Rick Otton Reveals Tips For Creating Successful Real Estate Ventures
Did you know that you could have around 60% of your business coming from deals with real estate agents? This is actually a very practical strategy for anyone in the real estate market because agents, once you have build rapport with them- can make your job easier for you. Listen on Rick Otton podcasts free, on the Creative Real Estate channel.
You can start building connections with real estate agents the moment you decide to go into the business. Use opportunities to meet with them (such as auctions, or simply walking in to an agency), and pick their brains about what is working and what is not in terms of selling strategies or property hot spots. Network with them to create a web of people who can give valuable insights into the market. Being interested in them will help get them interested in you and more open to any creative strategies you may want to pitch. Present yourself in such a way that you come off as wanting to help them sell more, not as someone who is interested in taking over their turf.
One strategy is asking them about the houses that they get paid commissions on, versus the houses where no commissions are given. In most cases, they get paid commissions on houses they sell, and none on houses that do not get sold or those of which another agent takes over. The key is presenting a solution for the properties that do not get sold, or simply put, offering to take over the properties and make them sell-able.
Choosing Real Estate Agent Partners
Of course, it matters a great deal who you work with. You want to work with real estate agents who are progressive, who know what's currently working in the market and what's not, and willing to utilize different or new strategies in order to sell the properties they have. Age really does not come into the equation, because old and new real estate agents can both be persuaded into working with you provided you effectively present them with win-win situations. You also benefit from working with them since they have the experience to know what strategies have been working in the market for decades and how the machinery works.
Referrals and the Law of Reciprocity
One advantage of connecting with real estate agents is that you get to refer clients to them and they do the same for you. Even if referrals do not lead to actual sales you create this environment where you help each other out. This is actually one way to boost your business and one way to build solid connections with other players in the business. Avoid treating real estate agents as the competition but instead go in there and break barriers down, create a deal that works well for both of you.
Knowing Which Deals to Make
One of the best indicators of a deal worth making is the kind of emotional involvement the seller has, how much fluff you have to deal with, how many owners there are, how much debt is attached to the thing, costs for renovations, the current situation of the market for properties of that sort, and similar factors.
Deals where the seller is heavily involved often results to a lot of interference, limited freedom to do all you need to do to make the sale happen and overall more difficulty in pushing through with the sale. You want the minimum time with maximum profit in order to be able to call a deal a good deal. It is also better if you can make the sale something that's a win-win for both parties involved. If it can be a win for the buyer, it has to be a win for the seller as well.
Build Relationships and the Deals Will Come
People do business with people they trust. This is the reason why you need to build relationships first by getting to know people, being interested in who they are, what they do, what they are all about. It is better to start building relationships since you gain people's trust easier this way. People will do business with you if they trust you, so build relationships and take care of the business side of things later on.
About Rick Otton
Rick Otton is a self-made millionaire and property investor, based in Sydney, Australia. Since 1991, Rick Otton has built his real estate portfolio using innovative strategies without the need for traditional bank-style loans. He is director of We Buy Houses business that operates in Australia and the UK.
His innovative low-risk, high-reward approach to real estate investing has been featured in a variety of Australian television programs including Today Tonight, A Current Affair and Hot Property.
Visit www.creativerealestate.com.au and listen to Rick Otton podcasts free, on the Creative Real Estate channel.