Across the U.S. and the world, brokerage professionals are learning new skills and adjusting their business practices to meet new market realities. It is also a prime time to explore previously overlooked opportunities, such as real estate investing. Here are several compelling reasons to do so:
1. Interest Rates
It is no secret that there has never been a better time to finance real estate investments. How long will rates remain low? The answer depends on who you ask, but most economists are not immediately concerned about a spike in rates.
2. Market Knowledge
You and your agents have a built-in advantage when it comes to observing and interpreting current local market dynamics. The missing piece is learning how to apply an investor’s lens—understanding how to create a sound investment plan and evaluate potential properties.
Real estate can be an excellent way to diversify your investment portfolio. It can also be beneficial for expanding your business opportunities. That includes supporting your agents’ efforts to carve out a niche, working with real estate investors or investing for themselves.
4. Powerful Data Tools
As a REALTOR®, you have free access to Realtors Property Resource® (RPR®), a robust database that helps you analyze market opportunities and win new business, including investor clients. For example, did you know that you can use RPR® to identify Opportunity Zones in your market (areas that offer tax incentives to investors) and generate mailing labels to reach out to prospective sellers?
Sadly, the current pandemic has been a powerful reminder that financial hardships can arrive unexpectedly, and we need to take steps to protect ourselves. Like any investment, real estate is not right for everyone. But it can be a profitable niche opportunity for your clients and yourself. It’s always best practice to consult with legal and financial experts.
Education Is Essential
Of course, no real estate professional should invest in real estate—or represent investor clients—without adequate training. REBAC’s one-day course—Real Estate Investing: Build Wealth Representing Investors and Becoming One Yourself—is one of the best and easiest ways to learn the essential aspects.
Through August 31, 2020, all online courses offered by the Center for REALTOR® Development, including Real Estate Investing, are discounted 30 percent, as part of NAR’s Right Tools, Right Now initiative. In most states, you can access your course for 12 months from the date of purchase.
Marc D. Gould is senior vice president of Member Development for NAR, overseeing a wide range of professional development programs for REALTORS®, including the Real Estate Buyer’s Agent Council (REBAC). REBAC is the world’s largest association of real estate professionals focusing specifically on representing the real estate buyer. With more than 27,000 active members, REBAC awards the Accredited Buyer’s Representative (ABR®) designation to REALTORS® who have completed the specialized education and documented experience in working with consumers purchasing a home. To learn more, visit REBAC.net.