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Top 3 Reasons Real Estate Agents Should Be Selling Rental Income Property!

Updated on August 13, 2012

Real estate agents who choose to sell rental property in addition to houses make one of the smartest decisions possible to build a thriving real estate business.

I made that decision early in my real estate career.

Not so much by design (it was pure luck). But now, having specialized in investment property real estate for nearly thirty years, I can share some of the things I've learned about selling rental property and hope it benefits you as it has me.

For this article, I've condensed the list down to three essential benefits.

If you're currently a residential agent who has never sold rental properties then this will certainly broaden your thinking because chances are you might not have considered them.

1) Financial

Rental property, multifamily or commercial, can lead to gigantic commissions.

My first time out as a residential broker looking to sell investment property landed me a million dollar retail listing that subsequently resulted in a tidy commission and a loyal customer I serviced for years after.

Okay, you might have seen this one coming and are really impressed yet. But the financial benefits are a reality due in part to the next two benefits. So stay with me.

2) Repeat Business

Real estate investors are repeat customers.

True, home buyers are repeat customers, too, but I’m speaking in terms of turning a transaction with an investor perhaps many times over.

The logic is straightforward.

Homeowners buy a house to shelter a family and perhaps make a transition somewhere down the road in five to seven years.

On the other hand, many real estate investors are ready and willing to invest in real estate when it makes sense. I regularly sold various income properties to the same investor within the same year.

3) Investors Entertain Offers

Real estate investors are generally open to sell an investment property if it makes sense.

Whereas a homeowner might balk at the idea of exchanging residences without reasonable cause, one of the true benefits of working with investors is the fact that they are running a business less affected by family matters and will always entertain ways to increase their bottom line.

In the thirty years I've worked with investors I never had an investor refuse at least to listen to an investment proposal I made about rental property.

Test Your Understanding

  1. Is it really possible to make more money from commissions selling rental property than single-family houses? Absolutely, because once you are in the arena with income property it can lead you to very sizable properties with large commissions you would not experienced otherwise .
  2. Are investors really apt to become repeat customers? Generally speaking, yes. Bear in mind that real estate investors are running a business that likely can present you with both, listing and sale opportunities. The key is to know what your talking about and always be prepared to run the numbers truthfully.
  3. Is it true that investors typically are willing to entertain offers? Yes, if you have a legitimate buyer with a strong offer by all means run it by your investor; likewise, if you can present a rental property with a good rate of return, than do it. Bear in mind, investors are typically not attached emotionally to property the way homeowners are and are always willing to hear from you if you can make them money.

How to Get Started

Naturally, building up a successful rental property business is not going happen by its self.

For not unlike any real estate service we provide, selling rental properties requires a commitment. But if you’re willing to learn something about real estate investing, understand how to run the numbers, perhaps invest in a real estate investment software solution, and are not afraid of some good old fashioned hard work, you can start selling rental property whenever you want to and never look back.

Hope this helps.

About the Author

James Kobzeff is a real estate professional and the owner/developer of ProAPOD - affordable real estate agent software solutions that make it easy to create rental property cash flow analysis and marketing presentations.

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