I’m convinced, after thirty years in real estate, that real estate agents are presented with at least one opportunity to sell rental income property during any given year regardless whether they’re experienced with investment property or not.
Given, But Blowing the Opportunity
Think about it. Real estate agents are in an excellent position to meet people looking to buy or sell rental property.
Real estate investors walk and call in to real estate offices regularly. Plus, there are previous customers, relatives, friends, a neighbor, or even someone who surfaces unexpectedly during a cold call. Hey, it’s undeniable, real estate professionals who aren’t living in a cave come into contact with multitudes of active and potential investors.
Okay, so why do just a few agents sell rental property? Worse still, why do many blow the opportunity? It’s not due to a lack of intention…I’ve yet to meet anyone willing to ignore a four of five-figure payday!
The problem is that most residential agents swallow the myth about rental income property: “That rental properties are so vastly unlike other real estate it should not be considered a business alternative sought after by anyone who sells houses”
This is not true, of course, but as a result, most real estate agents when presented with the opportunity get started with investment property do not act, are slow to act, react shamelessly, or refer the income property business away to a colleague. In other words, they squander it away…and this is inexcusable because success in real estate thrives on opportunities!
Busting the Myth
The point is that any real estate agent (even if he or she is a novice to real estate investment property) can sell rental income property. Here’s all you need to do to get started toward that first deal:
Dispel the myth that residential and investment properties exist in different galaxies.
Despite the differences in houses and apartment buildings, if you can sell a house, you can sell income property. After all, consider who buys rental income property…the very customers you’re conditioned to service! Investors are not from another planet, they’re just folks seeking a yield on dollars they set aside for investment. Real estate investors are people you know.
Dispel the myth that investment property is reserved for investing experts.
Some instances might require a commercial expert, of course, but normal real estate agents can and do handle many rental property transactions quite successfully.
Prepare yourself for real estate investment dialog.
Have a notable response when asked about a cap rate or APOD. The inability to discuss income property effectively is why many real estate agents fail to foster a connection with investors. You’ll never make points if you lack even a basic understanding of rental property nuances. Do your homework via the numerous websites devoted to real estate investment nuances and formulas.
Prepare to service a real estate investor correctly.
Bear in mind that real estate investing is all about the numbers. Be ready to present a property’s income and operating expenses, whether you create them yourself on a spreadsheet or use real estate investment software. Having the ability to present investment property cash flow and rates of return to an investor is vital because it gives the impression that you’re not just concerned about a commission, but genuinely care about the investor’s money enough to assist in a prudent investment decision.
Prepare to work with rental income property today.
Don’t wait until you’re asked about income property and then have to scramble. Learn the terms and invest in the tools now, before you need them. Urgency is always an issue when investors make the decision to buy or sell investment property and they will have no qualms about soliciting the services of another real estate agent deemed more suitably prepared to assist them if you’re not.
What’s Keeping You from the Money?
Are you aware that investment properties can generate multi-million dollar transactions? That in some cases, you can close investment property deals equal to three or four house transactions; that you have, especially in this troubled real estate market, a golden opportunity to bolster your annual earnings?
Yes, it takes some effort, but you didn’t become a real estate professional without effort. The good news is that it’s not that difficult…just some minimal preparation and a small investment of time. That’s how I did it. And if it hadn’t worked for me, I wouldn’t have shared it with you. Honest.
