Real Estate Agents – What Sellers and Buyers Should Know About Them

For most buyers and sellers the prospect of dealing with a real estate agent brings forth unknown fears. While some agents are genuine and reputable and consider their clients best interest as their top priority, there is no dearth of unscrupulous individuals either who are just trying to make a quick buck at someone else’s expense. As a buyer or sellers of a property, it is your responsibility to choose a estate agent prudently. So, here is a look at what you should know about real estate agents before you approach one.

What does a real estate agent do?

Depending on which side he is working for (the buyers or the sellers), the realtor acts as an intermediary between the buyer and the seller and helps to complete the sale of a property. For his services, he is offered a commission from his client (seller, buyer or both). When working on behalf of the seller, the agent is responsible for putting the details of a property in the multiple listing services of the area and undertaking other efforts such as home staging to market the property.

In case of a residential property, a real estate agent may start off by putting up the details of the property on his personal or company website depending on whether he is a part of a realtor firm or works on his own. The next step would be to market the property through postcards and advertisements in real estate magazines offline as well as online.

Besides marketing the property, the agent who lists your home is also responsible for following up with other agents who might have clients that may have expressed interest in the property. An agent is also supposed to help you negotiate the best deal possible. He/She is with you every step of the way till the home is sold; advising you on all matters including procuring the services of a lawyer.

The agent does not charge the client/home seller for his marketing efforts; however, you will have to incur any legal cost involved in the selling process

When working from the seller’s side, a realtor is responsible for rummaging through the property listings of an area that his client is interested in. He coordinates with the real estate agent handling the property on behalf of the seller and arranges to show the premises to his clients. A real estate agent from the buyer’s side also helps to negotiate the best deal for his client and is with the buyer through out the purchasing process. He is also responsible for approaching a professional to get a property evaluation done. Some real estate agents may also offer other services such as advice and help for procuring home loans.

Real estate agents not only earn commission from the sale and purchase of homes but also when a property is leased. Usually the commission is paid to the real estate agent at the final settlement of the deal.

Who should you choose to be your estate agent?

Real estate agent can don three mantles that of an intermediary on behalf of the seller, the buyer or a dual agent. When buying a house, it would be best to hire the services of an agent who can work on your side, the same holds true when selling a home as well; you would be better of approaching a real estate agent who works for sellers.

Although real estate agents who work from the sellers or the buyer’s side do not have different credentials, some agents choose to play on a single turf while double agents may work for both the seller and the buyer simultaneously earning commissions from both.

The Sellers Real Estate Agent: An agent working on behalf of the seller will have his loyalties towards his client an he/she will try his hardest to convince the seller to give his client the lowest deal. So, as a buyer if you were to ask the seller’s agent if his client would accept a higher deal, he will be obligated to not divulge this information to you.

The Buyers Real Estate Agent: Similarly agents who work on behalf of the seller owe their responsibility to their clients and will try to get their clients the highest deal possible. So, they will not be willing to offer information on how low their client will go in terms of the price.

A dual agent: A dual agent is obligated to keep the honest picture in front of both parties; since he is entitled to a commission from both parties, he owes his loyalties to both the buyer and the seller.

Most real estate agents have a list of buyers as well as sellers so it is not unusual for an agent to work on behalf of both parties or at least get another agent from his real estate firm to negotiate on behalf of the seller or the buyer.

The problem with real estate agents

While real estate agents are in the business of marketing properties, it is not uncommon for them to play up their credentials; after all, it is a dog eat dog world and there is certainly no dearth of realtors in the market. While this is acceptable, some individuals resort to lying blatantly about their accomplishments and often their customers end up paying for their tall claims.

So, make sure that you check all the claims that are being made by a potential estate agent. Do not hesitate to ask for references. If he has not mentioned his experience in the brochure, make it a point to ask him about it. Also, inquire about other properties that he may have sold which were similar to the one that you want to sell/buy; this would include properties in the sane area, of the same size and price range.

How NOT to Hire a Real Estate Agent

If you do NOT read this report you will almost certainly lose thousands of dollars when you sell your home…

Home sellers don’t know how to spot a good real estate agent

This is understandable when you consider that you will only buy and sell one or two properties in your lifetime. Your home is probably your biggest asset. So, be careful whom you choose to sell it; one slip-up from an agent will wipe thousands off your selling price.

Ask the right questions

Many home sellers ask the WRONG questions when they interview an agent. They ask questions such as “How much do you charge?” or “What’s my house worth?”. While these questions are important, they should only be asked after the agent has told you what they’ll do for you and how they’ll get you the best price.

This report is your guide to hiring a real estate agent. I’m going to show you how to spot and select the best agent to sell your home. After all, I believe there’s no one better to sell your home than a highly skilled agent. The problem is that highly skilled agents are hard to find.

WARNING! Don’t settle for second best. Too many sellers make the mistake of picking the ‘best of a bad bunch’. You could be better off without an agent

Check out your agent

It’s a sad fact, but many people don’t check-out their agent until after they have signed with them – by then it’s too late. After you sign you’re stuck; you could be locked into a ‘minimum 90 day’ contract.

The questions and information in this report will give you the knowledge you need to keep the power when you’re selling a house. After you sign you lose your power.

Agents love to say they are all different but basic research will prove most are the same. It’s the ‘cookie cutter’ approach when it comes to selling your home – every property is sold the same way.

What to look for when choosing an agent

In 2006 Neil Jenman (my Dad) was asked to provide a list of questions, comments, and hints to help home sellers choose an agent for a TV show he was hosting. He called his list of questions and comments, GUIDE TO GRILLING AGENTS. Over the last few years I have given the guide to many home sellers. This report contains many of the questions and comments in his original guide.

What does a good agent look like?

Most agents will be well dressed, on time, and prepared. But the best real estate agents will be the ones who put your interests first. They will offer solutions that suit you first, not them.

Agents who ask for money to advertise your home should rarely be hired. After all, if advertising was the only reason your home sold why do you need a real estate agent?

Questions are the answer

Sometimes the answer to one good question will give you the confidence you need to hire the best agent to sell your home. Good questions do the hard work for you. Before you jump in and start grilling real estate agents, take a step back.

Put your home buyer shoes on. And start with a mystery shop…

MYSTERY SHOP

Department stores do it, so why shouldn’t you? Use the ‘process of elimination’ to weed out the poor agents. Why bother interviewing a real estate agent who doesn’t bother to return buyer’s calls? Start with an email. Approximately half of all buyer enquiry arrives via email.

If you send out 10 emails to 10 local real estate agents, I can almost guarantee that you will not receive 10 replies. If only 5 reply, then you have just saved yourself having to interview 5 agents. Include your phone number in your email. Do they call you back? Or do they just email a standard response? An agent who follows up with a call has a much better chance of ‘closing a sale’ than an agent who sends a standard reply.

