The Power of Real Estate Investment Strategies
November 29, 2016
Author, #1 National Best Seller HOLD
I earned my license just after moving to Arizona many years ago. At the time, I did not know anyone that would like to buy or sell a house. My broker advised me to know the local market, so when I did find a prospect, I would be a valuable agent. It was great advice.
Market values were appreciating. Rents created a positive cash flow and interest rates were only 8 percent. Yes, 8 percent! Not knowing but a few people in my new state, I called family and friends back in New York and encouraged them to invest in Arizona real estate. Guess what happened? One good investment turned to another. My real estate practice started growing with happy people who wanted to buy more.
Sounds simple doesn’t it? Let’s contrast that with the typical transaction where somebody purchases their primary residence. Many times the buyer’s debt to income ratio goes up to the limit when they obtain a new mortgage. That means they have little to no capacity to purchase more. There is nothing wrong with that. In most cases, buyers are happy to own their own home and do not aspire to own more. After all, to own your own home is the American dream isn’t it?
If you’re a real estate agent or broker, imagine an alternative, where your client buys a property – because of the positive cash flow, they are actually able to purchase more properties. Imagine, if your clients are happy with the investment opportunity you provided, they are making plans with you to buy more. Imagine, they brag to their friends and family about their investment and you get referrals for others wanting to acquire multiple properties as well. That is called acceleration. Instead of one sale, every few years your business grows faster because you are helping others build wealth. Wow, what would happen if you were intentional and made that part of your business plan?
Have you noticed that people are concerned about their stock market investments, their retirement plans, IRA and 401K? They are not confident that the stock and bond market will provide the financial independence they all want. What would you have to know and do to make them comfortable in choosing to invest in real estate instead? First, learn what makes a good investment and how to do a professional analysis that your clients can rely on. Then, create your network of professionals your clients can count on to provide the services they will need. Professionals like a good CPA who can advise the best strategy to maximize the tax benefits available to the real estate investor. A property manager that specializes in property management only and is not distracted listing or selling property. Find a lender that knows real estate investing; and can help strategize the right loan product. Just by pulling together this strategy will transition a real estate salesperson into a trusted real estate advisor.
This strategy to accelerate the growth of your business works. It’s an effective way to show potential investors the safe way to build wealth with real estate.
I look forward to talking about these strategies and more at the Arizona School of Real Estate & Business seminar on Friday, December 18th. My discussion is geared toward the real estate professional or anyone who is interested in real estate investments.
Steve Chader is the Author of a #1 Best Seller “HOLD” How to Find, Buy and Rent Homes For Wealth which will be available at the seminar for purchase on Dec. 18th. Steve is also the owner of Keller Williams Integrity First Realty. Steve can be reached by phone at 480-632-4208 or by email at firstname.lastname@example.org.
HOLD – How to Find, Buy and Rent Houses for Wealth
FRIDAY, December 16, 2016 – 9:00 AM TO 12:30 PM
Steve Chader will lay out how you too, over time, can build great wealth by finding, buying, and renting property. Bring yourself, prospects, friends, and family – this seminar will reveal the value of real estate investing as a slow yet sure way to financial freedom in later years – become educated and motivated.
Advance Tuition: $40 At The Door Tuition: $50
Credit: 3 hrs General credit