As a realtor, the main goal is often to find a home buyer a long-term home that fits their needs. The other equally important component is selling their home for them. It’s a worthy career that helps people with their goals of owning or selling a house, and one you can feel great about at the end of the day. But in real estate, the ceiling often comes when you’re tapped out on time between listing and showing homes as well as marketing your services.
The median homeownership time frame is 13.3 years in the US. For real estate agents, that means most home buyers won’t be repeat clients for well over a decade. The infrequency of loyalty is one of the main reasons realtors need to so heavily invest in marketing themselves. But it’s possible to break through the ceiling by going into the niche of real estate investment properties.
Why investment properties?
The old adage, “Don’t wait to buy real estate – buy real estate and wait” rings true. Property purchased as an investment is almost guaranteed to increase over time. As an investment strategy, many of the wealthiest people in the country are into rental income properties, commercial, multi-unit dwellings, or single-family rentals. It’s a proven industry.
Whether it’s to fix and flip, rental homes to hold in their portfolio, or a vacation home to occasionally rent out, real estate has excellent return on investment and is an easy sell for an investment opportunity. 90% of all millionaires become so through owning real estate.
For realtors, it’s much more than just being the agent on the single listing. With people investing in real estate, there’s repeat business to secure. If you have successful dealings on one property, you may have a loyal buyer-slash-seller for multiple listings each year, no marketing necessary.
Ways to break into the investment and commercial properties
The hardest part for realtors is making the connections to real estate investors. Most aren’t looking for a real estate agent who deals in residential-only listings, so an elevator pitch with your unique service proposition can help break down walls. Where do you meet investment property owners though? Here are a couple of ideas.
Establish a relationship with a property management company
Property management services, particularly those that deal with multi-unit residential properties, are a great place to start. Contact the organization and develop a relationship as a service provider to them. Ask for referrals from the company for investors searching for properties or looking to list one for sale. It may take time to earn trust and obtain a listing, but it’s a place to start.
Network with past home buyers
Chances are that at least a couple of the previous sales you’ve made will be to people who know a real estate investor. You don’t know who has that connection until you ask, and an email campaign with an incentive attached could pull them out of the woodwork. Again, it’s about gaining the referral.
Connect with local investors and groups
Websites like Connected Investors are an opportunity to connect with investors in your area. It’s almost like cold calling, so expect some resistance until you can gain traction in the industry. Other resources are available online, but it’s certainly worth the effort you put in.
To serve your real estate investment clientele, have MBANC in your corner. MBANC’s mortgage services can save time to close and facilitate easier loan applications and approvals for buyers of investment properties. Find out more about MBANC can help you with your real estate business by contacting us today.