Some realtors are looking into and considering a niche market in working with real estate investors.
As a real estate investor, I can tell you 2 things. Working with investors can be rewarding and lucrative OR it can be frustrating, difficult, time consuming and involve unwanted surprises.
The difference between whether this niche can be rewarding and lucrative or not worth your time and effort is education and training….of the investor.
1. Investors are in it for the money…of course. But I am sure anyone here who has worked with a real estate investor knows that they can be scattered, unethical, demanding, you name it. The reason is because they do not how to make good use of their time, how to search for the right properties, estimate costs to repair and fail to perform due diligence on the properties in question. They are not true entrepreneurs or business professionals and have no respect for your time, expertise and knowledge.
2. There are many first time investors out there who think this is easy business. You find a property or have a Realtor find you a property, you fix it up or not, you put it back on the market and it gets sold for a profit and away you go…To say that this is unrealistic and naive is an understatement.
3. As a real estate coach and trainer I and can honestly tell you the caliber of trained real estate investor professionals is head and shoulders above those who are untrained and quite frankly have no clue. Now, let me be clear, when I talk training, I am not talking get a couple of CD’s and books on how to get rich quick. I am talking about those who are serious about this profession, invest in their future and themselves and get the proper education and training to do the job right.
As Realtors you had to go through extensive training, take courses, pass state exams, plus you take continuing education courses because it is required to maintain your license and the bottom line is it is required in order for you to succeed in this business. Realtors who walk around aimlessly and think I get listings, I sell them and I pick up my commission check and that is all there is to it (you know the ones I am talking about) well they are just like untrained investors; they have not a clue…would you agree?
So what is in this niche market for you? Plenty!
If you decide to work with an educated and trained investor, here is what you get.
1. The investor appreciates that his or her time is money, so they understand that working with a knowledgeable Realtor in the areas where they wish to invest is invaluable to them. You save them this precious time.
2. An educated real estate investor will bring you repeat business, in some cases considerable repeat business in a 12 month period. That perk alone is worth considering this niche. You get to know your investor, what they need and want and you do not have to reinvent the wheel in selling yourself to them as you do when you meet a buyer or seller for the first time.
3. An educated real estate investor also understands that you can be of considerable help in “bird dogging” new opportunities for them.
4. An educated real estate investor has been pre-approved for his investments and you don’t have to try and get him pre-approved every time or shop lenders, which you may have to do with each new buyer you work with.
3. An educated investor realizes that they should not only buy from their Realtor but they should list their properties with a Realtor in order to get the highest return on their investment. It has already been proven that for sale by owner properties actually sell for and net less than homes sold through knowledgeable Realtors. Again, time is a big issue here and the trained investor knows that their time is best utilized in finding other properties and managing the rehab of those that they have found.
4. The educated real estate investor understands the value of long term relationships built upon trust, confidence and respect.
So if you are thinking of a new niche in your market, think about working with an educated and trained investor and reap the rewards.
I wish you all the best and may all of your real estate dealings be exactly what you want them to be. When you are in control of your destiny and business, success is almost a certainty.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1000 real estate deals, owned a construction company, been a private lender, and owned a property management
company. To learn more about Peter please visit
coachingbypeter.com.