How to Work with Real Estate Investors for Realtors

SUMMARY

Rob Howie and Dana Malone…were 2 of my favorite clients (over 50 transactions) – They were Investors.

Working with seasoned investors is completely different than working with normal home buyers and sellers. Many people that call themselves “Investors” are not really investors and will waste your time, so learn to identify those that are serious and are actually prepared to invest.

Working with Investors

Find them.

Prequalify them. Find out if they’re actually in investor. Do the have funds and/or fruit?

Learn how investors think. They want a DEAL because they are looking for profit or positive cash flow.

Understand how investors buy.
Often You/they may go through 100 properties, to make 10 offers, to get 1 or 2 deals.

“Low Ball” Offers are the way most investors do business. Get used to having most offers rejected or ignored.

Learn from them. The education you receive from working with a seasoned investor can be priceless in building your own financial freedom.

Go to https://www.realestatevortex.com/live2019 to get more information about Kevin Ward’s upcoming 3-Day LIVE TRAINING CAMP.

Go to https://www.realestatevortex.com for all the details about Kevin’s Real Estate Vortex Online Course. The Real Estate Vortex is the ultimate step-by-step, No-BS, fast-track system for realistically and profitable doing hundreds of deals a year while having the lifestyle you deserve…without expensive, unpredictable marketing and without the constant rejection of cold-calling or competition from other agents.

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FULL TRANSCRIPT

Real estate investors can be one of the best and most consistent sources of business for you in all of your business.

Two of my favorite clients ever as a real estate agent were Rob Howie and Dana Malone. Over about a five-year period, those two individuals were responsible for over 50 transactions for me combined. Now, why? Because Rob and Dana were investors. They were real estate investors, and real estate investors can be one of the best and most consistent sources of business for you in all of your business. When I found them, I had no idea what I had found, but they are and were a gold mine. The problem is most real estate agents have no clue how to work with real estate investors because real estate investors, frankly, are a different animal than regular buyers and sellers.

They don’t think the same. They don’t work the same. They’re just totally different. In fact, I had many brokers that basically have taught us real estate agents that working with investors was basically a waste of time because all they want to do is go out and put it in low-ball efforts, low-ball offers, and so don’t waste your time and so forth, and yet I have made six figures off of individual investors. I think it’s one of the most powerful things to do if you’re willing to learn how they work.

In this video, I just want to talk real quickly about how to work with real estate investors as a real estate agent. First, the first key to working with them is finding them. Now, how do you find a real estate investor? Well, you can find them in a whole lot of ways. You can find them out by going to real estate investor meetup groups and network with a ton of them that way. The way that I’ve found most of my real estate investors is with my prospecting, and it came a couple of ways. One, both Rob and Dana, interestingly, came from “for sale by owners.” Dana would buy houses at the courthouse steps. She would buy bank-owned properties, or at properties at auction, and then she would fix them up, rehab them, and then flip them. She would sell them.

I found her because when she got ready to sell them, she would have them “for sale by owner,” and then if she didn’t have them sold about the time that the rehab job was finished, then she would list them with an agent, but she would start by trying to do it “for sale by owner,” so I found her because I prospected “for sale by owners,” and viola, I found Dana.

I also found rob as a real estate investor, not because he was selling his houses, although he did that too, but I found because he had his house “for sale by owner.” Now, it turned out he was really a sorry “for sale by owner” because he wasn’t motivated. I did business with him for probably six or seven years, and he never did sell his own house, even though he tried several times. I never could get them to list it with me because he wasn’t motivated to sell it.

However, I made a fortune over $100,000 in commissions just from working with this guy. He owned a house in Southlake, Texas, big house, but what I ended up selling for him were mostly houses that were $80,000, $90,000, $100,000, $120,000 properties because those were his rehab properties. I would help him buy them, then I would help him sell them that.

You can find them also when you have listings. A lot of times, you’ll get buyer calls, especially when you take listings that are fixers, properties that need work like probate properties, distressed properties, notice of defaults, and so forth. When you have listings of lower-end properties or fixers, you’re going to get lot of investor calls. Number one is just learning how and where to find them. If you’re doing business and you’re prospecting consistently, you’re going to find investors to work with.

