Here’s why every real estate agent should work with investors!
Abhi Golhar
Keynote Speaker | Managing Partner at Meridian 84 | Driving Big Business Breakthroughs by Leveraging Doubt into Transformation
If you're looking to turbocharge your real estate career, investors may be the way to go. While some agents prefer helping home buyers find their dream homes and others specialize in rental properties or commercial buildings, working with property investors can have a slew of advantages - it's easy to see why they'd be attractive options.
There are plenty of advantages for those who prefer taking on this challenge - from high-value deals to long term relationships. So here’s why every real estate agent should work with investors:
Better to work with
Navigating the real estate market often comes with a unique set of challenges - especially when working directly with homebuyers and sellers. Their emotions tend to get in the way, leading to long-winded negotiations over minutiae that eat away precious time. The solution? Working closer with investors! In most cases, all they require is for you to find them an appropriate property within their budget parameters; one that offers both exceptional returns on investment as well as cash flow after closing costs are taken into account. Best part: many times, prospective buyers don't even need to see it if your analysis proves sufficient.
Deals can be accomplished sooner
Home buyers and sellers tend to face a multitude of challenges that can make the process of closing a deal lengthy. However, real estate investors have access to more attractive financing options due to having their rental income as an additional form of security which makes them relatively low risk borrowers in the eyes of lenders. Furthermore, they may be able to take advantage of alternative methods such as hard money lenders or private money lenders with syndication potentially available should it become applicable? for greater leverage when seeking out investment opportunities.
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Earn higher commission
As an agent, maximizing your commission is always going to be a priority. But what if you could do that while also expanding the scope of who you're working with? By leveraging your network and encouraging investors to become clients, not only can you tap into higher priced properties - but also benefit from elevated commissions. Get in on this lucrative market now and take advantage of bigger payouts while you can.
Attract better leads in a stronger market
As a real estate agent licensed in the high-demand markets of San Francisco, Miami, New York and Boston, you may face an uphill battle to find buyers. With prices so steep compared to rental rates makes renting more appealing than purchasing for many people. However these same hot locations can provide excellent investment potential given their strong demand across short & long term rentals – making them highly attractive prospects for out of state investors looking to yield a solid return on investment. If your focus as an agent is primarily on targeting this investor pool rather than just homebuyers then there's still plenty of opportunity even when competition remains fierce within those areas where sellers have the market advantage.
Earn more frequently from the same investor
Real estate agents and brokers can benefit from the long-term outlook of many homebuyers. With 82% expecting to move at least once in 15 years, a successful agent or broker could establish an ongoing relationship with their clients that they would value for decades. At the same time, real estate investors have a shorter window – only two to three years between purchases on average – but if these leads are kept happy by finding profitable rental properties every few months, it's possible for agents to earn commission repeatedly over several cycles.
Bottom line:
Find success in real estate by placing greater focus on clients that have the know-how to make wise investments. This will not only increase customer satisfaction, but also provide a range of business benefits with higher commission rates. However, an informed approach is key; do your research before taking the plunge.