What relationships should brokers tap into?
The following article was written by Nate Zielinski (pictured) of RCN Capital.
In an ever-changing investment climate, one of the constants for real estate brokers is how to find more investor leads that can help grow their business. Depending on market outlook, location and existing connections, any broker in the industry can be susceptible to lulls as it pertains to deal flow.
However, there are some preexisting friendships or business relationships that brokers may be able to take advantage of when they are struggling to make connections with potential leads in the industry. There are a number of professions that lend themselves to being able to thrive in the real estate investment space both from a financial perspective as well as a niche skillset particular to excelling in real estate investing. Let’s dive into a few occupations that brokers can be on the lookout for to beef up their investor contact list in the real estate industry.
Accountant/Financial Advisor
In terms of professions that check both boxes as it pertains to financials and skill set, accountants or financial advisors could be the perfect person to entice to join the real estate investment space. As someone who manages money for a living, not only will they have made enough money to fund a down payment on a real estate investment transaction, but they will also have the financial knowledge to enjoy longevity in the industry.
As a broker, this is an opportunity to generate more leads by laying out a path to success for these types of professionals. If the accountant/financial advisor can have confidence that a broker is educated and will help guide them to make smart moves with their money in the real estate investment space, then the potential to grow together is exponential.
There’s also the caveat that this could be a very easy sell depending on the personality of the accountant. If they are someone that is tired of sitting on the sidelines managing other people’s money, this could be a push to get them into investing and turn them into entrepreneurs themselves. There are a variety of different angles at play here, but if approached correctly, a broker could have a very easy time converting an accountant or financial advisor into a real estate investor.
Event Planner/Travel Agent
Another profession that can translate to a successful real estate investor is an event planner or travel agent. While accountants can certainly be relied upon for their financial knowledge, an event planner or travel agent has experience with organization and popular destinations. Their ability to communicate with multiple different parties to secure a reservation or book a trip can also be correlated to the communication required to close an investment transaction or loan.
Organization can be paramount when working as a real estate investor. For event planners/travel agents that skill is used every day to keep track of personal information of clients, documentation, and money collection. As a broker, mentioning that one of the most primary skills an investor needs is something that an event planner/travel agent does every day can be appealing to them. Furthermore, the stress of booking someone’s dream vacation or wedding can match that of an investor trying to close a loan, so that’s another selling point to emphasize how prepared they could be to handle that and hit the ground running.
Being familiar with popular destinations is another appealing aspect for an event planner or travel agent to make the leap to real estate investor. Throughout their career they may get a sense for where people like to travel, or what home prices and cost of living of is for certain areas and this is all useful information for a real estate investor. Not to mention, vacation rentals are an avenue to get their foot in the door in the industry and that can be a perfect starting point for an event planner/travel agent.
Lawyer
Lawyers or legal professionals would be another ideal fit to crossover into the real estate investment space if brokers are searching for ways to create new leads. Once again, from a financial standpoint, you can be relatively comfortable broaching the conversation to encourage them to consider real estate investing. Lawyers can earn a decent living, and that may mitigate any stress from a new investor having to make down payments to secure their first few investment properties. Also, lawyers can be stuck behind desks and inside courtrooms throughout most of their week so investing can offer a unique alternative that requires them to go from property to property and potentially travel more.
Conflict resolution is an additional angle that can entice lawyers to be a real estate investor and eventually a flipper or landlord. Discussing prices for repairs, rent negotiations and even disputes between tenants living in a multi-unit property are areas that lawyers can naturally succeed and either save themselves money or potential arguments that may spill into legal disputes.
A lawyer is well-equipped to handle these potential problems that other investors might face so they can come into the industry with a leg up on the competition. Legal disputes may be the worst-case scenario for some investors, but this is also why it can be a selling point for a broker to convince a lawyer to invest if it’s something they know they can handle well or ultimately prevent.
General Contractors
The last profession, and potentially the easiest for brokers to sway to join the real estate investment space would be general contractors. The knowledge and connections that a GC can bring to the table on any given investment property is a head start that these other professions simply wouldn’t have.
There’s also a very good chance the general contractor a broker is trying to convince has already helped complete countless renovations that are actually fix and flips owned by another investor. With that in mind, convincing a general contractor to take the next step and make all the profit for their hard work rather than earning a cut for doing most of the heavy lifting can be an easy sell as a broker. The interesting part about this as well is if they are aware of investors in the area that they’ve completed work for, they might have an inside track to a mentor or partner in the industry.
As a general contractor, they can get the best prices for all the necessary materials and won’t have to waste time or money getting quotes for projects or waiting around for someone else to complete the work. Efficiency is one of the hardest aspects of real estate investing, and with a general contractor knowing all the key components to unlock that, they can be very successful in the industry.
Additionally, much like a travel agent or event planner, general contractors will know the hottest markets in their region and will be able to capitalize on that when searching for their first few investment properties.
Proactive Brokers Make More Money
With these professions in mind, including countless others that may be suitable to succeed in the real estate investment space, brokers can be generating new leads tomorrow. The opportunity is out there, and if brokers are struggling to convert with the contacts and leads they currently have, it may be time to start prospecting for new investors.
When approaching the conversation, it is crucial to keep in mind the skills that these professionals already have in place and explain why these skills translate to money and success in the real estate investment industry. Never hesitate to reach out to your lender if you want to walkthrough a scenario or conversation regarding these new investor clients. RCN Capital and many other lenders like us should be happy to help one of their brokers try to earn new business!
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