Success Institute Agent

Real Estate Agent Software – Why Any Agent Can Work With Rental Property

admin — Thu, 02 Sep 2010 04:58:31 +0000

Real estate agents that want to work with investors and real estate agent software that can compute rental property cash flows, rates of return, and profitability analysis are as compatible as the right-type equipment adorned by an athlete seeking excellence.

Think of it this way.

As gifted an NFL quarterback as Patton Manning is, would you expect him to walk on the field suited up with the shoulder pads of a lineman. Of course not, why? Because the larger pads worn by football lineman would in fact inhabit his ability as a quarterback to throw the football accurately. Quarterbacks, regardless how gifted, require much smaller shoulder pads so they can throw the football with maximum precision. In other words, whereas the right equipment really doesn’t account for the talent of the quarterback, it does enable it.

The same is true with real estate agents who want to work with rental property. Whereas any proficient residential agent can work with and occasionally sell rental properties, it just scratches the surface of a virtual treasure throve of investment property opportunities agents can enjoy when equipped with a good real estate agent software solution designed for rental property analysis. Here’s why.

1) It prepares you to service income-property inquiries. When you can “run the numbers” correctly on a rental property perhaps a walk-in, call in, or other is requesting information, it increases your chances to capture the opportunity. So you don’t risk losing a sale opportunity or have to refer it away because you will be prepared to work with real estate investors.

2) It helps make every first encounter with investors count. The value of making a good first impression on customers is not a secret. Real estate agents recognize that a customer’s first-glance perception can mean winning or losing business. When you are able to provide the cash flow and profitability presentations most important to investors with a good real estate agent software solution, you increase your chances that the investor will take you seriously and not simply “write you off” in favor of one of your colleagues.

3) It promotes investor loyalty. As simplistic as it may sound, just by owning a real estate agent software solution for real estate investing, you convey to the customer that you are in league with them, committed as they are to protect their nest egg, and genuinely do care how their money gets spent. By developing this type of confidence and trust in an investor, they will remain loyal to you and therein continually seek your services for their investing purposes.

4) It opens the door for more business. Once equipped to evaluate rental properties correctly, you can become more proactive to convert homeowner customers into investors. This is not a far-fetched idea. You might be surprised to discover that customers are ready to invest in rental property when they can be shown that the rates of return from owning a specific income property is more profitable than what they receive from their saving account.

5) It opens the door for referral business. When you own investment software, you will be perceived as a rental property specialist by others in your office and that will lead to referral business. This is not an exaggeration. By virtue of you having the ability to run the numbers on income property will set you head and shoulders above the rest. And believe me when I tell you that colleagues less prepared to work with investment property will gladly refer any rental property business they encounter to you.

To learn more about the benefit of using real estate agent software for rental property analysis, visit the website in my resource box below.

By: James Kobzeff

Why You Should Sell Rental Property in This Slumping Economy

admin — Tue, 17 Aug 2010 23:24:45 +0000

With the slumping real estate market, many real estate agents are finding themselves struggling to keep afloat. The days when new listings produced multiple offers before the ink dried and open houses produced endless streams of anxious buyers are long gone, at least for now. Residential agents now face the reality that selling real estate may not be profitable, moreover, that it may even get worse before it gets better.

Okay, but given the sagging real estate market, why would it make sense for residential real estate agents to start selling rental income property? Wouldn’t it be better to stay put in your own backyard, clinching the familiar, avoiding things new? I say no.

Foremost, if you’re a residential real estate agent, face the facts. That in this market “sellers still don’t get it and buyers won’t pay for it.” Most sellers believe they can stick on any price tag and get someone to bite, when buyers in this market are not willing to pay what they regard as an unrealistic price to some delusional and pigheaded seller still living in 2005.

Now, consider how all of it directly impacts your business. Your listings are mostly over-priced, and offers you submit are normally rejected. Rather then facilitating the ebb and flow of buyer and seller negotiations as normal, you find yourself in the middle of a tirade, trying to persuade one as to why the other is not obstinate.

Here’s the point.

