It’s not just the potential profit of owning rentals. The industry runs through up-down cycles and a diverse income flow can smooth out the peaks and valleys.
NEW YORK – Amid a shifting market, real estate professionals can become more effective by becoming real estate investors. Here are three good reasons:
When agents invest in real estate beyond their primary residence, potential clients see that agents believe in the value of the real estate and the long-term potential of the local community.
Agents who become investors can also expand their knowledge by getting real-world experience with things like profit and loss statements, return on investment, and revenue forecasting. This financial know-how makes agents a more valuable resource to clients because they’ll know more about the long-term financial benefits of buying or not buying a particular property.
Agents will also be viewed as trusted experts that can make objective and logical decisions in negotiations, which will help deals close more efficiently. Agents also will be able to evaluate property values, identify trends earlier, identify potential opportunities that others may overlook, and determine the best strategies for buying and selling real estate in terms of where, when, and how. Agents will also be more aware of market trends and changes, which can help them modify marketing strategies and advice as needed.
Becoming an investor allows real estate professionals to be less dependent on clients, deals or brokerages – which means less pressure on you. This leads to more income, financial independence, and better decisions. It also gives agents an additional revenue stream during slow periods in the real estate market.
