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The Real Estate Investors Mantra...

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Services for Real Estate Pros

In one of my previous posts I spoke briefly about what I believe is the mantra for all successful real estate investors.

Simply put... this mantra "You Profit When You Buy" says a lot about what a real estate investor is thinking when they ask you, their real estate agent, to make what seems like stupidly low offers.   

For many real estate investors and almost all real estate agents, this concept of "profiting when you buy" seems out of reach on almost every deal... with real estate investors that just don't seem to understand what it takes to purchase "right" and "profitably'... and real estate agents that don't believe it is even possible.

And yet it is... and here is how that is possible...

1.    Many real estate investors want to buy something because they just "have to have a deal."  If this is their only criteria, it ranks right up there amongst one of the dumbest.  What kind of approach to investing is this?  It's crazy and is the quickest way to bankruptcy that I know of!  Well thought out criteria not only takes the emotion out of decision making process, but it allows for very quick decisions indeed.

2.   Every successful real estate investor uses some sort of purchase formula!  All members to The Club Mastermind are required to use a specific formulaic approach when determining the purchase price for their deals.  As a real estate agent having an understanding of the methodology your real estate investor clients are using helps you to more quickly find potentially profitable deals for these clients.  For both the real estate investor and their real estate agent, applying a proven methodology when making offers keeps the real estate investor happy and the real estate agent in commissions.  you

3.   Determining the RIGHT AFTER REPAIR VALUE (ARV) or comps for their deal!  And this is the biggie!  Many times I see real estate investors and real estate agents using ARVs that are too old, represent highly priced properties that have high days on market or are not similar to the subject property.  Everyone wants to put the best face on a deal... but doing so in this market is akin to suicide.  In today's troubled marketplace, real estate investors and real estate agents, when choosing the ARV, must ensure that they are using ARVs that reflect sales at prices that sold below the normal Days on Market for that area.   

So... a real estate investor has their criteria, a specific purchase formula and properly chosen ARV, the rest is just plugging in the numbers and making an offer.  

From my own personal experience, the better that a real estate agent understands what their real estate investor clients are looking for and the process they use to determine the purchase price the better these real estate agents will be able to support these clients and generate more profits for both themselves and these clients.

OK... I am sure that many of you are wondering, what is this real estate investor and coach doing posting on an extremely active and supportive site targeted towards real estate agents and mortgage brokers?

Great question... and the answer is fairly simple...

I watch on almost a daily basis, real estate investors and real estate agents square off wondering what the heck the other is thinking when one is either making ridiculously low offers or the other is turning away business.  

There has got to be a better way... and since I know that I can influence those Club Mastermind coaches and real estate investors who are Club members I am hoping that I might be an agent of change for those real estate agents who would like to create effective and mutually beneficial relationships with real estate investors... and possibly in the process creating an entirely new and lucrative profit center for their business.  

I am open to your comments and insight on this topic... in the mean time I will continue to offer both motivational and real estate specific insight for both your use and enjoyment.

 To Your Success...

Peter R. Giardini

www.theclubmastermind.com

www.blogtalkradio.com/peter-giardini

www.theclubteam.com

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