Why Sell Real Estate Investment Property?

james kobzeffReal estate agents commonly come to a crossroads during their business activity that concerns real estate investment property. It goes something like this:

“Should I start servicing other real estate besides the residential properties I’m already comfortable with and venture into servicing real estate investors and rental income property, or not?”

In other words, the realtor is really contemplating whether it would be worth the effort to expand his or her business activities to include selling real estate investment property along with single-family homes, or just to dismiss the notion altogether.

Fair enough. When I first became a realtor I also came to that same crossroad. But in my case, I guess I didn’t over think it and simply accepted the idea that any closed transaction (regardless) meant more commission and a bigger paycheck.

As it turned, I was right. It did mean higher commissions to sell real estate investment property; in fact, I liked the result so much that I devoted the following thirty or so years of my real estate career listing and selling investment property exclusively and never sold residential property again.

Okay, but I’m getting ahead of myself. I’m not suggesting that brokers and agents should give up their residential property business. Hey, there are home buyers that rely upon your expertise and service.

I’m simply suggesting to you (real estate broker and agent) that you are probably missing out on a great opportunity to increase your income by neglecting to list and sell real estate investment property. Think about this.

  1. You don’t have to be an expert. Whereas commercial real estate requires expertise, residential income property does not. With only some minimal preparation almost any realtor can sell apartment buildings.
  2. The listing and sale function is similar. Other than some nuances that we’ll discuss in a moment, it really boils down to just locating a property that meets the buyer’s criteria.
  3. You probably already know some investors. Chances are good that many of the customers you’ve sold a house to are ready to also make an investment in rental income property. So you may hit the ground running.

So how do you prepare?

  1. Foremost, understand that real estate investors buy cash flow, and are not necessarily interested in the amenities the way a home buyer is. A sale will depend on whether the rental income property is profitable, not whether it’s a nice place to raise the family. So think in terms of presenting numbers to your customer.
  2. Acquaint yourself with a few returns and reports associated with real estate investment property. Two of the more popular are Cap Rate and APOD. So make it your first assignment to learn about these.
  3. Research your local market. Look for what’s currently available from duplexes to larger apartment complexes. Pay particular attention to what financial data is presented to get an idea of what’s expected.
  4. Find a friendly colleague already engaged in real estate investing. Perhaps over a cup of coffee he or she will be generous enough to share some insights about real estate investment property with you.



Online Real Estate Calculations – Print to Printer and PDF

online real estate calculations printThe online real estate calculations provided in ProAPOD’s iCalculator suite of 55 online real estate calculators have been updated to include a Print function.

That means that you will now have the ability to make your online real estate calculations and then can either print to your printer or as a PDF. Ideal for future reference or sharing with others.

This update, along with all updates made to all iCalculator’s suite of online real estate calculations, are free to iCalculator customers. There is nothing for you to do…just login to the calculator as you normally do, and the print function will be there.

In case you might not be acquainted with iCalculator, let me give you a quick overview.

  • iCalculator is a suite of 55 real estate calculators that you can access online 24/7 from your phone, tablet, or computer. You simply login from anywhere, at any time, and from any device. iCalculator is totally responsive and will automatically adjust to the screen size of any device.
  • The calculators are organized by category: Mortgages, Time Value, Cash Flows, Tax Shelter, and Investment. So after you select a category, the appropriate calculations associated with that category are displayed and ready for you to start calculating.
  • All calculators include a definition to help you understand the meaning of the particular calculation (like the meaning of cap rate, for instance) along with an example so you get the idea of how the calculator can be used to benefit you.
  • All calculators are designed with a user-friendly form. After you make your entry’s and Calculate, the result and a solution to help you understand how the result was formulated, will instantly appear. In many cases, so will the formula and an explanation.
  • iCalculator is a one-time investment…there are no subscription fees and updates are always free.

You can learn more about iCalculator, along with screenshots and the full list of available online real estate calculations, at online real estate calculators. HINT: Scroll down that page and take advantage of the 64% discount.