I was visiting with a real estate agent from
California the other day and it was quite illuminating. We were visiting about
all of the great real estate investment opportunities available to investors now
due to this down market and how people can truly maximize on this opportunity.
And, how RE agents can capitalize on this market.
She proceeded to inform me that a company had recently purchased $4,000,000 in REO properties in California. Get this: this $4,000,000 investment purchased homes in the Fresno area at an average home cost of just $9,000. Wait, let me say that again: the $4,000,000 investment purchased homes in the Fresno area for an average home cost of $9,000. This was to own the property free and clear.
Now, some may question what kind of a property you get for $9,000.....I will say this: at an average home sales cost of $9,000, who cares?!
Many RE agents have shyed away from REOs for a number of reasons, some valid and some invalid. However, most if not all agents believe that only "seasoned" investors could possibly be looking at such deals.
What if you could expand your database of individuals who could qualify to purchase an REO and, all things being equal, wanted to do so but did not feel they had the assets to purchase?
Welcome to the world of self-direction. Many RE agents, let alone their clients and contacts, aren't aware that an individual CAN utilize IRA/401(k) assets for the purchase of real estate. Many individuals believe they can only invest in the market, being limited to stocks, bonds and mutual funds. How many individuals do you think can be added to your active client list IF they knew they could invest in real estate?
As for the professional agent, if you have more clients that can invest in this market, has this just opened up a new avenue for you to explore?
In this current economic cycle, we all have to explore other avenues to "print" money AND do something of value to our clients. Most agents I visit with have a plethora of marketing tools and campaigns to attract their current and new clients. Think about how introducing the power of self-direction of one's retirement assets can truly make a win-win situation for you and your client.
John R. Park is President of PGI SelfDirected and co-founding Partner of Fulcrum Investment Network.
She proceeded to inform me that a company had recently purchased $4,000,000 in REO properties in California. Get this: this $4,000,000 investment purchased homes in the Fresno area at an average home cost of just $9,000. Wait, let me say that again: the $4,000,000 investment purchased homes in the Fresno area for an average home cost of $9,000. This was to own the property free and clear.
Now, some may question what kind of a property you get for $9,000.....I will say this: at an average home sales cost of $9,000, who cares?!
Many RE agents have shyed away from REOs for a number of reasons, some valid and some invalid. However, most if not all agents believe that only "seasoned" investors could possibly be looking at such deals.
What if you could expand your database of individuals who could qualify to purchase an REO and, all things being equal, wanted to do so but did not feel they had the assets to purchase?
Welcome to the world of self-direction. Many RE agents, let alone their clients and contacts, aren't aware that an individual CAN utilize IRA/401(k) assets for the purchase of real estate. Many individuals believe they can only invest in the market, being limited to stocks, bonds and mutual funds. How many individuals do you think can be added to your active client list IF they knew they could invest in real estate?
As for the professional agent, if you have more clients that can invest in this market, has this just opened up a new avenue for you to explore?
In this current economic cycle, we all have to explore other avenues to "print" money AND do something of value to our clients. Most agents I visit with have a plethora of marketing tools and campaigns to attract their current and new clients. Think about how introducing the power of self-direction of one's retirement assets can truly make a win-win situation for you and your client.
John R. Park is President of PGI SelfDirected and co-founding Partner of Fulcrum Investment Network.