I have long been an advocate for making rental income property as a portion of a real estate agent’s business. In my opinion, any real estate agent that sells houses exclusively and ignores opportunities to sell income-producing property is wasting an excellent opportunity to booster their annual income.
If you think not, consider these four reasons why homeowners, the very ones residential real estate agents serve, are prime candidates to buy and sell rental 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 down 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.
- 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.
