When you think about buying and selling Real Estate we always tend to ask the question. How do Real Estate investors and agents work together? Although, we know that sometimes it takes a mutual relationship between the Real Estate Agent and Investor working together in order to make money. In the following paragraphs we will discuss how both Investor and Real Estate Agent can benefit from working with one another.
How A Real Estate Agent Can Benefit Working With A Real Estate Investor
An investor friendly real estate agent and a real estate investor occupy two different niches of the real estate market; the investor initiates the real estate project, commits the funds, and builds the property while the agent markets the property to tenants or to buyers. How can a real estate agent benefit by directly working with the investor?
Unlike home sellers and buyers, real estate investors are seldom emotionally attached to the property
As a real estate agent, dealing with some clients can be a nightmare. More often than not, home sellers and buyers get emotionally attached to the properties; they are either hard to separate from their old homes or they’re always looking for the perfect home. In such situations, the deal will have to drag on for a long time. Real estate investors, on another hand, focus on one thing. They tend to have this question in mind. Is the investments worth their while? Will I make my bottom line (ROI) return on investment?
The attitude and capabilities of a home buyer are different from those of a real estate investor. For instance, a home buyer may struggle to pay upfront or secure the mortgage. Real estate investors, on the other hand, will move forward to purchase the property if the numbers makes sense. Better yet, real estate investors tend to have faster access to cash verse having to go FHA or VA. Additionally, investors tend to have access to a range of creative financing options including hard money lenders, private money lenders, crowdfunding, partnerships, and syndication.
Real estate investors tend to buy volume properties
Unlike home buyers who are often out to find one deal vs a lot of deals, real estate investor’s tend to seek volume. That means the real estate investor is capable of buying more than one properties. Better yet, having a volume buyer tends to earn more for the agent. Keep in mind that deals tend to take longer to do because investors are looking for properties that they can buy at a discounted rate.
Larger Client Pool
When you are dealing with investors, the investors will want to buy more than one properties as discussed above. How does this work out for the investor? This helps the investor increase there bottom-line funds. It works out for the agent because the real estate agent will increase their overall commissions. This creates a win,win situation for the Realtor and the Real Estate Investor. This works out for both the Realtor and the investors.
Real estate investors tend to be more active compared to regular home buyers
An average home buyer can stay in the same house for as long as 10 years with no intention of moving out. So as a Real Estate Agent this will be considered as one transaction. Normally some home buyers will buy vacation homes, upgrade homes or have to relocate due to jobs or more opportunity. Real estate investors, on the other hand, are always on the move, buying one property after another.
Benefits of a Real Estate Investor Working with A Real Estate Agent
The services of a real estate agent become essential when the investor wants to dispose of the properties either to rent the property or sell the property.Here is how the investor is set to benefit when working with a real estate agent.
The investor friendly real estate agent will always know what to look for when searching for buyers
A real estate agent is knowledgeable about real estate trends. If the area where the property is located is experiencing a housing shortage, it’s good to have a pool of agents that can send you possible coming soon listing or newer listing of properties that need work. Real Estate agents often work in collaboration with other agents and may share essential information or even refer clients to each other. The more you can reach, means more exposure for you.
Attention to detail
As a real estate investor, it might come a time when you might need some additional eyes looking at your deals. Sometimes you might miss a few details that a Real Estate Agent might point out. A Real Estate Agent can help with some of the paperwork The purchase agreement alone can entail 10 pages of intricate binding terms. And there are more documents to deal with as well. You can save a lot of time by hiring the agent to do some of the paperwork.
Superior negotiating skills
A Real Estate Agent can help negotiate the deal as well and be able to evaluate the property. Sometimes you might want a valuation done on the property. When you have a Agent on your team. The Real Estate Agent can evaluate the property and give you a better idea of the 30 day market sale to 90 day market sale. So the agent would be able to give you information on the best price point to drop the home in and insure that you receive great traffic on the property and receive a offer in a timely manner.
Agents will save you a lot of time
Face it! Time is money! And If you value your time you know that when you are trying to make more money you don’t want to be managing your portfolio and overseeing the development of other properties while trying to negotiate with a buyer. This can be exhausting. This is why you hire the Real Estate Professional. So that it will make your load a little bit lighter. The agent can do the marketing job for you. You get the benefit of using your time to do other things that you need to get done.
The real estate agent and the real estate investor are complementary to each other – one can help the other. The real estate investor want to do more transaction a year to increase bottom line profit. The Real Estate Agent has to do the same thing. A Investor is someone that develops land, rehabs homes and provides housing opportunity in the form of renting out properties and A real estate agent, on another hand, is a master marketer who can convince buyers to purchase the units in the investor’s portfolio. Bottom Line we all have to work together.