Real estate agents are in a dire situation with few options. Think about it. You can suspend your license, you can bite the bullet and hope for a change, or you can become proactive by diversifying your business with rental income property and maybe close one or two additional deals this year. Which would you choose?

Here’s what you’ll discover about selling rental income property.

Whereas homeowners may not be in pursuit of a replacement house, they could be ready to make an investment. Whereas homeowners typically won’t sell on a moments notice, investors normally have a price they will entertain. Whereas homeowners may turnover one property in five years, investors habitually buy and sell multiple income properties. Whereas retirement might mean hunkering into a house, it commonly signals a designated time to unload management-intensive rental property.

You get the idea. Selling rental property offers a ton more opportunities to make money than residential property, and as a real estate agent, you’re in the right place to seize it.

So how do you get started selling apartments with little or no experience? You might be surprised to learn that it’s not that difficult.

First, dismiss the idea that you need to become an investment expert. Deals are closed every year by hundreds of residential agents who know little about income-producing property. Secondly, recognize the importance of numbers to real estate investing and think about buying real estate investment software to help you present those numbers in a professional fashion to sellers and buyers. Research your local market and acquaint yourself with income property prices (listing and sold). Use the real estate investment software to create an APOD for each property. Study the cap rates. Become knowledgeable about rental property prices and rates of return. Call your customers and ask whether they want to invest or perhaps own a multifamily property for you to sell. Discuss the market, present your numbers. Let them know you work with income property. Announce to your colleagues that you’re equipped to service rental property and prepared to pay a referral fee. Start attending meetings that promote investment property. Watch the classifieds and call on land or units listed by FSBOs. A colleague of mine called on a vacant lot listed by a FSBO who turned out to be an investor and subsequently listed about 100 apartment units for the guy. Call property management firms in your area and ask whether any of their clients might consider selling or buying property.

Okay, but let’s talk turkey. Am I suggesting that apartment buildings are immune from the hardships of this real estate market, or that investors are on every corner ready to throw money at you? No, investment real estate is still subject to the same murky economy, investors can be obstinate too, and you still have to work at creating your deals.

But rental property gives you the opportunity to diversify your residential business. Rather than having to rely just on the whim of one type of buyer or seller, you can broaden your exposure to multiple types of buyers and sellers. It’s no longer one product you service, but many products.

Sure, it takes effort. But considering the challenge we face, having the backbone and good sense to become creative might see us through. And that, dear colleague, would make it all worth the effort.

By: James Kobzeff

Reap Best ROI by Investing in Residential Property

admin — Thu, 12 Aug 2010 00:58:52 +0000

Investing in property is considered to be a better option than depositing your money in bank for a rather low rate of interest. The rent and the appreciation acquired through property investment are much higher as compared to the interest rate offered by banks.

The idea of investing in residential property has been growing at an enormous rate. Owing to continuous increase in population and shift of people from rural to urban areas, demand for accommodation is ever rising. Also, with young generation wanting to live separately after marriage and lot of youngsters studying or working outside their home towns, residential properties are in great demand. Thus, residential properties are likely to be a good option for investment and are preferred over commercial properties.

Advantages of Residential investment over commercial investment:

There are more fluctuations in commercial properties than in residential. That is why; more and more people are buying small or large residential properties. Lot of people take easy loans from banks and financial institutions, buy a property and lease it out to some good property agent. Generally, they get paid more than the loan installment, they have to pay. Thus, without making any sizeable investment, they are able to build a good asset for themselves, the value of which keeps appreciating.

Another advantage of a residential investment than a commercial one is that residential properties are engaged much faster. Property agents also think twice before taking a commercial property on lease. This is because they know that a commercial property may remain vacant for a long period of time. On the other hand, there is always a long queue of people seeking residential properties on rent. While property agents generally make good profits on the leased properties they acquire, they have much lesser chances of getting good returns on commercial properties.

It is important that one carefully studies the types of options available for financing. This is a critical factor when it comes to getting returns from investment in residential properties. Banks are offering various types of financial schemes for residential investments. It is always advisable to seek advice of financial consultants before opting for a scheme.

