If you ask most agents if they are prepared to work with investors, you will probably get a ‘yes’, but that’s probably not very accurate. To be able to work with investors, you have to know what investors want, how to source inventory that is NOT in MLS, and how to source and use hard money.
Investors are looking for property that they can acquire at much less than market value, something you will probably not find in MLS. Many of the investors we deal with want to buy a property, do some repairs, and then sell it quickly. In order to do that, they need to find properties 20 – 30% less than market value.
Where do you find those kind of properties? They are available at the public foreclosure auction or Trustee Sales that take place on the steps on the county courthouse in almost every county in the US. Most of these properties are not on MLS!
When an investor makes a successful bid at auction, depending on the state, they must pay in full right then or within 24 hours, so conventional financing won’t work. Many of these investors turn to hard money lenders for short term bridge loans that can fund a deal in hours. The ‘fix and flip’ investor pays interest only for the 2 -3 months until they sell. Then they pay off the hard money lender and pocket the profits.
Do you know how to find the properties that are being sold every day at the foreclosure auction? Do you have a source that can provide short term hard money loans for investor clients? If your answer is ‘no’ then you aren’t prepared to deal with investors and are missing out on huge commissions – often on the front end when they acquire the property, and on the back end when they sell. Investors account for almost half of all real estate transactions in the past several years. Can you afford to ignore this market?
To learn more, or sign up for a full online training course, please go to:
www.auctionproacademyonline.com
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