AGENTS & INVESTORS
likely because they are not usually familiar with the process. Investors, on the other hand, tend to be very familiar with the steps to make a closing easy, fast, and successful. They understand how to negotiate deals, what to bring with them to the closing table as far as documentation, and have a higher likelihood of having the funding they need to get the deal completed (whether with all cash or the help of outside financing like a private lender). These things make closings with investors generally far easier than closings with home- owners, which is good news for agents since investors tend to bring in a lot more closings! 4 NETWORKING OPPORTUNITIES Investors constantly network with individuals active in all aspects of real estate, including lenders, contractors, mainte- nance companies, property management companies, attor- neys, and of course other investors. Agents can create great connections by partnering with an investor, building relation- ships with these outside vendors, and recommending them to other clients in the future. Investors who are happy with their agents are more likely to refer them to other investors as well. 5 OPPORTUNITIES TO LEARN The final great benefit agents can receive from working with investors is simply learning more about the business. Successful investors are successful because they know the markets. They know where to look for deals and when to make that strategic purchase. The better an agent understands how investors think, what they want in a potential property, and how they evaluate deals, the better (and more profitable) the relationship will become. ACTION ITEM: If you are an agent who has never worked with investors, take a trip to your local real estate investors’ association (REIA) monthly meeting this month. If you are an investor who has never considered bringing on an agent, keep your eyes out at the next REIA meeting! You’ll find agents eager to tailor their skills and expertise to your investing business’ needs, and you’ll both discover what you’ve been missing. • Bill Green is the founder and CEO of LendingOne, a provider of real estate bridge and rental loans for non-owner occupied real estate investment properties, and Crestar Group, a group of private equity, specialty finance, and real estate businesses, and the author of ALL IN: 101 Real Life Business Lessons for Aspiring Entrepreneurs. He may be reached at email@example.com.
Getting Outside Your Comfort Zone 5 REASONS AGENTS AND INVESTORS SHOULD WORK TOGETHER.
by Bill Green
not. While a homeowner will be more selec- tive with their purchase since that is where they will be living, investors can be a joy to work with because they are more likely to evaluate a property based on the numbers: Howmuch can they make on a fix-and-flip, or howmuch rental income might it gen- erate after rehab. As a result, that distressed property in desperate need of repair may be a goldmine in disguise to an investor. Investors will find agents willing and eager to work with them once they demonstrate the possibilities that working with them can represent in terms of moving difficult properties quickly and profitably.
weighing the great benefits that come with working alongside an investor: 1 MORE CONSISTENT DEALS More deals mean more chances at commissions. When deciding wheth- er to work with an investor, consider that a regular homeowner typically only purchases one property every 13 years. Investors are completely differ- ent, and investors are constantly on the lookout for new deals. Active investors close anywhere from one deal a year to hundreds each year. Build a long-term relationship with an investor, and an agent could close dozens of deals with just that one client. 2 A GREATER POOL OF POSSIBILITIES Investors are constantly looking for the areas in which they can turn the biggest profits. Investors will find opportunity in properties that a typical homeowner would
We’ve all heard about how real estate investors can benefit from working with real estate agents, but understand- ing the benefits investors offer agents is equally important. Here, LendingOne’s CEO Bill Green takes on the view from the other side. when it comes to finding business. The real estate market is always changing, and that means an agent must stay flexible to keep up. Most agents you talk to will probably tell you they work with homeowners, but there are so many more opportunities within real estate that agents may overlook when it comes to expanding their scope of business: bank-owned properties, short-sales, vacation rentals like AirBnB, auctions, rentals, and fix-n-flip. Although real estate investors are a smaller market than homeowners, agents should consider ometimes real estate agents must work outside their comfort zone
3 BETTER CHANCES AT SUCCESSFUL CLOSINGS
Closings are often stressful for even the most experienced agents because you just never know what might delay the process at the last minute. With homeowners, these delays are more
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