Real Estate Investment Math: Investor Realtor Loyalty Success!
You may be reading in the real estate blogosphereand hearing from the experts out therethatnow isa great timefor real estate investingdue to the incredible amount of deals and foreclosures that exist across the country. Banks are giving homes away.
I do agree as Iwork withthese deals all the time. However real estate investing can be a risky business and a very slippery slope. One thing that is indisputable investing in Real Estate involves MATH.
Yes our favorite subject. But it is really quite easy and Here it is:
INVESTOR REALTOR LOYALTY= SUCCESS
1. First you mustnot it would be nice if you did butyou mustinterview local real estate agents in the area you are thinking of investingbecause they are in the trenches every day with buyers.Realtors know what buyers want what neighborhoods are in transition declining revitalizing and which areas will likely bring investors the best return on their investment down the road.
2 Once you have interviewed several Realtors to see which onesare selling not just listing the properties inyourchosen area then commit to them. Let me say this again….commit to your Realtor because they will work hard to make the entire transaction smooth and bring it to its ultimate conclusion….closing.
There are many many steps along the way from contract to closing. If youare loyal to your Realtor they will be loyal to you andwill be a considerable assetin your investment plans. As a good investor you must realize the importance of having a good real estate agent in your corner. It can mean the difference between success and failure. Your TIME is money and your Realtor saves you an incredible amount of time from negotiating the contract to setting up the inspectionto working with the lender appraiserandthe closing attorney the list goes on and on.
3. If you buy to renovate and resell guess what? The Realtors are a wealth of information when it comes to contractors who they recommendfor your project. They have had the opportunity to see how these contractors work their fees their reliability etc. Bad contractors can eat away at your profits quickly so you need good ones.
4. Okay so now you are ready to resell the property. It is here where many investors think the hard part is over. They think theywill just put a FOR SALE BY OWNER FSBO sign in the yard and sell this thing ontheir own. BIG mistake in this market. Now more than ever you need a Realtor working hard to getthe home sold. They have access to buyers that you do not whena buyer does comes along again the negotiation process starts and you do not have to deal with that buyer face to face. As an investor there are significant benefits in NOT having to deal with the buyers directly. Remember TIME is money and many investors mistakenly think hey I can sell this home on my own and save thousands in commission but forget to realize that they will likely hold onto that property for a longer period of time than if they had used a Realtor from the start.
Here is what happens so many times. Investor puts thehome on the market on their own it sits there unsold for a few months or moreand THEN theycall upon theRealtor. Well they have just lostequity by having to pay their mortgage note for themonths that the home sat unsoldon the market.Realtors willtell you the longer it sits it becomes stale and you will most likely have to reduce your price to sell.
Depending upon your margin you may have lostmost if not all of your profit/equity…not a good situation but one in which many investors fall into.
5. If you use a knowledgeable Realtor to buy the home use the same Realtor to sell the home why not they know all about it from start to finish.If you stay loyal to the Realtor guess what? They will become a “bird dog” for you and start findingYOU thedeals. Now that is what I call Success!
Investor Realtor Loyalty= Success.There is NO fuzzy math here….Agreed?
Now go out there and do good things! Invest in Real Estate Todaybut do not go it alone get thetraining coaching andmentoring you need to reap the rewards this business can bring to you.
About the writer: Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1000 real estate deals owned a construction company been a private lender and owned a property management company. Peter currently works with clients all over the US www.CoachingByPeter.com .
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