New Business Source For You
February 1, 2007 by Don MurrayHello Team:
There are some interesting things going on in our Market Place that can generate a lot of business for you.
Condo Prices are Soft -- Due to recent over building in the Condo market combined with the"?high volume of Condo Conversions there is a surplus of product in the low end of the market."? This of course means prices are low.
Low Interests Rates -- While interest rates are certainly rising, the fact is they are still very low.
Strong Combination -- Today's soft prices combined with low interest rates mean Condos are great buys today.
Rents are Going Up -- This fact provides motivation for both renters and investors."? Renters should be moving out of their apartments and rental houses and purchasing their first homes."? Investors will enjoy higher cash flows on their rental units.
Don't Like Small Deals? -- Get over it."? Remember when you write both the mortgage and the real estate transaction simultaneously, you basically get paid twice."? When you write the mortgage and the real estate your compensation should be approximately the equivalent of 105% of the total real estate commission."? When you write both on a small deal, your compensation is similar to the real estate only commission on a much larger deal.
"?2 types of buyers -- Who should be buying condos"?? Renters and investors.
What kind of Seminars should you be hosting now"??-- "Renter to Buyer" seminars and Investor seminars.
Why Seminars"??-- Because"?seminars are the"?easiest and most cost effective way to get you in front of a high volume of buyers."? Seminar size can range from half a dozen prospects to hundreds.
Your Message? -- Your message needs to trigger 2 specific points in the minds of your clients.
1. You have their best interests at heart
2. You are very knowledgeable and they can trust your knowledge and judgment
Be sure your message is well scripted and well rehearsed."?
Remember, your seminar time will be too short to"?be able to educate your client in the details of real estate investment."?
Your time will be best used helping them understand that you know all the details and possess the knowledge necessary to be a good leader for them to follow."?
Too many agents and brokers miss this point and try to bring their clients knowledge up to the level of an MBA in real estate investment with virtually no success.
Know Your Tax Laws -- Most of us do not think of the IRS as a benevolent organization."?
For Renters that want to become buyers, using 100% interest only financing, approximately 1/3 of their payment will be made by the IRS in the form of decreased payroll deductions."?
That means for a $3,000 per month interest payment, the renter client's take home pay could increase approximately $1,000 per month depending on their tax liability."?
A client paying $2,000 per month in rent could pay $3,000 per month on mortgage interest and have virtually the same equivalent payment due to the IRS subsidy."? Taxes and Insurance amounts need to be taken into account to be truly "apples to apples.""?
These are typical Southern California figures, scale them accordingly to fit your market.
Now -- Get out there and make it happen!
DonMurray@CalFirstFinancial.com
-- We Make Our Clients Wealthy















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