Monthly Archives: October 2021

Achieving the top spot in the real estate market is a desire shared by all real estate agents aspiring to greatness in the Canberra property management business. There will be obstacles and difficulties along the road, but the majority of agents will have a mentor within their agency who can assist them. This is just a portion of the entire pie that an agent must examine in order to improve their career and grow their company.

Thirteen members of the Forbes Real Estate Council revealed the one piece of sales advice that has proved to be the most beneficial throughout their careers. What they had to say is as follows:

Avoid Selling

In particular, when it comes to real estate or property management in Canberra, an agent’s duty is not to sell. Our role as facilitators and coaches should be to assist and coach our customers. When someone believes they have been “sold” or discovers they have been, they are inclined to dislike the salesman. Rather than that, provide advice, educate, and keep customers focused on the objectives they specified for you. This is placing the client’s requirements ahead of the agent’s.

Add Value

The greatest piece of career advice I’ve gotten is to generate value. When we place a premium on providing value for others, we earn our audience’s trust. This trust has been my portfolio’s single most valuable asset. It has resulted in tremendous possibilities for our property management Canberra business and has aided in the development of some fantastic client relationships. 

Work Efficiently and With Integrity

My mother, who started our property management Canberra business in 1980, taught me that the secret to success is straightforward: Work diligently and be truthful. Pretend not to know everything when you don’t, since your greatest asset in real estate is your reputation. Assure your customers that you will get the response and take appropriate action. Never, ever, ever, ever lie.

Provide Numerous Alternatives

Assemble a team of trustworthy advisors. By providing a prospective customer with several choices in the property management Canberra, you may lead them toward the greatest decision for them rather than imposing one on them. We often inform customers if our solution is not a good match for them, and although we may lose a sale as a consequence, the trust we earn by being candid creates greater long-term value than any one transaction.

Maintain Your Humanity

The majority of agent training in sales is focused on persuading the “prospect” to do what we want. Sign the contract, and you will get the sale. However, such is not the case. As fiduciaries, our first obligation in the property management Canberra business is to the client. When we enter with our own objectives in mind, rather than theirs, it is obvious. It erodes confidence. When we approach people with the intention of assisting them in achieving their objectives, we establish trust. Serve. Success ensues.

Hit Whatever Hits You

Develop an attitude of “I don’t care.” The suggestion came from a coach at a local Little League. I was having such a difficult time hitting the pitch because I was unsure if it was a strike or a ball. His suggestion was to cultivate a mentality that said, “I don’t care what the pitcher throws – I’m going to hit it!” The suggestion is relevant to sales. Make no distinction between the difficulties that are placed at you – resolve whatever they are.

Strive to Establish Equity

Paying rent never builds value; property ownership does, and you may use your real estate to expand any other company. I bought my first piece of real estate at the age of 19 and utilized it to expand worldwide education, training, real estate, and charity companies.

Become Obsessed or Become Ordinary

Obsess. That’s all; get obsessed with selling your product or service to your customer. Obsess over giving them with the best service and satisfaction possible. Obsess on resolving their issues and expanding your company as a result. The majority of salesmen just lack clarity and obsession, and you can’t show me a single outstanding salesman property management Canberra expert who isn’t.

Constantly Be Willing to Assist

My philosophy has always been to assist others. If you are eager to share your knowledge, abilities, and experience with others, you will be the first person they think of when they need professional services or a recommendation. Your reputation is formed by your actions, not by what you say.

Pay Attention and Take Notes

Being an effective listener is critical to sales success. Listening demonstrates your concern and enables you to ascertain the prospect’s real requirements and desires — which then helps you outline how you might offer a solution. At times, prospects just need to be convinced. In such instances, all you need to do is listen and verify what they’re saying.

Provide Concise Solutions to Client Issues

The biggest impediment to a client’s success is a distraction that prevents them from accomplishing their objectives. Real estate development is one of the most difficult obstacles to overcome. Demonstrating how your services can eliminate complex obstacles is critical for closing the deal.

Maintain Constant Communication and Contact

Nobody is aware of your existence unless the customer notices you. You are the most effective advertisement for your brand. Constant interaction, communication, and promotion of your name/brand are the only ways to ensure that consumers are aware of your existence. To earn money, you must spend money on advertising. If you keep your brand’s name secret, no one will ever know it exists or what services your business provides. Dollars spent on advertising equal earnings.

Activity Drives Results

The more the number of phone calls you make, the greater the number of networking events you attend, and the greater the amount of follow-up you perform, the better your sales results will be. Maintain a detailed record of your actions and you will quickly discover that it all comes down to how much you are really DOING to create revenue. Even while meetings and brainstorming sessions are beneficial, sales will be driven by activities that are directly linked to creating new business.

The process of financing a property management Canberra business may be quite different from the process of financing the main residence. Because investment property mortgages are generally considered to be a greater risk than loans for owner-occupied homes, you should expect to have good credentials when applying.