What has made investment in real estate more attractive is the fact that several reputed business houses have diversified in this sphere. With their huge capital backing and infrastructure, these big companies are able to make sizable allocations for research and development and thus, develop good properties at attractive prices. It is because of these reputed players in real estate business, investors are confident that they will not be cheated and they have a fair chance of getting good returns.

There is no let up in the trend of investments in real estate, especially housing. Needless to say, number of people looking for rental accommodation will keep on increasing. Therefore, real estates will continue to be one of the best investment options.

By: Fionag Endus

Why You Must Have A Residential Lease Agreement

admin — Fri, 06 Aug 2010 00:07:00 +0000

Renting a home; whether the unit is a single detached house, a two-storey apartment, a modest condominium or a swanky penthouse suite, is not as easy as everyone perceives it to be. It involves more than having money change hands every week or month, depending on what payment terms have been agreed upon by both parties. Renting a home is about working together. It’s about understanding the requirements of one another, and adapting to the codes of conduct specified by each.

In some instances, especially if the landlord and tenants have known each other for long periods of time, a gentleman’s agreement (a verbal contract) would normally suffice. However, sometimes, even the best of friends have falling outs due to money matters so, to prevent this from happening; and to clearly spell out the duties and responsibilities of each; it is still best that a formal contract be written and that these be signed by all the parties involved.
Formal contracts for properties that are rented out as private dwellings are called residential lease agreements. Not only do these specify how much the unit will be rented out, all the other terms and conditions: from the rules and regulations that shall govern the new tenant, to the responsibilities that shall be borne by the landlord, and the appropriate “penalty clauses” are to be specified in writing on this document.

Generally, there are two kinds of lease agreements, and these are based on the duration of one’s stay in the residential unit. For short-term and/or indefinite leases, the contract both parties normally use is called a month-to-month rental agreement. Long term leases, or those wherein the tenant will stay in a property for years at a time, are covered by a more comprehensive contract called a Lease Agreement.

These two contracts, the Lease Agreement and the Month-to-Month Rental Agreement, are both considered legal documents and will stand in any court of law. Thus said, it is very important that the contents of these documents are well written and easily understood, most especially by the parties involved.

In previous years, residential lease agreements could only be prepared by real estate agents or lawyers. Not only was this process time consuming, it was also an additional cost that usually had to be factored into the rental rates. Luckily, tenants and landlords no longer have to go through this tedious process as they are now able to prepare residential lease agreements by themselves by downloading an editable version from one of many real estate related websites found on the internet.

Many are apprehensive about using downloadable forms because they fear that the content and format may not necessarily conform to the standards set by local or state government offices. However, the developers of such sites have invested much time and energy to ensure that these documents, although considered somewhat generic, meet the requirements of any official business or government entity. Because these forms can be opened using any standard word processing program, the contents can easily be modified to suit the specific needs of the users.

By: Gloria Smith

Real Estate Agents Can Negotiate the Best Landlord Tenant Forms Terms

admin — Wed, 04 Aug 2010 09:24:19 +0000

Whether you want to sell your home or lease it, you will need to find a real estate agent. A Real Estate Agent is one who is licensed by the state to practice in the business of real estate. Real estate dealings can be quite complex and a real estate agent will help you deal with the difficulties that are inevitable in the selling or leasing of your house. They are there to ensure a smooth transaction and are essential to safeguard the value of your assets.

To look for a great real estate agent, you need to start asking around for referrals. Most satisfied clients are willing to share their experiences with you and make recommendations. This will give you an idea where to look. If you can, ask for as many referrals as possible and make sure to let those you ask describe to you the experience of working with a particular agent. You will not only know who to look for but you will also have an idea what a particular agent might be like even before you meet him/her. One other option is to look at online listings or ads on the newspapers. This will save you some time and will give you an instant idea of what particular real estate offices might be able to cater to your needs. It would also help for you to attend open houses. You can observe real estate agents without having to really consult with them personally.

When you have enough information, you’ll have a good picture of what kind of agent you are looking for and who might give you what you need. Consider the top three real estate agents you have in mind and schedule for an interview with each of them. A one-on-one interaction will help you gauge his/her capabilities and character enough for you to decide if you want him to be your agent or not.

