5 Reasons Realtors Should Work with Real Estate Investors

Real Estate Agents and Real Estate Investors often neglect the potential benefits of working together. Investors focus on short term results. Agents tend to value medium to high range transactions over the potentially lower value fast turnaround investors are interested in. While, investors tend to refrain from using agents in order to bypass commissions. Understanding how to work together can be a key piece of the puzzle for each business enterprise in order to capitalize on long term potential.

1.     Repeat Business/Multiple Deals

Investors buy and sell often. While traditional home sales will bring in larger commissions, the repeat business from investment property sales can bring in more predictable cash flow for business. Typical homeowners are looking to buy or sell (not always both) every 4-7 years. Some investors buy one or two houses a year, while others will be buying dozens to hundreds., Real estate investors are buying and selling all the time, which makes fostering a relationship with a handful of investors beneficial to your agent business.

2.     Fast Deals and Smooth Transactions

While traditional home buyers sometimes have plenty of time on their side, investors do not. An agent may work with a client for months to find the “perfect home.” On the other hand, investors move quickly in order to beat out competition or capitalize on a hot market. Investors also attempt to minimize holding time to keep costs down, by selling quickly. It is much easier for an investor to commit to a rehab property they will own for 6 months vs a home owner who will be committing to that house for life, potentially.

Investors also know their process. They don’t base a home purchase on subjective qualifications such as emotion and aesthetics, which can be difficult for an agent to grasp. Investors base decisions on numbers. The criteria used is predictable and makes it easier for an agent to understand, target, and identify listings for the investor client.

Additionally, investors understand real estate and are more adept at handling the minutiae (documentation and costs) involved in the transaction. This typically means investors can move quicker and don’t need as much help through the process, making an agent’s job much easier.

3.     Double, Triple, and Quadruple Commissions

Investors occupy both the buying and the selling role during the investment process. When an agent provides exceptional service on the buying end, they can be presented with the opportunity to represent the investor on the selling end as well. Fix and flips are a good example where agents can partner with an investor for a mutually beneficial transaction, especially if the Agent is representing both sides of the transaction during the buying and the selling process, i.e. Quadruple Commission!

4.     Referrals

Investors get themselves involved in the community, both locally and nationally, and as a result, can have a wide network of people in need of a good agent. Investors like to strengthen those connections with good recommendations. So being a good agent to an investor has advantages when they tell their community about the last deal they did and how great you were.

5.     Free Investing Advice

As an agent to a real estate investor, you can learn exactly what it takes to succeed on the investment side of the business, all while you still get paid. Many investors have paid tens of thousands of dollars toward programs to learn the information you will get an inside look at every day. You may not want to continue working until the day you die. So, working with investors can give you the tools you need to build your own investment portfolio.