Those with consistent leads, whether they are new clients or new property deals, have more opportunities to create more income from better leads.
Working with a real estate agent is a great way for investors to diversify their lead sources, and get access to deals before they even hit the market. Successful relationships with agents take a special set of skills. Since agents are used to working with owner-occupants who are often more emotionally attached to their properties, investors can be a breath of fresh air to agents. Use this to your advantage! A good relationship with a realtor has many benefits. As a realtor myself, I know firsthand the benefits of working closely with investors. One of the biggest benefits is the access this relationship affords both parties. Here’s what I mean when I say “access”:
When realtors work closely with investors, investors get access to off-market properties
Any realtor can show properties that are well-priced on MLS, but a relationship with a real estate agent who understands the deal specs an investor prefers can lead them to specific deals that suit their investor clients. It also benefits the realtor, since investors are much more likely to take distressed properties off of your hands than an owner-occupant might be. Investors with a large amount of cash to work with are hugely beneficial in these cases. Some sellers just want to sell quickly and don’t want to list on MLS, and an investor with cash won’t need to go through the loan process in order to be able to acquire the property. Being able to offer a seller a quick sale may mean both parties win. The seller can move quickly and the investor gets a great deal.
Realtors also regularly work with estates and real estate clients who know about properties coming in. These are easy leads for them to feed to an investor they know is ready to make an offer. Realtors also do mass mailings to neighborhoods looking for properties to list. Not only can these mailings lead to off-market, distressed properties, but if they know exactly what type of deal you’re looking for as an investor, they’ll likely give you first pass at making an offer.
When realtors work closely with investors, they both get access to each other’s networks
Both real estate agents and real estate investors are notorious for their excellent networks. Realtors work with lenders, lawyers and title companies on a regular basis and can be a great resource for investors needing these services as well. Justin Melo, a realtor with the Rogers-Melo Team at LAER Realty Partners who has been working with investor clients since 2010, confirmed, “[Finding an investor client to work with] is all my network. When I have a good property for an investor I put my feelers out there with the financial planners, lenders, and attorneys I work with. Everyone knows someone who is looking.”
And it’s true, real estate investors know other investors looking for properties just like they are. A close relationship between an investor and an agent can expand both people’s networks in mutually beneficial ways. And isn’t it true that the more people you know, the more leads you get? Investors should look to their realtor’s connections as an extension of their network and a reliable source for leads. Realtors should look to investors’ connections to be a reliable source for more clients.
All in all, realtors and investors live and die by their lead sources. Those with consistent leads, whether they are new clients or new property deals, have more opportunities to create more income from better leads. Learn how to network with each other, and join different networking groups in order to find success in this arena. One of the best ways to control your networking group is to start your own. Invite your preferred professionals for a get together once a month. This is a great way for your team to meet each other and network together. It will keep you at the top of your network’s mind and generate more referrals for your growing business.