Tapping into the Flipping Fad: 5 Business Boosting Strategies for Agents

Many novice real estate investors readily call a roofer when the roof is leaking or a contractor to renovate a bath or kitchen, but they often view agents as superfluous overhead. They focus on the agent commissions they have to pay, while overlooking the value that an agent can add to their investment business. As a real estate agent, you can expand your business by proving yourself indispensable to the rehab investor.

To appeal to investors, adjust your business model to meet their needs and then market your services accordingly. Following are five ways you can reach out to real estate investors and expand your business by attending to their needs.

1. Become a real estate investor yourself.

To sell anything, you have to know what your prospective clients need, and there's no better way to learn what investors need than by becoming one yourself. Start by investing in one property a year. Then invest in two properties a year, then one every quarter. By the fourth year, you should be buying about one property each month. Through investing, you not only build your own personal wealth, but you also establish valuable contacts with lenders and with contractors, which you can share with your clients.

2. Attend monthly real estate investor and landlord meetings.

Show up at the monthly meetings and talk to the investors in your community. Hand out your business cards and let them know what you have to offer. If the meeting includes lunch or dinner, you might be sitting at a table with eight or nine other people, all of whom buy and sell real estate, providing you with a perfect opportunity to network.

3. Steer investors to private lenders.

Investors need cash to purchase and renovate properties. By leading prospective clients to sources of cash, you enable them to buy more properties, and you prove that you're dedicated to their success. The next time they buy a property, they're more likely to buy it through you. And once they buy the property through you, they're more likely to sell it through you later.

4. Assist investors in finding investment opportunities.

Learn how to use the tools in your MLS system to automate the process of finding attractive investment opportunities. You can set up your MLS system to notify you of bank foreclosures, homes that are priced significantly below market value, and properties whose prices have recently been reduced. If you're investing in real estate yourself, you're likely to find more leads than you have the resources to pursue. Don't be selfish. Share surplus leads with your clients.

5. Create and distribute a handyman list.

Once an investor acquires a property, the next thing she needs is help renovating it. Generate a list of top-notch contractors and handyman, and when you sell a property, provide your handyman list to the buyer as a part of your service. Update the list regularly and ask investors for feedback, so you can remove anyone from the list who is providing less than stellar service.

Remember, rehab investors want the same thing you do—success. Show them that they can be more successful with your services than without them. Prove daily that you are an indispensable contributor to their success, remain in monthly contact with investors and real estate investor groups, and you will build a solid and ever growing base of loyal clients.

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