Successful Real Estate Professionals Expand Beyond the "Buy-and-Home" Market
Written by Dan Heinz on Nov. 18th 2018
As a business owner in any industry the goal is to have repeat clients. As a real estate agent, if your clients are of the "buy-and-home" market (as I like to call it) you generally won't see repeat clients for about 5-10 years. However, if your clients are investors of the buy-and-sell market, or even of the buy-and-hold, you can most likely expect a repeat client in just a few months. Here's a few things to look out for if you want to expand into the market of investors:

1.  Investors love deprived homes in desirable neighborhoods because these deprived homes will appraise for a high value, simply because their comps are of high value.

2. An outdated kitchen and bathroom are one of the greatest potential money makers after renovation. The image above is a before-and-after of a condo that I renovated. Updating the carpet and paint in the bedrooms doesn't change much for buyers, but you can see what a difference an updated kitchen can do for buyers.

3. Investors also love properties with zero curb appeal. During the appraisal process, another key factor that can greatly influence the value of a property is the curb appeal. It doesn't have to take a lot of time and money to make a property look appealing from the curb either. But you know what they say about first impressions. To a potential buyer, the curb appeal is the property's first impression.

4. The sellers are highly motivated, meaning they are eager to sell ASAP. This allows investors to buy at a low price, ensuring their profit after renovation costs. A low purchase price is key for any investment. Most people think an investor makes his money when he sells a property, but it's when the property was purchased that really determines his profit.

All of these things are highly desirable to buy-and-sell investors, as well as buy-and-hold investors. After renovating a property there are those who choose to take equity out of the property to purchase and renovate another property. The original property is usually rented out for positive cash flow until it is paid off. An investor who can do this just three times can expect a pretty comfortable retirement once his outstanding mortgages are paid off.

I personally offer an apprenticeship program that can help anyone renovate a condo in 12 weeks. This is just one example of how an investor can be a repeat client in as little as three months. Of course the renovation for a 3-4 bedroom house may take longer, but even one year is shorter than the average time a "buy-and-home" client will settle in one place before moving to another.

Dan Heinz

Dan Heinz offers real estate consulting services to help real estate professionals take things to the next level. He is an expert at helping real estate agents get clients using online marketing methods. If you're ready to invest in your real estate business and scale things up, or if you are interested in real estate investing in general contact Dan and check out his free case study for more information.
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