All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
BlogArrowBusiness ManagementArrowAre Real Estate Investors Really Necessary?
Business Management

Are Real Estate Investors Really Necessary?

John Fedro
Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
224 Articles Written

Welcome back!

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

At least once a week this question is emailed to me from newer investors trying to wrap their heads around real estate and mobile home investing. In the start of my career I too asked these same questions about the need for us if buyers and sellers are actively looking for each other.

The answers I received in the past were less than suitable to me; however, over the past decade I have come to learn different reasons for our true need in most markets.

Related: 12 Simple Tips For Beginner Real Estate Investors

Let’s look at each part of this two-part question.

Can’t Sellers And Buyers Just Work Out A Win-Win Deal Between Themselves?

Yes, of course they can, but how realistic is this?

Real estate investors choose to become experts in real estate investing strategies in order to help sellers sell and ideally save a seller’s credit.

Conversely, non-investor-buyers have their own areas of expertise (i.e. doctors, mechanics, etc). Many non-investors simply do not look at real estate as an investment tool. Many sellers and buyers will simply prefer to react to your advertising and ability to help them quickly. Until this mind-set in non-investors changes, there will be a need for us investors to help.

In reality many investors begin investing with little money, less-than-perfect credit and only moderately educated about real estate investing. When I first began helping sellers and buyers I had less real estate experience and education than most regular single-family homeowners. In my career it is only because I cared about sellers and buyers and took daily action that I was able to make a career and name for myself in my mobile home investing market.

Over the years investing, I have made countless mistakes and errors throughout the investing journey along the way. Additionally, during this time I have created tremendous value helping many sellers and buyers finding, holding and selling homes.

Investors are busy daily changing lives and their local real estate markets everyday.

Are Real Estate Investors Necessary?

Yes, in many cases investors may be needed. In almost every real estate transaction, investors bring more than just a signature to the closing table.

Investors can help motivated sellers by:

  • Closing quickly or on a specific date
  • Bringing cash or other financing to the closing table
  • Being more flexible with purchase terms than traditional buyers
  • Bringing clarity to a seller
  • Giving sellers more options than ever thought possible
  • Helping where no other options seem to be available
  • And in countless other ways

Many times when we investors approach sellers we are first here to listen to a seller’s situation and wants, then to educate the seller to their selling options. After this we can ideally present a plethora of methods, prices, terms and strategies to purchase almost any seller’s property.

Related: Why Real Estate Investors Shouldn’t Be Afraid To Ask In Spite Of a Likely No

Conclusion

An end user that will be living in the subject home will almost always pay more for a property than an investor will pay. In short if a seller can sell for more money to an end user, then great for the seller. However, sometimes you will find you are one of the only buyers willing to help a seller and actually pull the trigger on the property.

As a real estate investor, what value do you feel you bring to the market?

Let us know your thoughts in the comments section below!

By John Fedro
Investing since 2002, John started in real estate accidentally with a four-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to his cash-flowing portfolio. Since these early years, John has gone on to help 150+ sellers and buyers sell their unwanted mobile homes and obtain a safe and affordable manufactured home of their own. Years later, John keeps to what has been successful—buying, fixing, renting, and reselling affordable housing known as mobile homes. John shares his stories, experiences, lessons, and insights of other successful mobile home investors he helps on his blog and YouTube channel and has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest on BiggerPockets and other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.
Read more
5 Replies
    Frankie Woods
    Replied over 6 years ago
    Great post John! I’ve always wondered what investors mean when they say “we find solutions to people’s problems”. You outlined what that means wonderfully! I will definitely be adding your reasoning into my ‘scripts’ when I start my marketing campaign. The preparation will make answering those calls a little bit easier!
    John Fedro
    Replied over 6 years ago
    Hi Frankie, Thank you for commenting and your kind words. I am glad this article helps and makes sense. All the best, John Fedro

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Rocky Vasquez
    Replied over 6 years ago
    Good article, John! This week I closed on a “sub2” deal. Seller was behind $8K and property needs over $18k of work. She had met with other investors and even that ugly house buyer but no one was able to make her an offer. It feels good helping this client save her credit and giving her a way out besides letting the home go into foreclosure. A knowledgeable investor brings many options to sellers that a typical buyer does not understand.
    John Fedro
    Replied over 6 years ago
    Hi Rocky, Thanks for commenting. Congratulations on the home!! Additionally congratulations for finding a profitable and win-win solution to the problem. Even between investors there are so many differences in what each investor will consider a “good” deal. I have found the buy and hold investing strategy typically will allow me to pay more to the seller over time and typically wins out in my negotiations. Love the last sentence of your comments, ‘ A knowledgeable investor brings many options to sellers that a typical buyer does not understand.” All the best, John Fedro

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Rocky Vasquez
    Replied over 6 years ago
    Good article, John! This week I closed on a “sub2” deal. Seller was behind $8K and property needs over $18k of work. She had met with other investors and even that ugly house buyer but no one was able to make her an offer. It feels good helping this client save her credit and giving her a way out besides letting the home go into foreclosure. A knowledgeable investor brings many options to sellers that a typical buyer does not understand.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
Rotate Log in or sign up to comment

Related Blog Posts

Business Management Jan 03, 2021

5 Extreme Methods I Use to Save Time in My Workday

By Engelo Rumora

Time is your most valuable asset, and you have to invest it wisely. Because of this, I’ve come up with five extreme ways to protect my time.

Read more →

Business Management Dec 30, 2020

Gather Your Dream Team: Must-Have Real Estate Team Members

By Sterling White

There are key roles every property management operation needs to have covered. Here are a few indispensable members I have on my team.

Read more →

Business Management Dec 17, 2020

The (Brutal) Truth About Why You Can’t Find a Partner

By Brandon Turner

If you are having trouble finding a partner, there’s likely one of these three things going on. And there’s a solution.

Read more →

Business Management Dec 15, 2020

LLC vs. S Corporation: Which Is Better for Real Estate?

By Scott Smith

This quick guide will help you decide whether an S corp or series LLC is the best business structure for your real estate investment business.

Read more →
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.