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.