I want to talk about how to think like an investor and not simply a real estate agent. And this is particularly important now, as we’re in a time of great opportunity. We’re in a time when you can start to see through all the chaos, through the hottest market we’ve arguably seen in years since pre great recession.
There are a lot of gems and diamonds in the rough. There are a lot of investment opportunities, but we as agents often don’t think that way, we think more in a transactional nature, we’re about sales and volume and deal flow. But I want to challenge you to think also about building passive income and building wealth and doing it through investing in real estate, not simply maybe helping clients to do that. So a couple of quick things on how to best go about this.
Obviously there’s a body of knowledge. That’s important, our proficiencies that are really required to be able to do this successfully, or at least effectively. I would recommend getting a base level of education on how do we evaluate investment properties? How do we get market fundamentals? How to understand a profit and loss statement, how to understand a rent roll and cashflow?
Talk to people in your network
The next thing is I would recommend talking to people in your network, which you obviously have. That lend on investment properties, whether it be a duplex, triplex, 10 unit, 20 unit apartment complex or up. Talk to commercial mortgage brokers, bankers, and other people in that space and start to see what they look for. Start to see what’s required in a buyer. That’s going to be taking out a loan with them to purchase one of these.
What are some of the loan products, the investment required to have the down payment? What are some of the rates are seeing? So you can start to underwrite an example type property. Next is start looking and keeping an eye out for these opportunities.
Remember off market deals are always the most attractive and the way we find these is through leveraging our network. Super connectors I like to say, attorneys, accountants, certified financial planners, or insurance agents. Ask them if their clients are looking to possibly offload or sell some of their investment properties. If they have any type of rentals, residential rentals, or what we really like and prefer in our business.
I also do quite a bit of hospitality investing as well, development, repositioning, et cetera. But ask them first because you can find deals and opportunities that way, which will never hit the open market, can usually negotiate better terms on won’t be bid up and priced up and up like we’re seeing now with all this demand and liquidity and are just all around a better source of leads. But also that doesn’t mean do it at the expense of not looking at currently available properties that are listed. Just oftentimes off market, a little bit better deal terms.
Think more transformationally, not just transactionally
Because agents often get stuck in that mindset of a transactional nature. But if you stay in that race, you’re always trading time for money. Whereas we want to help empower you, equip you, train you and inspire you, to think differently and trade money for more money, put your capital to work.
So the money you make in brokerage, put that to work in real estate investing now so that you’re starting to build wealth, a nest egg, a retirement plan, passive monthly income, and get into a point where you don’t have to work as hard as the broker’s business. You can now spend more time sourcing, financing, underwriting, and building out an investment portfolio that now will literally send you checks month over month for the rest of your career and life.
So hopefully you get some value from this. Maybe get you some ideas and spurred you to think a little bit differently about income generation, wealth generation, real estate investing. If it did let me know, shoot me a message, leave me a comment or a like here, share it with somebody that can benefit too. And again, as always love bringing you value each and every week and the real estate sales space as agents and brokers, as well as the real estate investing space, where we build long-term wealth through real estate investing. Thanks so much. And we’ll see you next week.