QUESTIONS ARE YOUR BEST WEAPON

If you don’t ‘test’ your real estate agent before you hire them – one thing is for sure – the buyers for your home will do it for you.

What follows are questions that have proven to be a huge help to sellers.

REMEMBER: You are the owner of the property. You are considering employing an agent to sell your property. You are the boss. You have the power BEFORE you sign up. Make sure you keep that power at all times. Control the agents, do not let the agents control you.

Your home’s selling price is determined by your agent’s ability to negotiate

• HOW ARE YOU GOING TO GET THE BEST PRICE FOR MY HOME?

When you ask this question many agents will start throwing around the word negotiation. You want to be certain that they are capable of negotiating a high price for your house, ask them to teach you something about negotiation.

Question their ability to negotiate.

Ask them what they know about negotiation. It’s a big point that most home sellers miss because they focus on what the agent says rather than on what they do.

Here’s one of my favorite questions to ask a real estate agent:

• WHEN/IF YOU BRING ME AN OFFER, HOW CAN I BE CERTAIN THAT IT’S THE ABSOLUTE BEST PRICE THAT THE BUYER CAN PAY?

Many real estate agents will have difficulty answering this question. It’s a question that’s rarely asked of agents. Ask it. The answer will tell you a lot about an agent.

Some more questions you can ask are:

• Are you a good negotiator?

• Can you tell me some of the main points you know about negotiation?

• Can you give me some examples of the results of your negotiating ability?

The Biggest Liar Gets the Job

When hiring a real estate agent, the biggest liar (the agent who quotes you the highest price) often gets the job. It’s an old (and very true) real estate saying.

Unfortunately many home sellers hire liars. This happens because people who hear what they want to hear don’t perceive the information as being a lie.

One of the best questions you can ask is:

• WHAT WILL YOU DO TO GET THE BEST PRICE FOR MY HOME?

Once you are satisfied with the answer then ask:

• WHAT PRICE DO YOU THINK YOU CAN SELL MY PROPERTY FOR?

Most agents will try hard to hedge around this question. They may be vague and say such things as “It depends on the market,” or they may use the common ploy of answering a question with a question, such as, “How much do you want?”

Sellers should stand firm and press the agent on this point by making such comments as:

You are the agent, you sell lots of properties in this area, surely you know how much you can sell my property for – even if you have to give me a range. After all, you are the expert, aren’t you?

Once the agent has given a [verbal] quote, ask the following:

1. Will you give me that quote in writing?

2. Do you usually sell properties for the price that you quote the sellers?

Regardless of the answers, don’t dwell too long on any point at this stage. Just keep the questions rolling…

It’s not what you pay an agent, but what they cost you, that counts.

• How much commission do you charge?

Most agents will talk about ‘standard rates’ or they will say that the rate is recommended by the Real Estate Institute – this is to soften the shock. Sellers should make comments such as:

Is your fee negotiable?

Have you ever reduced your fee for anyone?

If you should ask me to accept a lower price than the price you have quoted me, will you also accept a lower fee?

NOTE: Be wary of agents who cut their commission to get your business.

These agents are often poor performers who rely on discounts to get you to sign with them.

• What is it about you and your agency that makes you better than other agents?

This is a great question. The agents all want to say that they are “the best” but they will struggle to define what is meant by “best”. Of course, “best” to a seller means the highest price with the lowest risk and the lowest cost.

The Issue of Advertising

With almost every agent, advertising will be a big point. Be careful, this is the most common way in which thousands of home-owners lose thousands of dollars without selling their homes!

The Golden Rule when selling a home: Never pay any money for any reason to any agent until your home is sold and you are satisfied.

The Silver Rule is this: Don’t sign anything that requires you to pay any money [in the future] for any reason if your home is NOT sold.

Some agents will say “you don’t have to pay for advertising until your house has sold” but what they fail to mention (or make clear) is that if your home fails to sell you will still have to pay.

Here are some comments and questions that can be made to an agent which show the absurdity of the advertising policies in most real estate offices.

• Why do you expect me to pay for the advertising to find a buyer? Surely the commission should include advertising?

• Why should I pay twice – once for advertising and once for commission?

• If you put ads in the newspapers [and charge sellers for those ads] and the buyers are going to come via you, what are you doing that sellers can’t do for themselves?

• If you advertise my home and I pay for the ads and you get calls from buyers and those buyers buy a home other than mine, do you give me any money back? If not, why not?

• If I pay you [thousands of] dollars for advertising and you do not sell my property, what happens to the money I paid?

• I notice that your advertising has your name and the name of the agency prominently featured. Surely I don’t have to pay the cost of advertising you and your agency?

• Based on the length of time you have been in business and the number of people who contact your office, don’t you already have a list of buyers on your books?

• I am not going to be paying any money to any agent for any reason until my home is sold. Once my home is sold within the price range that you quoted me, I will be delighted to pay you a GENEROUS commission as a reward.

This is my firm policy as a seller. Do you accept my policy?

Random comments and questions… [or other ways to make the same major points] might include…

• I want an agent who will get me the highest price at the lowest cost with the lowest hassle and, of course, without any risk of loss if there is no sale. Are you comfortable with being able to meet these simple requests of mine?

• How many properties do you sell? (Let them ask you if you mean weekly, monthly or annually, to which you reply that the time frame doesn’t matter. You just want to know that they are capable of getting results).

• What provisions do you take to ensure the security and safety of my home when it is being shown to prospective buyers?

• If I find a buyer – such as a close friend or relative – will you want me to pay you any commission?

• Have you ever had any unhappy clients?

• What were they unhappy about?

• If I employ you and I am not happy with your performance, I want to be able to dismiss you without any penalty to me. Is this okay by you?

• The agent I choose will be given an initial time period of 30 days on the selling agreement between us. If my property is not sold in 30 days and if I’m happy with the performance of the agent, I will be happy to extend the term of the agent’s appointment. Is this okay by you?

SELLERS’ TERMS & CONDITIONS

Get the agent to agree to your terms BEFORE you agree to the agent’s terms.

Finally, the biggest and most important point of all for home sellers – DO NOT SIGN the document that the real estate agent asks you to sign – at least NOT on the agent’s first visit.

Ask the agent the following questions:

• If I decide to employ your agency to handle the sale of my home, what document will you be asking me to sign?

• Can I have a copy of that document so that I can get some independent advice about it?

• The following is the start of your final words to the agent at the end of the agent’s first visit…

As I am the owner of the home and as I will be employing an agent, I will be preparing a list of my own terms and conditions under which I employ an agent. I will be asking the agent to sign my terms and conditions before I sign any terms and conditions prepared by the agent. Further, if any of my terms conflict with the agent’s terms, then, of course, my terms will take precedence.

