I am a real estate agent and investor. I invest in NH and help clients buy properties in MA. I find it easy to connect with investor clients since I invest too and we can talk shop. I’m thinking about building a real estate team where all my agents need to be investors or need to become an investor within 1 year. This feels like a great idea since it’s already working for me and while there are some great agents out there I feel Investor’s as a whole are under serviced in the industry.
Thoughts? Is this a good idea? Are there things I need to be careful of when going down this path?
Thanks in advance for any feedback!
@Jonathan Bombaci I like the idea
Good luck . As a business owner , I've found the best motivator especially in the real estate industry is sales opportunities. Forcing people to become investors, who may turn out not to like it or are bad at it is a recipe for disaster. I better idea is to build a team of agents who understand the investor mentality and who can build a client list of repeat customers. Just because something is working for you does not mean it will work for them.
Realtors are a fickle bunch and will leave you if something goes wrong or they feel pushed into an uncomfortable area.
The last bit of advice , agents are independent contractors and requiring them to be investors may pierce the independent contractor viel and open you up to being an employer at the least and a investment advisor at worst and not a team leader.
Thanks for the feedback @Brian Van Pelt I do understand the independent contractors issue and will need to be intentional about that. The fact is it’s an interview to get onto the team if we focus on investors and my clients want experienced agents I feel like it’s either a fit or it’s not.
I definitely appreciate the feedback and I’ll keep your words in mind.
Johnathan, I am like you a broker/investor. When I have money I buy property, when I dont I sell. I like the idea just not sure on the execution. Most agents, self included, when an "investor" contacts me and says I want a good deal. I roll my eyes, we all want a good deal. If I figure out a way to consistently find a good way to find motivated sellers we would make alot of income.
As you know most agents just want to sell houses, they dont invest, some do, the good ones do. If you had all agents as investors how does the business model work. How do they not compete with each other, more so than traditional agents.
I deal with the wholesale side too and it is diametrically opposite of the agent side. Wholesalers go for deep discounts to the point of it is boderline exploitation, agents have a fiduciary duty to get the highest and best for their client. Straddling the two has been hard. I find it easier to negotiate down a deal once it is listed with another agent, that way I can not be deemed of equity stripping or taking advantage. I have been on the fence on which method to focus on.
I am all ears for ideas.
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