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  • Contents Acknowledgments ix Introduction, Robert Kiyosaki 1 PART 1:The Business of Real Estate 1 The Business of Real Estate, Tom Wheelwright 5 2 A Real Estate Attorney’s View of Assembling and Managing Your Team, Charles W. Lotzar 29 3 The Way to Exotic Wealth, Wayne Palmer 53 4 Profits from the Ground Up, Ross McCallister 71 5 Master Your Universe, Craig Coppola 89.

Want to work with all cash buyers who scoop up three properties per month? Want to build a referral relationship that can last your entire career? If so, then you should be looking for real estate investors.

After all, investors tend to buy tons of homes, close quickly, and need far less hand-holding than, say, first-time buyers.

The Utah Real Estate Investors Association (Utah REIA) is a Chapter of the National Real Estate Investors Association (National REIA). Our membership consists of a variety of professionals who are interested in forming key relationships and learning strategies that result in successful real estate ventures. The Investor's Guide to Understanding Accounts PDF By:Robert Leach Published on 2004 by Harriman House Limited. Many investors ignore company accounts because they think they are too difficult. But, as the great investor Peter Lynch said Investing without looking at the numbers is like playing bridge without looking at the cards. The mission of this book is to explain to ordinary investors.

In order to help you get started working with investors, we spoke with Than Merrill and other investors who told us exactly what they look for in a real estate agent.

What Real Estate Investors Look for in Realtors

When I was buying my first of many, many houses, the real estate agent I worked with was a total nightmare.

I was 21 years old and looking for my first investment property. I did some searching online and came across a property I was interested in and booked a showing.

After a lackluster showing, she offered to take me out again to look at apartment buildings. Here’s what she said when I called to confirm the appointment:

“Oh, I don’t go outside of my neighborhood. I don’t walk up stairs and I don’t want to drive that far.” By “that far,” she meant 20 minutes outside of “her neighborhood.”

She eventually took me to a property that seemed to tick all the boxes.

The property was a small apartment building that needed some repairs and updating. I read somewhere to ask about the zoning and I was assured it was zoned for an apartment building with a laundry room, so I made an offer, and, after some negotiations, it was accepted. The offer was supposed to include the coin operated laundry facilities.

The coin operated laundry machines were removed because the real estate agent forgot to include them in the correct section of the contract.

To make matters worse, it wasn’t even zoned correctly for an apartment building, and because of that I had to hire an attorney, go to zoning court twice, and install a built-in fire alarm system, all of which cost me tens of thousands of dollars and more than a few sleepless nights.

If you’re an agent who wants to work with investors like me, then check out our top tips for getting investor clients below:

1. Some Experience Working With Investors

No investor has the time or patience to deal with a real estate agent who isn’t an investor themselves or doesn’t at least have experience dealing with investors. There’s just too much at stake for a novice real estate agent to make mistakes during the negotiation, contract, or due diligence phase.

That means experience is key, and if you don’t have any, you’re out of luck. For example, here are some questions an investor may ask you before they choose to work with you:

  • Do you own any investment properties? If so, how long have you had them and what types of properties: multifamily, commercial, single-family homes, etc.
  • Have you ever worked with investors on a deal? Did the deal close? How do you think it went?
  • Approximately how many properties have you helped investors buy/sell?
  • What do you specialize in? What’s your niche? For example, REOs, fix and flips, probate, etc.
  • Where do you help investors buy and sell properties?
  • What sets you apart from other real estate agents?
  • Is this your full-time job? (You do not want a real estate agent who is too busy to answer time-sensitive requests or who can only show you properties two weekends a month.)

If you think we’re being harsh, here’s what our friend and superstar real estate investor Than Merrill looks for in a Realtor:

“The number one trait an investor should look for in the realtor they are working with is investor-specific experience. While a realtor might have years of practice working with buyers and sellers, if he or she hasn’t worked hand in hand with an investor, it is unlikely they will fully be able to meet what investors need. It is also a plus when a realtor has personal investing experience. This proves he or she has an advanced understanding of the market.”

How You Can Get Experience Working With Real Estate Investors Quickly & Easily

We get it. How can you get experience if no one will hire you without experience?

Well, there are a few things you can do.

Work With Newbie Investors

For starters, you could try working with newbie investors who are buying their first investment property. You may be surprised to find that many first-time investors know far less than you do. They will require more time and effort and will be less likely to close quickly than an experienced investor. You have to start somewhere though, right?

Go to Local Real Estate Investing Networking Events, Seminars, or Meetups

Try networking, attend events, go to seminars, and take as many investing classes as your schedule allows. The more you learn and the more people you meet, the more likely you will come across an investor who will give you that crucial first chance.

Shadow an Experienced Investor’s Agent

Another option is to shadow an experienced agent at your office. You can be a junior agent and learn the tricks of the trade from them. In return, you can schedule their showings, put up signs and lock boxes, etc.

Get Your CCIM & Distressed Property Expert Designations

Completing both the CCIM and Distressed Property Expert Designations will not only make you look more educated to investors, but will also help educate you so you can find your own deals.