• Are you okay with me, as the owner of the home, telling you, the agent, what I require you to do?

Indian Real Estate, Property Portals and the 21st Century Real Estate Agent

Real estate agents? Hasn’t the internet gotten rid of them yet?

I hear this question all the time. Most people assume that property portals in India are working towards eliminating agents and facilitating direct interaction between seller and buyer. Though this is partially correct, real estate agents are the biggest customers of these portals and the portals are doing their bit to facilitate their growth. We interact with agents every day and we see most of them are doing good business. I want to take some time and explain the dynamics behind Indian real estate, the role agents’ play and how the role of agents’ is going to change in the future.

Note – Throughout this article, I’ve focused only on the rental and resale market and not gone into sale of new property by builders as the dynamics of that market are radically different. Also, the scope of this article is limited to Indian Real Estate.

“MakeMyTrip has eliminated travel agents. So why hasn’t the same happened to real estate agents?”

One needs to understand that ticketing is now a point-and-click industry – travel agents have been replaced by computers. The process of getting information about the journey AND purchasing the tickets can be done on the internet. Real estate is fundamentally an offline process. Though information aggregation is an important part of it, site visits, negotiations and paperwork all need to be done offline. Even from an owner/sellers perspective, renting out/selling a home isn’t as simple as listing it online – the process can stretch for months. This is where real estate agents step in – in guiding customers through the offline part of the transaction, bringing both parties to agree to the terms and finishing off the paper work.

Why aren’t property portals trying to eliminate agents and become virtual middlemen?

A property portal provides a platform for a seller and a buyer to interact (A seller can be an owner, builder or an agent). If we eliminate agents from this equation, portals are left with a C2C platform with property owners being the only source of inventory. Though many prefer a scenario like this, we need to figure out how the platform provider is going to monetize from this setup. They have the following options –

Listing fees – They can collect a fee from the owner/seller to list their property. There are few owners who’re willing to pay for premium listings (last time I checked, about 5% of owners listing online were willing to pay) but this is simply not enough to sustain the business. Indian consumers are ready to use a service which is free (free listings) OR pay for a service once it’s rendered (brokerage) but are not OK with anything in between.

Charge property seekers to get owner information – Another option would be to charge property seekers a fee to give them information about the owner who’s listed. This also isn’t a sustainable option because owners who list online tend to list on multiple portals and you can always finds a portal which gives you the owners information for free.

Brokerage fee when the deal is closed – This would be a great monetization scheme that everyone would be willing to pay for, but is very hard to implement. To do this, portals need to keep track of every deal that closes offline and that would be next to impossible.

There might be more options, but I don’t really see them becoming huge ‘revenue making machines’. Running a real estate portal is a VERY expensive affair and portals would need a solid revenue stream to offset that cost.

This is where Real Estate Agents step in: Agents are willing to spend good money to market their properties on a platform which would give them good leads. Property portals see this as a steady, sustainable revenue stream. This, seemingly, is a match made in heaven.

So, you’re saying property portals have made no dent in the brokerage industry?

Undoubtedly, they have. In a BIG way! With many owners listing their properties online, agents are starting to feel the heat. Coupled with the fact that the number of real estate agents has almost tripled in the last few years, you’ll see that the average real estate agent earned a LOT less in 2014 that he did in 2011. Agents are beginning to realize that there’s a paradigm shift and it’s time to mend their ways, before the game gets taken out of their hands. There needs to be a shift in their mentality and it needs to happen NOW.

Role of the 21st century real estate agent

10 years back, agents pretty much charged money for information arbitrage – “I have the contact information of the owner/tenant and you need to pay me money to get this contact” was the mantra and it has worked. A disproportionate amount of money was charged for this seemingly simple service and the world went on without a qualm primarily because there was no alternative. But now there is. Increased owner listings on portals, multifold increase in number of real estate agents, internal portals in corporate companies which help employees find accommodation, Facebook groups, etc. have all impacted the brokerage industry and there needs to be an overhaul.

Top 7 Mistakes Rookie Real Estate Agents Make

Every time I talk to someone about my business and career, it always comes up that “they’ve thought about getting into real estate” or know someone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more successful Realtors in the world? Well, there’s only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, makes it difficult for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New Real Estate Agents bring a lot of great qualities to the table – lots of energy and ambition – but they also make a lot of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.

1) No Business Plan or Business Strategy

So many new agents put all their emphasis on which Real Estate Brokerage they will join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents have never been in business for themselves – they’ve only worked as employees. They, mistakenly, believe that getting into the Real Estate business is “getting a new job.” What they’re missing is that they’re about to go into business for themselves. If you’ve ever opened the doors to ANY business, you know that one of the key ingredients is your business plan. Your business plan helps you define where you’re going, how you’re getting there, and what it’s going to take for you to make your real estate business a success. Here are the essentials of any good business plan:

A) Goals – What do you want? Make them clear, concise, measurable, and achievable.

B) Services You Provide – you don’t want to be the “jack of all trades & master of none” – choose residential or commercial, buyers/sellers/renters, and what area(s) you want to specialize in. New residential real estate agents tend to have the most success with buyers/renters and then move on to listing homes after they’ve completed a few transactions.

C) Market – who are you marketing yourself to?

D) Budget – consider yourself “new real estate agent, inc.” and write down EVERY expense that you have – gas, groceries, cell phone, etc… Then write down the new expenses you’re taking on – board dues, increased gas, increased cell usage, marketing (very important), etc…

E) Funding – how are you going to pay for your budget w/ no income for the first (at least) 60 days? With the goals you’ve set for yourself, when will you break even?

F) Marketing Plan – how are you going to get the word out about your services? The MOST effective way to market yourself is to your own sphere of influence (people you know). Make sure you do so effectively and systematically.

2) Not Using the Best Possible Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes a pretty big team to close a transaction – Buyer’s Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and sometimes more! As a Real Estate Agent, you are in the position to refer your client to whoever you choose, and you should make sure that anyone you refer in will be an asset to the transaction, not someone who will bring you more headache. And the closing team you refer in, or “put your name to,” are there to make you shine! When they perform well, you get to take part of the credit because you referred them into the transaction.

The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They get together and decide that, through their combined marketing efforts, they can take over the world! They’re both focusing on the right part of their business – marketing – but they’re doing each other no favors by choosing to give each other business. If you refer in a bad insurance agent, it might cause a minor hiccup in the transaction – you make a simple phone call and a new agent can bind the property in less than an hour. However, because it typically takes at least two weeks to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself in a position of “begging for a contract extension,” or worse, being denied a contract extension.

A good closing team will typically know more than their role in the transaction. Due to this, you can turn to them with questions, and they will step in (quietly) when they see a potential mistake – because they want to help you, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business…and best of all, it’s free!