Now, the second step is pre-qualifying them. The reason this is important is because you’re gonna find out that most people would call on a property that pose as investors aren’t really investors. Before I spent any time with investors, I wanted to find out are they actually an investor or are they wannabe investor who attended some conference or some training on how to become a real estate investor, and they really aren’t, so pre-qualify them.

I want to know do you have money and do you have experience, do they have funds and do they have fruit on the tree, do they actually know what they’re doing or not? I would always ask them, “How many deals have you done? How many homes… ” if they’re a rehabber, “How many homes have you flipped in the last 12 months?” If they were investor buying to hold and rent them out, “How many properties do you have in your portfolio right now?” It’s a simple question. “How much money do you have set aside for the right deal?”

Those two questions were really, really powerful just in terms of pre-qualifying whether or not I wanted to spend more time with a real estate investor. Now, I would always build a relationship with them, put them in my personal circle, but I wasn’t going to go out and start spending a lot of time trying to find properties for somebody that wasn’t actually ready and prepared to buy a house.

Now, the other thing is I always loved the listing side of the business better than the buyer’s side of the business because it gives you more control. Robin and Dana, the reason I love them so much and the reason I made so much money with them was because Dana would find her own properties. She would go buy them at the courthouse steps in Fort Worth at the foreclosure auction. She would buy them, so I didn’t help her by him. I didn’t make any money on the buy. Then she would rehab them. She would have a sign in the yard. If she didn’t have it sold by the time she started putting carpeting in, then she would list it with me, and I would list it and sell the property.

With Rob, he would buy HUD property, so I would actually help him buy the properties. We’d make HUD bids, and we’d bid on HUD properties. Then he’d buy them, he’d rehabbed them, and I’d list them and sell all of those. I loved that because I was dealing with getting the transactions on both sides of the deals.

You got to learn how they work, and this is the third thing is learn how investors think. Here’s how they think. They’re looking for a deal. They’re not looking for a house. If they’re rehabbers, they’re looking for a home they can get below market that has enough room that they can pay for repairs, fix it up, and then sell it, and make money. They’re not looking for a house, and they’re not going to pay full price. They’re looking for a deal. They’re looking for profit, or they’re looking for positive cash flow if they’re looking to buy or hold.

Number four is understand how investors buy houses. This was why I was taught investors were a waste of time is because they’re going to make you want to put in all these low-ball offers and so forth. Well, that’s how they buy. They put in low-ball offers, and they know it’s going to happen that way. You’ll take an investor, and he or she may go through a hundred properties to paint offers on 10 of them to only be able to buy one or two.

You gotta streamline, if you’re going to work with them, you gotta have a streamlined process for getting properties to them, letting them look through them, picking the ones they want to make offers, and then you just write out offers. It’s a streamlined process. You’re not… You learn what terms they’re looking for, and it’s just like boom, boom, boom. It’s just like shoveling them out the door and knowing that half the time you’re not even going to get a response from the sellers. It’s just that’s just the game. They’re not emotionally attached. It’s all about the deal.

Then the fifth thing about working with real estate investors that is so important, and that is learn from them, learn how they make money because, ultimately, one of the best things about being in real estate is you can create financial freedom for yourself by learning how to buy and sell real estate not as an agent, but learning how to buy and acquire your own portfolio of rental property, and getting cashflow. The education that I received from working with them was probably as valuable to me as actually the commissions were themselves.

Now, at our Real Estate Vortex Training Camp and our Real Estate Vortex Online, we actually train a lot more on how to work with investors, how to find them, how to qualify them, what to do, and exactly how to service them to help you make a fortune with them. Down in the link below is more information on the Real Estate Vortex and that training to help you learn more about that.

If you’re an investor or you’re a real estate agent who’s working with investors or wants to work with investors, put your questions down below, your comments down below. What are the most important things you found in working with investors? Put them down in the comments below. Give the video a thumbs up if you like it. Make sure you subscribe to this channel if you haven’t. Hopefully, the video’s been awesome for you. I look forward to talking to you on the next video.