Real Estate Coaching for Investors working with Realtors on Lease Options

Property investors have a valuable resource sitting right under their noses, but many either ignore it, or dismiss this potentially valuable tool without even exploring their options. Did you know that most real estate agents do not know about lease options or like doing it? For the most part, they don’t get paid right away so that’s why they don’t really like doing leases; they don’t get paid as much as a sale, and they don’t get paid right away.  A lease option means you are going to lease with the option to buy in a couple of years.  They can’t really get a handle on when they’re going to get paid so it's not an attractive transaction for most realtors.  But with the right direction and partnership, realtors and investors can profit big working together in this great business opportunity.

Many investors are too quick to dismiss the realtor as not having the best deals, or their best deals are done before the property hits the open market. While it is true that real estate agents tend to focus on the retail market, they are in business to make sales, and that can often mean thinking outside the square, for both the realtor and investor. Keep in mind that an agent not only has sales skills, but will pick up valuable information in the normal course of their business. A good agent will know what properties are coming on the market and, more important, which properties would best qualify for a lease option transaction, as opposed to a traditional outright sale. And that's where you, as an investor, enter the picture. If you put the time and effort into helping an agent understand the lease option process, they will soon be coming to you with potential deals.

Naturally, it’s not as financially attractive to an agent.  The key is you want to make sure you do it with agents who understand.  Maybe they could watch this video, and you could give them this information.  Essentially, we tell people there is about 10% of the population of agents who would understand this strategy and want to do it.  Make sure you are dealing with that 10%. 

The other side of the debate within the real estate professional community is from the 'out-of-the-box' thinkers. This mindset is ideal for  have a better chance of surviving this downturn.  These agents will start to think and act like investors.  A common practice of the traditional thinker is that if the buyer doesn’t qualify for traditional bank financing, then they probably aren’t a good buyer. “Sorry, go somewhere else.”  We teach that because many of these prospects need time to either save for their down payment or repair bruised credit.  That’s where either a lease with an option to purchase or owner financing would have sealed the deal. In a market where financing is scarce and home values are on the decline, closing a deal quickly is key. And so is making money now, that's why this very niche business opportunity can take a home based business into a major enterprise.

Real estate agents need to strike reality into their sellers when they list.  Either the price or the terms have to be attractive, especially in this market. They also need to seek discounted pricing or special financing options for their buyers.  This is where a great relationship can be created between investors and agents.  When bank financing is difficult, many times, a real estate investor can be a solution to that problem.  We have solutions that get the property sold and the commission paid, so another new homeowner can join the ranks in the American Dream.

In summary, while working with a Realtor can reduce our profits, especially on the selling side, a relationship with a creative thinking real estate agent can be a plus in a tough market.  Starting your own business in real estate with a couple of creative hungry agents on your side can lead to huge profits and a pipeline full of potential deals. The right agent can make a savvy investor a lot of money, if selling properties is what you want to do.  The same works in the reverse; smart agents should have a list of creative investors with whom to work because then…everybody wins. Most agents don’t want to deal with it because they need to get educated about it.  It’s really something they’re not comfortable in doing and it’s really not very lucrative for them, as in the traditional way they know how to do a real estate deal.  This is more creative.  Agents really aren’t lease option friendly but with the right education you can tap into a great resource one in which can produce the majority of deals for your investing needs.  For more information on lease options and strategies on how agents and investors can work together visit www.GuaranteeProfits.com