Are You a Trusted Advisor?
April 23, 2014 |
By Steve Chader
Author of National Best Selling Book “HOLD: How to Find, Buy & Rent Houses for Wealth”
Oftentimes, as agents, we get caught up in closing the deal – so much so, that we can lose sight of the bigger picture. We have the opportunity to provide much more than just shelter for our clients and their families. We can help them change their financial future. All it takes is a shift in our mindset. Are we simply agents trying to help our clients buy or sell a home? Or do we strategically and intentionally place ourselves in the position of being a trusted advisor to our clients for all their real estate needs? The difference can seem small, but the results can mean the difference between a one-off client, and a client that can provide multiple transactions for years to come.
Helping your investor clients surround themselves with experienced professionals is one of the biggest ways to move from “agent” to “trusted advisor”. In my national bestselling book HOLD: How to Find, Buy, and Rent Houses for Wealth, I encourage investors to build an investment team. This team should be comprised of experienced professionals who understand their investment strategy and are dedicated to helping your clients achieve their long-term financial goals.
First on the team, your clients need an agent – bingo! They’ve got you! And in you, they have an agent who knows it’s nearly impossible for anyone to save their way to financial independence. They have an agent who knows the best way to gain financial freedom is through real estate investing. In you, they have an agent who uses all the tools available to recognize and present the right investment at the right time. In you, they have a trusted advisor who understands that by helping your clients build wealth, you are also building wealth.
Your clients also need a lender who can help set the terms and conditions of your transactions – this can oftentimes make or break a real estate deal. Your clients need a CPA who understands the tax implications of real estate. And they need an attorney for legal advice. Each of these team members should be active real estate investors themselves.
Finally, they need a property manager. Encouraging DIY (Do-It-Yourself) property management is one of the quickest ways to discourage your clients from continuing in real estate investing. Trusted advisors know that clients need a property manager who is more than a rent collector or a part-time real estate agent. They need a full-time property manager who has chosen to focus on the needs of the investor, without the distraction of listing and selling properties. The right property manager will partner with you to manage your client’s investment, and not just their property. After all, the better the investment, the better the cash flow back to your client. The better the cash flow, the higher the likelihood of your client using that additional cash to purchase additional properties.
By all means, continue to close the deals. But be encouraged that a simple change in strategy – from “agent” to “trusted advisor” can give you the opportunity to close more while you provide your clients with the opportunity to achieve their financial freedom. This IS a win-win.