Do investor agents focus more on investing or on the consumer end?

Question

I have just gotten my license and have chosen a broker. Well my broker has been in the business for 15 years and is an investor as well, however it seems that because her company is more of a high end brokerage, that she really wants me to focus more on the agent side rather than the investor side. She knows that my goal is to be an active investor, but when I told her I wanted to work with investors to network for my own business and possibly turn a profit as an agent, she said," I was wasting my time because many investors just end up shutting out the buyers agent and go straight to the listing agent, and that she wouldn't want to see me possibly make $100k in real estate but miss out because I focused on investors."
I am unsure what to think about this because I would like to work with investors to grow my business and think that she wants me to focus more on being a full time agent rather than a full time investor. I am interested in hearing some feedback and knowing how many investor agents focus more on working with consumers as opposed to investors and how it has helped their business and their knowledge of real estate.

Joel Owens · Answer

Amber what is the success level of your broker?? Does she make hundreds of thousands a year or more in commissions for herself??

Do you not need the money from commissions and only want to buy real estate for yourself??

This broker sounds like she has been around the block and is trying to get you to not waste time.

The commissions from regular sales at a higher price point will land the broker a fatter check if you are on a split instead of a small per transaction fee.

It is true that on what I call junker properties the commissions will be very low and the buyers sometimes can try and stab you in the back if you are not the listing broker.

There are however MANY types of investors to work with.

There is a difference between an investor with 10,000 to their name and an investor with hundreds of thousands to millions to work with.

The one with 10,000 is maybe purchasing one property and over time trying to build a portfolio and grind it out.

Nothing wrong with that but as a broker and an agent you have to ask yourself??

What is the "highest and best use" of my time as a broker/agent for the knowledge that I have and skills I possess??

If you are doing 40,000 commission deals per transaction then you simply can't work on submitting 30 low ball offers for an investor to make 1,000.It's not the best use of your time.

As a broker/agent you want to leverage yourself and work your way up into the larger deals.The small deals are okay as filler between the larger deals but you can't put too much time into them to detract from your larger deals.

If they are time consuming and low pay then do not take them or refer out and take a referral fee.

If you are handling a problem for a large client then sometimes there are exceptions to that as they represent a bigger book of business to you.

Jeff S. · Answer

Yes, get out before you make friends with other agents in the office, and don't look back. Good luck.

Amber Butler · Answer

I know for sure that I definitely did not ask enough questions. Unfortunately I just heard that my broker was an investor too and I got excited because I heard that she could help. When I first interviewed it was with the coo and not the actual broker. When I met the actual broker what she was discussing regarding me and my goals seemed entirely different than what the coo was saying.

Amber Butler · Answer

I think you all are definitely right. And jeff I definitely agree with you. The good thing is that I have had some problems actually getting my license from the real estate commission so I am not completely hooked with this brokerr. I am definitely considering switching to keller williams. They seem more willing to do what I want.

Bill Gulley · Answer

Amber, many brokers allow an agent to purchase without paying much on commission to the office, one or two....

All brokers would rather have full time agents, that's how they make money. If time is money, your time on your own investments is money lost to your broker.

Production covers a multitude of sins in sales, a salesman/sales woman who has great production for any company can usually do what they please....

Your broker wants you to be successful, it makes them successful.

If you get in the right grove from the start, get a buyer's agreement from your investors before you show an MLS listing or let them in your car, you can control what your broker is concerned about. Those investors who won't sign up with you, don't waste your time, that attitude will go over well with your broker I'm sure.

Jeff S. · Answer

Amber, if your broker wants you to be a full-time agent then that is what you should do. If you want to do something else, find a different broker. A broker, at least theoretically, is supposed to supervise you (there are many citations by state RE agencies of a lack of supervision with wayward agents) and can have serious problems if they don't.

Chances are she will be watching you like a hawk. If you aren't going with the flow then she will probably fire you. That would be a bad deal for all concerned.

All this should have been dealt with before joining this firm.

A new agent is a huge potential liability for a broker and there needs to be a profit in it for them. The idea of a brand new wet behind the ears agent working exclusively with serious investors will not appeal to the typical broker that specializes in residential home sales.

James H. · Answer

I think you will be fine whichever way you decide to go about it. Just remember that what you do for the next 6 months or so does not by any means define what you will do for the rest of your life.

Amber Butler · Answer

Brian Hoyt I definitely think you're right. It will benefit a lot to have access to other important individuals within the industry. Then again, I still believe that my broker wants me to be a full time agent which does not really appeal to me. I don't want to be hard headed about this at all, but then again, do you find it extremely important to build up your retail buyers list as an investor? I guess I am not worried about selling my rehab when I get one because I have a couple tricks I have learned up my sleeve and truly believe it will sell itself.

Phillip Dwyer · Answer

Brian makes a good point. You should be networking regardless. Real estate is a business of relationship building.

James H. · Answer

Hi Amber Butler,

You mean business! Already got your license.

This is just my opinion:

I think you can focus on retail end during the day and make some good commissions and concentrate on networking on your "own time". I also thing that a lot of investors you want to work with may not be interested in using an agent. I'm more of a real estate hobbyist than investor, and I am probably not going to use an agent to make my next purchase. Nor did I use one to make my last purchase.

That being said, As an agent working on commission, I would imagine that you have a great deal of control over your schedule. Why not slip in some networking two or three lunches or brunches a week?

I also thing through the course of servicing retail clients you will get to know other people in the process who are just as important as other investors such as inspectors, appraisers, mortgage professionals, other agents (possible investors), etc.

Do investor agents focus more on investing or on the consumer end?

Do investor agents focus more on investing or on the consumer end?

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