ADDRESS

8915 S Keystone Ave Ste C
Indianapolis, IN 46227

PHONE

317-657-8059

Working with real estate investors.

Working with real estate investors.

Like most Realtors, I get calls from house flippers and investors who lease their properties fairly regularly. Unlike many real estate agents, I choose not to work with most of them.

What? Did you read that correctly? Yes you did. I choose not to work with the vast majority of them. Why is that? The primary reason is because my business model is based on client care and primarily due to the get rich quick schemes of people who are teaching many would be real estate investors these days, working with them would negatively impact my ability to provide the level of service that I feel my clients deserve.

Don’t get me wrong, I work with serious investors who are willing to build a relationship. Before I get into who I do work with, let me explain why so many don’t make the cut.

For starters you have to understand that someone purchasing real estate as a business venture is much different than someone looking to buy a home for themselves. For instance, someone buying a home will of course want to know that they are making an investment that will grow in value over time… but that timeline is 5-30 years, versus the 3-6 month turn around a house flipper will want on the house. Also, while a future homeowner typically wants the home they are buying to be move in ready; an investor is more concerned with finding gems in the rough that will have a high return on investment and they are usually very open to taking on major repairs if the after repair value is substantially higher than the purchase price and the cost of repairs.

What all of that adds up to, is working with real estate investors creates a substantial amount of work for the Realtor that is facilitating the transaction that simply does not exist with a home buyer.

There is balance to that though, where a home buyer may buy a home every 5-7 years and refer one or two friends and family members to you for business; a serious investor will bring 2-10 deals a year for me to service.

Like I said, there is balance between the two. If this was all there was to consider, I would work with every investor who called. But that is not the case.

The main problem comes in because many of the get rich quick investment classes that are training these investors are telling these investors that they can only get good service from a Realtor if they use multiple agents, and will have one do the research and the leg work and then use another to purchase the home. Some of them even encourage their students to use agents to do the work, and then to go an purchase the property without an agent at all, so that they have more freedom to pursue less than ethical business practices and tenuous funding schemes.

The thing that these investors (and the real estate agents who do work with them) fail to understand, or care about, is that Realtors don’t charge for their services other than the commission they receive for getting your home purchase successfully across the closing table. So that means if I choose to work with an investor who follows these practices, I am taking the funding that is provided by one of my actual clients and paying for this investor’s leg work to be done, with no return on that time, effort or funding. This is not sustainable. If I were to choose to work with that type of investor, I would quickly be unable to provide the level of client care that every one of my home buyers and house sellers deserve and expect. Shortly thereafter, I would be out of business.

So I choose not to work with them.

So what type of real estate investors do I work with? The short answer is I work with investors who give me the same type of commitment I give them. I provide a valuable service and I have no problem doing the extra work that it takes to help an property investor determine whether a home is a sound investment or not, but in exchange that investor must enter into a buyers agreement with my team and agree to use us exclusively. This ensures that we are able to maintain the level of client care that means so much to my business and also enables me to dedicate resources to that investor that agents who do not use a buyers agreement just cannot afford to.

What about the investor? Does this give them a fair deal? Truth be told, it gives them a better deal than if they are using multiple agents. Here is why.

For starters, my buyers agreements run in six month terms and our company has an easy out clause in all of our contracts. This means that for starters, they are only signing on for a six month commitment. If it doesn’t work out they can go back to the other model or find another agent who fits them better. (I am a great agent, but hey sometimes people just don’t mesh.) With our easy out clause, all we ask is that we are given an opportunity to fix whatever problem has driven a client to want out (and it hasn’t happened yet), and if we can’t do that; we release them from the agreement. So they automatically have a built in service guarantee.

Next, when an investor hires me or any other Your Realty Link Realtor, they are not just hiring one person…we are team based. They are hiring an office that actually works together to get things done. Until you have experienced the difference, it is really hard to explain how much smoother transactions can go and how much faster we can move than most agencies. This is especially of importance to investor clients who don’t think that they are served by a buyers agreement because it “doesn’t allow them to respond to the market quickly enough”.

Last, and most important in my opinion is the relationship factor. An investor who bounces from agent to agent because they are following the misguided advice of their supposed mentor, is never going to be able to get grade A, top of the line service. Not because their agents didn’t make effort…but because every client (home owner or investor) is different, and each and every one of them have different business models and needs. The only way for a real estate investor to get the kind of service they really want tis to build a relationship with a Realtor who will take the time to get to know their modelling, their methods, and their strategies so that we can rapidly bring them the best homes for what they are trying to build in their own business.

The long and the short of all of this is that my clients get a higher quality of service than many agents can or will provide. In order for me to maintain that level of service, it is very important that I have a sustainable business model that is mutually beneficial to my clients and myself. So if you want to be a fly by night, would be investor that isn’t likely to be able to work with a professional Realtor, I can save you the time and effort and just tell you directly that my business model will not support us working together.

On the other hand, if you have an interest in seriously pursuing real estate investment and partnering with a Realtor who will partner with you to help build your real estate investment business for the long term.. then you should give Robb a call at 317-657-8059 or email me at robb@yourrealtylink.com to set up a consultation and begin building your empire today.

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