Some people invest in the stock market with an eye towards increasing their nest egg for the future or towards generating supplemental/secondary income for the present tense. The average rate of return on the S&P 500 Index is approximately 9.5%.
Some people invest in real estate with the same purposes in mind. According to the National Association of REALTORS, the price of an existing home increases approximately 5.4% annually. The average rate of return on residential and diversified real estate runs approximately 10.6% annually and the average rate of return on Real Estate Investment Trusts (REITs) performs at approximately 11.8%.
Obviously, there are no guarantees in either the stock market or real estate but it is clear that financial wealth is not created from our jobs alone. Why? Most jobs do not create enough income to set aside a manageable percentage at an average rate of interest to achieve financial wealth.
Help your clients (and help yourself) generate supplemental or secondary income and/or increase their future nest egg through real estate investing. Help your clients (and yourself) come to grips with any doubts and/or fears about real estate investing.
First things first…financial experts recommend that we invest in what we know. You as a real estate agent purportedly know real estate. Help your clients become experts over time about real estate.
Host your own workshop for entry-level investors. In that workshop, concentrate on
- the numbers regarding pricing trends
- the numbers regarding specific markets
- the numbers regarding rental rates
- the numbers regarding flipping opportunities
- develop and distribute budget sheets
- develop and distribute criteria worksheets
- discuss and distribute information about relevant investor strategies that are specific to your market area
Offer this workshop/seminar as a gift to every buyer/seller client and/or prospect consultation you have given. Invite your sphere of influence contacts, the general public and other agents and their clients. To reduce costs and to engender complimentary expertise, connect with a lender or local property management company or real estate attorney or financial advisor to co-sponsor the event with you.
Keep the workshop sessions specific and short…one topic per session and one hour per session. People have short attention spans and less time. No more than four sessions per workshop.
Make yourself available to the workshop participants during specific times during the week so they can discuss their questions and/or concerns with you.
After the workshop is finished, follow-up IMMEDIATELY with each participant to offer your support in his or her investment journey. Hopefully, one or two of the participants will want to work with you on their journey.
As this investment workshop/seminar gains traction, host it at the same day/time every week or month for consistency. And, the more you offer this investment workshop/seminar, the more you will become known as a “real estate investment expert.”
Who knows where this offshoot of your business will take you and/or your business. Who knows how and with whom you may grow your bottom line. Who knows what and how you may choose to spend your time and expertise with your own financial freedom.