3) Not Arming Themselves with the Necessary Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment that will cost between $700 and $900 (not taking into account the amount of time you’ll invest.) However, you’ll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And don’t fool yourself – they are necessary – because your competitors are definitely using every tool to help THEM.

Real Estate Agents and the Internet – How to Buy and Sell Real Estate Today

Then and Now

Ten years ago, a search for real estate would have started in the office of a local real estate agent or by just driving around town. At the agent’s office, you would spend an afternoon flipping through pages of active property listings from the local Multiple Listing Service (MLS). After choosing properties of interest, you would spend many weeks touring each property until you found the right one. Finding market data to enable you to assess the asking price would take more time and a lot more driving, and you still might not be able to find all of the information you needed to get really comfortable with a fair market value.

Today, most property searches start on the Internet. A quick keyword search on Google by location will likely get you thousands of results. If you spot a property of interest on a real estate web site, you can typically view photos online and maybe even take a virtual tour. You can then check other Web sites, such as the local county assessor, to get an idea of the property’s value, see what the current owner paid for the property, check the real estate taxes, get census data, school information, and even check out what shops are within walking distance-all without leaving your house!

While the resources on the Internet are convenient and helpful, using them properly can be a challenge because of the volume of information and the difficulty in verifying its accuracy. At the time of writing, a search of “Denver real estate” returned 2,670,000 Web sites. Even a neighborhood specific search for real estate can easily return thousands of Web sites. With so many resources online how does an investor effectively use them without getting bogged down or winding up with incomplete or bad information? Believe it or not, understanding how the business of real estate works offline makes it easier to understand online real estate information and strategies.

The Business of Real Estate

Real estate is typically bought and sold either through a licensed real estate agent or directly by the owner. The vast majority is bought and sold through real estate brokers. (We use “agent” and “broker” to refer to the same professional.) This is due to their real estate knowledge and experience and, at least historically, their exclusive access to a database of active properties for sale. Access to this database of property listings provided the most efficient way to search for properties.

The MLS (and CIE)

The database of residential, land, and smaller income producing properties (including some commercial properties) is commonly referred to as a multiple listing service (MLS). In most cases, only properties listed by member real estate agents can be added to an MLS. The primary purpose of an MLS is to enable the member real estate agents to make offers of compensation to other member agents if they find a buyer for a property.

This purposes did not include enabling the direct publishing of the MLS information to the public; times change. Today, most MLS information is directly accessible to the public over the Internet in many different forms.

Commercial property listings are also displayed online but aggregated commercial property information is more elusive. Larger MLSs often operate a commercial information exchange (CIE). A CIE is similar to an MLS but the agents adding the listings to the database are not required to offer any specific type of compensation to the other members. Compensation is negotiated outside the CIE.

In most cases, for-sale-by-owner properties cannot be directly added to an MLS and CIE, which are typically maintained by REALTOR associations. The lack of a managed centralized database can make these properties more difficult to locate. Traditionally, these properties are found by driving around or looking for ads in the local newspaper’s real estate listings. A more efficient way to locate for-sale-by-owner properties is to search for a for-sale-by-owner Web site in the geographic area.

What is a REALTOR? Sometimes the terms real estate agent and REALTOR are used interchangeably; however, they are not the same. A REALTOR is a licensed real estate agent who is also a member of the NATIONAL ASSOCIATION OF REALTORS. REALTORS are required to comply with a strict code of ethics and conduct.

MLS and CIE property listing information was historically only available in hard copy, and as we mentioned, only directly available to real estate agents members of an MLS or CIE. About ten years ago, this valuable property information started to trickle out to the Internet. This trickle is now a flood!

One reason is that most of the 1 million or so REALTORS have Web sites, and most of those Web sites have varying amounts of the local MLS or CIE property information displayed on them. Another reason is that there are many non-real estate agent Web sites that also offer real estate information, including, for-sale-by-owner sites, foreclosure sites, regional and international listing sites, County assessor sites, and valuation and market information sites. The flood of real estate information to the Internet definitely makes the information more accessible but also more confusing and subject to misunderstanding and misuse.

Addicted to Real Estate – Why I Can’t Stop and Why You Should Start

The All-Money-Down Technique

So how does the all-money-down technique work by purchasing a home with cash? First of all, let me repeat that I really didn’t have any cash, but I had a significant amount of equity from Terry’s home and several homes that I owned put together to give me a substantial cash down payment. Banks and mortgage companies alike will accept money from a home-equity line of credit as cash to purchase a home. At least they did in 1997 under the financial guidelines of the day. What you must remember about mortgages and lending is that the guidelines change constantly, so this technique I used in 1997 may or may not be able to be used in the future. Whether it is or isn’t able to be used again doesn’t really matter to me as I believe that there will always be a way to buy real estate with limited money down sooner or later. There will always be a technique to acquire real estate but exactly how that will be done in the future I’m not completely sure.

I began purchasing homes in the Mayfair section of Philadelphia with the prices in the $30,000 to $40,000 per home price range. I would purchase a home with three bedrooms and one bathroom on the second floor with a kitchen, dining room, and living room on the first floor and a basement. What we call a row home in Philadelphia would consist of a porch out front and a backyard the width of the home. Most row homes in Philadelphia are less than twenty-two feet wide. For those of you who are not from Philadelphia and can’t picture what a Philadelphia row home looks like, I suggest you watch the movie Rocky. Twenty-two homes on each side of every block will really test your ability to be a neighbor. Things that will usually cause an argument with your Philadelphia neighbors often stem from parking, noise your children make, where you leave your trash cans, parties, and the appearance of your home.

In 1998 my girlfriend and I moved in together and to the suburbs of Philadelphia called Warminster. After living on a street in Tacony, much like Rocky did, I really looked forward to having space between my home and my next-door neighbor. I told Terry not to even think about talking with the people who lived next door to us. I told her if one of them comes over with a fruitcake I am going to take it and punt it like a football right into their backyard. I believe I was suffering from Philadelphia row home syndrome. My new neighbors in Warminster turned out to be wonderful people, but it took me eighteen months before I was willing to learn that.

So you just bought your row home for $35,000 in Mayfair, and after $2000 in closing costs and $5000 in repair costs, you find yourself a good tenant who wants to rent the home. After renting the home with a positive cash flow of $200 a month, you now have an outstanding debt of $42,000 on your home equity line of credit that will have to be paid off. When purchasing the home, I did not get a mortgage as I just purchased a home for cash as it is said in the business. All monies I spent on this house were spent from the home-equity line of credit.

