How Real Estate Investors Can Grow Their Business With a Real Estate Broker!
There are many benefits real estate investors can derive by enlisting the services of a real estate broker to locate and help them sell rental property.
Foremost, a good agent understands the local neighborhoods or towns you have narrowed as your choice location for making a purchase. Consequently, you not only are spared the legwork of having to do your own research, you avoid having to guess which areas are strong or starting to get hot.
Good real estate brokers, after all, know the market and what rental properties are selling for. So a good real estate broker can truly guide you all the while you just sit back, ask your questions, and learn. That is not say that you should shoot yourself in the foot and meet with a broker simply to gather the valuable information you want so you can go it alone. No, that will defeat your purpose.
The idea is for you to enlist a real estate broker as a loyal and trusted partner because at the end of the day having a faithful “insider” eager to show you the properties that are (or about to come) available is where the payoff is.
Think about it.
Being informed about particularly "juicy" investment real estate opportunities the minute a property is listed is an incredible advantage to you as an investor.
Bear in mind that time is always of the essence because profitable real estate deals generate a stampede of activity. When you can get an early alert and subsequently secure an acceptable offer ahead of the competition, you win the race thanks to your real estate agent.
Likewise, say you have your eye on a specific income property that is not currently up for sale. Here again, having a close relationship with a dedicated agent who knows exactly what you want can make all the difference because you get a call when it does become available and you want to at least consider it as a potential investment.
Fair enough. But there are other ways a good real estate broker can assist you with your real estate investments in addition to showing you rental income properties that have (or maybe will be) available for sale.
Brokers can help you run and interpret the numbers.
True investment real estate specialists regularly have a real estate investment software solution in their arsenal of tools that will create cash flows and rate of return presentations. So you can better understand a property’s profitability and see whether or not your investment objectives are met by reading a real estate analysis created for the property by the agent.
Brokers can suggest financing sources and techniques of which you might be unaware.
Even if you somewhat savvy about the banks and lenders in your real estate market, a broker who specializes in rental income property might know about some financing approaches that you don't.
Brokers can present comparable sales data and rent levels.
This will help educate you about realistic market values for the types of rental property in the areas you are seeking.This way you can be assured not to pay over a fair market price. Comparable sales and rent studies for rental income property in the local market is easy to create by a real estate agent who specializes in investment real estate.
Brokers act as your intermediary in negotiations.
This approach can help persuade sellers to accept your price and terms. Plus, the agent will handle the innumerable details and problems that commonly seem to surface from contract to closing.
Brokers can recommend other essential professionals.
Services you may need such as a contractor, property inspector, or property management firm might be suggested by a real estate agent. The broker may even suggest possibilities for value-creating improvements to your investment.
Brokers can share about future development plans for an area.
An informed real estate investment property specialist can inform you about the pros and cons of various rental income properties that might otherwise have escaped your attention. Such as development plans that might impact (for better or worse) a particular type of investment property you are considering.
Here's the bottom line.
A real estate broker can become an effective partner that will help you sort through your neighborhood and investment property trade-offs, suggest realistic market values, keep you informed about what is for sale, and assist you through the buying process from start to finish.
All things considered, that's a pretty good deal for you.
About the Author
James Kobzeff is a real estate professional and the owner/developer of ProAPOD - leading real estate investment software solutions since 2000. Create cash flow, rates of return, and profitability analysis on rental property at your fingertips in minutes! Learn more at www.proapod.com
ProAPOD also provides iCalculator - an online real estate calculator that enables you to learn dozens of real estate definitions and formulas as you calculate. You save 64%. Learn more at real estate calculator
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