Attention Realtors! Working With Investors Will Double Your Business
There are a lot of benefit of working with Real Estate Investors. I know some real estate professionals have a stigma against Investors BUT the majority of them (us) are honest, ethical and do look out for the best interest for their clients and service professionals they work with. Make sure you do some due diligence on the investor first before working with them (just like they should do some due diligence on you before working with you)
Good Investors tend to do lot of deals on a regular basis and have limited emotions on their transactions. It’s just about the dollars and cents. Investors are just basing their decisions to buy properties on the numbers alone. Since there is no emotion, they can be easy to work with.
Make sure you are working with investors who are doing deals regularly, or if a newer investor, make sure they have the ability to do deals. Don’t waste your time working with people who you will send listings to who won’t eventually buy.
Working with investors is just like working with homeowners or other professionals. People do business with people they like and trust. A good place to find investors is at local investor events. Try Meetup Groups or REIA events (Real Estate Investor Assocations).
After you find a few investors that you may want to work with, you need to show them your value. There are a lot of real estate agents out there. What sets you apart from the next one? What I mean by showing value is spending a few minutes every day setting up queries on your local MLS for some deals that might work. Don’t just send an investor 100 deals. Send a few deals that you think meets his or her buying criteria or a deal that you think looks good and say, “Hey Jason, here are five deals that I think could work. These are the prices I think we should put in and the seller may accept, etc...” Most investors have a D (dominant) personality trait and they won’t read a long email weeding through 100 properties. That’s your job, but do it in an efficient manner so that it doesn’t take them too long to review. They will make a quick decision and get back to you.
Offer referrals, resources and other things that can help them in their business. If you optimize your time to do this in the right way, it should only take you a few minutes each day and these investors can back out tremendously based on their deal volume.
We have agents who make a premium because they find a deal on the front end, they relist it on the back end—one deal turns into two deals—they’re showing so much value by helping out that they don't even have to discount their commission (although doing enough volume with an Investor may make sense to do).
A lot of agents are missing the boat by not working with investors because there are a lot of opportunities out there and they may think investors are not doing enough deals or they aren’t loyal. They can be loyal if you show them value and if you are vetting them on the front end to make sure they’re the right real estate investor for you.
It only takes a few minutes each day if you are doing it properly, and you only need a few investors in your portfolio to double the amount of business you’re doing.