The move now is to pay off your home-equity line of credit so you can go do it again. We now go to a bank with your fixed-up property and tell the mortgage department that you want to do a cash-out refinancing of your real estate investment. It helps to explain that the neighborhood you purchase your property in should have a wider range of pricing as the neighborhood of Mayfair did in the mid-90s. The pricing of homes in Mayfair is quite unusual as you would see a $3000 difference in home values from one block to the next. This was important when doing a cash-out refinancing because it’s pretty easy for the bank to see that I just bought my property for $35,000 regardless of the fact that I did many repairs. I could justify the fact that I’ve spent more money on my home to fix it up, and by putting a tenant in, it was now a profitable piece of real estate from an investment standpoint.

If I was lucky like I was many times over doing this system of purchasing homes in Mayfair and the appraiser would use homes a block or two away and come back with an appraisal of $45,000. Back then there were programs allowing an investor to purchase a home for 10 percent down or left in as equity doing a 90 percent cash out refinance giving me back roughly $40,500. Utilizing this technique allowed me to get back most of the money I put down on the property. I basically paid just $1,500 down for this new home. Why did the mortgage companies and the appraisers keep giving me the numbers I wanted? I assume because they wanted the business. I would only tell the bank I need this to come in at $45,000 or I am just keeping it financed as is. They always seemed to give me what I wanted within reason.

This whole process took three to four months during which time I may have saved a few thousand dollars. Between the money I saved from my job and my investments and cash out refinancing, I had replenished most or all of my funds from my home-equity line of credit that was now almost back to zero to begin the process again. And that is exactly what I intended to do. I used this system to purchase four to six homes a year utilizing the same money to purchase home after home after home over and over again. In reality, the technique is a no-money down or little money down technique. At the time maybe I had $60,000 in available funds to use to buy homes off of my HELOC, so I would buy a home and then replenish the money. It was a terrific technique that was legal, and I could see my dream of being a real estate investor full-time coming to an eventual reality even though I wasn’t there yet.

During the years from 1995 to 2002, the real estate market in Philadelphia made gradual increases of maybe 6 percent as each year went on. I began to track my net worth that was 100 percent equity, meaning I had no other forms of investments to look at when calculating my net worth. Generally speaking, the first five years of my real estate career did not go well because of the bad decisions I made purchasing buildings and the decline in the market. Furthermore, my lack of knowledge and experience in repairs made it a rough. The second five years of my real estate career that I just finished explaining didn’t make much money either. I supported myself primarily through my career as a salesman, but I could definitely see the writing on the wall that down the road real estate was going to be my full-time gig.

Realty Professionals of America

I own an office building that has a real estate company as a tenant called Realty Professionals of America. The company has a terrific plan where a new agent receives 75 percent of the commission and the broker gets only 25 percent. If you don’t know it, this is a pretty good deal, especially for a new real estate agent. The company also offers a 5 percent sponsorship fee to the agent who sponsors them on every deal they do. If you bring an individual who is a realtor in to the company that you have sponsored, the broker will pay you a 5 percent sponsorship out of the broker’s end so that the new realtor you sponsored can still earn 75 percent commissions. In addition to the above, Realty Professionals of America offers to increase the realtor’s commission by 5 percent after achieving cumulative commission benchmarks, up to a maximum of 90 percent. Once a commission benchmark is reached, an agent’s commission rate is only decreased if commissions in the following year do not reach a lower baseline amount. I currently keep 85 percent of all my deals’ commissions; plus I receive sponsorship checks of 5 percent from the commissions that the agents I sponsored earn. If you’d like to learn more about being sponsored into Realty Professionals of America’s wonderful plan, please call me directly at 267-988-2000.

Getting My Real Estate License

One of the things that I did in the summer of 2005 after leaving my full-time job was to make plans to get my real estate license. Getting my real estate license was something I always wanted to do but never seemed to have the time to do it. I’m sure you’ve heard that excuse a thousand times. People always say that they’re going to do something soon as they find the time to do it, but they never seem to find the time, do they? I try not to let myself make excuses for anything. So I’ve made up my mind before I ever left my full-time job that one of the first things I would do was to get my real estate license. I enrolled in a school called the American Real Estate Institute for a two-week full-time program to obtain my license to sell real estate in the state of Pennsylvania. Two terrific guys with a world of experience taught the class, and I enjoyed the time I spent there. Immediately after completing the course at the American Real Estate Institute, I booked the next available day offered by the state to take the state exam. My teachers’ advice to take the exam immediately after the class turned out to be an excellent suggestion. I passed the exam with flying colors and have used my license many times since to buy real estate and reduce the expenses. If you are going to be a full-time real estate investor or a commercial real estate investor, then you almost have to get a license. While I know a few people who don’t believe this, I’m convinced it’s the only way.

The Keys to Success to Investing in Real Estate

Most real estate professionals flunk within the first few months of trying to create a business enterprise out of real estate investing. The trick begins with a beneficial marketing plan and then practicing a disciplined effort to the marketing plan on a even basis. There is a lot more required to succeed, and you will encounter more tips, tricks and unique real estate marketing techniques in this article.

Is there anyone in your town that doesn’t recognize that you buy homes or that you are a real estate professional? If so, you aren’t performing as well at marketing or rendering real estate investing information about your real estate investing business enterprise as well you could be. I find out real estate investors telling all the time that they aren’t receiving seller phone calls and subsequently aren’t receiving the leads they need to find the real estate business deals they require to earn a living. I say increase the marketing and the sellers will Call. Not only that but if you are canvassing the world (or at least your area) that you buy problem real estate holdings, eventually you will be acknowledged for what you do and sellers will telephone you strictly on your reputation. this is what is called cost effective marketing.

One real estate professional was in a home, garden and hardware store a few calendar weeks ago and went past a couple of guys in an aisle. A conversation was heard while he walked by, I overheard one state, “That is the real estate man”. Now I had never known either of those men and have no idea who they are but that experience lets me acknowledge that I must be doing my business at letting the world to recognize my business is buying real estate in that area. There are many ways to let the area know that you are in the real estate investing profession and getting information out there that helps people realize you buy foreclosures, distressed real estate, do real estate short sales and have got a lot of real estate information and experience to flip properties. Some methods are cheap and some are more expensive. You are going to have to attempt many things and acquire a feel for what brings about for you the best results in your region to get the calls you require to transact real estate deals. I have tried many forms of marketing methods for real estate commercial enterprises of all varieties and have come back to a few that consistently create enough leads for me to purchase the 2 or 3 real estate holdings and houses I want to purchase every single calendar month. They are as follows:

Classified Ads

The classified advertisement in the most prominent newspaper in the region is by far the heaviest producer of leads for local real estate investors that I have determined. I understand it is costly and I understand there are instances it does not generate phone calls but if you are going to persist in the real estate investing business sector just place it in there and leave it. Get used to it making up part of the toll of performing the real estate business. You may expend about $350.00 a calendar month for my 4 line ad and that is the commercial range. I’d consider running it 365 days a year to constantly cue everyone that you are a real estate professional and you purchase real estate in their region.

