Real Estate Redefined – Ep 114 – Investing in Real Estate

    Welcome to Episode #114 of the Real Estate Redefined Video Series.  In this episode, Dan Forsman highlights a unique opportunity for clients, associates and employees to achieve exceptional financial returns!  For our associates, please register on PROPEL or with your local office staff for the upcoming Best Year Ever Business Planning event with Coach Jeff Mays on Tuesday, November 5th or Wednesday, November 6th.  Coach Jeff will share the latest ideas to help develop your strategy and plan for 2020. You do not want to miss this!  Watch the video for more details!     — Transcript — The stock market is approaching all-time highs again with growing fears of a correction.  Interest rates on money in the bank are lower than any point in our lifetimes.  So where can you make a decent return on your money?  Well, what if I told you that I knew the secret to getting 35-55% annual “cash on cash” returns on your money?  Interested?  Watch the rest of this video to learn how! Roll intro I am Dan Forsman and welcome to Real Estate Redefined. October is almost finished and we now have 9 weeks left in the year.  There is still time to finish strong so I encourage you to make every day count.  Our next MEGA open house event is November 17th and we are expecting record turnouts!  Now is the time to begin your pre-event marketing to the local community.  Our MEGA open house marketing is the key to attracting more buyers for our listings… and the difference between a MEGA event and just an open house. This is also the time of year where we take time to work on our business strategy for next year.  Coach Jeff Mays from the Tom Ferry organization will be here next week for 2 “Best Year Ever” business planning sessions.  Coach Jeff will be sharing the latest ideas to make 2020 your Best Year Ever.  The first event will be Tuesday, November 4th at the Crown Plaza in Peachtree City from 9:30am to 1pm.  The second event will be Wednesday, November 5th at the Crown Plaza Ravinia in Dunwoody from 9:30 to 1.  These classes are approved for 3 hours of CE credit.  Please register on PROPEL or with your local office staff. In my opening comments today, I highlighted an opportunity to generate 35-55% cash on cash returns.  So what is that secret investment opportunity?  The answer is obvious – real estate.  According to a recent Gallup survey, real estate is America’s best choice for long term investment. In particular, we see a great opportunity for investing in single family rental properties.  There are also great options for duplexes, quadriplexes and a range of commercial investments. Consider these facts.  The Mayors Council predicts that population growth for our metro area will grow by 2.8 million people by 2046.  The Atlanta Regional Commission forecasts that employment will grow above the national average and will almost double in the next 20 years.  This means that buyer demand for housing will remain strong for the foreseeable future.  As we already know, the supply of entry level homes is critically low and most first-time buyers are delaying their home purchases and renting.  The demand for rental properties will remain strong.  New home builders cannot create more affordable inventory fast enough so we expect this supply and demand gap to continue. Now. Let’s look at financing.  The average mortgage rate is past decades was over 8%.  Today, we are still seeing mortgage rates in the mid to high 3% range.  Historically speaking, this is an unprecedented time where we see strong demand and very low financing options. Let me show you an example.  Let’s say you purchased a rental property for $300,000 and put $50,000 down.  Your loan amount would be $250,000.  Let’s assume a conservative 3% annual rate of appreciation.  If your loan was 15 years and you help the property for 15 years, your appreciation would be $167,390.  YOUR TENANTS – not you, would also have paid down your entire loan amount, so add another $250,000.  For a $50,

Welcome to Episode #114 of the Real Estate Redefined Video Series.  In this episode, Dan Forsman highlights a unique opportunity for clients, associates and employees to achieve exceptional financial returns!  For our associates, please register on PROPEL or with your local office staff for the upcoming Best Year Ever Business Planning event with Coach Jeff Mays on Tuesday, November 5th or Wednesday, November 6th.  Coach Jeff will share the latest ideas to help develop your strategy and plan for 2020. You do not want to miss this!  Watch the video for more details!

— Transcript —

The stock market is approaching all-time highs again with growing fears of a correction.  Interest rates on money in the bank are lower than any point in our lifetimes.  So where can you make a decent return on your money?  Well, what if I told you that I knew the secret to getting 35-55% annual “cash on cash” returns on your money?  Interested?  Watch the rest of this video to learn how!

