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PROAPOD
®Real Estate Investment Softwarewww.proapod.com
How to Convert Homeowners into Real Estate Investors
 James R Kobzeff 
If you're a real estate agent with a phone and good real estate investment softwarethen you have the tools you need to convert a property owner into a rental property owner. It will require somelong hours on the phone along with true grit, but it is possible if you want it bad enough.Here's how you do it.1.Research the money market – call several lenders in your area and ask them what ratesthey're offering to refinance a home along with rates to purchase income property. Youwill probably discover that rates are extremely favorable.2.Research the income property market – make note of what properties are currentlyavailable for sale. Use your real estate investment software to preparecash flowanalysis presentationson each one and highlight those of particular interest.3.Call your homebuyer customers one-by-one – let them know what you've uncoveredand suggest that they consider pulling some money out of their home to make aninvestment in rental income property. Be gracious to take no for an answer, but at thesame time be prepared to make a lasting impression when the iron is hot. Offer to sendthem an APOD and Proforma you created on the income properties currently for sale.Is it too simplistic? Not really…remember what you learned about cold calling—that it takes anaverage of one hundred calls to close one transaction. And in this case, that one transaction, beingable to sell one income property, can result in a hefty commission. So don't get discouraged, keepyour eye on the prize because it's worth it.You might even be surprised by the opportunities you're presented by a simple phone call. Acolleague of mine, for example, ended up listing several hundred units as the result of a cold call toa FSBO concerning a small plot of vacant land. I have had similar experiences. When you makethat call, you just don't know what the needs of that person on the other side of the phone is.Okay, but we mustn't gloss over the importance of being able to make clear and concise real estateanalysis presentations. You do need good real estate investment software to make your  presentations; otherwise, you'll appear to the customer simply as a hungry agent looking for a deal.Bear in mind that customers respond to knowledgeable information.The bottom line is that you must convey information. In this economy everyone is looking for afloatation device; no one wants to loose his or her money. When you're adequately prepared toshow a reasonable thinker how to take advantage of this market, rather than to be victimized by it,
©2009 James R Kobzeff. All rights reserved.
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