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
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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