Investing in Relationships

Today Grant Hoey continues his series on Apartments and investing in general.

What if we said your property market could look like this?

Auctions this week showed the predicted increase in turnout from potential buyers 95% of the properties offered were sold which is a great result, and a sign that the buyers are returning to the market (typical for this time of the year). We are yet to reach the peak of the market for this period, so it is a great time to sell an apartment to either owner occupiers or investors.

As a trader, it has been a very good time to secure stock in the last few months, and to have it ready to be sold during this seasonal peak in the market. As we discussed last week, this is due to students coming to study for the New Year, and to owner occupiers who are setting themselves up for the year.

It still amazes me, the difference there is in the central city, in regard to real estate agents. There are a lot of very good agents, don’t get me wrong, which I have the privilege to work with. However, there is a huge gap to the next level of agents we then have to work with, because you just never know where the next deal is going to come from.

Comments like “sorry but I cannot present your offer this afternoon, because I have tennis from 2.30 to 9.30 and could it wait until late morning”. Now in a hot market like we have at the moment, with a lot of buyers coming back into the market, is that a good attitude to have?

More than likely another agent will bring a buyer in with an offer, then that agent will be sharing his/her commission, which could make that game of tennis very expensive, all because he or she could not get the paperwork to me, so I could complete and return it within 30 minutes.

Another example was “I cannot present your offer today because I am waiting for another offer to come in”, fair enough but this went on for 7 days. The fortune is in the follow-up you know. With me contacting the agent daily, and receiving the same comment, every day for 7 days, the comment had not changed.

Then I saw in the printed media, that the apartment which I made an offer on, has turned from offers over $100,000 to auction…? And the agent to this day, now another 7 days have passed, and he or she has never contacted me, originally the advertisement said any offers over $100,000 will be presented…amazing…

Anyway whether we like it or not real-estate agents are absolutely essential to investing in property. And we just have to get the best out of the agents we have to work with; we need to create strategies to help agents find you property that really works for you.

A really good place to start is with your buying rules, what type of property are you looking for, what yield are you looking for, what discount or instant equity are you looking for, what market are you working in, if you cannot answer those questions then it is going to be very difficult for an agent to help you, so do everyone a favour and sit down and answer those questions as accurately as you can, if you need help, employ the services of an experienced property mentor from property tutors if you have not already.

The more quality time you invest in finding and creating good lasting relationships with agents, the better the deals will be that come your way, and the more money can be made by everyone. Doing the above is an on-going job that never goes away, the more good agents you have working with you the more chance you have, of finding those great deals which you both can profit from.

Remember that when you do a deal with an agent you will have a friend for life, and then he or she will really understand how you work, so it should get easier in the future – when deals are offered up – because the agent will know with clarity, what numbers you are looking for in a deal.

I can talk for ever on strategies and systems on working with agents, because they are such a critical part of investing in residential real estate for profit ! So over time I will revisit this topic many many times to reinforce this fact…

Agents Agents Agents …!

Next week we should be starting to see the apartment market really picking up, which I will comment on further….

In the meantime — Good Hunting

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