The FAQs of real estate investment needs a who

By
Real Estate Agent with The Virtual Real Estate Team 104556

Oklahoma City real estate investment FAQsThis may be the toughest part of the FAQ investment questions, who can help me get started? Let's think about medicine to start with, if you have cancer or heart issues do you ask for your GP to take care of it? No, you go to a specialist who has devoted themselves to taking care of you for that one particular problem. This is not to denigrate general practitioners because they perform a valuable entry service. Real Estate is a bit like that. We have plenty of people who know a little bit about a lot of things but not one particular thing down cold. For instance, I thought I knew a lot about new construction because I sold it and had taken classes like with CRS, but until I had a custom home built I realized how much more there is to know about it. Other specializes in real estate work the same way and very few agents want to devote their entire business to one specialty

On the other hand there are agents out there around the country who are like me, they eat, sleep and breathe investment real estate. I learned many years ago it is what I truly loved so I dedicated myself to creating wealth through selling investment real estate and also I have a seven figure equity in my own real estate a few times over. If you are looking for a real estate investment specialist here are a few questions to ask.

Do you own rental property? Would you buy a $500K personal home from someone who has never owned their own home? I know I wouldn't. Why not also ask them about what they are trying to sell you with would you buy this for yourself? I have built my career on that.

Tell me what is a good buy versus a good investment: You can get a home at a discounted rate, but if it is in an area going nowhere and is in high vacancy, then all that money you thought you saved on a purchase is lost in being empty. Let me continue this with another related question below.

What is my return on investment? Ask them about internal rate of return, cash on cash, and capitalization rate. What does gross rent multiplier mean? If they are doing a real  estate investment out of a 401K what is the DCR, or debt coverage ratio. These are a few of the many questions that you should ask before you select help.

What is the exit strategy? One of the most important and least explained part of investment is what is at the end of it? That kind of goes with why but you also get into a 1031 exchange possibility, what is the cash out implications on being taxed, and if things go south can I get out of this? Speaking of that very few agents have an exit strategy for their business so don't leave your self in the hands of amateurs.

Should I use a property manager? For out of state buyers this is essential but for local people a real estate investment specialist will explain why paying a great property manager is something that saves you money and headaches in the long run. I will expand on this conversation in another unrelated post from the FAQs but in my case I own my own property management company because I have a vested interest in the clients success and want them to buy more. FYI, I have specialist for that and that is not me.

I spend a lot of time with my investors before they ever have a contract written because for me when someone is putting 20% down or more and putting their financial future in my hands this isn't about a commission to pay the bills, it is about trust, integrity, empathy, and all the expertise I can muster and than learning never stops. In the next post I will get into the where but please, when it comes to finding that real estate investment specialist, do e en more due diligence. With over 2500 investment properties sold I can never rest on my laurels and never assume i can't learn more to be of service to you.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Sales and Marketing
Location:
Oklahoma Oklahoma County Oklahoma City
Groups:
Bananatude
NATIONWIDE INVESTORS NETWORK
Old Farts Club
Posts to Localism
Realtors®
Tags:
oklahoma city real estate investment faqs

Spam prevention
Show All Comments
Rainmaker
2,921,920
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

That's good information about buying real estate for investment, Joe.  There can be differences in what is important when purchasing for investment, rather than for a personal home.

Jun 14, 2017 01:01 PM #1
Rainmaker
454,391
LLoyd Nichols
Premier Florida Realty of SWFL - Fort Myers, FL
Southwest Florida Homes By The Sea

Full of good information. A pure investment property is a different animal all together. For starters its less emotional.

Jun 14, 2017 01:33 PM #2
Rainmaker
806,787
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

You are definitely the investment expert to go to in Oklahoma Joe. -Kasey

Jun 14, 2017 03:49 PM #3
Rainmaker
2,222,205
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

I would certainly want THE expert in his field by my side if I were making investment choices!

Excellent information Joe!

Jun 14, 2017 07:33 PM #4
Rainer
558,666
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Joe,

If your clients make money with you, they may come back for more, once they are financially able. I would say, you have a vested interest in having them do well.

Jun 14, 2017 07:42 PM #5
Rainmaker
3,442,216
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Joe.  Never did invest in real estate, sad I didn't

Jun 15, 2017 02:51 AM #6
Ambassador
4,426,576
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Joe

This is excellent, and anyone considering investment property should take your advice.

Jeff

Jun 15, 2017 08:07 AM #7
Rainmaker
598,690
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

You've found your niche and excel at it, Joe. Anyone interested in beginning their real estate portfolio would be wise to discuss it in depth with you.

Jun 15, 2017 08:15 AM #8
Rainmaker
2,302,206
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Joe Pryor - there is nothing ordinary about you - you are EXTRAORDINARY! 

Some people know enough about Real Estate to be dangerous - not true with you. You're someone I know, like, and trust! When it comes to selling investment properties, you're the GOOD Godfather of the industry! 

Excuse me, you were good - now you're GREAT!!!

Jun 15, 2017 08:36 AM #9
Rainer
288,579
Thomas McCombs
Century 21 HomeStar - Akron, OH

Investors are a whole different breed than home buyers. Many Realtors do not understand the difference between them and therefore should be referring their investors out to experienced investment Realtors. 

Sadly, that is unlikely to happen and therefore many beginning investors often get off to a bad start. 

Jun 15, 2017 01:12 PM #10
Ambassador
3,986,764
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Very well said, Joe Pryor - I would totally buy investment property from you- your buyers are so very fortunate to have someone who specializes in investment properties AND cares. It's easy to 'spend' someone else's money but, you go the extra mile and actually CARE about their money!

As for me, I would never buy a home from someone who has never owned one - there is so much more to homeownership than paying the mortgage! How would one be able to adequately 'coach' or advise their clients without having experienced it themselves?!

Jun 15, 2017 05:04 PM #11
Ambassador
5,085,331
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I agree Joe, "Who" is very important.

After investing for the past 25-30 years and dealing with hundreds of agents, I have only met a few who are competent to work with or advise on these properties.

Jun 15, 2017 08:13 PM #12
Rainmaker
6,219,862
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Joe, for sharing your experience and some of your successful business practices.

Jun 17, 2017 09:53 AM #13
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,707,191

Joe Pryor

REALTOR® - Oklahoma Investment Properties
Can I help you
*
*
*
*

Additional Information