There are many ways to make money from immovable property. While you being an outstanding agent yourself on your local market, by investing in real estate you can increase your income and net worth. Ultimately, you are already experienced with real estate buying and selling, so why not use this knowledge to create your own investment portfolio?!
Here are 6 most important perks that you have when dealing in property as a real estate agent.
Expertise in the local housing market
The most important privilege you have as an agent over other buyers is your comprehensive understanding of all the factors and developments in the real estate market where you are employed. Even though real estate investment does not need prior understanding and can be obtained by online educational resources, no education and web research can ever overcome the scope of experience and professionalism that you have after years of buying and selling real estate in your area.
In addition to recent and anticipated changes in home values, brokers are aware with rental market trends as well. Agents know which type of property and what facilities are most required by tenants in their particular location and offer the highest profit.
Agents can determine at speed and with ease whether buying a rental property is a smart decision for their business and can automatically identify the most valuable properties. This gives them a significant competitive advantage over other investors who have to wait weeks or even months to come up with similar results.
Able to carry out your own research
Usually, it takes several months for a regular person to research a property market, search for housing, and find a good arrangement that suits their budget. As you can guess, the good deals will have long been taken up by professional buyers before a potential part-time buyer is ready to move on with buying a property. Agents can easily can be considered investors with expertise in real estate, as they they buy and sell property regularly.
Analysis of the real estate is important for the success of any investment in the property. It is necessary to be aware of the current market situation, the equitable price of the type of property that you are looking at, and the type of returns that you can anticipate from a rental real estate. You are already aware of the state of the housing market as a real estate agent as that is how you make your commissions. In addition, you can do your own Comparative Market Analysis (CMA) to determine what price is fair for the investment property you wish to purchase. Moreover, you have the run on all the data and tools on real estate to make an analysis of the ROI value of available properties for sale in your area.
All above means, that as soon as it becomes accessible you can get directly to a good deal, without spending your precious time on market analysis.
Access to all deals with a good potential
You have access to the Multiple Listing Services database as a real estate agent which usual investors do not. That is the exact reason why so many of them decide to hire a professional instead of investing on their own. In fact, you walk through the market daily and will see any “For Rent” signage right away on property not listed on the MLS. In the meantime, you ‘re already familiar with the neighborhood’s mortgage operations, and know where to find the best precluded properties, bank-owned homes, and local market short sales. You also have access to off-market property, one of the best sources of cheap real estate, across your network-to be explored in some depth.
The agents see the best deals in the real estate market first because of their job characteristics. They don’t have to offer them to their clients as soon as they find profitable investment properties for sale but can purchase them themselves. That is a premium privilege most investors just simple have no access to.
Financing is one of the most daunting problems faced by first time real estate investors. Most of them don’t have enough funds to cover a purchase of an investment property, so they experience limited knowledge of other financing opportunities such as FHA loans, conventional mortgages, private money lenders, many more.
Your experience and networking in the immovable property sector once again come as a useful asset in this area. You are perfectly familiar with the mortgage requirements and interest rates in your area, after assisting your clients to sort out their loan so many times. In addition, you have easy access to various alternative lenders and financiers via your real estate network. The fact you are a specialist in real estate would cause them to trust you and choose you instead of other investors who are interested in their assistance.
Immovable Property Network
Connections in real estate play an important role, and you, as an agent, know perfectly. It is important to know the right people not only when buying and selling property for your customers, but also when buying your own real estate. You’ve spent years accumulating your network of various professionals to progress in your career as an agent, and now you can use these connections to invest in immovable property.
As mentioned above, it is easier for an average investor to find funding through the real estate network than it is for others. In fact, meeting dozens of landowners, land buyers and sellers, and others can give you access to properties for sale as soon as they become available. In addition, once you’re ready to purchase an investment property for yourself, you’ll already be familiar with the best real estate lawyer to ask about all legal matters related to the arrangement.
There is no need to recruit an agent
Even if real estate investors have a lot of experience on hand, they still choose to work with an agent when buying and selling properties. This does not concern you however. Whether buying or selling an investment property, you don’t need to employ another buyer, as you already have everything you need to effectively settle a contract. That means you will be saving lots of money otherwise spent on agent’s commissions. The fact automatically increases the ROI.
Evidently, there are numerous benefits of investing in real estate as an agent. Consider buying your own investment property to make this your most profitable year in real estate, yet.