3 Ways to Gain a Competitive Advantage in Real Estate Investing
Having a competitive advantage in any industry is vital, and having an investor friendly Agent in the real estate industry that is willing to work with you helps tremendously. One of the most debated arguments is: does an investor need a realtor license to be successful? If getting a license is not in your plans then you'll need to have access to the MLS. Making offers on distressed properties takes a considerable amount of time and most Agents do not want to take the time to make blind offers that are 60-70% below market value. Here are some good suggestions on finding an aggressive Agent to help you get the competitive advantage you need to find those exclusive deals.
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ATTEND OPEN HOUSES
Attending open houses of bank owned or a distressed property is a great source to find a Realtor. Usually, hosting open houses are entry level duties for many Realtors. Normally you will not meet a seasoned Realtor at an open house. However, you may find a Realtor that recently received their license or one that has recently switched firms and looking to build clientele. Either way, both situations can be a benefit to you. By finding a novice Realtor they are eager and ready to get their first deal done or another deal done. They are on fire and teachable, by knowing you are an investor they are willing to put in any offer you suggest which is great. The recently transferred Agent face another set of circumstances; they may not be receiving listings from the brokerage firm as of yet. This is not in all cases obviously, but they are looking to carve a niche within the firm. This added pressure motivates them to aggressively search and find every possible deal. Finding an Agent in this position will provide you with another source of leads. Both relationships take time to cultivate and nurture, you will have to utilize your leadership ability to keep the Agent engaged and excited about working with you. It is difficult to receive numerous rejections, but you must reaffirm the Agent that you have been investing for a while and you know exactly what you are doing. Some Agents will have the patience and the tenacity to stick it out and others will not. So take time on those Saturday and Sunday mornings to visit a few open houses and get to know some of the agents in your area.
ATTEND REIA MEETINGS
As an investor you should be familiar with your local REIA, this is another place to meet investor friendly Realtors. Although the Agents that are at the meetings are seasoned and may have a huge clientele, get to know them. By becoming a familiar face you will become more comfortable with your surroundings and your surroundings will become more trusted in you. People in the industry that have years of experience have seen many come and many go so they are not apt to freely give information to someone they are not familiar with. Consistently attending the meetings is very important; it informs other investors that you belong in their company. After attending a few meetings and building a rapport, feel at liberty to ask the Realtor that frequents the REIA if they can provide you with a referral of some sort of a novice or teachable Realtor. This is a great question to ask because a seasoned Realtor often teach classes and seminars to newer agents and they may know a new Agent that is trying to get their feet wet. Always ensure the Realtor at the REIA that you are patient and willing to help guide the new Agent through some of the nontraditional deals that investors may encounter.
USING YOUR SOCIAL NETWORK
Social networks will be able to echo your message to thousands in a matter of minutes. Use this technology to address some of your needs. Join clubs via Twitter, Facebook, Linked In, G+, Active Rain, and of course Bigger Pockets to find a Realtor. Remember to engage others and do not continuously be the needy individual that is always looking for something. Networking means that you have to provide something in order to get something. Investors in your area may be familiar with someone you can work with. Also an investor may not invest in a certain area anymore but still may have contacts in your area. By using technology you can reach the masses quickly to find a Realtor.
Just like finding the perfect deal, finding the perfect Realtor is a challenge, but once you find them, it’s money in the bank. I search constantly to find more and more Realtors to send me deals and often I receive insider information on pocket listens that have not hit the market yet. For this reason alone building rapport with Realtors is essential and it gives you the competitive advantage you need to be a successful investor.
How are you finding realtors? What kind of networking do you do?
Photo Credit: Philo Nordlund