The world is full of real estate agents and brokers eager to do a deal … but only a small handful of those agents are qualified to service your unique needs.
The best partnerships between agents and investors create mutual success. How do you find an agent that works FOR you and WITH you?
In this episode of The Real Estate Guys™ show, we chat with Bob Helms, the Godfather of Real Estate. His experience as both an investor and a broker spans decades … and he knows how valuable relationships between professionals are to successful deals.
You’ll hear from:
- Your play-maker host, Robert Helms
- His playful co-host, Russell Gray
- Bob Helms, the Godfather of Real Estate
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This is a relationship business
One of the most critical relationships you have as an investor is with your real estate professional.
Whether you’re working with an agent or a broker … and we’ll use the terms interchangeably … the partnership you have with the individual legally representing you in a deal is vital to your success.
We call Bob Helms the Godfather of Real Estate … and for good reason. Bob has spent decades actively brokering properties, teaching and managing agents, and investing in deals himself.
“This is a relationship business,” Bob says. And it’s absolutely true.
Your agent isn’t your enemy. The very best deals we’ve ever been involved in have been with real estate professionals who know their stuff.
When it comes to real estate brokerage, it’s about cooperation … not competition.
“It’s urgently important that you not practice business by trying to take advantage of the person on the other side of the transaction,” Bob says.
Both sides have to win
So many investors think they have to squeeze every last dime that they can out of a deal in order to call it a win. They think they have to get the upper hand to be the winner … which means the buyer or seller is the loser.
The best transactions are when a deal closes and everyone in the room gives each other a high five.
Those are the deals you want to do again. And real estate investment is a long-term game.
Unlike the typical homeowner … who moves every four to seven years to a different marketplace … investors do multiple transactions over time in the same market. And you do more business more often.
There’s a good chance you will do additional deals with these same people, so your attitude is important, Bob says.
If you’re the guy who is trying to exploit the other guy, no one will want to work with you again.
Remember, it’s about relationships. There IS a better way!
Working well with your agent
How do you work with an agent or broker to get the best deals at the right prices?
The first thing to keep in mind is loyalty.
You might think it’s a good idea to have several agents working for you in a single marketplace. But more often than not, this competition doesn’t work in your favor.
If an agent knows you have other agents working for you too, they are less likely to invest time in finding you the best deals.
On the other hand, if an agent knows you are invested in a long-term relationship with them, they’ll work hard to impress you and keep you around.
Exhibit loyalty to your agent, and they’ll be loyal to you.
Find the best agent you can, and set up a meeting. If they are at the top of their market, they probably already have a full portfolio of clients.
Show the agent you are worth their attention. Be able to articulate why you are qualified, why you are serious about making things happen, and how you can add value to their business.
Can’t get an appointment? Try taking the agent to lunch. Everybody has to eat!
You may have to start with a “C” agent and work your way up to an “A” agent … and that’s ok.
Even if your agent of choice isn’t ready to take you on, take advantage of their experience.
“Say, ‘I want to be your best client in five years. If you were me and starting over today, what would you do? What do you wish your current clients knew?’” Bob says.
Show you’re there for the long haul, and start building a relationship.
Why agents should work with investors
The majority of real estate agents sell houses to people who want to live in them. But the investment property niche can be very profitable.
So, if you are reading this from the perspective of a real estate agent, here are four big reasons to get involved with investors …
- Do more transactions. Investors purchase properties in the same market again and again.
- Get more referrals. Investors tend to work in multiple marketplaces. They rely on a network of agents to help them. You can pass clients to other agents and have clients passed on to you. That saves you money you would have spent tracking down new buyers and sellers.
- Earn bigger commissions. Investors graduate to bigger and bigger properties over time. That means bigger and bigger commissions for agents.
- Become an investor yourself. Be your own best client. Learn from the investors you work with. Make a living selling to other people and get success by buying yourself.
Keep brokering real estate deals, but invest your money into deals of your own.
Investors love working with agents who invest too. That means the agent knows the rules of the game, and will bring investors the deals they can’t do … but would do … themselves.
Most real estate agents don’t work with investors because they don’t know how.
Bob Helms’ new book Be in the Top 1%: A Real Estate Agent’s Guide to Getting Rich in the Investment Property Niche is a great resource for getting started.
The book is aimed at agents, but investors can benefit from its lessons too … because by working together, agents and investors can form long-term relationships destined for success.
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