Picking the Right Agent Means More Investment Home Runs!
Today I experienced that kind of satisfaction that just doesn't come every day. A client called and let me know that the properties I had selected and helped him get rehabbed and tenanted have doubled in value in two years. His $40,000 down payments, placed on 4/2 homes that were purchased for around $45,000 each had appreciated to being worth $100,000-$115,000 turning into an additional $200,000 equity that he may now want to cash in through 1031 exchange. Certainly clients express gratitude for a job well done, which as an agent that focuses on investment property this means:
- You've gone the extra mile doing your research, and can rattle off all the demographic information, square footage, cost per square foot, comps in the area school test scores, economic indicators, unemployment and job growth statistics, property tax info, rehab costs and so many other things that a great agent specializing in investment properties should know.
- You can quote what each house up and down the street last sold for and are able to compare and contrast how the subject property compares to those.
- You know the ROI (Return on Investment) or "Cash on Cash Return" that an investor will get if they purchase the property, which really sets aside an agent that specializes in investment properties.
- Your clients don't buy in bad areas because you know which areas are high crime, or which neighborhoods the local housing authority will not allow tenants to use their vouchers due to poor neighborhood quality and vacancy is of great importance.
- You have a good feel for where things may go based upon where they have been. This comes from knowing what appreciation trends been over the last few years.
- You have a team of great rehab contractors who do great work in a timely manner for good prices and complete the work on deadline.
- Your management teams can get tenants quickly, do quarterly inspections, update you on tenant and maintenance issues, give you excellent reporting on all accounting and prompt payments.
- You can explain exit strategy, 1031 Exchanges, lease purchases, and other expert techniques.
I look forward to helping this client roll his profits from four properties into perhaps 8-10 properties and doubling or trippling his monthly cash flow to the point he earns as much income from his real estate as he does from his day job!