investing tips
7 Best Ways for Real Estate Investors to Work with a Real Estate Agent
By Hugh Zaretsky
Real estate agents and brokers can play a crucial role in the success of your real estate investment business. Their knowledge, experience, and network can provide valuable insights and opportunities. As a seasoned real estate investor with over 17 years of experience, I have collaborated with numerous top real estate professionals to find good tenants and buyers for my properties using both traditional and creative financing strategies. As a former real estate continuing education instructor in California, Florida, New York, and Texas, I understand that some agents and brokers love working with investors, and some do NOT understand the investor mindset. That is why it is important to find the RIGHT real estate professionals to work with.
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My combination of practical experience and educational background allows me to appreciate the importance of a strong partnership between real estate investors and agents. The key is establishing an effective partnership requires clear communication and mutual understanding. In this article, I will share seven essential strategies for real estate investors to effectively collaborate with agents, backed by my personal and professional experience and insights.
- Define Your Investment Goals: Before engaging with a real estate agent, it’s important to define your investment goals. Are you looking for rental properties, fix-and-flip opportunities, or long-term investments? Communicate your objectives clearly to the agent, so they can align their efforts with your specific needs.
- Choose an Agent Specializing in Investment Properties: Real estate agents have diverse areas of expertise. When working with an agent as a real estate investor, seek someone who specializes in investment properties. These agents are more likely to have extensive knowledge of the local market, rental rates, property management, and can help identify potential investment opportunities.
- Build a Strong Relationship: Developing a strong relationship with your real estate agent is vital. Take the time to meet in person, have regular phone conversations, or use video conferencing to discuss your investment plans and objectives. By fostering a solid relationship, you will establish trust and ensure that your agent understands your preferences and criteria.
- Leverage their Local Market Knowledge: One of the primary advantages of working with a real estate agent is their in-depth knowledge of the local market. Capitalize on this expertise by relying on your agent’s insights into neighborhood trends, property values, and investment potential. Their market knowledge can help you make informed decisions and identify lucrative opportunities.
- Tap into their Network: Experienced real estate agents possess a wide network of professionals, including lenders, contractors, property inspectors, and property managers. Leverage their connections to gain access to reliable resources. These referrals can save you time and effort, providing you with a team of experts who can help streamline your investment process.
- Collaborate on Property Analysis: Working closely with your real estate agent, analyze potential investment properties together. Share your investment criteria, such as desired cash flow, return on investment, and risk tolerance. Utilize their expertise to evaluate the property’s value, marketability, and potential challenges. A collaborative approach ensures you make well-informed investment decisions.
- Stay Informed and Communicate Regularly: Maintain open lines of communication with your real estate agent. Regularly update them on any changes to your investment strategy, budget, or preferred property types. Similarly, stay informed about the local market conditions, property listings, and relevant regulations. This constant flow of information between you and your agent will help ensure you both stay on top of market opportunities.
BONUS – Expand Your Network: After 17 years of being an investor, I recently became an agent and joined one of the fastest growing real estate brokerages in the country. I have built a nationwide team of real estate agents and brokers that understand how to work with real estate investors, because, most of us are both agents or brokers and investors.
Are you a real estate professional and want to learn how to build a stronger working relationship with investors or become an investor yourself? If so, then reach out and I can show you how. (www.hughzaretsky.com or [email protected])
Are you a real estate agent and want to find good agents and brokers that understand real estate investors? If so, then reach out and I will connect you with one of my local team members. (www.hughzaretsky.com or [email protected])
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Based on my experience working with the RIGHT real estate agent or broker can be immensely beneficial for your real estate investing business. By clearly defining your investment goals, choosing the right agent, fostering a strong relationship, leveraging their local market knowledge, tapping into their network, collaborating on property analysis, and maintaining open communication, you can establish a successful partnership. Remember, a well-aligned collaboration between real estate investors and agents can unlock exciting investment opportunities and enhance your overall investment strategy.
By Hugh Zaretsky
Real Estate Investor, Agent, Speaker, Training and Amazon Best Selling Author in 4 Categories
PH: 941-216-0225
Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
Are You Ready to Invest in a Volatile Real Estate Market?
