Author: James Kobzeffbr
Source: ezinearticles.combr
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Real estate agents that sell residential property commonly exclude listing and selling rental property because they accept the notion that income-producing property has little or no part in their residential business.
With due respect to my colleagues, this is a dumb misconception that can potentially cost agents multiple additional commissions annually.
Okay, but I should point out that some agents do list and sell a duplex, tri-plex, or four-plex occasionally. This, however, is just the tip of the rental property iceberg and not the type of investment property agents fail to capitalize on, or the other (larger) commissions they fail to earn.
Allow me to explain.
First, when most residential real estate agents do list and market income property for sale they regularly omit crucial financial data such as net operating income, cash flow, and rates of return. They present no APOD, proforma income statement, or marketing package-the reports typically used in real estate investing that present these numbers. Mostly, they are content to let the selling agent run the numbers.
If this is you, then heres where youre missing the mark-its a matter of perception.
When you fail to make even a minimal effort to present income-producing property correctly, you appear as one with little regard for real estate investing and instead come off as one who simply throws it up on the wall and hopes it sticks. But this approach not only can cost you ample recognition from your colleagues that could later result in getting income property referrals, you probably will also fail to give investors any motivation to work with you further.
Secondly, consider the opportunities to capture additional rental property business you might lose when you arent prepared to service income property on a moments notice. I cannot tell you how many agent-colleagues I have known who lost huge opportunities to create investment real estate business during their floor time merely because they were not prepared for the inquiry. Bear in mind that you have a small window of opportunity to win the trust and loyalty of a customer, and when you stutter or delay you could lose that customer to a competitor forever.
The irony is that its not that difficult to enhance your image or to get you prepared to sell rental property. There are tools available that make it easy to create APODs and proformas with the numbers you need to make presentations that are both informative and impressive.
Thirdly, agents who do not become proactive with real estate investing and prefer only to list and sell rental property when its handed to them lose any opportunity to convert their house buyers into real estate investors. Heres my point.
Every person you sell a house to could also be in the market for rental property. In fact, considering the fluctuations in our economy, it would not be surprising to discover that more than a few of your homeowners are ready to pull their money out of Wall Street and put it into income-producing property on Elm Street. Naturally, you wont know unless you ask, but you undoubtedly are not going to ask until you make some commitment to sell rental property.
And that brings us back to my premise.
Why wouldnt you want to supplement your residential business by listing and selling rental income property? It would certainly be dumb not to considering that there is money to made with investment real estate and so little requirement on your part. After all, youre already in a very good position to actively list and sell rental properties because youre already selling real estate. Heres a recommendation.
Make the commitment to work with investment real estate, obtain the right tools to run the numbers adequately and create your presentations, and then devote a sliver of your time proactively pursuing opportunities. If done diligently you will make more money. Honest.
Heres to your real estate success.
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pstrongAbout the Author/strong/ppJames Kobzeff is the developer of ProAPOD a target=_new href=http://www.proapod.com/basic.htm rel=nofollowreal estate agent software/a. Create cash flow, rates of return, and profitability analysis presentations for rental properties in minutes! Includes APODs and Proformas. Easy and affordable. Special offer available today. Learn more at = a target=_new href=http://www.proapod.com rel=nofollowhttp://www.proapod.com/a/pbr
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