Transcript Document

Working With
Residential Investors
3 Hours CE
Florida Realtors®
Copyright© 2015
Objectives
Prove You Are The Agent For The Job
Who Is Today’s Investor
Increase Your Market Share
Nuture Your Sphere of Influence
Investment Strategies
Objectives
Finance Tools
The Tax Factor
Defining Cash Flow
Finding Funds
Deferring Taxes
Proving You’re the Agent for the Job
 Be Prepared to Answer Questions
 Share Your Business Experience with the Investor
 Have a Marketing Strategy in Place
 Keep In Mind; You’re Interviewing for a Job
Today’s Investor
47.5 Years Old
12.85 Years of Investment Experience
16.92 Years of Formal Education
94.21 Are Male
17.09 Are Fulltime Investors
10.26 Are Engineers
5.98 Are Accountants
Types of Investments
Residential
Commercial
Industrial
Retail
Real Estate Investment Trusts
Activity
Match the Investor with the Investment Type
Increase Your Market Share
Are you the only agent that can provide this
type of service?
Are you capable of providing additional
services?
Do you have a recognizable brand?
Your Sphere of Influence
Attracting business to you from people you know
Nuture your sphere of influence by reaching out to
your network at least once per quarter
Approach them as friends first
Don’t turn the encounter into a sales pitch
Investment Strategies
Real Estate Appreciation
Cash Flow Income
Real Estate Related Income
Ancillary Real Estate Investment Income
Potential Strategies
Residential Investing
Buy and Hold
Flipping
Wholesale
Finance
Fixed Rate
Adjustable Rate
Balloon Payment
Traditional Financing
Portfolio Investor
Hard Money
Equity Investor
The Tax Factor
What is Rental Income?
Advance Rent
Security Deposit
Lease Cancellation Fees
Services Rendered in lieu of Money
Lease Option Payments
The Tax Factor
What is Considered a Deduction?
 Mortgage Interest
 Property Taxes
 Operating Expenses
 Depreciation
 Repairs
 Insurance
 Maintenance
 Advertising
Cash Flow
Always recommend your investor seek
additional guidance from consults including:
Mortgage Lenders
Insurance Agents
Real Estate Attorneys
Accountants
Cash Flow
Avoid advising your client to purchase an
investment that turns into a cash sucking
machine by performing your due diligence.
Calculating Cash Flow
Taxes
Insurance
Management
Maintenance
Repairs
Utilities
Calculating Cash Flow
Mortgage Payments
HOA Fees
Waste Pick Up
Rental Income
Other Income
Other Expenses
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Proprety Cash Flow Analysis
Property Address
Income
Yearly Gross Income
$
Less Vacancy Allowance $
Effective Gross Income $
Expenses
Fixed Expenses
Variable Expenses
Total Expenses
$
Net Income
Net Operating Income
$
Debt Service
Total Debt Service
$
Cash Flow
Cash Flow Before Taxes $
Property Value (Income/Cap)
Cap Rate
Estimated Value
3.00% $
3.50% $
4.00% $
4.50% $
5.00% $
5.50% $
6.00% $
6.50% $
7.00% $
7.50% $
8.00% $
The Self Employed Investor
Self Employed 401K
Self Employed IRA
Exchange Traded Funds
Real Estate Investment Trusts
Deferring Taxes
Purchase Price of Replacement Property Must be Equal
or Greater than the Net Sale Price of the Property Being
Relinquished
All Cash or other Proceeds Received from the Sale of
the Relinquished Property Must be used to Acquire the
Replacement Property
The Property Must be of Like Kind, which means they
must be the same type of property
Types of 1031 Exchanges
 Simultaneous
 Delayed
 Reverse
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Safe-Harbor
Traditional
Improvement
Leasehold
Benefits of Working with an Investor
Multiple Deals
There Are Lot’s of Them
They Buy and Sell Often
Systematize Your Business
They Know the Process
Referrals
Thanks!
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