Quote from @Scott Johnson:
@James Hamling I just want to make sure we’re talking about the same thing. You are aware that I’m speaking about “hybrid investor-agents” meaning brokers who are also investors themselves (regardless of their client mix), right?
I agree that if someone is specializing as an investment broker, it’s ideal they serve investors only. No argument there. Unless I’m trying to flex 😉
But my question isn’t about generalist vs. specialist business models - that’s a different (valid) conversation fir a different thread.
I’m asking about the actual working relationship between brokers and investor clients. How are deals getting analyzed and shared? What’s the workflow? What should each side be responsible for in the process?
Because even as someone who does this full-time with investors, I’m curious - how do YOU handle deal analysis and collaboration with your clients? Are they running their own numbers and just sending you comps to verify? Are you building analysis for them? Something else entirely?
I'm not sure what your trying to get at or ask here Scott.
Because in some you ask on some differences, but in other ways you go back to a "comingled" view point, which I covered in the before said.
A number of my clients are licensed agents themselves, both agents and brokers.
I have had clients who are team leaders, developers, you name it. They all had the people and licensure to technically do the things themselves. They come to us for the #1 most important reason of KNOWLEDGE, to find or confirm WHAT they should be doing. Why they should be doing it, and how they should be doing it.
If you understand that paradigm, then it's readily obvious common sense that we are always doing 100% of the analysis and dissemination, presenting it to clients.
From there, yes, we highly encourage clients to roll up there sleeves and dive in trying to do there own analysis. It's the scientific process, take what we give and test it, reverse engineer it, try to poke holes in it, seek out flaws. Because the best confirmation is when actively try to prove something wrong and can't.
The fundamental problem with a R.E. Agent who done or has some investment deals of themself thinking their an Investment R.E. Expert is, they only know what they know, and there going to push just what they know.
So say all they have done is to buy distressed property from estates, fix them up and lease LT as a landlord. THAT is what there gonna push as the everything. Because it IS everything for that agent.
That agent does not know the other strategies & tactics.
And that agents handful of experience and tools may not be a right fit for that client.
When an agent goes to there managing broker and says they have this weird 1-off transaction, not sure what to do, and broker says yeah that's different, hey I know a guy..... I'm that guy.
Everyone who's professionally in this space should either be that guy, or have one of those guys.
And as NAR states, if a person is not a proficient expert in that transaction type, they should NOT be doing it and should be advising the client to the agent who is a proficient expert in it.
What I read you saying keeps asking about an agent trying to fake or muddle there way through serving a client they are not proficient in serving. Yes, they should refer them to someone else.
What your asking for how does an agent do the various actions of being an Investment Real Estate Broker, is answered in my before statement of best way to learn is apprentice under an Investment Real Estate Broker.
I could tell you the tools, resources and process but it's not that simple. There is an art to it all. One can't blindly follow the data outputs. There remains a human aspect, a gut feel, and with it the skills to know how to dig into the data to find confirmation. The art of it all is why apprenticeship is so paramount.
For our Investor clients everything starts with the clients individual road map. We get to know them, their specific situations, their desired end destination, time scope, pro's, con's, and we design a viable investment strategy for THEM.
From there, it's simply executing on the next steps in the strategic plan.
Each individual deal presented has full analysis, from us, on why we are designating it viable, and the viability weight vs the other options. And we encourage clients to do their own analysis.
Clients are always free to self designate deal potentials, and yes we will do a full workup on each but there is obviously a charge for such because our time is far from free. And most clients don't really know what to or not to identify and would fee themself to death spamming random potentials that many don't meet the mark. And so, the vast majority sit back and rely on just what we bring to them. We don't encourage this, we do equip clients with full MLS access and ability to self-search and self-designate, but I get it why most don't. They understand they don't know what to look for.
We work on market, off market, network, and direct source. All depends on clients investing action plan.
Direct source is where we go and literally, as says, direct source and buy potential. It's a seller who was not a seller until we created that opportunity. This is a common action in commercial space that for some reason residential isn't savvy to as of yet.
