How To Convert A Homeowner Into A Real Estate Investor
By James Kobzeff
If you're a agent with a phone and good investment software then you already have enough tools to convert a property owner into a rental property owner. It requires an amount of determination and true grit, naturally, but it is possible. You can glean investors from any list of homeowners at your disposal if you want to bad enough.

Here's how you do it.


1. Research the money market - Call several lenders or mortgage brokers in your area and ask them what rates they're offering to refinance a home along with rates to purchase income property. You will probably discover that rates are extremely favorable. Be sure you ask about the lender's terms such as required down payment and loan points.

2. Research the income property market - Make note of all the rental properties currently for sale. With your investment software, prepare cash flow analysis presentations on each property using the mortgage rates and terms you discovered. Highlight those properties of particular interest.

3. Call each of your homeowner customers - Let them know what you've uncovered and suggest that they consider pulling some money out of their home to make an investment in rental income property. Back off if the customer is not interested, but at the same time be prepared to seize the opportunity to make your presentation when the customer is interested. Offer to send them an APOD and Proforma you created on the income properties currently for sale.

Sound overly simplistic, well, it shouldn't. Remember what your broker taught you about cold callingthat it normally requires you to make multiple calls in order to close one transaction. Well, in this case, being able to close that one income property transaction can result in a hefty commission, so don't get discouraged and keep your eye on

the prize. At the end of the day you'll be glad you did.

Who knows, you might even be surprised to receive a great opportunity as the result of making a simple phone call.

A colleague of mine, for example, ended up listing several apartment complexes as the result of a cold call to a FSBO concerning a small plot of vacant land. What she hoped for was a $50,000 listing; what she achieved was about three million dollars in listings. I have had similar experiences. It's simply impossible to know what the needs of a person are, or the depth of opportunity awaiting, until you open up a discussion. Bear in mind, is called a contact sport for good reason.

4. Follow up - be sure not to drop the ball; whether by phone or email, unless you were given an adamant no response, always follow up your previous discussion. Each subsequent follow-up contact narrows the playing field and increases your chances to create a transaction.

Okay, here's one final, important point.

Of course, your success depends on timing, your individual people skills, and determination. But I would be remiss to gloss over the importance of presenting clear and concise income property data to those you contact. Bear in mind that customers are more likely to respond favorably to knowledgeable information, than not.

It may sound like a shameless plug for my investment software, but if you currently don't own analysis software, or otherwise have the means to create cash flow and rates of return presentations, think seriously about making the investment. It is the surest way to grab and retain an interested customer's attention, and by far, the most beneficial way for you to gain investor-customers and as a result create the rental property transactions you desire. I attest to it.

Here's to your success.
James Kobzeff is the developer of ProAPOD - leading real estate investment software since 2000. Discover how to create rental property cash flow, rate of return, and profitability analysis presentations in minutes! Learn how at => www.proapod.com