There’s a misguided idea out there that investors and realtors/brokers can’t work together, that they’re at the opposing ends of some kind of real estate spectrum. One has to profit at the expense of the other.
It couldn’t be further from the truth.
It takes a lot of muscle to make a real estate market move, whether it’s here in Hawaii or anywhere else. Investors, realtors, brokers, escrow officers, contractors, loan officers, attorneys and more all have to come together in mutually beneficial spirit to keep a housing market and real estate industry healthy.
However, some of the above roles may seem more complementary in nature than others. Investors and realtors, on the other hand, often look for the same key customers — sellers and buyers, which is most likely to blame for the confusion. After all, as an investment company, my team can buy property from sellers directly without any agent fees and we actively promote that.
On the other hand, it would be outright foolish for any real estate investor not to build solid, mutually beneficial relationships with agents and brokers who are in the trenches everyday speaking with countless homeowners and potential buyers. They work darn hard and deserve to be compensated for it, as does anyone who works hard at their job or career. Let’s look at some possibilities on how investors and realtors can work together:
Top 3 Ways Investors & Realtors Can Work Together
Let Us Help Your Client. As a real estate investors, we look for upfront equity in our acquisitions. If a realtor has a homeowner in need, be it a preforeclosure, bankruptcy, probate or other tough situation, he or she can contact us and we will present a fast all-cash offer that we hope will benefit all parties. When we close, the homeowner is in a much better situation and the realtor is compensated for dutifully helping their client. By closing quickly instead of drawing out a listing on the MLS, the homeowner can happily move on and you’ll look like their Superman. Great job, Mrs. Realtor!
My Peanut Butter, Your Chocolate. Or jelly — take your pick. If a homeowner’s mortgage is upside down and they decide to pursue a short sale, they will need two critical pieces of the puzzle. One is a competent agent to handle the negotiations with their bank. The other is a BUYER — that’s us! While our acquisition criteria still holds, I often see short sales actively sitting on the market. If you’re an agent, no doubt short sales aren’t your favorite type of property. But if you’re in need of a buyer, contact us and we’ll put in an offer to help get your short sale moving in the right direction!
First in Line. As an investor, let’s say I have a house flip that’s renovated and ready to go to market. Sure, I’ll naturally be offering it up to my Buyers List before putting it on the MLS. But if I know of agents that have buyers ready-to-go, then that’s attractive as well. Strictly from a numbers perspective, if we pay your commission to close with your buyer now but save on holding costs and marketing fees, we all come out ahead!
As you can see, there are many ways that investors and real estate agents should be pulling resources and building stronger relationships with each other. We’re all pieces of one big machine. Competition is always going to be there, but cooperation and collaboration can be much more powerful forces.
— Michael Borger (@michaelborger) July 27, 2012