Residential real estate agents who choose to sell rental property make one of the smartest decisions to build a real estate business possible. I made that decision early in my real estate career and now, having specialized in investment property real estate for nearly thirty years, I can state three good reasons why residential agents should start selling rental properties.
1. Rental property, multifamily or commercial, can lead to gigantic commissions. My first time out as a residential broker looking to sell investment property landed me a million dollar retail listing that subsequently resulted in a tidy commission and a loyal real estate investor customer I serviced for years after.
2. Real estate investors are repeat customers. True, home buyers are repeat customers, too, but I’m speaking in terms of turning a transaction perhaps multiple times a year. The logic is straightforward. Whereas homeowners buy a house to shelter a family, and perhaps make a transition in 5-7 years to up size or downsize, many real estate investors are ready and willing to invest in real estate when it makes sense. I regularly sold various income properties to the same investor within the same year.
3. Thirdly, real estate investors are generally open to sell an investment property if it makes sense. Whereas a homeowner might balk at the idea of exchanging residences without reasonable cause, one of the true benefits of working with investors is the fact that they are running a business less affected by family matters and will always entertain ways to increase their bottom line. In over thirty years, I never had an investor refuse at least to listen to an investment proposal I made about rental property.
It’s not a magic bullet. Selling rental properties, not unlike any real estate service we provide, naturally requires a commitment. But if you’re willing to learn something about real estate investing, understand how to run the numbers (real estate investment software makes this easy), and are not afraid of some good old fashioned hard work, you can start selling rental property whenever you want to.