Fair Oaks Lender

Dear Realtor,

Please encourage your buyers to invest in real estate.  They will thank you forever- or as long as you’re in the business.  Here’s why:

It’s no surprise that anybody with investments in the security industry has been hit hard over the last few years. It’s also no newsflash that many of them are viable alternatives to intangible investments. It is hard to imagine for some folks who have never imagined owning anything other than one home at a time. The profits, however, are undeniable for them and (of course) for you too. 

This strategy isn’t for get-rich-quick types: we’re talking about clients who you know are serious about investing (or who you feel could be serious). They may be relatively recent empty nesters looking for a pension buffer or property novices looking to boost their purchasing power. Regardless of their life stage, if they’re willing to work hard at researching, searching and ultimately managing property, they can potentially reap significant financial rewards.

There are many different types of real estate investments, of course, so you’ll need to align your client with one that’s suitable for them (a commercial property, farmland, or perhaps a residence for flipping). One approach is the purchase of an income-producing property with the intent to rent a unit (or units) within it. By having tenants, investors benefit not only from the potential appreciation over time, but also the steady rental income.

Share the benefits with your client:

• Rental income can, for the first time in a while, probably cover the investment property’s mortgage payments, taxes and maintenance costs.
• Is the neighborhood that your client is focused on becoming gentrified? When the location increases in value over time, equity gets an additional boost.   Look for up and coming areas that for some reason are poised for a bounce in value.
• For young investors applying for a mortgage, additional revenue from tenants increases their total income. The higher the income, the larger the mortgage they qualify for (in most cases).   So, when they add 75% of their rental income to their salary (or to the cash they have saved, borrowed from family or banked from other investments), their position can be greatly improved.
• The stronger the investment potential of the property, and of the borrower’s financial status, the greater the borrowing position. A higher credit rating is the most critical asset for borrowers.

So, Realtor, you are in charge.  Without your encouragement, your clients may never experience the potential profits of investing in your product.  Check out your database.  I’ll bet there are people just waiting to invest with you.