There are tangible benefits for real estate agents willing to work with seasoned real estate investors. Over the past few years, the relationship between real estate agents and investors has improved a lot. It’s largely thanks to the fact that investors have been a crucial part of the industry’s recovery.
But there are still a lot of misunderstandings and prejudices out there. Agents need to know that the real estate investor they’ve been avoiding could hold the key to a very lucrative partnership. To alleviate some of these stereotypes, here are 5 ways a real estate investor may differ from any preconceived ideas.
- Not every investor is a greenhorn
This may have once been the norm but not anymore. Often the investor sitting across from you may have more experience than many Realtors. Even newer investors have spent serious money educating themselves about all aspects of real estate. Possibly, even more time and money than it takes to get a real estate license. So don’t automatically consider that every real estate investor who makes contact will be a time waster.
- This shouldn’t be a competition
In the bad, old days – a.k.a. a few years ago – there was plenty of animosity between investors and agents, each one thinking the other was their opponent.
In all fairness, if agents aren’t working with investors, they could see them as competitors. They are following the same leads, calling the same houses and prospecting for motivated sellers. The Realtor doesn’t have the edge here, charging money for a service, as opposed to investors that are offering a guarantee, fast sale, and cash.
Conversely, investors are offering properties for sale and for rent and marketing to get more buyers on their lists. That’s a place where the agent and the investor need to get together. If more agents treated investors like a valuable client and tried to serve them well, the two sides could collaborate; a win-win situation for both parties.
- Separate the wheat from the chaff
There is a subset of investors who come into the business with unrealistic expectations. These are the dabblers that didn’t invest in their real estate education. Timewasting amateurs close a lot of doors with ridiculous inquires and ludicrously low offers. But contrast them with the newbie real estate agents that don’t know what they are doing and sabotage clients with wild asking prices and demands.
The serious investors want workable deals. These professionals have done the math, know the local market, and have genuine buying standards.
- Don’t miss out on business opportunities
The regular bread-and-butter for agents – buyers, renters, and sellers – have traditionally propped up real estate, but they offer low return on investment and returning clients may take years to make a reappearance.
Contrast these one-hit-wonders with a single investor for a client. You could easily be looking at numerous deals a month, multiplied over the course of a year, if the relationship is fruitful. Like any business liaison, both agent and investor will have to prove themselves. But investors – and their colleagues – can revolutionize what is possible for realtors. It only takes one satisfied investor (client) trading referrals with his associates and you have the potential for a steady stream of lucrative new clients.
- Investors can bump up your profits
A serious real estate investor has to potential to bring realtors plenty of business opportunities. Agents can dramatically lift their net incomes by eliminating the need for marketing – money in the bank. Working with an investor, the agent can sell property to the investor and then turn around and market and resell the same property on behalf of the same investor.
Because experienced investors get the business, they are easier to work with. They’ll often have assistants on board that will help pick up some of the agent’s work – more net income, less hassle.
Real estate investors and real estate agents; could be the dream team!