CCIM is Certified Commercial Investment Member, which means you’re considered an expert in commercial real estate investing. CDPE is a Certified Distressed Property Expert; it will give you a competitive edge with investors buying distressed properties to fix up.

Try Wholesaling & Offering Deals to Local Investors

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Though it’s not easy, wholesaling real estate is a great way to get started buying and selling distressed properties with very little risk. Once you find a property worth wholesaling, offer it to a local investor and see if you can get your foot in the door to working with them.

2. They Know How to Do More Than Just Show a Property

Any licensed real estate agent can find a property for sale, schedule the showing, and open the door. However, as an investor, you want much more than that. If you want to work with investors, you need to know the ins and outs of investing and be a valuable resource.

You should have access to off-market or pocket listings, and know about upcoming deals before they hit the market so you, the investor, can get an edge up on the competition.

They should also be able to find the property, evaluate the deal, know the comparables, and at least be familiar with what’s going on in the neighborhood.

Here’s Than again:

“Most realtors know how to find properties their clients want. However, investors should always work with realtors who are skilled in deal evaluation. There is more to finding an investment property than simply looking at the sale price. Realtors working with investors should understand criteria like after repair value and scope of work.”

3. They Are Savants When It Comes to Market Knowledge, Especially Rentals

The Real Estate Investor's Guide To Financing PDF Free Download

Hiring a real estate agent with experience working with investors is so important, but you also need to understand the local real estate market if you want to get investor clients. You should know how long inventory is sitting on the market, average sales prices in the neighborhood, and what homes are renting for.

The Real Estate Investor' S Guide To Financing Pdf free. download full

You should know about upcoming development projects, zoning ordinance changes, and amenities and attractions in the area. You should be familiar with the local schools, where the nearest shopping and dining areas are, and how public transportation and parking is in the neighborhood.

You should be the expert in the market you sell in. You should be up to date on real estate and economic policy news, housing statistics, you should enjoy browsing real estate blogs, use real estate apps, and read news sites to stay up to date so you can better inform your clients of what’s going on.

Don’t forget about the rental market. Knowing the stats about the rental market is a good way to get investors to work with you because they will depend on your expertise when pricing and renting out their investment property.

You can learn more about the rental market by taking a class from your local real estate association, brokerage, or following a leasing agent. Most will be happy with the company!

4. They’ve Learned How to Be Comfortable & Confident Negotiating

A real estate agent should have strong negotiating skills regardless of what types of clients they work with, but it’s especially important with investors. An investor isn’t going to live in the property; it’s strictly a business and a source of income, so they want to get the best possible deal.

You should be able to assist in getting the best possible deal on buying a property or selling a property for the highest price in the fastest amount of time. Make sure you aren’t too shy to push through tough negotiations. You may need to send multiple offers on different properties—some may be “low ball” offers and you have to be okay with that. It takes a thick skin to work on investment properties.

Keep in mind, everyone has different styles of negotiating, and sometimes quiet people end up being the best negotiators.

5. They’re Not Sleazeballs

All of the above criteria, including experience and deal negotiation skills, are great, but you also need to have integrity. You need to be transparent, do the right thing when no one is watching, and have my best interests at heart above and beyond your fiduciary duty.

More Advice From Experienced Realtors & Investors

“Generally, you find investors by trying to find the ultimate owners of property either by using public records or other service. Also, you can try local investment clubs or exchangors clubs.”

– Adam P. Von Romer, CCIM, Commercial Sales Manager, CENTURY 21 Kores Corp

“First, learn the ins and outs of investing. Then market your services to existing investors—those who already own investment property.”

– Jeff Morr, Co-founder, Rubin + Morr Douglas Elliman Real Estate, Chairman, Miami Master Brokers Forum

“I attribute my success to being a resource to my investor clients. I can provide them with the contact information of unaffiliated attorneys, lenders, title companies, contractors, inspectors, appraisers, property management companies, etc. I’ve worked hard at establishing professional relationships that could benefit my clients because I can get a question answered with a quick text or phone call.”

– Aisha Thomas, Principal, The Thomas Agency, LLC

The 30,000-Foot View for Realtors

Real estate investors want to work with real estate agents who have experience working with other investors, do more than just show them the property, and have market knowledge. They also want real estate agents who are confident negotiators and who possess integrity.

Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

There's more to real estate investing than just buying an investment property. In fact, conventional wisdom states there are four different types of real estate investors. As with any type of investing, each one has its own benefits and disadvantages. To that end, below is your guide to all four types of investing, as well as its pros and cons. Read them over so you can determine which type of real estate investing is right for you.

Real

What is a real estate investor?

Put simply, a real estate investor is any investor who purposefully adds a real estate asset to their portfolio. Truthfully, real estate investors come in many different shapes and sizes. While many people think of someone who buys and holds a rental property as the classic example of a real estate investor, that is just one type. It's possible for real estate Investors to also put their money into a real estate investment trust (REIT), to follow a fix-and-flip investment strategy, or to be wholesalers.

Notably, it's also possible for real estate investors to be individual investors, institutional investors, or to fall somewhere in the middle. In this case, banks or other financial institutions would count as institutional investors, while individual people would count as individual investors. However, it's also possible for individuals to start a real estate investment company, which would fall somewhere in between those two ends of the real estate investing spectrum.

