One key to helping prospective real estate investors is recognizing and being able to easily explain the four financial benefits of owning a rental property, said Tom Lundstedt at the 2016 IAR Conference & Expo in Collinsville Thursday morning.
Lundstedt’s focus during his presentation, “A Residential REALTOR’S® Guide to Working with Investors,” was to help IAR members gain comfort with the idea of selling of real estate as investments. He started by listing the four financial benefits of rental properties as income, principal reduction, tax savings and appreciation. He went further by demonstrating to his audience how to use his Investment Property Worksheet.
By using the worksheet, he showed three different scenarios a REALTOR® could show to prospective customers: borrowing money to purchase a rental property, paying cash or using equity in the family home. The veteran trainer peppered his presentation with humor, joking about his own brief major league baseball career and wondering why only 4 percent of REALTORS® own investment property.
“We can’t even sell it to ourselves!” he quipped.
Lundstedt tackled a few myths that real estate professionals must overcome in their own understanding of investment properties.
He noted that his approach will work on any scale of investment property, from a tiny rental condo to a Chicago skyscraper.
He has earned the Certified Commercial Investment Member designation from the National Association of REALTORS®.
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