Posts Tagged ‘Real Estate Professionals’
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
Modern real estate agents should start their own blogs, which could serve as effective marketing tools. Many property agents are marketing, promoting, and selling real estate online through their own personal Websites. The popularity of the blogosphere has really reshaped the landscape of property marketing. Everyone using the Internet seems to be regularly checking out blogs, if not making his own. Needless to say, agents should learn how to take advantage of this much used technology.
Are you new into blogging? No matter how seasoned you are as a property agent, many younger agents might take the chance to outpace and outperform you just because they have the edge of being ‘techie.’ You should not cite ‘techno-stress’ for your inability to come out with a good blog. There are now many businesses and online professionals who are specializing in putting up and managing blogs for real estate professionals (of course at significant fees). But if you decide to make it on your own, you must first decide what to put into it.
What should agents blog about? Experts note a usual observation: inexperienced property bloggers almost always think they should write specific marketing-type content that should sound, look, and read like postcards, brochures, and printed advertisements. Many agents sell themselves through blogs, bragging their achievements and writing so much about their selves to the point that they already are turning egocentric. This could be a very terrible mistake when blogging to sell real estate.
A successful blog should lure and generate loyal readers who are subscribing for the content. In general, such a blog is so informative and helpful that it is often quoted by many other bloggers. You should exhibit and show your expertise in marketing, promoting, and selling properties. Thus, the content of the online site should particularly talk about real estate and helpful information so that prospective buyers and fellow agents could learn so much from it. It is not advisable for any real estate agent to come up with a blog that is just creating a pitch about how great and admirable he is.
Use an effective strategy when creating or writing content for your blog. As much as possible, provide valuable and significant information that could instantly demonstrate your impressive expertise as a real estate agent. It is not wise to just market yourself. Online readers, prospective buyers, and other real estate agents like regularly checking out blogs with unique and original content that are updated as often as possible. Let your site visitors realize the fact that you are an expert instead of directly telling them you are one.
Data like market reports, property finance, local development updates, and contrasting opinions about different real estate news certainly would set you and your blog away from many other agents who are flooding the online market. If you come out with an effective blog, use it to reach prospects and enjoy higher income turnover. Thus, when blogging for real estate, agents must use an appropriate platform. Moreover, they should also produce appropriate content. This is a real challenge.
By: Beverly Manago
