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In 2019 Small Real Estate Investors Became Extinct!

I wrote an article shortly after The Great Recession of 2008 about the tremendous changes that had occurred in the residential real estate investment market. The article was entitled, “How Warren Buffet Changed Your IRA and Real Estate Investing Forever!” It predicted and explained why the market would never be the same for small investors. Well, the proverbial second shoe has dropped and what it portends for small investors and real estate agents working for them is even worse than I anticipated.

Let me start by giving you my background. I’ve worked in real estate for about thirty- five years now. I’ve owned a general brokerage, a mortgage company, been a principal in a title company, owned an appraisal firm and a home inspection company. I’ve been an REO asset manager for some of the largest banks in the region. I’ve been a rehabber, a flipper, bought tax lien certificates and I’ve been a landlord! I am currently a real estate investment broker on a mission. I’m licensed in several jurisdictions and as such I’m on the frontlines of a brand new type of warfare.

Throughout my lengthy career I’ve experienced many volatile markets, but none, I repeat none like what is happening right now! Investors with CASH DOMINATE the residential marketplace. I personally have clients, yes with an “s”, with over one hundred million dollars of investment capital and business acumen to boot! What does that mean to the small investor?

As the late great Nancy Wilson asked, “Do I have to draw you pictures? Do I have to spell it out? It’s over!” That’s what the experts are saying, it’s over for the small investor simply because they can’t compete with that kind of cash and that kind of business savvy. In my experience that is mainly true. I have never had a cash deal fall through, whereas nearly a third of financed deals never make it to the settlement table. Most experienced agents will advise their sellers to go with cash as opposed to financing for that same reason.

The other vise jaw collapsing the small investor are the multi-billion dollar Internet companies that want their share of the loot! Companies like Google, Zillow, and the 800 pound gorilla of the consumer’s market, Amazon, are all invested in the residential real estate market and they are playing to win! Yes, based on what the experts think, and what we are trained to think…”It’s over!” BUT… Is it?

I think not! If you have the right plan and if you have the right network of professionals to help you execute your plan, you can not only compete with the big boys, you can beat them! That’s right!

Exhale, and let me explain to you what their Achilles heel is. It’s a part of the real estate trade that has helped me succeed in spite of market vagaries for the last thirty-five years. It’s simple and it works.

Successful agents know that most of their business comes from their Sphere of Influence. The numbers are staggering. With all of the Internet portals, all of the marketing dollars spent on FaceBook, with the yard signs and everything else – nothing works beer than plain old referrals! When agents effectively market to their sphere of influence they can increase their business five-fold! I’m not exaggerating!

If real estate agents can do it, and they are people just like you and me, why can’t an investor use those same techniques and get similar results? Think about it for a moment. If a person is going into foreclosure, or through a divorce, or selling a probate case, or simply moving to a smaller home, who do they tell? They tell a friend, relative, acquaintance, or a neighbor. We call this their FRANs network!

If investors are trained to market properly to their FRANs network they can achieve astounding results. They in effect become a “deal magnet.” Their only problem comes with finding the right licensed professionals to help them close the deals they find. But, of course we are the solution to that problem. We are the licensed professionals that help you “package” the deals you find and close them!

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With the help of AZREIANET, you don’t have to take on the daunting challenge of navigating the complex world of real estate investing on your own. We provide the support system you need for success. Join today.