As a real estate broker, understanding the value of real estate to a potential client’s financial portfolio can be a major contributor to the long term success of both the client’s retirement goals and the agent’s career growth.
We are the bridge to enabling our clients to have an alternative to Wall Street and an escape from the risks of the volatility and lack of control that the markets bring. Real estate investment provides an alternative for our clients to obtain that sought after financial freedom.
As of December 2016, the Triangle real estate market offers the most transparent win-win scenario in over a decade. With the DOW 30 topping 19,000 and reaching historically high levels on an almost daily basis, many passive investors find purchasing real estate to be a thorn in their side when compared to stashing it away in mutual funds or some other market driven investment vehicle.
After all, we all know of the countless horror stories of being the dreaded landlord or being stuck with a money pit rental property. Indeed, these scenarios can and do become the reality for some investors.
But, by simply answering the question of relevance to this outcome, “What is the cause of this fate for those who fall victim to such a circumstance?” we can circumvent disaster. As brokers, we cannot be omnipotent and impose our will over the universe, however, we as passionate, driven real estate professionals have the knowledge to advise our clients and steer them away from a negative outcome with regard to their real estate endeavors.
By being their guiding light, we can help them build cash flow and residual income via real estate investing while avoiding market crashes such as the 2008 recession driven market drop.
First, by discussing the ROI or return on investment for each prospective purchase with your clients, you can help them understand the profit and loss potential they may face. Helping them determine how many properties to purchase to optimize their residual income without surpassing the point of diminishing returns allows them to have sustained realized annual gains or dividends.
By providing your clients with a complete vendor database for professional services such as attorneys, accountants, contractors, property managers, insurance agents, etc. to help maintain and manage rental property helps your clients balance how actively and/or passively they may want to be involved with day-to-day operations.
Furthermore, it eliminates the risks of high vacancy rate rental revenue loss or property damage loss by lack of proper management. With the Triangle residents renting at a rate of around 50%, this is the foundation for a rental business your investor clients need to tap and presents a nice opportunity to us as brokers.
In less than a decade, your clients can own well-chosen properties that appreciate, provide steady cash flow and a variety of tax benefits. It’s up to us, the brokers throughout Fonville Morisey, to remove the “thorn” that these passive Wall Street investors fear and encourage them to take the wheel and let active real estate acquisitions be the alternative to achieving the American dream of financial freedom instead of uncontrollably trying to catch the falling knife of an imminent major downturn in the market. Go get ‘em!!
Fonville Morisey Realty has 11 sales offices, with over 850 associates and employees throughout the Greater Triangle region. FM offers mortgage, insurance, property management, title services, real estate education courses and relocation services through its divisions and partners. For more information about Fonville Morisey Realty, visit www.fmrealty.com.