In the Summer of 2005 I took a class being taught by a CCIM by the name of Tom Lundstedt. Aside from being one of the most entertaining instructors I have ever learned from, he was by far one of the most knowledgeable. At some point during the two day class Tom threw out a statistic that startled me. I'd be lying if I said I could remember it exactly. But it was something like "only 6% of real estate agents in the country own investment property."
Let me re-emphasize that I cannot remember the exact quote or number. But it wasn't much different than that. My experience has told me that it simply cannot be far from the truth, in any case. Do you own any income property?
Why? How can this be? Mr. Lundstedt had a valid and relevant question; "If real estate agents aren't convinced as to the power of owning residential investment property, how are they going to convince others and represent them when negotiating investment property?"
There were probably about 45 agents in that classroom that day. By mid-way through the second day of the class at least half of those agents had tuned out. Although not the reason I had come, most of the real estate agents in that room were there satisfying their ongoing quest for hours towards earning their GRI. (Kind of like adding blog posts for points. Not really to benefit anyone...just to get the points.) (I'm sorry, I won't make any more snide statements...probably...)
What a shame. Owning rental property can be the key for real estate agents to secure their own retirement. Folks, WAKE UP!!! As professional real estate agents there is no retirement plan for us. Yes, we can contribute to IRAs and count on our social security checks. (I know, but try not to snicker. Some people are really counting on those.) But you have the key to financial freedom right there in your hands.
- Who sees properties that come on the MLS before anyone? Right, you do.
- Who has the ability to network with contractors to find properties that need repairing BEFORE they come on the market? Right, you do.
- Who can network with those same contractors to secure lower bids for their property repairs? Right, you do.
- Who should understand the power of appreciation more than anyone? Right, you.
- Who should know value when they see it? Right, you.
My dear colleagues, please pay careful attention here. You do not need to be a landlord of 25 properties to make a significant difference in your later years. Buy properties that you know. Buy properties that will pay for a property manager so you can do best what you do.
I want to challenge you to consider purchasing one property this year. Yes, before the year is out. I want you to add at least one property a year for the following nine years. When you get to ten, you'll be a millionaire. Or a millionaire in waiting. There is really no way around it. Don't believe me? Spend time on my blogs and look at the math. Take half an hour one evening and sit down with a pencil, paper and a calculator. Work out the numbers.
If you still have any questions, email me. I want you to be financially secure when you are sixty. I want you to work only with clients you choose to work with. I know all about having to hustle. I've started my real estate career TWO times. Once in Tulsa and once when I returned to Kansas City. It was selling my investment properties that carried me through the start up phase.
It will be my investment properties that carry me through my shut-down phase, too. And by shut-down I hope I mean choosing to work when and with whomever I choose. Not die. That would be a drag. But you know what? My wife and kids will be taken care of. And on my death bed I've been promised total consciousness. So I'll have that going for me.
Comments(15)