6 Benefits to Agents and Brokers to Become "Exchange Experts"

In addition to being a valuable tax deferral strategy for investment property owners, §1031 exchanges provide

real estate agents with numerous ways to quickly increase commission income. We have listed a number of

these opportunities below:

Every tax-deferred exchange involves one sale and one purchase, providing real estate agents the opportunity

to earn two commissions from one client!

Many investors leverage their investments and purchase several replacement properties, which equates to

several commissions all from one client! Clients with a high equity position (or free & clear) will receive a

better rate of return by purchasing several properties with some financing.

The seller of the investor's replacement property often also holds their property for investment and may not

be aware of the benefits of an exchange. If you can identify exchange opportunities, share with them the

benefits and range of "like-kind" replacement properties available through an exchange, you may have the

ability to generate additional business from their transaction as well.

With the benefits of tax deferral, investors can purchase larger properties, which generate larger commissions

from the same clients.

By learning about tax deferred exchanges, real estate agents can differentiate themselves from their

competitors in a local market. Often agents who understand §1031 exchanges develop a base of repeat

investors who only want to work with them. This can lead to an established clientele and less time working

a "farm" area to produce business.

The vast majority of real estate agents and brokers focus most of their efforts on obtaining listings. As a

result, most real estate agents are competing against other real estate professionals in trying to convince a

property owner to use their services for selling a property. An inherent disadvantage of this approach is

that it depends upon having property owners who want to sell their property right now. In essence, you are

competing for the small 5-10% of the market who is considering selling at any given time.

When you begin to focus your efforts strictly on investors, you are now pursuing the 90% of the market

with very little competition from other real estate professionals. Instead of waiting for owners who want to

sell, you are taking control of your own success by approaching investors and showing them ways that no

one else has to improve their position in the real estate market. The step-by-step guide supplied in this

handbook, along with the informational marketing handouts provided by API, equip you with innovative

ways to get in front of investors and earn more commissions.