By Jimmy King, Founder, Contrarian RE Fund 1, LLC
The recent announcement by Blackstone the final close of its latest global real estate fund, Blackstone Real Estate Partners X (“BREP X”) with $30.4 billion of total capital commitments (the largest real estate or private equity drawdown fund ever raised), reflects confidence for investing in real estate during periods characterized by market volatility. In a news release announcing the fund, a Blackstone executive stated that the company has made some of their best investments in periods characterized by market volatility and dislocation.
The market is certainly volatile at this time, and plentiful opportunities exist to invest in distressed real estate.
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Being successful at these types of investments requires the ability to identify and acquire real estate properties that are being sold at steep discounts. Many of these opportunities exist in multifamily and manufactured home communities that are suddenly being made available for well under the original asking price as owners struggle with increased debt and/or escalating fees. Some are even selling for as little as 60 percent of their original value (2019 highs vs today) . And while opportunities exist, being a successful investor requires a great deal of insight, information and investigation before a purchase is made.
The Contrarian RE Fund 1, LLC, actively researches and identifies distressed real estate assets and reviewing if they are viable options for the fund’s “Value-Add” business model. If they are, the team of experts make purchase decisions regarding the properties by investigating the level of enhancements and improvements that need to be made for each property.
The “Value-Add” business model has realized significant profits since it was first implemented in 2009. By purchasing properties with low rental rates and making substantial physical and operational enhancements that improve both the property and resident experience, the model has been proven to be able to consistently achieve higher rental rates and refinance initial capital investment.
Some of the key factors to consider when making the decision to join a fund that invests in distressed real estate includes:
Size of the Fund
Are you interested in investing in a massive fund, like the $30.4 billion fund structured by Blackstone, or a fund that is less than $50 million? The key differences between massive and smaller investment funds are (JIMMY, WHY WOULD A PERSON CHOOSE A SMALLER FUND? FOR EXAMPLE, DOES A SMALLER FUND PROVIDE A FASTER RETURN ON AN INVESTMENT? ARE THERE FEWER PENALTIES/RISKS? ETC)
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Personal Interaction
A smaller fund will provide you with the opportunity to interact on a personal level with the management team, whereas a larger fund won’t go beyond the standard paperwork to update you on your investment. You’ll also have the opportunity to meet members of the team (the craftspeople and contractors who are working on a real estate renovation that you’ve invested in, for example). It’s highly unlikely that the management team at Blackstone is sharing their cell phone numbers with investors in that fund.
Decision Making Process
As an outcome of the personal interaction with the management team of a small fund, you’ll have the opportunity to contribute to the decision making process. While the team for a smaller fund brings strong real estate market knowledge on a local level, they will also likely be willing to accept input and ideas from knowledgeable investors. Opportunities will present themselves that the management team may not be aware of, but that investors can bring to the table, for the good of everyone.
Intangibles
While the opportunity to invest in distressed real estate is intended to show a profitable return, there are some intangible outcomes as well. For example, renovating properties will help to improve neighborhoods and communities by eliminating blighted real estate. This type of contribution goes far beyond the initial investment, especially when investors are personally familiar with the property and can visit it and feel pride in what they’ve accomplished.
As more and more opportunities to invest in distressed properties present themselves, the time to act is now. If this seems like an appealing investment option to you, be sure to take the time to research what’s available and which type of fund is the best fit for you.
James King is the Founder of the Contrarian RE Fund 1, LLC, and along with his team of professionals has successfully owned and operated more than 2,000 units across the United States. He can be reached at KingCommunities.com ([email protected]) or 562-208-7649.
How to Make Profits with Note Purchases, Secured by Real Estate
New Book: How to Profit from International Real Estate Investing
‘…While some housing markets are crashing, others will likely be booming’
Cabo San Lucas, Mexico – After more than 25 years of investing in global real estate markets in seven countries on three continents, including Panama, Portugal, Mexico and Brazil, Ronan McMahon, founder of Real Estate Trend Alert, is sharing the best secrets for success that he’s learned by taking part in well over $2 billion in real estate transactions. Written for ordinary people looking to make extraordinary moves, the new book is titled Ronan McMahon’s Big Book of Profitable Real Estate Investing and is published by International Living Publishing Ltd., a division of International Living, the leading source for the world’s best places to live, travel and retire since 1979.
