How to Market a Duplex and Kick Your Image up a Notch
Given our newly-washed cars and those coveted designations hanging on all four walls of our office, one certainty can be said inherent to all real estate professionals: image matters.
It is surprising therefore, that so many real estate agents trying to market multifamily properties throw image out the window and do what some construe as the not-so-professional practice of simply throwing it up against the wall and hoping it sticks. A practice not highly appreciated by real estate investment professionals, and presumably not without adverse side-effects on any marketing campaign.
Whether you plan to market a duplex, multifamily units, or an apartment building, it’s important to understand the nuances of income property, what a real estate investor buys, and how best to present it to clients and colleagues.
So let’s take a look at a couple of simple ways you can market your income property and kick your image up a notch in the process.
Show All the Numbers
Residential agents are more fond of showing amenities than the essential numbers. But amenities have little use unless they pertain to rent-ability (i.e., decks, extra storage, fireplaces,etc.). Put the emphasis on current monthly (or annual) rents and operating expenses. Nothing is more frustrating to an apartment specialist then having to make a call to obtain income and expense data.
Run the Numbers
Show what the cash flow and rates of return are based on your numbers. It’s not that difficult for you to calculate financial measures like cap rate or gross rent multiplier. If you don’t know how, ask a friendly colleague who knows how, or invest in real estate investment software that does it for you. Having these returns readily posted makes you look like you understand investment property and in turn will do wonders for your image.
Present Reports
Most inquiries about rental income property request a marketing package (or executive summary) because it commonly shows the property’s income, expenses, rents, unit configuration, size, age, features, current loan information, and sometimes a picture or other information helpful to the investment decision process. The more reports you have ready to present (like an APOD, rent roll, or pro forma) the better you look, and in fact, the better the chances you will evoke a meaningful response. Here again, you can turn to real estate investing software for a wide-range of professional-quality reports if you don’t want to spend your time creating them.
Use Meaningful Numbers.
Avoid the temptation to use pie-in-the-sky rents and expenses. Most real estate investment professionals and active investors are going to uncover them eventually, and they won’t appreciate the fact that you’re over zealous desire to make a sale caused them to spend their time and effort on an illusion.
Remember, all investment property stands or falls on its numbers. An investor purchases income stream, and the price an investor is willing to pay for an investment property depends on the amount of that income stream. When you market a duplex or other income property and neglect those numbers, you are simply revealing yourself as one who has taken a listing and is looking for someone else to make the sale for you.
As a professional, you should care that this will negatively impact what your real estate investment colleagues think about you, and therefore should try to reverse that perception. It’s not that difficult and, who knows, your efforts might even lead to future income business.