With that in mind, when it comes to financing for property management Canberra investment properties, you have a few different alternatives to consider. No matter whatever kind of financing you select, it’s a good idea to get a preapproval for a loan or have already secured a finance source before you begin looking at homes. Listed below is all you need to know about your choices before you begin your search:

Financing via traditional channels

It is a wide word that refers to a mortgage that you get from a bank and that is secured by your own personal credentials. There are many types of bank lending products that fall under this category, including conforming loans that satisfy the lending requirements of Fannie Mae and Freddie Mac and additional types such as jumbo loans.

A variety of variables, including the kind of property (single-family vs multifamily), your credit score, job, assets, as well as your previous obligations, influence the requirements for conventional financing of an investment in property management Canberra. Important to understand is that, although you may be able to utilize part of the property’s anticipated rental income for qualifying reasons, your present income will serve as the primary foundation for qualification in the majority of cases. In the event that your current mortgage or other obligations absorb a significant portion of your gross income, you may find it difficult or impossible to get traditional financing for an investment property.

If you are able to qualify for a traditional loan, this is generally the most cost-effective route to choose. Although interest rates are somewhat higher than those of an owner-occupied house loan, they are usually less expensive than the alternatives.

Asset-based loans are a kind of loan that is based on an asset.

When it comes to long-term financing alternatives for investment properties, asset-based loans are the most popular alternative to traditional mortgages, according to the Federal Reserve. This is quite important to property management Canberra experts.

It is important to note that, as the name suggests, the main reason for loan qualifying with an asset-based lender is the underlying asset itself — in this instance, the investment property — rather than any personal qualities of the borrower. To be clear, an asset-based lender will still examine your credit score and use that information to decide your eligibility and interest rate, but your personal debts, income, and job status will not be taken into account by the lender in making this decision. In reality, I was approved for an asset-based loan to buy a triplex, and the lender never even requested for a copy of my tax return, W-2s, or pay stubs.

The main requirement for approval is that the property produces enough cash flow to meet the mortgage payments plus a fair amount of buffer. The debt service coverage ratio, or DSCR, is a statistic used by the lender to assess the borrower’s ability to pay back the loan. Click here to read about Effective sales tips for real estate owners in Canberra.

Alternative sources of funding

The following are some other methods of financing investment properties as regards property management in Canberra that you may wish to explore in addition to traditional loans and asset-based mortgages. This is not intended to be a comprehensive list of funding alternatives, but it may provide you with some useful suggestions:

Finance for a second house: Many lenders provide three kinds of financing for a second home: main residence, investment property, and second home finance. The simple answer is that second home financing may be accessible if you intend to live in the house for a portion of the time throughout the year. As a result, if you are considering purchasing a vacation rental property, this may be a possibility for you. When compared to investment property mortgages, second home financing generally offers smaller down payment requirements and simpler qualifying criteria.

In order to learn more about house-hacking, we recommend reading our guide to house hacking or property management in Canberra. The short version is that if you purchase a multi-unit property and live in one of the units while renting out the others, you may treat the whole property as the main home and finance it as such. For example, you may be able to purchase a four-unit property with an FHA loan and only put down 3.5 percent of the purchase price provided your income and other criteria qualify you for the loan.

Using your home equity to finance an investment property is a popular method of obtaining quick and simple financing for a rental property. You may do this via either a home equity loan or a home equity line of credit, depending on your situation (HELOC).

Loans from 401(k) plans: It is possible that your 401k or another qualifying retirement plan may enable you to borrow up to $50,000 if your plan permits it. If you have enough money in your retirement account, borrowing against it may be an excellent source of low-cost financing for an investment property.

Learn how to calculate cash flow in the most accurate manner.

Cash flow is one of the most essential topics for first-time real estate investors to grasp and appreciate. The purchase of an investment property as regards property management Canberra may seem to be a good bargain at first, but if the expenses of ownership exceed the amount of rent received, the property may drain the funds from your bank account over time. As a result, it is critical that you evaluate if a prospective property would produce a reasonable amount of positive cash flow from the outset.

In this case, the essential word is realistic. If you want to obtain a positive figure, it is not enough to just deduct your monthly mortgage payment from your rental revenue. That just informs you that you will have positive cash flow if everything goes according to schedule.

In the real world, your property will be empty from time to time, and there will be maintenance issues that you will be responsible for paying for in order to keep it running. Keep all of this in mind when making cash flow projections.

Although there is no foolproof method to predict how much these expenditures would cost, I typically put aside 15 percent of my rental revenue to cover vacancy and maintenance costs. For example, the following is an example of a decent cash flow calculation:

• Begin with the anticipated monthly rental revenue from the property.
• Subtract your monthly mortgage payment, which includes taxes and insurance, from the total.
• Subtract the cost charged by your property management (if applicable).
• Subtract any additional recurring expenditures from the total (e.g., pest control or lawn maintenance).
• Subtract the vacancy and maintenance allowances from your total.

Take, for example, the case in which you wish to purchase a duplex that would rent for $2,000 per month. Your monthly mortgage payment is anticipated to be $1,200, and your property manager will charge you a fee of 10% of the rent collected. No additional property costs are incurred, and you estimate that vacancies and upkeep will account for 15% of your rental revenue.