We all know it’s going to happen. It may not be as bad as 2008, but the real estate market will experience another downturn before long. Do I think it’s going to be next month? No, at least I sure hope not. When it happens, what will you do? Are you hording money now to get you through the slow times, going to suck it up and have a couple bad years, or have your best years because you have a plan in place?
The last real estate crash was hard for millions of people and many are still recovering from it. Homeowners lost their homes, banks went under, and real estate agents either started selling skincare products or looked for other work. Meanwhile, there were a small percentage of people out there taking full advantage of the crash and are still profiting huge from it today.
Real estate investors seized the opportunity to start buying up properties at huge discounts. I personally know a few people that grew their portfolio exponentially over those few years. I saw people sell properties in 2014 for three times as much as they paid for them in 2009.
As a real estate agent, how do you prepare to take advantage of the inevitable downturn? By positioning yourself to be the agent working with these investors.
It’s not enough to wait until it happens then share a post on facebook offering your services to real estate investors. The agents that will be working with these clients are the ones that already have established relationships with them and are trusted as a knowledgeable resource when it comes to real estate investments.
Are you able to confidently analyze a potential investment to show the investor what their internal rate of return will be, and be able to back it up?
Can you help a client get financing for a rental property by providing an accurate analysis to demonstrate the required DSCR to the lender?
If so, you’re in a perfect position to be an extremely valuable resource to investors looking to capitalize on falling real estate prices and make the most from their investment.
If not, now is the perfect time to start learning these skills and positioning yourself as the relevant expert so you’re in the right position to be that valuable resource. Not only for a market downturn, but for investors as they buy and sell multiple properties every year.
The thing is, most investors putting their money into single family, or small multifamily, properties don’t have all of that technical knowledge about analyzing real estate investments. They often rely on simple investment calculators or back on a napkin analysis. Have a knowledgeable resource that can guide them by providing this advanced insight for their property selections.
How many other agents in your market do you think can provide this type of assistance to investors? Probably not many…
Why not set yourself apart and become the best resource available to the investors in your market.