If you really want to get your money’s worth, look for a residential agent who works full-time on landlord tenant relationships and and who has had a lot of experience working with landlord tenant forms. Ask specific questions about how he/she gets the job done for other landlords or tenants and why they might be the best agent for you. When you feel that he/she is qualified and meets your standards, consult with him/her your particular needs concerning real estate leases and how he intends to accomplish what you want. Ask how much he/she will charge and negotiate the price if you feel that the tenant’s offer is too low. A good residential agent will give you a reasonable compromise after taking in to consideration your specific requirements and his/her own capabilities with handling landlord tenant relationships.

By: James Kahn

Are You a Real Estate Agent That Wants to Sell Income Property?

admin — Tue, 03 Aug 2010 04:45:33 +0000

If you’re a real estate agent and particularly an agent that specializes in residential selling, but would like to supplement your business by selling income properties, then this one is for you.

In this article, I want to share with you why residential real estate agents should sell rental property, some truths and myths, and what you should do to prepare.

Benefits of Selling Income Property

The primary benefit of working with rental properties, of course, is the money. When I started selling real estate, the average commission for selling a house was about $1,500 after the broker split. When I made my first income-property sale as a residential agent, I made $15,000 after the broker split.

That sale took place in 1978 and having gotten a taste, I choose to make rental properties my business as a result, have been selling income-producing properties exclusively for the past thirty years.

But I digress.

This article is not about getting you to forsake your current residential business to become a multifamily specialist, it’s about getting you to become a real estate agent who can (and will desire to) sell investment property in addition to single-family homes because the money is good.

Let me give you one example of a residential agent here in Salem, Oregon that merely called a FSBO regarding a small vacant lot that ultimately connected her with an apartment builder who subsequently allowed her to list about sixty apartment units. She never stopped selling houses, but because she thought outside the box and also made an effort to expand her residential business, she unwittingly fell into investment real estate and made a healthy commission as a result.

Another benefit of being able to work with rental property, especially for those of you who have been successful at selling houses and have a sizable customer list, is that you have at your disposal a ton of potential investors. Given this economy and the fact that banks are only paying about 2% to use our money, it might surprise you to discover that homeowners who have never invested in rental property are more open to the idea now than ever before.

Lastly, it benefits you to have the ability to sell income-producing properties because it prepares you to service walk-ins and others who inquire about income property. So you never risk losing a sale opportunity or have to refer it away because you’re not prepared to work with real estate investors.

You Don’t Need to Become a Specialist

The beauty of rental properties is that you don’t have to become a specialist or have any special training to sell it. Naturally, there are exceptions with some types of commercial property, but at the end of the day, most properties associated with real estate investing require little preparation on your part.

How to Prepare

Bear in mind that real estate investing is about the numbers-cash flow, rates of return, and profitability. Therefore, obtain good real estate agent software that will enable you to run those numbers correctly (and easily).

A good real estate agent software solution will provide you with cash flow presentations you can give to (and capture) investors and, just by virtue of using the software, enable you to learn all you need to know to service investment properties adequately. As an added bonus, having the ability to create multifamily cash flow and rate of return presentations, you may even get some referral business from colleagues.

Okay, I admit, I am trying to make you aware of my real estate agent software program. But I wouldn’t risk alienating even one colleague if I didn’t witness for myself the remarkable success residential agents have had with investment software. If it didn’t work, I wouldn’t even suggest that you consider it.

Here’s to your success.

By: James Kobzeff

Let an Expert Help You in Your Florida Residential Real Estate Acquisition

admin — Sun, 01 Aug 2010 17:36:25 +0000

Honestly, purchasing a real estate property in Florida is never easy. Aside from the financial resources needed to acquire prime residences in the area, you need to be knowledgeable in the real estate business to get the best deals in the transaction. If you think that you don’t know enough about it, then it would be best to let an expert lend you a hand.

Real Estate Agent

A real estate agent can be a big help in your residential acquisition in Florida. They are quite knowledgeable in the real estate business and can help you with any legal matters that you might find confusing.