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Based on decades of real world experience and know-how, this book is a practical guide to help aspiring real estate investors – and anyone looking to strategically purchase a home overseas – to understand the why, where, and how of international real estate.
“With soaring inflation and sky-high prices right now, the secrets of successful real estate investing can help regular people around the world secure their financial freedom,” said McMahon from Cabo San Lucas, Mexico. “This book holds every useful method, and sometimes little known insights, to make serious money from real estate. In more than 25 years of investing, probably the biggest thing I’ve learned is that it’s surprisingly simple to become a successful real estate investor.”
The Irish property bubble that lasted from 2000-2007 was the original catalyst that compelled McMahon to look overseas for better opportunities. Along the way, he had some interesting adventures. In Brazil, he almost died in a dune buggy crash, and in Panama he flew over the Panama Canal in a billionaire’s helicopter, all in search of the world’s best real estate investments. It was by traveling the globe he discovered that, while some housing markets are crashing, others will likely be booming.
“When you look everywhere there is always a big opportunity somewhere,” said McMahon, who also posts regular insights and opportunities at Real Estate Trend Alert. “That goes not just for real estate investing, but for living as well. That’s why I split my time between Portugal, my home base, winter in sunny locales like Los Cabos and the Caribbean, and summer in Europe, with trips to my home country, Ireland. I never have to face any cold weather, which is just my preference. Lots of people no doubt prefer chilly weather, but we should all have a choice.”
Packed with the most up-to-date information, the book operates as a how-to guide for anybody thinking about buying real estate overseas and how they can afford it. Some of the topics McMahon opines on include:
- The top real estate investment trends to consider.
- Where buyers can make double-digit rental yields this year (or any year).
- The what and how of crisis investing.
- Real estate investing pitfalls to avoid.
- Navigating overseas markets without getting burned.
- How to fund your overseas investment.
The book is now available on Amazon and from Real Estate Trend Alert.
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About Real Estate Trend Alert
Real Estate Trend Alert is a real estate investment newsletter founded and written by Ronan McMahon. Since 2008, Ronan has helped thousands of Real Estate Trend Alert members benefit from real estate opportunities all-over the world.
Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
6 Things to Keep in Mind When Selling Your Home
By Stephanie Mojica
During the first two years of the COVID-19 pandemic, investors and traditional homeowners enjoyed a true seller’s market. But as COVID-19 slowly fades from the news and global financial challenges persist, sellers no longer have the same advantages.
The good news is that the majority of homeowners can still get more than they paid for their property, but the bad news is that more planning is required. To that end, here are six things to keep in mind when selling your home, per REALTOR.com.
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1. Set the right selling price from the get-go.
Pricing your property above market value is a recipe for disappointment. Also, don’t count on the bidding wars that were everyday occurrences at the height of the pandemic.
2. Do not try to sell your property “as is”.
People just aren’t buying homes in need of TLC nowadays. While it may feel unfamiliar and even irritating, repairing your house before it hits the market will heighten your chances of making a quick sale.
3. Help your buyer as much as possible.
Interest rates are at historic highs, causing lenders to offer their customers less buying power. As a result, concessions such as sellers helping their buyers with closing costs are now a bigger part of the game.
4. Don’t expect any property to sell quickly.
The times of a home only sitting on the market for a few days seem to be gone; the current national average is 50 days. The good news is that this is still less time than the pre-pandemic average of 68 days.
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5. Invest time and money into home staging.
An empty house doesn’t appeal to buyers the way it once did. In fact, homes that are tidy and staged sell 88% faster (and at 20% higher prices) than non-staged properties.
6. Consider when to sell your home.
During the peak of the pandemic, it was okay to list a home anytime. But nowadays, spring and summer are the best buying seasons.
Stephanie Mojica
Stephanie Mojica, writer of How One Writer Shifted From Settling for $12 an Hour to Prospering at Over $90 an Hour and shorter books such as Quick Answers to Frequently Asked Credit Questions, is an award-winning journalist with publications such as USA Today, The Philadelphia Inquirer, San Francisco Chronicle, and The Virginian-Pilot, among many others. She helps executive coaches, business consultants, business owners, attorneys, and other decision makers generate more money online and become the go-to expert in their field by guiding them step by step through the process of writing and publishing a book.