Over the past few or so years I have watched many “real estate investor” ads come and go. Most folks put them in for a many or even just a couple of calendar weeks and then remove them or try just placing them in on the week ends. Real Estate Marketing just simply does not work this way. Put your real estate ad in the paper and leave it in there. It will more than make up for the price, trust me, and you will see after you finish your first deal. If you are distressed because there are real estate investors ads from many other investors in there, don’t be. They are there because they are getting responses. Just be sure to and actually answer your cell phone and keep it on all the time otherwise you’ll be squandering money.

When a fresh ad for real estate investor information shows up in my newspaper, I will always call on the advertisement. 9 times out of 10 I get a message device or answering service. This is a significant turn off to somebody who needs a resolution to their real estate trouble now. They want to speak to a person who can quiet their anxiety over their current issues with their home and tell them everything is going to be ok. Your answering device won’t do that, they need a human being. As for what to put in the advertising, you will have to work on this one. I have tried various idea and the one I have now hast not changed for over 4 years. I haven’t switched it because I get responses. My ad is:

We Pay CASH FOR HOMES In 24 Hours! Any area, price or condition
Now I have had other real estate professionals jockey for place and interchange their ad copy to be leading of mine in the column but it has not made whatsoever difference, at least as far as I can discern. Don’t worry about those things, just get the advertising out there and leave it. It could possibly take a bit of time, perhaps a several weeks to get going but sellers will telephone. As soon as you have your classified advertising running, then you should start working on your other marketing techniques right away. If you only go through one idea a week, within a few weeks or a couple of months you will have a significantly powerful real estate purchasing process.

Ads in the “Freebie” Papers

You might also run advertisements in the freebie papers in your local region or the region you want to conduct real estate investment deals. These are the “Thrifty Nickel”, or whatever they are named in your region. We run both a column ad and a display in this newspaper and expend about $175.00 or so a calendar month for these ads. They pull in seller leads reasonably well and have always rationalized the costs. Remember that these guys are usually open to talking terms on your rates and you will probably get a better rate if you commit to a longer advertising agreement.

Bandit Signs or Road Signs.

Bandit signs are great. They are some of the best lead producing tools around. I have yet to put out a bunch and not be bombed with calls right after I arranged my marketing. I just don’t position them out that often. I might place out a few to a half dozen or so a calendar month and the ones that continue and don’t get taken down continue to pull in phone calls. At an average price of less than $4.00 per sign, they are one of the greatest real estate marketing and advertising values available. Check the net for sign manufacturers for discount signage costs. I use 18 x 24 signs and set them at high traffic crossings around the town I wish to purchase houses in.

I also position a sign in the front yard immediately after purchasing any house. I have purchased several homes in the same regions as a result of marketing this way.

You can either use wood stakes or the wire stakes with your signs. I like the wood stakes because they do not bend like the wire ones, in addition, they are more less expensive and you can find just about any reasonably sized stick of wood or stake at your local hardware store for a really good value. Just get long lengths and trim down to fit. Then just nail the sign to it with the roofing nails with the orange or green plastic tops or you can use screws. There are many variants on what the wording on the sign can say. Keep in mind that traffic will be moving so you want to keep your message short and simple so it may be read. Plus your telephone number must be big, large and easy to read.

A Guide to Investments in Indian Real Estate

Real estate has traditionally been an avenue for considerable investment per se and investment opportunity for High Net-worth Individuals, Financial institutions as well as individuals looking at viable alternatives for investing money among stocks, bullion, property and other avenues.

Money invested in property for its income and capital growth provides stable and predictable income returns, similar to that of bonds offering both a regular return on investment, if property is rented as well as possibility of capital appreciation. Like all other investment options, real estate investment also has certain risks attached to it, which is quite different from other investments. The available investment opportunities can broadly be categorized into residential, commercial office space and retail sectors.

Investment scenario in real estate

Any investor before considering real estate investments should consider the risk involved in it. This investment option demands a high entry price, suffers from lack of liquidity and an uncertain gestation period. To being illiquid, one cannot sell some units of his property (as one could have done by selling some units of equities, debts or even mutual funds) in case of urgent need of funds.

The maturity period of property investment is uncertain. Investor also has to check the clear property title, especially for the investments in India. The industry experts in this regard claim that property investment should be done by persons who have deeper pockets and longer-term view of their investments. From a long-term financial returns perspective, it is advisable to invest in higher-grade commercial properties.

The returns from property market are comparable to that of certain equities and index funds in longer term. Any investor looking for balancing his portfolio can now look at the real estate sector as a secure means of investment with a certain degree of volatility and risk. A right tenant, location, segmental categories of the Indian property market and individual risk preferences will hence forth prove to be key indicators in achieving the target yields from investments.

The proposed introduction of REMF (Real Estate Mutual Funds) and REIT (Real Estate Investment Trust) will boost these real estate investments from the small investors’ point of view. This will also allow small investors to enter the real estate market with contribution as less as INR 10,000.

There is also a demand and need from different market players of the property segment to gradually relax certain norms for FDI in this sector. These foreign investments would then mean higher standards of quality infrastructure and hence would change the entire market scenario in terms of competition and professionalism of market players.

Overall, real estate is expected to offer a good investment alternative to stocks and bonds over the coming years. This attractiveness of real estate investment would be further enhanced on account of favourable inflation and low interest rate regime.

Looking forward, it is possible that with the progress towards the possible opening up of the real estate mutual funds industry and the participation of financial institutions into property investment business, it will pave the way for more organized investment real estate in India, which would be an apt way for investors to get an alternative to invest in property portfolios at marginal level.

Investor’s Profile

The two most active investor segments are High Net Worth Individuals (HNIs) and Financial Institutions. While the institutions traditionally show a preference to commercial investment, the high net worth individuals show interest in investing in residential as well as commercial properties.

Apart from these, is the third category of Non-Resident Indians (NRIs). There is a clear bias towards investing in residential properties than commercial properties by the NRIs, the fact could be reasoned as emotional attachment and future security sought by the NRIs. As the necessary formalities and documentation for purchasing immovable properties other than agricultural and plantation properties are quite simple and the rental income is freely repatriable outside India, NRIs have increased their role as investors in real estate

Foreign direct investments (FDIs) in real estate form a small portion of the total investments as there are restrictions such as a minimum lock in period of three years, a minimum size of property to be developed and conditional exit. Besides the conditions, the foreign investor will have to deal with a number of government departments and interpret many complex laws/bylaws.

The concept of Real Estate Investment Trust (REIT) is on the verge of introduction in India. But like most other novel financial instruments, there are going to be problems for this new concept to be accepted.

Real Estate Investment Trust (REIT) would be structured as a company dedicated to owning and, in most cases, operating income-producing real estate, such as apartments, shopping centres, offices and warehouses. A REIT is a company that buys, develops, manages and sells real estate assets and allows participants to invest in a professionally managed portfolio of properties.

