Real Estate Investing vs. Selling Homes

Many times I have asked myself what really the difference is between real estate investing and conventional real estate, and since I have been in Costa Rica, I have gotten a taste of both.

In real estate, you deal with one client at one time. Maybe you have a few leads you are working on, but when you deal with a client, you figure out what they are looking for and that goes far beyond generating the lead and far beyond getting exposure online and offline.

The last client I have sold to would not talk to anybody but me in our office. I realized that indeed what a client wants to do is find a realtor he or she is most comfortable with and once you establish that connection, you pretty much have to really mess up to not get the sale complete.

In real estate emotions play a huge role.

You take the potential buyer up on this oceanview property the moment the sun sets and he imagines a future there in the dream house which he already envisions building.

It's amazing how differently I now look at real estate marketing  as I have never before understood the need to work one lead at a time and the power of the references coming from on satisfied client.

Now I am getting into real estate investing and this business is all about numbers.

It includes real estate, but real estate is only a tiny part of that.

You have to work with the project managers, get accurate estimate for the building costs, know what it takes to acquire the permits and even though you are permitted a little bit of leadway with the numbers, there is a strong need for you to present a package which includes the high numbers and the low numbers.

You have to also provide reason why the property is indeed worth something to the project and point out the demand for the business in order to promise long term ROI.

Real estate investing is what it is, and it is more about finance than real estate.

Some will not touch it and others are more comfortable with that sort of business than conventional real estate.

A real estate investor has not always been to the countries or places where he is willing to invest, so you are not going to be successful by showing pretty pictures.

You need to give the investor numbers and data of tourism or profit of related business nearby and explain why the project you are working on is going to provide serious competition for them.

Once you get a hang of it, things will flow, but getting there is always the hard part.

To help more people make the move and get connected with the right people, I have started a Facebook group called

Real Estate Investors on Facebook. Hope to see you join and get something out of it!

Mike Dammann

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