Did you know that one in seven US home investors lost money on their investment in March?
While I don't feel too bad for them, it's worth noting that profits are down for flippers and investors in the marketplace. And the reason for this is simple: holding costs are higher, interest rates have increased, and there's less inventory to choose from. So when a property that meets their criteria does come on the market, there's higher competition for it.
But as a REALTOR, you can help investors and be the person they turn to.
Let me share my personal experience:
Twice this week, I had different agents representing buyers call me. Their approach was interesting. They said, "Hey Jim, I noticed you recently purchased some real estate investment property. I have an investor myself who's looking to buy something. Do you have anything that you're holding that you'd be willing to sell now that you've bought some other things?"
I thought this was a great strategy - they just identified that I bought something, and now they're thinking that I might be in the market to sell something too. This is what's known as "in market," a term used in Google advertising when targeting clients who are actively searching and engaged.
In real estate, it means that someone who recently bought something might be on track to sell something too.
The other call I received was from someone who identified that I own quite a bit of real estate. They used the same script, "Hey, I've got somebody that wants to complete a 10 31 exchange. Would you consider selling one of your holdings? They have some interest in buying something at a reasonable cap rate."
The point here is that they're not just looking at what's on the surface of the market - the properties that are on MLS and already picked over. They're going beneath the surface and looking at all the properties that are not on the market.
And that's how you win for your clients and for yourself. You need to dig deep and find those opportunities, and trust me, there are a ton of them out there in the market.
Need help thriving despite the market around us (instead of barely surviving as most agents do)? Then join The Path!
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Jim would like to talk to you about your real estate business with a complimentary 30 minute coaching session.
During the call be prepared to discuss - Your goals for the next twelve months. Your time management and priority management strategies. Your willingness to change and adapt to a changing market landscape, and your biggest choke points - what's really holding you back
The road to transformation starts with small steps. Take your first towards a better real estate business today...