How can Real Estate Agents best build their business working with Professional Investors
Having been a professional Investor since 1998 and Broker-Owner of a brokerage firm, I have experience on both sides of this equation. In this series of posts, the approach I would like to take initially is from the perspective of the real estate agent. In truth there are many more licensed agents than there are qualified, professional investors. Why would an agent want to develop relationships with such an investor. Sounds obvious; a consistent source of business with a client that isn't going to be questioning everything the agent does, will probably price their property realistically and will move fast on a reasonable offer. Sounds like realtor heaven. But putting yourself in a position to take advantage of this slice of heaven is easier said than done.
In order to develop a relationship with investors, the first step is to identify what type of investor you want to service. Do you want to sell to and list the properties of a buy and resell investor (can you say flipper?). Or would you prefer working with a buy and hold, landlord type, investor. While there are many other types of real estate investment (multi-family, retail, office etc), most agents don't start out there primarily due to the increased complexity and financial calculations required.
No matter what type of Investor you choose to work with (or chooses to work with you), there is one thing all investors must do, and what an agent must do to help their investor succeed, and in turn, build a successful, symbiotic relationship that works for both. That one thing is to BUY RIGHT. That is what drives the train.
What does it mean to buy right? That is the question that needs to be asked and answered by each individual investor and communicated to their agent. It can mean different things to do different investors, but the similarities in the parameters are greater than the differences.
In my next post, I will attempt to explain what buying right means to me depending on what my goal is when purchasing a property. Stay tuned!