What are the different types of real estate investors?

Now that you know a little bit more about what a real estate investor is, the next step is to take a closer look at the different types of real estate investors. With that in mind, I've laid them out for you below. Read each of them over to get a better idea of what each distinct investment strategy entails.

REIT investor

Investing in a real estate investment trust (REIT) is the most passive form of real estate investing available. With this method, you'll invest similarly to the way you'd invest in the stock market. Here, you'll buy shares of a real estate investment company and receive dividends when the company pays out its profits. A publicly traded REIT will even have its shares listed and traded on major stock exchanges. However, a non-traded REIT may still be listed with the SEC, but it's not publicly traded or it may be a private company.

The major benefit of investing in REITs is that, like stocks, anyone can do it. You don't have to be an accredited investor or even have that much real estate experience. In this case, it's as easy as buying and selling shares. Notably, REITs also have to pay out 90% of their income as dividends.

That said, the downside of investing in REITs is that you have very little control over what they invest in or how they're managed. With that in mind, it's important to do your research before investing in any particular REIT. Also, dividends from REITs are taxed as ordinary income, as opposed to a lower rate.

Moneeka Sawyer explains how to figure out what type of investing is best for your life on the Millionacres Podcast

Buy-and-hold investor

Again, buy-and-hold investing is the classic example of real estate investing, where you buy up an investment property and rent it out for consistent monthly income. On the whole, this is a relatively active form of real estate investing. You do have to do the groundwork of marketing for a tenant, vetting all the potential applicants, and being on call to handle maintenance issues. It's also meant to be a long-term strategy since investors tend to buy an investment property and keep it in their portfolio for multiple years.

The big benefit of following a buy-and-hold investment strategy is that you have the opportunity to achieve relatively stable returns. In this case, landlords can usually count on the same amount of rental income coming in every month. Additionally, if you hire a property management company, you'll also have the opportunity to turn this into a more passive investment.

The major downside of this investment strategy is that it can be a lot of work for smaller returns than you might find with another method. As mentioned above, if you're an individual investor who hasn't hired a property management company, you have to be willing to take on landlord duties in order to receive any rental income, which can take a lot of time and effort.

Fix-and-flip investor

Then, there is fix-and-flip investing. As you might be able to guess, this is the same type of investing that you often see on HGTV. In this scenario, the investor will do their best to find a real estate deal that's undervalued for the market. Then, they'll fix it up and market it for resale at a much higher price. Once the buyer is found, the investor gets to keep the difference between the initial investment and the final sale price as profit.

The main benefit of this type of real estate investing is that, if you find the right investment opportunity, it has the potential for high returns. Also, it's a short-term investment strategy, meaning you could see a return on your investment in just a few months.

That said, this is also a very active investment strategy. In this case, it's up to you or your real estate agent to find the right real estate deal. Then, you have to figure out how to fix up the property. Here, you can often achieve better returns if you can do the work yourself. However, if you aren't handy, you'll have to plan to pay for labor costs in your budget. Finally, there's also the risk that you could over-improve the property and lose money on the deal when it's time to sell.

The Real Estate Investor Podcast

Wholesaling

On the other hand, real estate wholesalers will act as a middleman between a property owner and an end buyer. Here, the investment strategy is to find an underpriced real estate deal. Then, to quickly sell it for a higher price to an interested buyer without rehabbing it first. In this scenario, you get to keep the difference between the price you paid for the property and the price you sold it for as a profit.

In truth, this is a relatively passive investment strategy, and you have the potential to make a sizable profit. Typically, wholesalers will buy and sell a property the very same day in order to cut down on carrying costs. However, in order to make this work, you often need to have an established network of real estate contacts who can help you find interested buyers and distressed sellers.

How to decide which type of real estate investing is right for you

Once you know a little bit more about each type of real estate investor, it's important to decide which investment strategy may be the best fit for you. With that in mind, we've listed some of the criteria for you below. Keep reading to get a sense of which type of investing might be the best match for your lifestyle.

Active vs. passive investing

First, you have to decide whether you're interested in active or passive investing. As the name suggests, active investing is a lot more work. However, in exchange, you often have the potential to make larger profits. In this case, you're trading time and effort for the size of your returns. With a passive investment strategy, on the other hand, there is less to do but you may cut into some of your profits.

  1. Active: Fix-and-flip, buy-and-hold
  2. Passive: REITs, wholesaling

Long-term vs. short-term gains

Once you’ve decided between active and passive investing, the next question is whether you want to focus on short or long-term gains. While this is not always the case, often short-term gains take a lot more effort to realize then long-term ones.

  1. Short-term: Fix-and-flip, wholesaling
  2. Long-term: REITs, buy-and-hold

The Millionacres bottom line

Real estate investing can be a great way to diversify your portfolio. However, if you're just getting started in this arena, it can be confusing to differentiate between the different types of real estate investors. In light of that, use this as your guide to your options. Armed with this knowledge, you should have a better idea of what type of real estate investing is right for you.

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