Investor, also Realtor.. How to introduce myself to new clients?

Question

Hi Everyone,

I am ready to jump into the Investment realm full boar but am bound to the regulations of a Realtor. This initially seemed like a great position to be in, however I'm finding that it requires some finesse when introducing myself to potential investor partners / clients. Even though I only operate part time and by referral, It becomes difficult to want the best 'investment deal' for my particular situation but according to RELRA, I have to present them with a Consumer Notice acknowledging my duties as an agent.... I have always been straitlaced and followed the rules- Is there a clear cut way to do this appeasing both sides?

How do you best begin the conversation with people you wish to invest in their properties-but do NOT want to act as a Realtor to do so? Specifically when I call / mail local properties and this can be seen as solicitation where disclosure is mandatory?

My future is in investments, in fact I have the business plan all ready, just seeking some seller financed / flip opportunities in my area. Being an agent certainly helps to find deals / connections, however It brings some challenges.

Any thought / insight is greatly appreciated.

Matt

John Warren · Answer

@Matthew Morrow you may be making a bigger issue of this than it really is. Some people need to sell quickly at a discount, and for them you can ethically buy below market value. As long as people know you are a realtor, the rest of the negotiation will be just like it would be for someone who is not a licensee.

John Warren · Answer

@Matthew Morrow it sounds to me like being an agent is holding you back. I personally jumped to the commercial world and have been buying bigger buildings. This has allowed me to play in a more sophisticated space where practically everyone is an agent/real estate professional. I can then act as an agent ethically since I have no intention of grabbing off market small deals. You should think long and hard about why you got the license. Realistically, the MLS probably isn't that big of a gold mine. Maybe work with a full time agent as part of your "team" for investing and just ditch the license?

Jonathan Greene · Answer

It's all about disclosure in the end. I have a disclaimer on my mailers that I have a license, but my off-market business is its own LLC and business. The worlds often collide, but as an investor if you market off-market, it helps you to have a license in that you can take listings on properties where owners don't have to sell and want to get the most money. At least half the off-market deals you will find, the sellers want market price and the way they get it is on the market. You use your license as a negotiation tool to offer listing, buy for cash, or something in between. Usually, the people who get hung up on what is legal or right in these contexts are looking for a way not to disclose and you don't sound like that at all. Just disclose you are a referral agent and have the conversations and see where they do. Even in referral, you could pass the deal to a listing agent for a seller who wants market value and get 25 pct.

Sparkle Reed · Answer

Thanks Matthew and John....this info helped me out a lot.

Matthew Morrow · Answer

@John Warren

This Makes perfect sense, I definitely seem to be overthinking it when you phrase it like this. Thanks again for the input.

Matthew Morrow · Answer

@John Warren

Thanks so much for your input. I agree that the long-term being an agent may potentially hinder my situation- but my secondary question would be how are so many agents also investors?

Your response definitely sparks some considerations. I know several agents that buy and hold strictly for rental purposes while others are in the occasional flip business. There is even one local company who is very successful at “buy your house Cash now no questions asked” that is Also a reputable brokerage for listing their own flips.

Do you think that prefacing my interactions with potential investment based persons- “Although I am an agent I am not acting as such in this capacity? “ or something similar may suffice?

I thought of going to the local Real Estate Assn to get their thoughts but would rather not open a can of worms against myself lol....

Investor, also Realtor.. How to introduce myself to new clients?

Investor, also Realtor.. How to introduce myself to new clients?

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