By default, every homeowner is also a real estate investor.
When a home buyer buys a home today, you need to let them know that today’s decision is probably going to be the most important decision they make about their retirement plan. That’s because for most retirees, their primary residence will be the largest asset in their retirement plan.
Your sales pitch to home buyers is that you can not only help them buy a home they love, but you can add an additional layer of investment expertise focused on buying the right home and optimizing its value.
You also let them know that after they buy this home, you also have the expertise to help them buy a second home and rental property that will secure their financial future and retirement. You have the expertise that other agents don’t possess.
Homeownership is just the start.
The benefit of positioning yourself as a wealth advisor doesn’t stop with your client’s primary residence.
The typical homeowner will start to build up equity in their primary residence after a few years of ownership. The amount of equity can be quite substantial after just ten years. Equity will build as a result of appreciation in the property and through the paydown of their mortgage. The equity is generally locked within the property but can be unlocked relatively easily through tools like a home equity line or second mortgage.
This gives the homeowner the ability to access the equity and use it as a down payment on a second home or a rental property.
You start your relationship as a wealth advisor on their primary home and expand your services to be a real estate investment advisor on their future second home and rental properties.
Note again that we use the terms wealth advisor and investment advisor is a descriptive way that is limited to your role covered by real estate licensing laws.