Question for Real Estate Agents who are also investors…

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Question for Real Estate Agents who are also investors…

Johnathon Sesi
Realtor · Rochester Hills, MI · Member since 2018 · 27 posts · 18 votes

I know we have a fiduciary responsibility to our clients, but is it ever difficult for you to hold back from keeping a solid deal for yourself? 😆

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Timothy White
Realtor · Boston, MA · Member since 2019 · 91 posts · 60 votes
4y

Be careful with this . Investors work with you because they know your working to source deals for them. you have their interest at heart which they need to feel and rely on. It will be your foundation for success.

If it’s a seller offer them the auction scenario of marketing and promoting for the highest dollar or a quick turn with an off market turn with the group of solid investors that rely on you.

I’d recommend you hunt your own deals specifically  or , partner with one of your investors to continue to reflect your  commitment  to grow together .

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  • Timothy White
    Realtor · Boston, MA · Member since 2019 · 91 posts · 60 votes
    4y

    Be careful with this . Investors work with you because they know your working to source deals for them. you have their interest at heart which they need to feel and rely on. It will be your foundation for success.

    If it’s a seller offer them the auction scenario of marketing and promoting for the highest dollar or a quick turn with an off market turn with the group of solid investors that rely on you.

    I’d recommend you hunt your own deals specifically  or , partner with one of your investors to continue to reflect your  commitment  to grow together .

    3Reply
  • Joe FunariBusiness Member
    Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
    4y

    @Johnathon Sesi I make it very clear to my clients up front what my current REI acquisition strategies. So that there isn't any conflict of interest. Most of my clients want move in ready SFR's and are financing their deals. Because I have a lot of experience with rehabbing both rentals and flips I find my deals off market. Which here in Texas means these wholesale (off market) deals require foundation repairs. Lenders will not underwrite a property that has foundation repairs. Also,I am a big fan of 3 bed, 2 bath, 2 car garage SFR's to add to my (or my clients) portfolio. Lately my flips are smaller than this. Or don't have a garage, etc. I love flipping these and selling to first time or fellow veterans that are using their VA guarantee. It is very tough for both first time home buyers and fellow veterans to purchase a home here in the Dallas/Ft. Worth area. So I help fill that need. I can use all the good Karma I can get. So be upfront with potential new clients and let them know your specific investing strategies. As one mentor said "Disclose down to your underpants." It will take you far as a licensed agent.

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  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    4y

    @Johnathon Sesi   For me this has never been an issue.

    #1.  Probably most people....can't buy every deal they see....some investors will only buy 1 in their lifetime.  Busy investors might buy 1-2 a year.  Pretty rare you get someone that can buy 1 a month or every single deal that comes along.

    #2.  Every investor seems to have unique needs....so some want certain price range, certain area, certain type, single vs multi, dump vs pristine, cash flow vs appreciation, and 100 other variables.   So chances are you are not keeping a deal from them.  I tell investors up front that I send out deals to anywhere from 10-100 people.  I don't think I've ever had two respond to the same deal.

    #3.  Never get in the way of a client.   If you like the deal and you have an investor that you think will buy it, give them the opportunity.  You can always withdraw your offer if they like it.  Tell them you are withdrawing your offer if they also want to make an offer.  You'll build trust and loyalty that way.  You can always find a better deal tomorrow or next week or next month.

    What is your fear?

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    4y

    My clients have the right of first refusal on any deal. As an investor, I have plenty of properties and options and I want to nurture the relationship more than add a door. Think of this way, if you give that amazing deal to an investor, you will be doing more and more deals together. If you take it yourself, you will just have a good deal and a bad reputation with investors in the area. All investors know multiple agents, they aren't going to stick with someone who just sends them the scraps.

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  • Johnathon Sesi
    OP
    Realtor · Rochester Hills, MI · Member since 2018 · 27 posts · 18 votes
    4y

    Thanks for the input, guys! I should add that I am fully on board with my fiduciary responsibility to my clients. I am not currently working with any investors, but I plan to do just wanted to hear from some experienced investor Realtors. I have ZERO intentions on stepping on my clients toes!

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  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    4y

    That is what I thought as well when I started, but there are way too many deals out there to get them all, plus if my client gets one then I have more money to buy my next deal!

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