Some REITs also are engaged in financing real estate. REITs are pass-through entities or companies that are able to distribute the majority of income cash flows to investors, without taxation, at the corporate level. The main purpose of REITs is to pass the profits to the investors in as intact manner as possible. Hence initially, the REIT’s business activities would generally be restricted to generation of property rental income.

The role of the investor is instrumental in scenarios where the interest of the seller and the buyer do not match. For example, if the seller is keen to sell the property and the identified occupier intends to lease the property, between them, the deal will never be fructified; however, an investor can have competitive yields by buying the property and leasing it out to the occupier.

Rationale for real estate investment schemes

The activity of real estate includes a wide range of activities such as development and construction of townships, housing and commercial properties, maintenance of existing properties etc.

The construction sector is one the highest employment sector of the economy and directly or indirectly affects the fortunes of many other sectors. It provides employment to a large work force including a substantial proportion of unskilled labor. However for many reasons this sector does not have smooth access to institutional finance. This is perceived as one of the reasons for the sector not performing to its potential.

By channeling small savings into property, investments would greatly increase access to organized institutional finance. Improved activity in the property sector also improves the revenue flows to the State exchequer through-increased sales-tax, octroi and other collections.

Real estate is an important asset class, which is under conventional circumstances not a viable route for investors in India at present, except by means of direct ownership of properties. For many investors the time is ripe for introducing product to enable diversification by allocating some part of their investment portfolio to real estate investment products. This can be effectively achieved through real estate funds.

Property investment products provide opportunity for capital gains as well as regular periodic incomes. The capital gains may arise from properties developed for sale to actual users or direct investors and the income stream arises out of rentals, income from deposits and service charges for property maintenance.

Advantages of investment in real estate

The following are the advantages for investing in Real Estate Investment Schemes

• As an asset class, property is distinct from the other investment avenues available to a small as well as large investor. Investment in property has its own methodology, advantages, and risk factors that are unlike those for conventional investments. A completely different set of factors, including capital formation, economic performance and supply considerations, influence the realty market, leading to a low correlation in price behaviour vis-à-vis other asset classes.

• Historically, over a longer term, real estate provides returns that are comparable with returns on equities. However, the volatility in prices of realty is lower than equities leading to a better risk management to return trade-off for the investment.

• Real estate returns also show a high correlation with inflation. Therefore, real estate investments made over long periods of time provide an inflation hedge and yield real returns

Risks of investment in real estate

The risks involved in investing in real estate are primarily to do with future rental depreciation or general property market risk, liquidity, tenancy risk and property depreciation. The fundamental factors affecting the value of a specific property are:

Location – The location of a building is crucially important and a significant factor in determining its market value. A property investment is likely to be held for several years and the attractiveness of a given location may change over the holding period, for the better or worse. For example, part of a city may be undergoing regeneration, in which case the perception of the location is likely to improve. In contrast, a major new shopping center development may reduce the appeal of existing peaceful, residential properties.

Physical Characteristics – The type and utility of the building will affect its value, i.e. an office or a shop. By utility is meant the benefits an occupier gets from utilizing space within the building. The risk factor is depreciation. All buildings suffer wear and tear but advances in building technology or the requirements of tenants may also render buildings less attractive over time. For example, the need for large magnitude of under-floor cabling in modern city offices has changed the specifications of the required buildings’ space. Also, a building which is designed as an office block may not be usable as a Cineplex, though Cineplex may serve better returns than office space.

Tenant Credit Risk – The value of a building is a function of the rental income that you can expect to receive from owning it. If the tenant defaults then the owner loses the rental income. However, it is not just the risk of outright default that matters. If the credit quality of the tenant were to deteriorate materially during the period of ownership then the sale value will likely be worse than it otherwise would have been.

Lease Length – The length of the leases is also an important consideration. If a building is let to a good quality tenant for a long period then the rental income is assured even if market conditions for property are volatile. This is one of the attractive features of property investment. Because the length of lease is a significant feature, it is important at the time of purchase to consider the length of lease at the point in time when the property is likely to be re-occupied. Many leases incorporate break options, and it is a standard market practice to assume that the lease will terminate at the break point.

Liquidity – All property investment is relatively illiquid to most bonds and equities. Property is slow to transact in normal market conditions and hence illiquid. In poor market conditions it will take even longer to find a buyer. There is a high cost of error in property investments. Thus, while a wrong stock investment can be sold immediately, undoing a wrong real estate investment may be tedious and distress process.

Tax Implications – Apart from income tax which is to be paid on rental income and capital gains, there are two more levies which have to be paid by the investor i.e. property tax and stamp duty. The stamp duty and property tax differ from state to state and can impact the investment returns ones expected from a property.

High Cost Of Investment – Real Estate values are high compared to other forms of investment. This nature of real estate investment puts it out of reach of the common masses. On the other hand, stocks and bonds can now be bought in quantities as small as-one share, thus enabling diversification of the portfolio despite lower outlays. Borrowing for investment in real estate increases the risks further.

Risk Of Single Property – Purchasing a single – property exposes the investor to specific risks associated with the property and does not provide any benefits of diversification. Thus, if the property prices fall, the investor is exposed to a high degree of risk.

Distress Sales – Illiquidity of the real estate market also brings in the risk of lower returns or losses in the event of an urgent need to divest. Distress sales are common in the real estate market and lead to returns that are much lower than the fair value of the property.

Legal Issues – While stock exchanges guarantee, to a certain extent, the legitimacy of a trade in equities or bonds and thus protect against bad delivery or fake and forged shares, no similar safety net is available in the property market. It is also difficult to check the title of a property and requires time, money and expertise.

Overall keeping an eye on market trends can reduce most of these risks. For instance, investing in properties where the rentals are at market rates, also, investing in assets that come with high-credit tenants and looking for lease lock-ins to reuse tenancy risk are simple guidelines to follow.

Future Outlook

The real estate market is witnessing a heightened activity from year 2000 both in terms of magnitude of space being developed as well as rational increase in price. Easy availability of housing loans at much lesser rates has encouraged people who are small investors to buy their own house, which may well be their second home too.

Advantages of Real Estate Investing

Investing in real estate is as advantageous and as attractive as investing in the stock market. I would say it has three times more prospects of making money than any other business. But, But, But… since, it is equally guided by the market forces; you cannot undermine the constant risks involved in the real estate. Let me begin discussing with you the advantages of real estate investments. I found the advantages as most suited and really practical.

