Skills Realtors Need to Work with Investors

In this podcast we go through Chapter 5 of "Game Changers: The Unfounded Fear and Future Prosperity of The Residential Real Estate Industry.

What skills do you need as a Realtor to properly serve the real estate investor world? It turns out a lot!

On the rental end we find that we need to be able to articulate and show comprehension of cap rates, year one cash-on-cash, simple ROI, and other investor minded information such as high level cash-flow analyses. We need to be able to service our unique market by knowing important statistics such as: typical rents and how they cary, typical vacancy rates in your market, and how different assets function over time in specific areas.

On Fix & Flips as need to be able to know the neighborhood with the best gross margins, where is the highest ROI, what is typical marketing time in that area, networks beyond the MLS, and well as projections of rudimentary cash flows.

Additionally we go into the client education and support skills needed to work with real estate investors. Guiding a novice investor by educating the, and "bringing the investor along". Articulating why real estate investment is a suitable area to invest in over stocks and bonds is also an important skill.

Lastly, we go into the transaction skills needed which range from understanding a 1031 tax-defferred exchange to knowing how owner-occupant contracts and disclosures differ from each other.