In most cases, a real estate agent helps both the buyer and the seller at the same time. They assist in the purchase transactions, and are usually paid by the seller in the form of a commission according to the price of the property. They can also become a dual agent and help both individuals arrive at a profitable venture in real estate acquisition.

Note, however, that it would be wise to pick out the best real estate agent the business has to offer. Ask around family members and friends if they have anyone they can refer to you. If not, check the local yellow pages or the Internet for one in your area.

Benefits Of Hiring An Agent

A real estate agent can help you find your dream home in Florida. They are connected and affiliated with many real estate firms in the region, so they can give you a wide selection of residential properties to choose from. All you need to do is to provide them with some specifications of your home from the floor area to amenities. You may also want to include the range of your budget so that they can narrow down their search.

Also, a real estate agent can help determine the price of the property by carefully inspecting every nook and cranny of the real estate that you plan to buy. They can point out flaws and problems in the overall architecture to bring down the home price of the seller; this can also help the buyer determine the overall repair cost when they plan to give the property a complete overhaul.

These professionals can also assist in the legal matters of real estate acquisition. They can act in your stead while penning up the purchase agreement between you and the home seller. They can also take a look at the deed, title, insurance, and other encumbrances of the property in question so that you won’t have any worries later on.

They can also help you with the closing deals in your purchase. Considering that they have contacts and acquaintances in almost any legal bureaus and agencies in Florida, they can easily expedite the acquisition process without any difficulty.

By: Vanessa A. Doctor

Residential Investing with a Lease/Purchase

admin — Fri, 16 Jul 2010 17:14:57 +0000

One of the most efficient ways to invest in residential real estate is to do a lease/purchase. The reason a lease/purchase is so effective, is because it provides a win-win situation for both the seller/landlord and the buyer/tenant. For the owner, it provides a potential buyer and a tenant that will be willing to take care of the home. For the buyer, it provides the right to purchase the home for a fixed price, and time to save money and improve their credit. Here is how it works.

The owner and the buyer enter into a contract whereby the potential buyer agrees to lease the home for a set amount of time. At the end of the lease, the buyer then has the option of buying the home for the price agreed upon in the contract. In order to secure that price, the buyer pays an option fee up front. If the buyer chooses to buy the home at the end of the lease, he can apply the option fee and any other money saved toward the down payment. If they choose not to purchase the home, the owner keeps the option fee.

For the owner, the lease/purchase offers several different ways to make money from the home:

- The goal is to buy the home for 10-20% below market value.

- The monthly rent you collect will exceed your mortgage payment.

- You can right off mortgage interest and other expenses on your taxes.

- You pay down the principle on your mortgage and build equity in the house.

- The price of the home will appreciate.

- If the potential buyer decides not to buy, you keep the option fee.

This is just a basic outline of how a lease/purchase works and the opportunities it presents. It is still a real estate investment strategy that is unknown by many and discussed by too few. For more detailed information, a recommended read is “Buy Low, Rent Smart, Sell High” by Scott Frank and Andy Heller.

To apply this investment strategy in a growing real estate market, visit http://www.buyandsellnorthtexas.com.

By: Michael Stazko

Residential Rental Price Indexes

admin — Sat, 26 Jun 2010 14:28:51 +0000

What Factors may Influence the Rental Market

Like any property market the rental market prices will fluctuate depending on a number of different factors. These influences can depend on supply and demand factors, are there more properties than demand, this can have a major impact on prices. If there is more available property than the demand for rental houses then it is inevitable that the better quality property will be in demand, plus this can have a factor on the price of these properties. Also if there is less property than demand then this can force the rental prices up for the available property. Other factors can depend on interest rates and mortgage prices as to whether landlords keep their rental property or sell the property in order to cash in on higher house prices.

