It’s no secret that most real estate investors and agents have a less than amicable relationship. Some novice investors tend to look at agents as an unnecessary expense, immediately rejecting the idea of working with them. On the other hand, most agents think investors are not serious and just a waste of their time. All in all, the investor/agent relationship has a fair amount of mistrust, an overall lack of respect and very little understanding. However, if one can look past the predispositions and realize there is benefit and real value in the other party, then agents and investors can have very fruitful working relationships.
In fact, the best and most successful investors in the real estate industry are those who understand the power of that relationship. Both parties can offer invaluable services to each other, resulting in partnerships that work together for higher paychecks. Real estate agents need to sell their listings, and they constantly need more listings. Real estate investors need inventory to purchase and could often use a helping hand selling their properties – saving valuable time that could be spent working ON their business. So, shouldn’t it be a natural fit?
At Pike Properties, we learned this lesson years ago. Since starting the company in 2008, we have worked diligently to develop long-term and respectful relationships with many real estate agents in the Charlotte area.
We’ve worked with numerous real estate agents that actually represent us as a buyer’s agent when they discover a potential acquisition opportunity. We want to make it very clear. We are licensed agents but are not focused on general real estate as a full time profession, so we rely on our network of real estate agents to help us locate renovation and new construction opportunities.
Have an opportunity you think we would be interested in buying? We’d love to connect to discuss the opportunity.
What’s in it for Real Estate Agents?
Access to Property Inventory Before it’s Listed
As a successful and active investment firm, we will constantly have an inventory of completely renovated and new construction properties. Agents in our network will have access to that inventory before that property is listed on the MLS. This creates a great opportunity for agents who work with a lot of buyers, as they would have the chance to view and purchase a newly built and fairly priced property before it hits the market. Every agent should love “Pocket listings” because they add value for their client.
In some cases, their buyers can also have the benefit of giving input on certain features of the home and choosing custom finishes prior to the construction being complete. By providing this option to a buyer, it completely differentiates them from other agents – therefore, directly impacting their bottom line.
Opportunity To Host Open Houses
Newly built and renovated vacant properties generate a lot of interest from potential buyers – like a neighbor or anyone else looking for properties priced aggressively and in pristine condition. By acting as a seller’s agent, this creates a great opportunity to host open houses for these properties, allowing agents to meet many new potential buyers that they can add to their database, and possibly cultivate as buyer clients of their own. We’re seeing on average 35-45 potential buyers come through the front door of a newly renovated listing.
Short Sale and Listing Referrals
Successful investors are excellent marketers and generate a lot of leads – many of which are short sales and general listings. In most cases, investors are not interested in working with sellers whose properties are over-leveraged and in short sale situations. The short sale process can be lengthy, so many investors will opt to refer those leads to a specialist, rather than work with the sellers themselves. This creates a huge opportunity for agents to become a listing specialist.