- Less competition for clients
- Less competition for properties
- Small Database to Lead Generate
- Write the Offers without Showings
- More Income Streams
Want to hear more? I will walk you through each of the five reasons investor clients could be the game-changer you’re looking for in your business. In short, we see Investor Agents make more money, work fewer hours and get their lives back.
The Five Reasons explained
Less competition for clients
Fewer agents work with investor clients. This means less competition for you when trying to win clients.
Imagine this all-so familiar scenario: someone calls into your brokerage inquiring on a property. It is an investor. They start asking questions about Cap Rate, Cash-on-cash, value-add. The agents on the other end of the phone begin to go cross-eyed, blurred vision. Quickly, they say, “Oh, here, let me get Jenny. She works with investors.”
Jenny is handed yet another lead. Investors call your brokerage looking for an investor-specialist or an agent experienced in working with investors all the time. Now, the entire office knows it’s you? You get the lead.
Investors want to work with agents who know the difference between Cap Rate and Cash-on-cash. Investors want an agent who can analyze a deal in minutes, has access to off-market deals and personally owns rentals. You’ll learn this inside the Academy.
Less competition for properties
Generally speaking, a majority of the buyer pool is looking for owner-occupied single-family homes. Thus, a duplex is going to have 50% fewer offers than a single-family home in your market. That means your buyers are two times as likely to win the deal.
Small database to Lead Generate
All the big names in real estate coaching will tell you that you are in the Lead Generation Business. Lead gen can be time-consuming, expensive, and exhausting (both emotionally and financially). Have you ever speed-dialed? Then you know what I’m talking about.
I’m here to tell you that it doesn’t have to be this way. You can work with fewer clients and create repeat customers. Jennifer worked with 15-20 investor clients each year. Those 15-20 buyers were buying, on average, five properties each per year. That’s roughly 87 deals a year working with no more than 20 clients.
Looking at your business now, how many of you would need 87 clients to close 87 deals?
Now, imagine the cost associated with lead generating 87 clients versus lead generating 17 investor clients. In this course, we will also show you how to lead generate for FREE.
Next, imagine the time and energy associated with working with 17 clients instead of 87 clients. You don’t have to love on 87 clients anymore. You can focus your time and energy on 20 clients or less who will buy again and again with you.
Write the Offers without Showings
Imagine you wake up for an 8 a.m. showing across town. You make yourself presentable, you sit in traffic, spend time and spend gas money driving to the property. When you arrive, your buyer walks into the property. Within minutes, they don’t like the paint color, the light fixture, the door frames are too low, or it’s not an open floor plan or full of shiplap like they want (thanks, Joanna Gaines).
We have all had a property that a client didn’t buy for one reason or another, yet you drove all over town, showing properties they were never going to buy.
I am here to tell you that there is a better way.
Now, imagine that you wrote five offers for your client and you never left your living room.
That’s right; Investor Agents can write more offers, close more clients and do fewer showings.
One agent in Tennessee wrote 20 offers for 20 of our investor clients in November. Meanwhile, she was sitting at her husband’s bedside at the Vanderbilt hospital (good news: he’s okay and recovering). Of those 20 offers, she was able to get eight under contract, and after inspections last week, four are still under contract.
Two important things to note here:
- She never showed the client the property.
- She didn’t leave her husband’s bedside.
Sure, maybe she attended an inspection or two, but that was her first step inside the property. Do not let your business run your life.
Not convinced? Here’s another example: an agent, Mark, was able to continue closing deals while his wife and daughter battled COVID last year (they, too, are okay and recovering). Mark wasn’t allowed to walk properties or meet with clients because he was self-isolating for obvious reasons, yet his business kept going. He was able to get two new investors under contract without leaving his bedroom.
If Mark had only been working with residential buyers, his business would have halted and taken a nosedive during those months his family fought COVID.
Working with investors means more options, more closings yet fewer showings.
More Income Streams
If you start to understand the investing side of the business, your options are endless.
You can:
- Start coaching and consulting investors for a fee and earn commissions on their deals.
- Create another income stream with flipping
- Partner with flippers and earn commissions on those deals
- Learn to use the BRRR strategy or House Hacking strategy for yourself and growing your personal portfolio.
- Work with builders and developers
The opportunities are truly endless. Those are the five reasons you should work with investors. Want some more data to prove it?
Here you go:
Work with Millennials
Approximately 55 percent of millennials are interested in investing in real estate, according to CNBC. That’s more than Boomers or any other generation today. Fannie Mae reported that 85 percent of millennials think real estate is a good investment. Good thing because we do, too.
Now, millennials are a giant population. Have you seen the numbers? A recent Pew report tells us that there are 75.4 million millennials in the U.S. But do they have money to invest? Yes, some of them sure do! According to a Bank of America Survey, 12% of millennials (or one in every six) have savings exceeding $100k. Plus, according to NAR, 29- to 38-year-olds hold 26% of the home-buying real estate market share. Now, that’s something to write home about.
Not many agents are investor-savvy agents
Listen, 6.2 million homes were sold last year in the U.S., and approximately 16% of them were closed with cash buyers (that’s 992,000 transactions conservatively). Imagine how many of those were investor clients. Get a piece of the pie, my friend.
There are 2 million active real estate agents in early 2020, according to NAR. Yet, less than 1% of agents focus on working with investors. That means that 1% of agents are doing 16% of the transactions. That means 20,000 agents are fighting for 992,000 transactions instead of 1.98 million agents fighting for 5.2 million—just food for thought.