Posts Tagged ‘Real Estate Agents’
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
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
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
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
A real estate agent is the person you hire to help you buy or sell your home. Beyond that simple statement of information, many people do not know what working with an broker means and what it entails. Here is a detailed list of how to successfully work with a residential realtor.
Understand the Legal Restrictions
Real estate brokers are bound to strict anti-discrimination rules by the Fair Housing Act. This means that an agent cannot use or provide information about race, color, religion, national origin, gender, handicaps, or familial status of owners or neighbors of a property they are selling.
So do not ask them to find you a home next to a particular church or ask them about the racial makeup of a certain neighborhood. That kind of information is considered discriminatory and it is illegal for a broker to help you select a home based on any of the mentioned factors.
Realize that Agents Are Not Free
Most residential real estate agents work on commission. That means they are not paid by the hour or by the visit for their time with you. They get paid a percentage of the home sale when the deal closes. So to work most successfully together, you should develop a relationship of trust with your realtor and not be overbearing in your requests.
Common Courtesy Goes A Long Way
Just as you expect your agent to be considerate of your time, you should pay your realtor the same respect by being punctual to appointments and let them know as soon as possible if you need to cancel a showing. And a quick call is always appreciated if you know you are going to be late for an appointment.
Talk Openly About Your Expectations
Realtors are used to working with all sorts of people and personality types on residential real estate deals. That means that they are usually very accommodating, but they need to know what your expectations and preferences are. You need to tell him the best way to communicate with you and what the best times are to contact you.
You should also make it clear whether you want to simply meet your broker at all showings or have them pick you up and drive you there. You should feel comfortable enough talking about anything you are not happy with and finding reasonable solutions.
Let Your Agent Fully Represent You
There is a whole system of protocol in the residential real estate business. This typically includes bringing your agent with you to open houses. Going alone is considered a sign that you are not a serious contender for the sale. If you cannot bring your realtor to a particular open house, at least present their card to the host to show that you are represented and have taken the proper steps to start the home buying process.
Under no circumstances should you start talking figures and prices with the hosting agent; that is a broker’s job and your questions will probably not be well received from the hosting agent and your agent will likely be miffed that you didn’t let her handle that arena.
The main key to a successful relationship with your agent is communication. Open communication will help you understand the bounds of the agent’s job and help your realtor understand your real estate desires.
By: Andrew Stratton
Real estate agents are gearing up to face the biggest shift in their industry since it’s beginning. No longer the first in the path of homebuyers and sellers, agents have gone from top feeders to the bottom feeders with real estate consumers in just a few years.
I started in the real estate business when agents were top feeders and the keepers of the information. Multiple Listing Services
The residential lease agreement form is a formal legal contract, and is used in the lease of apartments and homes. Renting a home or apartment is not as easy as money being exchanged, you must first outline many factors and legally bind yourself to agreements made in the residential lease agreement. All parties must be involved in the contract, and are also binded to all the terms and conditions.
One of the most common residential lease agreement forms are called month-to-month rental agreements, these are for short-term or indefinite leases. The other most common for tenants who will be staying long-term for many years, called just Lease Agreement, this a much more comprehensive contract.
Not to long ago, residential lease agreements where only prepared by real estate agents and lawyers. For along time they enjoyed charging us a hefty fee, until websites like LegalFormsBank.Biz came forth with editable, downloadable, and printable versions of the document you could file yourself. Tenants and landlords flocked to the site downloading the form which caused sort of a revolution, a victory for the landlord, free from the strangle of real estate agents and lawyers grip in their pockets. Now days you just log onto one of the major legal document providers, and download an up-to-date form specifically for your local government and state.
Its really quite simple to fill out a residential lease agreement form, the main information it need is:
1.) Specify the policy on pets and parking;
2.) You must describe the lease premises;
3.) Specify the period of occupancy;
4.) Set the rent amount;
5.) Specify the date the lease will begin;
6.) Specify the security deposit amount and terms for its return;
7.) The name of up to four tenants and two landlords;
8.) Designate who is responsible for the utilities;
One last note for landlords, and some information tenants should be aware of. If the dwelling was built prior to 1978, your lease agreement will need a Lead Based Disclosure statement required under the Federal Lead Disclosure Act. Landlords also need to provide EPA certified information regarding lead based paint controlling and identifying them, which I found here [http://www.epa.gov/lead/leadpdfe.pdf]
By: Nick Fagan
There might come a time that your real estate acquisition becomes too much of a bother that we often drop the project before you even get started with it; such is the case of looking of the perfect home in Florida.
Considering the benefits that you can get by purchasing a property in the region, as well as the assorted facilities that you will surely enjoy during your stay, it would be best to be patient in this endeavor and look for ways to help simplify your home acquisition, while keeping your sanity intact.
Real Estate Agents
If doing it on your own is turning into a big chore that practically pushes your physical and mental endurance to its limit then you might want to drop this major project into another person’s lap — a real estate agent.
A real estate agent can only be called a thorough expert in the realm of property acquisition and sales. They are well-versed in the real estate market of Florida and can help you with your home acquisition in record-breaking time.
