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The value proposition of an investor-savvy agent

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guest | 20 Jul 2011, 03:41 PM Agree 0

For example, I recently met with a couple who were thinking of becoming real estate investors. As soon as I began talking to them, I learned they’ve bought only one house and have been living there for 25 years. For me to put them in something that didn’t suit them, something fast-paced such as a
 
Fix and Flip, would have been a huge mistake. For this couple, and for many typical first-time investors, the ideal fit would be something stable – in a stable area with stable returns. Stability was the story of their lives, with one long-term primary residence, so something that was slow-moving and easy to manage would be perfect for them.
 
For another client, a contractor who is very comfortable as a handyman, a suitable property for him might be one that required a little work – not necessarily to Fix and Flip, but a home that would benefit from a little sweat equity, which he could provide himself, to improve cash-flow and increase value.
 
It really depends on each individual client: their goals and strategies, financial resources, limitations and knowledge and experience. And, of course, the essential question of why: Why do they want to invest in real estate?
 
Investor-focused agents also understand the local market and other important factors more than realtors who deal purely in selling primary residences. Agents selling homes only to first-time or move-up buyers simply match up potential properties to buyers’ parameters for location, price, proximity to work and other key criteria.
 
Searching for investment properties, on the other hand, involves a different process and another set of rules.
 
When working with investors, realtors need to be more knowledgeable about the local market fundamentals, developments in the economy, goings-on with the municipal government, what makes one potential neighbourhood or street more desirable than another, the vacancy and rental rates for the area, the tenant profile for the neighbourhood.
 
The importance of the above points cannot be overstated, and we will discuss all of them in greater detail in future articles.
 
First-time or would-be investors sometimes try to make purchasing decisions based on advice from friends or relatives, what they hear or read in the media, or other information that doesn’t always make for the best choices. Selecting neighbourhoods and properties to invest in requires looking for very specific trends and developments; having systems and knowledge in these areas is very critical. A tip from your Uncle Fred or friendly community butcher isn’t going to cut it (pardon the pun ) for you in terms of unearthing real investment opportunities.
  • Tyler Schacter | 20 Jul 2011, 04:57 PM Agree 0
    I agree. If your REALTOR isn't drinking the Kool-Aid (buying investment real estate), do you really want him/her selling the drink to you?
  • Tyler Schacter | 20 Jul 2011, 05:57 PM Agree 0
    I agree. If your REALTOR isn't drinking the Kool-Aid (buying investment real estate), do you really want him/her selling the drink to you?
  • Tahani Aburaneh | 21 Jul 2011, 06:32 PM Agree 0
    So true Tyler. That is exactly what I am saying.. Thanks for your comment and for re enforcing the message.
  • Tahani Aburaneh | 21 Jul 2011, 07:32 PM Agree 0
    So true Tyler. That is exactly what I am saying.. Thanks for your comment and for re enforcing the message.
  • Sean O'Shea, Managing Director | 27 Jul 2011, 10:45 PM Agree 0
    We are a Los Angeles, California-based net lease advisory who specializes in risk-averse US commercial properties are Credit Tenants whose Corporate Guarantee of property management and operations produces a stable, secure and predictable rental income stream for savvy investors.

    The American dollar is conspiring, too, to afford a unique current opportunity for Canadian investors to diversify without assuming unnecessary risks.

    We have a proprietary 62,000+ property data base which affords maximum exposure to Canadian Investors to all US markets. www.nnnbrcadvisors.com
  • Sean O'Shea, Managing Director | 27 Jul 2011, 11:45 PM Agree 0
    We are a Los Angeles, California-based net lease advisory who specializes in risk-averse US commercial properties are Credit Tenants whose Corporate Guarantee of property management and operations produces a stable, secure and predictable rental income stream for savvy investors.

    The American dollar is conspiring, too, to afford a unique current opportunity for Canadian investors to diversify without assuming unnecessary risks.

    We have a proprietary 62,000+ property data base which affords maximum exposure to Canadian Investors to all US markets. www.nnnbrcadvisors.com
  • Shari-Ann (Rosenberg) | 11 Aug 2011, 01:08 AM Agree 0
    Tahani, great points and well written. Thanks for your insights.
  • Shari-Ann (Rosenberg) | 11 Aug 2011, 02:08 AM Agree 0
    Tahani, great points and well written. Thanks for your insights.
  • ronald A | 17 Oct 2011, 01:09 AM Agree 0
    Finding an agent that truly has the best interest of the investor in mind is hard to do, compare agents in advance.
  • ronald A | 17 Oct 2011, 02:09 AM Agree 0
    Finding an agent that truly has the best interest of the investor in mind is hard to do, compare agents in advance.
  • Toronto real estate | 01 Jun 2012, 07:49 PM Agree 0
    I agree with the Author, of an inexperienced Realtor then refer the deal to a Realtor that can help your clients as that is what matters most.

    I have written many articles relating to the subject.

    http://www.mytorontorealty.com/blog
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