$13 Billion in Investor Sales Commission in 2024
That’s a lot!
13% of Total Residential Sales in 2023
Declining since Q2, 2022
Institutional Investors
Snapping up starter homes and single-family inventory
Prop Tech Investors
Disruptive business models creating new co-ownership, co-living and use structures.
Edition #1 - The Investor-Friendly Agent Newsletter
Hey ,
2-minute read.
I started a newsletter ….. it’s called The Investor-Friendly Agent.
As the name suggests, it’s a newsletter for agents who work with private, institutional and prop tech real estate investors.
If you don’t work with investors or only do the occasional investor deal, I want to open your eyes and alert you to the sheer volume of deals that investors will close this year.
If you’re an agent that likes working with investors, and you want a bigger slice of the $13 billion annual investor commission pie, I’ll show you how to close more investor deals.
The Great Opportunity of 2024
Because this is the very first edition, I’m going to write this edition using a newsletter formula called “the origin story”.
I’m going to be a little selfish and tell you why I decided to write a newsletter, and share some research that convinced me, that in 2024 and beyond, being an investor-friendly agent, is the greatest opportunity in the real estate industry.
In future editions, I’ll focus squarely on you and will share the best ways you can close more deals with real estate investors.
And because I decided that being transparent and unfiltered are two of the most important guiding principles of my newsletter, I’m not only going to share great content each week, but also share how I create content, and how you can copy me and do the same with your own newsletter.
Here’s my story ..
I’ve always enjoyed working with investors and always wanted to be the best possible investor-friendly agent.
Before the crash in 2008, I closed hundreds of deals with real estate investors.
Because of that interest, over the past decade I noticed the quiet emergence of institutional and prop tech investors and was blown away by the tens of thousands of deals they were closing each year.
What really surprised me was that almost no-one was talking or writing about the emergence of institutional and prop tech investors that were buying as many as one in three homes in a number of major urban markets like Phoenix and Atlanta.
Tracking the Investor Market …
One company that does track investor sales is Redfin. They track investor sales in the top 20 urban metro markets (not the whole USA).
Their analysis – investors bought a high of 18% of all homes sold in twenty top urban metros in the fourth quarter of 2022, dropping down to 16% by mid-2023.
Another data set I found showed some stunning numbers about the Phoenix market. John Burns Consulting tracked that in Phoenix alone, investor purchases peaked in Q2 2022 at over 14,000 investor sales, before dropping sharply to around 4,500 sales in Q4 2022.
Although the market clearly peaked in 2022, there is still significant investor activity and sales.
Are you starting to have a light bulb moment?
I Decided to Act
I knew instinctively that I had to find a way to get in on some of those deals.
In 2020, after a decade of training agents in social media and digital marketing, I closed my education business down and decided to refocus on being an investor-friendly agent. The Pandemic slowed things down but it was also a great opportunity to read everything I could about being an investor-friendly agent.
In 2021, I formally moved my license to a large national real estate brokerage with idea that I could tap into a national network of like-minded agents.
The pain started when I first truly read the Independent Contractor Agreement I signed with my broker at the national brokerage.
I was stunned by how investor-unfriendly it was, and it made me realize my broker didn’t actually want me to work with investors. Too risky, too much liability.
Does this sound familiar to you?
I immediately made the decision to leave and re-opened my own investor-friendly brokerage, where I could write my own ICA and make it 100% investor-friendly.
To show that I was all-in, I rebranded myself as The Investor-Friendly Agent.
I created my own investor broker system
I went into deep research mode and mapped out where I saw the best opportunities to close the largest number of deals. I started tracking investor markets and building a database of which private individuals and companies were doing the most transactions.
I then organized the data and my best ideas into a number of blueprints, reports and finally a manual about how to work with private, institutional and prop tech investors.
I Figured It Out
I now had great clarity about how and where to work with investors, especially the smartest private investors and biggest prop tech institutional investors who were doing the most deals.
I’m Going to Share it With You
The best part – I’m going to share it all with you – saving you time doing the research and speeding up your learning curve.
Every Week
In 2024, every week, I’m going to share my blueprints for working with investors within each channel of opportunity.
I’m going to break down a new blueprint and action plan that you can use to attract investors and grab your share of the $13 billion real estate commission pie.
I’ll also curate industry news with a focus on private, institutional and prop tech investors.
See you soon,
Ross Hair
The Investor-Friendly Agent
PS – I chose to name my newsletter The Investor-Friendly Agent, because it perfectly describes who we are and what we do.
Finally, a personal note.
Thank-you for reading the inaugural edition of the Investor-Friendly Agent newsletter. I wrote it for you and couldn’t do it without you.
I do have one request. Please subscribe and share this newsletter with your colleagues. I know it’s tempting to keep this treasure trove to yourself and not let competitors in on our secret, but the real benefit is that, as the newsletter subscriber base grows, it helps me gain access to the largest institutional and prop tech investors.
The more access I have to them, the more deals I can get from them, and the more deals I can refer to you.
Say hi on Twitter (post a comment so Twitter connects us)
Send me an email
Book time on my Calendar.
Rooting for you and your success!