Almost all real estate transactions are like a three-legged stool consisting of the buyer (customer), the seller (inventory) and the financing (cash or mortgage).
You need all three legs of the stool for the stool to be stable and for you to sit on the stool.
Your goal as an investor-friendly agent is to help your clients figure out all three legs of the stool. It isn’t enough to just help them find deals or sell their flips. You need to line up all three legs so that you become indispensable to your client, and you can participate and earn a commission when they buy and sell.
Buy – you need to help your investors source deals that meet their investment buy box. You need to develop a pipeline of deals as this will attract investors who will line up and join your buyer lists. You can get your deals from lead sources (like probate or foreclosure marketing) or wholesalers who will assign deals to your clients. You can also develop relationships with institutional investors and source deals that meet their investment buy box.
Sell – you need to line up a pipeline of buyers who will buy deals from your investors. This can include developing a marketing system to quickly sell homes to retail buyers or by developing a network of buy and hold private or institutional investors. Institutional buyers will buy all your inventory if it fits their investment program.
Fund – you need to have funding on tap for all your investor’s deals. Don’t ever let a deal fall-through because your investor couldn’t find the money. You need to build and cultivate a network of conventional, private and hard money lenders. Success breeds success. Start making money for a few private lenders and you will soon have all the capital you need, available at short-notice, to close all your investor’s deals.
An insider secret is that if you figure out two legs of the stool, you’ll have a thriving real estate investor business. If you figure out all three legs, you will be unstoppable.