For starters, these professional have contacts with different real estate firms and listing all over Florida. They can look for the perfect home for you if you are kind enough to give them your own specification and budget for the acquisition. In just a few days’ time, they can give you a detailed presentation regarding different properties that they found during their search, as well as in-depth explanation of each one — from physical description of both interior and exterior of the property and the prices of each in the current market.
If you have decided on a property, real estate agents will act in your best interest during the acquisition. They will handle all the legal processes and requirement s without giving you any burdens or worries. They can also haggle with the home seller and can bring down the home value so that it can fit your financial status without straining your budget to its limit.
Home Shopping
If you think that a real estate agent is an extra expense for your Florida residential property acquisition, then you can make use of the Internet to look for the prefect home for your needs.
The Internet is home to many real estate businesses in different locations in Florida. Their site offer in-depth description on the properties they offer, as well as information regarding the facilities surrounding it and the prices of different homes in the area.
Pick out an location that might suit your home specification and check out each property, including their prices. Move on to the next if you think one area is too expensive or did not offer the features that you require for a home. With a little bit of patience and determination on your end, you are bound to find the perfect home while surfing through different real estate sites in Florida.
By: Vanessa A. Doctor
There has never been a better time to start a residential property lettings business. Why? Because there are more properties available for renting than ever before and there are more potential tenants looking for homes than ever before.
Add to that the worldwide credit crunch that is forcing property prices sharply lower, and the huge numbers of real estate agents shutting up shop and going out of business. Why is all that good for potential residential letting agents? Because many of those real estate agents operated flourishing lettings businesses too, and when they disappear, that dead business will need to be picked up by someone.
Some of those departing agents have been forced out of business because they took on too much overhead. Not to put too fine a point on it, some of them thought the gravy train would last forever. Big expensive cars became the norm, and flash top end office accommodation was booked up on long-term and high big ticket leases. Expensive overstaffing only added to the headaches. It couldn’t last forever, and it didn’t.
In Britain more than 150 Estate Agents are closing their doors every week (Source: The BBC) with little sign there is any improvement around the corner. Recently the boss of HBOS, one of Britain’s biggest housing finance banks, gave a stark warning that the credit crunch could well last for at least another 18 months, making it hard to see where and when any improvement in the property sales market is going to come from.
But that depressed state is not mirrored in the lettings industry where things are enjoying something of a boom. The established lettings franchise companies are all gearing up for another solid round of hectic expansion. No one can be surprised at that given the current stats on residential property. The lettings market is here to stay, and the percentage of occupiers who are renting their homes is set to rapidly increase. Whether we like it or not, we a living in a completely different world, and if falling house prices give first time buyers the opportunity to buy their own home, perhaps for the very first time, who is to say that that is all so dreadfully bad?
By: David Carter
Browse the listing inventory of any real estate office and you should expect to see some investment properties listed for sale by a residential real estate agent. Mostly duplexes or triplexes, but occasionally residential real estate agents also sell larger apartment complexes.
Having been a real estate professional myself for the past thirty years, I applaud any colleague with enough grit to sell real estate, let alone income property. But that’s where my admiration ends, and my complaint begins.
You might call it professional pride, even intolerance. Yet it irks me when real estate professionals list an income-producing property for sale and then do not include basic elements about the property others as myself can use to sell that property.
In the MLS listing, for instance, residential agents typically do not include essential income and expense data about the property. This is frustrating because it necessitates a call to that agent, which easily could be avoided if the agent merely took a few minutes to present the income property properly.
Price Number of Units Unit Mix – Are the units two bedroom one bath, three bedroom two bath, and so on? How many units are there for each configuration? Gross Scheduled Income – What is the annual gross rental income? The potential annual income if all units were occupied and collecting realistic (current, not pie-in-the-sky) rents. Operating Expenses – The dollar amount spent annually to keep the property running. Property tax, liability insurance, utilities, trash collection, maintenance and repairs, and so on. Depending on the number of units, this should be somewhere between 25-50% of the gross operating income. With duplexes, for instance, tenants usually pay for trash collection, and utilities normally associated with laundry facilities in larger complexes, or landscaping costs do not exist. Rent Per Unit – Show the current rent for each unit. In cases of larger apartment complexes, show a rent-range by unit configuration. Capitalization Rate This is optional in the MLS listing, but it can help generate interest. Simply divide the property’s net operating income by the asking price.
Moreover, prepare a marketing package you can send to those inquiring about your income property listing. Whereas, the MLS is meant to broadcast the listing and peak interest in the property, the marketing package fills in the blanks. In addition to the obvious like price and address, a marketing should also include
An Income and Expense Statement Property Description Property Features Current Loan Information Proposed Loan Information – Show the annual debt service and cash flow before tax (net operating income less mortgage payment) Rates of Return such as capitalization rate, gross rent multiplier, cash on cash return. The more eloquent the better, so you might also consider adding calculations for price per unit, price per square foot, expense ratio, break-even ratio, and debt coverage ratio. Property Picture
Remember, your goal is to sell your income property listing. Why not present it in a way that would appease investment property specialists, perhaps get them interested, and at the same time make you look more professional. Plus, it’s a great way to show your seller how proactive you are about rental property marketing.
You can preview a marketing package at proapod.com. Simply follow Reports.
By: James Kobzeff
