Why are many real estate professionals uncomfortable doing business with investors?
June 14, 2007 by Andrew WaiteWe publish Personal Real Estate Investor Magazine. In the course of our business we meet many real estate agents and brokers who are uncomfortable with the whole idea of individuals investing in homes.
Investors are variously seen as serial home buyers who help launch new projects by being the first in with seed capital, often buying off the plans. At the other extreme they are seen as a speculative scourge that has destroyed entry-level opportunities and affordability.
After much research, we can find examples in both extremes, but they are far from the mainstream investor. Many homeowners have awakened to the fact that concurrently with providing a roof over the family head, their homes have quietly and reliably outperformed the best Wall Street investment advisors and the Dow Jones Industrial Average.
This unintentional investor is now seeking advice on how to best use this new- found net worth to accelerate education, lifestyle and nest egg savings. The current real estate professional education provides little preparation to advise a homeowner on what this means in terms of wise investment. The traditional wealth advisor will often advocate releasing this equity so as to buy stocks, bonds, annuities or life insurance, none of which are likely to match the cash-on-cash returns offered by real estate. This is an unserved need. The next generation of real estate agent who grasps these opportunities to serve clients beyond simple buying and selling transactions will be a most sought after professional.
Does anyone know any real estate professionals that serve this rapidly growing niche? If so please give us names we can refer readers too. Thank you
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