Advantages

Real Estate Investments are Less Risky

As compared to other investments, less of misadventure is involved in a real estate property. I will not get away from the fact that just like any investment you make; you have the risk of losing it. Real estate investments are traditionally considered a stable and rich gainer, provided if one takes it seriously and with full sagacity. The reasons for the real estate investments becoming less risky adventure primarily relate to various socio-economic factors, location, market behavior, the population density of an area; mortgage interest rate stability; good history of land appreciation, less of inflation and many more. As a rule of thumb, if you have a geographical area where there are plenty of resources available and low stable mortgage rates, you have good reason for investing in the real estate market of such a region. On the contrary, if you have the condo in a place, which is burgeoning under the high inflation, it is far-fetched to even think of investing in its real estate market.

No Need for Huge Starting Capital

A real estate property in Canada can be procured for an initial amount as low as $8,000 to $ 15,000, and the remaining amount can be taken on holding the property as security. This is what you call High Ratio Financing. If you don’t have the idea as to how it works, then let me explain you with the help of an example. Remember that saying… Examples are better than percepts! There are a lot of services where you can buy essay such as: http://customessayorder.com/, http://essaykitchen.com/, http://perfectessay.com/, make your own choice!

Supposing, you buy a condo worth $200,000, then you have to just pay the initial capital amount say 10% of $200,000. The remaining amount (which is 90%) can be financed, against your condo. It means that in a High Ratio financing, the ratio between the debt (here in the example it is 90% Mortgage) and the equity (here in the example it is 10% down payment) is very high. It is also important to calculate high ratio mortgage insurance with the help of Canada Mortgage and Housing Corporation (CMHC). If needed, you can also purchase the condo on 100% mortgage price.

Honing Investment Skills

A real estate investment, especially when you buy a condo for yourself, will be a pleasurable learning experience. It gives you the opportunity to learn and when I went ahead with my first real estate property, I was totally a dump man. Ask me now, and I can tell you everything, from A to Z. Necessity is the mother of all inventions. I had the necessity to buy the property and so I tried with it, and I was successful. I acquired all the knowledge and skills through experience of selling and purchasing the residential property. Thanks to my job. It gave me the experience to become an investor.

Not a time taking Adventure

Real estate investment will not take out all your energies, until you are prepared and foresighted to take the adventure in full swing. You can save hell lot of time, if you are vigilant enough to know the techniques of making a judicious investment in the right time and when there are good market conditions prevailing at that point of time.

You should be prepared to time yourself. Take some time out, and do market research. Initiate small adventures that involve negotiating real estate deals, buying a property, managing it and then selling it off. Calculate the time invested in your real estate negotiation. If the time was less than the optimum time, you have done it right. And if you end up investing more time, then you need to work it out again, and make some real correction for consummating next deals. You have various ways and methodologies, called the Real Estate Strategies that can make it happen for you in the right manner.

Leverage is the Right Way

The concept of leverage in real estate is not a new one. It implies investing a part of your money and borrowing the rest from other sources, like banks, investment companies, finance companies, or other people’s money (OPM). There have been many instances where people have become rich by practically applying OPM Leverage Principal. As I had discussed under the sub head – No Need for Huge Starting Capital, the high ratio financing scheme gives an opportunity of no risk to the lenders, as the property becomes the security. Moreover, in case the lender is interested in selling the property, the net proceeds resulting from the sale of the property should comfortably cover the mortgage amount.

Real Estate Leads For Realtors

Because real estate prices have dropped quite a bit, the potential commissions that real estate agents and brokers could earn have also dropped. But the drop in commissions can be more than offset by the amount of properties that can be sold. And getting quality real estate leads is one of the keys to making this a reality for real estate professionals. This is because there are so many more properties on the market now than there were before the bubble burst.

The rise in the number of homeowners who are underwater on their mortgages has increased so much that a very large number of them have decided that they cannot afford to stay in their homes. They would rather sell their home and buy a comparable home for a much lower price, and take the loss so that they can improve their cash flow situation by having a lower mortgage payment each month. And since there is no shortage of properties to buy, these people had no problem finding a suitable home for a good price.

And another result of the rise in available properties is that more and more people are becoming first-time homeowners. Since prices on homes are falling, more and more people are able to afford a home for the same amount they are currently paying in rent. So the logical choice for these people is to buy a house rather than continuing to rent.

These factors all lead to one thing – a higher need for real estate agents to help the buying and selling of all of these properties. Therefore, even though prices have fallen, the quantity of available properties, buyers, and sellers has raised which more than makes up for the lower prices in terms of how much a given real estate agent could make in the current real estate market. And as we all know, the more clients a real estate agent has, the more properties they’ll sell and the more money they’ll make.

The problem comes in when a real estate agent has already gone through their current client list. The best way for them to get more clients is to somehow obtain more real estate leads. Not only do they need more leads, they need high quality leads if they are going to be successful in converting a high number of them into clients who actually follow through on buying and/or selling one or more properties.

So how can you get more real estate leads? There are of course many different ways. These include buying them from an agency that offers them, advertising, subscribing to lead generation websites, developing and keeping current your own real estate website that draws potential

clients to it, and best of all by getting them through your own network. There are undoubtedly other ways of generating real estate leads as well, but these are the most common methods – all of which have proven to work to a certain degree.

One of the easiest ways to get real estate leads is by purchasing them. There are companies whose sole purpose is to find people who want to buy or sell a property. They then sell this information to people who are willing to pay for it. So if you are a real estate agent looking for real estate leads and either don’t have the time to find your own, or simply don’t want to, then this may be a good option for you.

There are two different major ways to do this. You can purchase the real estate leads from a company as a set of data that you will get in the form of a list or spreadsheet. Then you will need to start sifting through them and using the data available to qualify and categorize them yourself. And after that, it’s time to start making calls to find out they are valid leads or not.

The other way of purchasing real estate leads is by subscribing to a real estate lead generator website that will send you much smaller lists of leads on a regular basis. This can be nice because the information is likely to be much more current than buying a single very large list of leads. But this also means that there are fewer to work with so it doesn’t give you as much freedom in terms of choosing who to contact first.

Purchasing real estate leads or subscribing to a lead generation website can also be expensive. This can be a very bad thing since the whole intent of buying leads is to find clients, sell properties, and make commissions, if the leads that you buy don’t turn into commissions. In that case, not only did you not sell any properties (or many properties), but you wasted money on worthless information, and you wasted time contacting worthless leads when you could have been working on finding good real estate leads instead.

Another way to generate real estate leads is by advertising. If you are a real estate agent, broker, or business person, advertising your services may be a good way to generate real estate leads. This type of lead generation is great because rather than you doing the work to find people who want to buy or sell a property, the tables are turned and they come looking for you instead.

In addition to having people try to find you instead of you trying to find them, there is another benefit to advertising to generate real estate leads. The people who are trying to find you are already definitely interested in buying or selling a property. This means that you don’t have to worry about whether they are going to turn out to be qualified leads or not, because they definitely will be.