Best Tool for Agents Wanting Buyers - What You Pay In Rent

By
Education & Training with Executive Director of Education at eXp Realty
https://activerain.com/droplet/5hNv

This 'rent calculation' card was why I bought my first home back in 1985.

When anyone sees how much they spend in rent, it's depressing and alarming to see how much it adds up to over time. In my scenario, I was spending $850.00 per month to live in a 2 bdrm Condominium in Martinez, CA. I rented that place from Vince Manzarri for more than 3+ years while working at First American Title in Concord, CA. 

When I saw how much this totaled over time and how much of his mortgage I had been paying, it really made me upset with "myself" for throwing the better part of my salary into someone else's homeownership.

Try it yourself:

1. Write down how much you spend/spent on monthly rent?
2. How long on average do/did you rent?
3. Lookup your monthly rent, then go to the yearly row 

This should be enough to open the door to "ANY" renter for a conversation about the potential of buying a home vs renting someone else's. Remind your prospects and clients that money spent on rent has no tax benefit, can't be recouped, you're paying off someone else's home and for a few bucks more or less, you can own your own!

I created this using Google Drive and a spreadsheet. I didn't factor in equity or interest on money spent, just the raw total of what it costs over time to rent. You would want to make sure you add your branding and contact information to a piece like this, I guaranty renters and first-time buyers will be knocking your door down to buy a home. 

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Re-Blogged 1 time:

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Topic:
Real Estate Technology & Tools
Groups:
Active Rain Newbies
Realtors®
The Art Of Marketing You
1st Time Buyers
Target Marketing
Tags:
rent calculator
what you pay in rent

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Rainmaker
293,641
Dennis J. Zisa & Associates, Inc.
Dennis J. Zisa & Associates, Inc. - Camden, NJ
28 years in So. Jersey and the Greater Camden area

What an excellent post! Clear, concise, and toward a very eye-opening point. Thanks!

Mar 28, 2019 06:29 AM #21
Ambassador
932,019
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Brad, maybe I should brand this with my info and send it to my 65 renters?

How are you doing my friend. I still remember flying you to Tennessee for that training.

Mar 28, 2019 07:07 AM #22
Rainer
163,295
Anita S. Zahn
Advantage Realty 863-840-1420 - Sebring, FL
Highlands County Real Estate Source! I work 4 U!

Awesome post!  Thank you so much!!  I will use this.

 

Mar 28, 2019 07:09 AM #23
Rainmaker
1,726,953
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Brad -- you've given me a GREAT idea for a handout at a buyer's information night we're holding next month. Nice to see you back here on the Rain.

Mar 28, 2019 08:16 AM #24
Rainmaker
510,147
Jonathan Hall
William Pitt Sotheby's International Realty - Danbury, CT
Realtor - Danbury,CT Area Real Estate~203-417-0523

Thanks for sharing, average closed rental in MLS in the main town in my market is just over $1800/month, a lot of these people should be buying

Mar 28, 2019 08:37 AM #25
Ambassador
1,139,617
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

What a great tool to show renters and first time home buyers, Brad. That's a niche market that I need to spend more time on. 

Mar 28, 2019 09:09 AM #26
Ambassador
1,895,639
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

What a fantastic Post Brad Andersohn so miss your amazing tools. Can not thank you enough for sharing this video. Brilliant shared it on Facebook. My heart is happy to see a high tech post from ActiveBrad again surreal   

Mar 28, 2019 10:55 AM #27
Rainmaker
1,263,389
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Brad,
It's amazing how fast it adds up.  When you consider the tax advantages of financing a home and the fact that someday you will be mortgage free, it's pretty much a no-brainer, isn't it?   Rent is gone forever.  A mortgage is a path to a rent-free life, which I've been enjoying for 18 years now. 

Mar 28, 2019 11:07 AM #28
Ambassador
3,144,571
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Brad! SOOOOO good to see you here and what a great post to share! Most people understand better, something that is right in front of them, demonstrating the exact point that we try to make verbally! Thanks for sharing!

Mar 28, 2019 11:30 AM #29
Rainmaker
79,335
Jon Boyd
Home Buyer's Agent of Ann Arbor - Ann Arbor, MI
Ann Arbor Real Estate Buyers Agent

Thanks for the idea Brad. The whole conversation gets a bit more complicated, but this is a great idea to start a discussion!

Mar 28, 2019 11:59 AM #30
Rainmaker
3,210,514
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Brad - when it's there in black and white, the facts are difficult to dispute.  

Mar 28, 2019 12:48 PM #31
Rainmaker
435,349
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Great post Brad Andersohn ... I will put something together to share online and with Renters!  We need the FACTS ... Thank you!

Mar 28, 2019 01:10 PM #32
Rainer
60,358
Ken Rohn, REALTOR®, GRI®
eXp Realty - Gilbert, AZ
Serving Gilbert, SE Maricopa and Pinal Counties

Great idea, Brad! I'm going to use this for sure. I don't even have to change the branding. 

Mar 28, 2019 02:13 PM #33
Rainmaker
16,314
Krista Jenkins, REALTOR®
Egenbacher Real Estate - Lubbock, TX
Residential sales and retail & office leasing

Brad Andersohn , this is a great idea. I like how Andrew Mooers | 207.532.6573 put it,"cash in the trash". It is eye-opening when you look at the aggregated numbers. Thank you for sharing.

Mar 28, 2019 04:43 PM #34
Rainmaker
1,451,768
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I understood this concept a long time ago and was happy to buy a home and stop paying rent.

Mar 28, 2019 10:02 PM #35
Rainmaker
391,025
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Brad, thanks for sharing. The visual is quick and easy to follow and does not require a lot of talk.

Very helpful.

Thanks

Mar 29, 2019 11:41 AM #36
Ambassador
3,894,506
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hey Brad:

Thanks for sharing this. The visuals - the video and the chart - are pretty compelling. And I think the average rent is higher than $1800 here so the amount tenants are spending per year can become pretty staggering over time, with little to show for it other than having a place to live.

Have a great weekend!

Jeff

Mar 29, 2019 12:26 PM #37
Rainmaker
492,826
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I agree with you in principal. The numbers favor home ownership, esp if you can make extra payments.  However, so many pp want to own but can't find decent inventory in their price range,--or, difficult to save up for down payment, closing costs with all the other obligations they have (student loans for one). The middle class is shrinking b/c wages do not keep up with inflation

Mar 30, 2019 11:52 AM #38
Ambassador
797,646
Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
ActiveBrad - 707.646.1876

Thanks for all the great feedback and comments. Mary also makes a great point regarding cost of living, inflation, and income. I agree.

It’s good to know we have many programs out there to assist buyers who have student loans, lower income, bad credit etc. Relocation is sometimes inevitable in life’s journey but can also be a blessing in disguise.

Mar 31, 2019 07:29 AM #39
Rainmaker
269,328
Dave Rosenmarkle
Highland Realty - Arlington, VA
31 years of providing fully satisfying service!

Great reminder! Sometimes I involve a lender to help further crunch the numbers to show possible tax advantages.

Apr 04, 2019 08:41 AM #40
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