Moving to a New Area

If you are moving to a new area the prices can be vastly different from where you are moving from. Factors can be the area that you are moving to within the country and as discussed earlier the supply and demand of property within the area. A good way to try to gauge the prices is to use a rental price index. There are a number of different sites that can supply data for this area, one is the RRPI (Residential Rental Price Index) this uses data from letting agents throughout the UK and provides a breakdown of prices not only for individual towns but also for property types. Therefore no matter what type of property that you are interested in you can get a guideline of the price that you may expect to pay.

Take a look at the RRPI by clicking here: – Residential Rental Price Index

How Accurate are the Rental Price Indexes

Normally they are fairly accurate; there are a number of factors that need to be taken into consideration which include the number of property that make up the index, the accuracy of the data that is provided in order to calculate the index. Usually the calculation for the pricing will be the total price of all the property divided by the number of properties.

For example if there are 80 4 bedroom properties used to make up the index all advertised at

Residential Real Estate More About Personalities than Homes

admin — Tue, 18 May 2010 01:45:12 +0000

Standing around at a cocktail party or the water cooler you first hear about the dynamic with the personalities of a real estate transaction than the home that was just purchased or sold. The sellers who took every light-bulb, the low-ball offer, the realty agent who took negotiations on a needless tangent that derailed the transaction, the home inspector that killed the deal and the sellers attorney whose specialty is litigation not real estate contracts.

Home buyers and sellers don’t go through the home sale or purchase process very often and either want to forget the troubles or figure that the occasional reactive roller coaster ride of buying or selling a home is the norm. Often the buyer and seller don’t realize that they can contribute to the roller coaster ride out of naivety or a lack of information. To take back the transaction process and become more proactive Mark Nash author of 1001Tips for Buying and Selling a Home offers some examples of personalities you might run into and how to manage them.

-Sellers. They have what you want, the house, but they need buyers to move on. Everything should be in writing, the contract, counteroffers and acceptance. Timelines for responses should be clear. Personal property included with the sale must be listed in detail. Possession should be clearly defined down to the minute. Keep terms and demands reasonable. Don’t create unnecessary hurdles for buyers; they can contribute to buyer’s remorse. You don’t have to like or meet the buyers. Perform the purchase contract in good faith.

-Buyers. They have what the sellers need, the money to cash out and move on. Review real estate contracts long before you write one. Understand the home purchase process before you enter into it. Don’t think you’ll get everything you want; this is not an adversarial business transaction. Plan your strategy beforehand and during negotiations what you really want for price, closing date and contingencies; once you’ve agreed to terms in writing, it becomes difficult to change them. Don’t waive rights that are boilerplate in a contract such as an attorney approval period, home inspection or the sale of your current home, without speaking to an attorney. Keep emotions in check.

-Real estate agents. Take the time to find a good one before you start the process to buy or sell a home. Ask friends, family and business associates for agent referrals. Listen carefully to what you hear about their agent experiences. The agent you retain should be a full-time, experienced (at least 3 years in the business) and produces a minimum sales volume for the market in the mid-range. Stay away from friends or family as your agent, I have seen too many agents who manipulate familiar relationships. Ask to see lists of closed buyer and sellers from the last 2 years.

-Attorneys. You need one to purchase or sell a home despite the contrary. Search for an experienced legal advisor who specializes in residential real estate law. Your uncle or a friend of a friend who is a lawyer that has a focus in corporate law, might derail a transaction because they have a propensity to litigate and not negotiate.

-Home Inspectors. Most states now require home inspectors to be certified or licensed which is good for consumers. Utilize a professional inspector that has been recommended to you by someone who has used them in the last six months. Avoid hiring an inspector your real estate agent uses, they might be a bit too cozy for your unbiased needs. Look for an inspector who looks at the big picture, every home, new or old, has some minor repair issues. You want to investigate the structural integrity and discover any material defects in a home. The best inspectors don’t give advice on negotiating the purchase price based on inspector results or solicit buyers for the work to repair inspection deficiencies.

-Mortgage Loan Consultants. Don’t be lured by low teaser rates on mortgages, often their are hefty fees later to close the loan. Look for a major mortgage company that has competitive rates, responsive and organized loan consultants and require your consultant to attend the closing, I’ve seen more mortgage melt-downs at closing than I care to remember.

By: Mark Nash