The real estate business is quite a tough nut to crack – the initial investment, the hunt for good leads and the diligence required to meet deadlines makes it something not everyone can do well. Having said that, there is no ignoring the fact that it’s now one of the hottest industries, attracting a lot of youngsters who are raring to get their share of the pie.
Networking is Key
So what would make getting into real estate easier? Knowing the right people, definitely. Networking is one of the most important aspects of being successful in real estate. If you figure out who can help you and how you can reach out to them, then that’s half the battle.
But, networking isn’t a piece of cake either. So you need to get started from the moment you decide to set up shop. Build your website, form a team, attend all the local real estate meetings and study the who’s-who of the real estate business. Make yourself a familiar presence in the midst of other real estate professionals and get introductions to the best people. Before you know it, the ideas will start pouring in.
Finding the Right People
When you’ve done some networking, you will start seeing signs for who might be the right people to request investment from. For example, builder agents are often a great choice and here’s why: They build, buy and sell their own property. And so, they always need properties to sell. These guys have a license and they don’t depend on real estate agents to do the job. So they obviously earn way more money than they would if they had a middleman. If you can find these people and get them interested, that would help you lay a solid foundation for your business.
Identifying A Builder Agent
While you may meet many people in your networking efforts, keep your eyes and ears trained to spot the builder agent. One of the most common ways of identifying a builder agent is by poring over the local Multiple Listing Service (MLS). Another way is to look up buildings that are put on the market by independent builders. The state database of real estate agents could also lead you to some builder agents. Look for who’s listed as an independent contractor or builder, who is looking to buy and sell.
Once You’ve Found Them
Once you’ve made a list of people to approach, begin calling them. Find out if they’re a right fit for you and your business by asking the right questions: Do they work for a broker or independently? How many houses do they build in a year? When you’ve identified someone, the next step is to propose your deal to them. But, remember that no one is going to say yes unless they know you have some backing too. So bring to the table any cash you have, through backing, funding, friends, inheritance or partners. Now, you’re ready to start talking about your deal.
Before you get into the specifics of your deal, take some time to ask them about their story and try to understand how they do business. Once you’ve learned about them, give them a glimpse of your work ethic and point out the similarities between both of you. Don’t forget to tell them that you’re willing to help them on their projects if given an opportunity – that’s a great way to mutually make money.
Why They Will Be Interested
A builder agent is someone who is building all the time, which leaves them with very little time to take on new deals to work on. At this point, if you offer to flip or rebuild a home, they will probably be able to find a house for you to buy (by being your buyer’s agent). And, when you’re done flipping the house, he will help you sell it too (working as a listing agent for you).
This way, you have someone experienced doing most of the initial work and investment and yet, you get to make a sizable sum from the whole deal. After a period of time, when you’ve earned their trust and built a relationship with them, they may even float deals for you (which you can repay over time). All this can free up money on your end to do the fixing job.
Keep In Mind
Getting a builder agent to work with you and invest in your business is a great way to get a steady flow of leads and income – not just for you but for them as well. It can be your solution to all the cash flow problems that you might have otherwise faced. But, keep in mind that no partnership will work unless you keep up your end of the deal.