Roll intro

I am Dan Forsman and welcome to Real Estate Redefined.

October is almost finished and we now have 9 weeks left in the year.  There is still time to finish strong so I encourage you to make every day count.  Our next MEGA open house event is November 17th and we are expecting record turnouts!  Now is the time to begin your pre-event marketing to the local community.  Our MEGA open house marketing is the key to attracting more buyers for our listings… and the difference between a MEGA event and just an open house.

This is also the time of year where we take time to work on our business strategy for next year.  Coach Jeff Mays from the Tom Ferry organization will be here next week for 2 “Best Year Ever” business planning sessions.  Coach Jeff will be sharing the latest ideas to make 2020 your Best Year Ever.  The first event will be Tuesday, November 4th at the Crown Plaza in Peachtree City from 9:30am to 1pm.  The second event will be Wednesday, November 5th at the Crown Plaza Ravinia in Dunwoody from 9:30 to 1.  These classes are approved for 3 hours of CE credit.  Please register on PROPEL or with your local office staff.

In my opening comments today, I highlighted an opportunity to generate 35-55% cash on cash returns.  So what is that secret investment opportunity?  The answer is obvious – real estate.  According to a recent Gallup survey, real estate is America’s best choice for long term investment. In particular, we see a great opportunity for investing in single family rental properties.  There are also great options for duplexes, quadriplexes and a range of commercial investments.

Consider these facts.  The Mayors Council predicts that population growth for our metro area will grow by 2.8 million people by 2046.  The Atlanta Regional Commission forecasts that employment will grow above the national average and will almost double in the next 20 years.  This means that buyer demand for housing will remain strong for the foreseeable future.  As we already know, the supply of entry level homes is critically low and most first-time buyers are delaying their home purchases and renting.  The demand for rental properties will remain strong.  New home builders cannot create more affordable inventory fast enough so we expect this supply and demand gap to continue.

Now. Let’s look at financing.  The average mortgage rate is past decades was over 8%.  Today, we are still seeing mortgage rates in the mid to high 3% range.  Historically speaking, this is an unprecedented time where we see strong demand and very low financing options.

Let me show you an example.  Let’s say you purchased a rental property for $300,000 and put $50,000 down.  Your loan amount would be $250,000.  Let’s assume a conservative 3% annual rate of appreciation.  If your loan was 15 years and you help the property for 15 years, your appreciation would be $167,390.  YOUR TENANTS – not you, would also have paid down your entire loan amount, so add another $250,000.  For a $50,000 investment of your money, you would create a total profit of $417,390.  If you do the math, that is an amazing 55% annual cash on cash return for your investment!

Yes, we live in a great country!  And it gets better.  There are additional tax benefits such as depreciation that allow you to lower your taxes.  As you consider your “pillars of marketing” and sources of business for 2020, I want to encourage you to add real estate investing.  I also want to challenge every associate and employee in our company.  YOU should be personally investing in real estate.  This is our business and real estate is a great way to build long-term wealth for your family and loves ones.  Our associates get a 90% split of up to 3 personal property purchase each year.  You also get a 50% discount on property managements services.  We are working on a package of additional benefits from our family of services and vendor partners – more on that soon.  We will be creating a Real Estate Investing video series that provides more details including how to select properties, managing cash flow plus several calculators that can help you with the math.  The goal of this video is to call attention to the opportunity as you build your business and personal strategy for 2020.

I hope you saw the video last week from Todd Tucker on our TeamBuilder contest.  Congratulations to Jenifer Cusick for winning a brand new iPhone Pro in the drawing for associates who secured an interview with their Managing Broker.  We will hold a new drawing for every 10 interviews.  In addition, every associate who secures an interview will be receiving a certificate for a $100 credit toward their marketing & technology fees.  Remember, all this in in addition to our TeamBuilder passive income opportunity.  TeamBuilder is a great opportunity to build your income and help us build our company with productive agents.

The pathway to success begins with the first step.  Take your first steps by registering for the Best Year Ever business planning events next week with Coach Jeff Mays and registering a TeamBuilder interview.

I want to thank you for watching this video.  And remember, every day in every way, YOU can get better and better!

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