
in the real estate
investment sector.
And you are thinking this all sounds pretty good, let’s give it a try. First
question to ask yourself is who have your clients been working with or exploring
their options of real estate investing with over the past 3-4 months.
Statistically 6 out of 10 clients have considered investing in real estate or have already begun doing so
before their realtor even has a chance to blink an eye. Got your attention now?
How about the fact that in less than one year I increased my annual commissions by 30% by just positioning myself within my primary data-base
of clients. All I did was let them know that I was ready, willing and able to
begin assisting them with their “Investment Realty” needs. What I learned during
the first year was that if I could create an environment for my clients to learn
more about real estate investing that they would thank me in a variety of
ways….Most importantly they would call me before writing a contract and would
make sure that I was involved in every contract that wanted to make a real
estate purchase. Before long 30% went up to 45% and
further. Even if you aren’t interested in expanding your client database, at
least consider protecting the turf you have for so long spent tireless amounts
of time and financial resources to maintain their
allegiance. On the other hand if you are looking at your real estate career and
are wondering how to reposition yourself for market growth certainly to go well
into 2025, here are a few known facts about how real estate investors can
improve your business.
1. Real Estate Investors are literally everywhere.
Successfully tapping into your current database could increase your annual
commissions by 20-30%.
2. Real Estate Investors will be loyal to the professional
that helps fill the gap of their investment education. Workshops, mentoring
groups, finding the “golden deals” in your market makes a huge
impact!
3. Investing in Real Estate
Investors doesn’t
have to mean that you lose your “typical” residential realtor position. Being a
real estate investment specialist means you are smarter than the average realtor
in the market.
4. Mortgage
professionals are
struggling to provide real estate investors with property deals, so when you can
place an investor into a good deal the referrals will begin to flow even
more.
5. Real Estate Investors tend to be more conscientious about
your personal time away. Investors also like to shop Monday-Friday for their
deals before the “Weekend Warrior” investors get out into the competition. This
translates into more normal hours and days of operation for you and your
business.
6. Real Estate Investors buy-sell cycles are shorter than primary home
purchasers resulting in more transactions in shorter time-frames.
If any of these points are
encouraging you to seek new options in your business then make sure to sign up
for the monthly “Grow your Real Estate Investment business” e-mail newsletter
from www.InvestorLoft.com additionally, other excellent tools to improve and
expand your real estate business can be explored at the InvestorLoft’s educational Shoppe.
By John E. Roush, Broker-Owner Atrium
Real Estate
Investments. John is
a full-time real estate agent specializing in real estate investment and real
estate investment education. To contact John send all correspondence to
Johnr@investorloft.com
©2005 http://www.investorloft.com
