Four Ways To Connect with Investors

People looking to invest their hard-earned money in property that builds long-term wealth undoubtedly want to work with a real estate professional who knows the ropes.

You can be that agent, says Rob Kelly, a veteran investor and a Sales Associate with RE/MAX Alliance in Louisville, Colo.

Kelly works mostly with investors, helping them purchase homes to gain self-generating income. But operating in this niche, he says, involves more than just getting clients to the closing table.

"Our main goal is to educate investors and show them - through different promotions - what investing is all about," Kelly says. "Many people come to us with preconceived notions of how easy it is based on what they see on TV, but if you don't know what you're doing, it can be a lot more dramatic than it seems."

With four major promotions and activities geared toward investors, Kelly has made a name for himself in Boulder County's investment circles. As an owner of five investment properties, it's no wonder he gravitates toward the niche.

"Investing is relatively easy if you have the education," he says. "Investors can be tough clients because they want to put the world into these properties. But if we can get them to understand the reality of it, they come around. Some of our best clients come from the training we provide."

Are you ready to connect with this group of buyers? Here are four things Kelly does to tap this niche:

• Investor "tag along" - Why not show and tell clients how an investment purchase gets rehabbed and reborn into an income-generating property? Unlike TV shows such as "Flip This House," rehabbing most investment properties takes a carefully planned budget, time and the right remodeling team. That's why Kelly brings up to 20 potential investors to fix-up homes so they can see the process from purchase to resale.

  "For two hours on a given Saturday morning, the investors come with me to visit fix and flips or fix-and-hold properties and see how it's done," says Kelly, who uses his own properties as examples. "They get to speak with contractors and vendors, share budgeting ideas and see the progress from start to finish. It opens a dialogue, and we've had a lot of fun with it."

• Foreclosure bus tour - While some real estate offices let foreclosure bus tours fizzle out toward the end of 2008, Kelly was just getting started. For $20 - a portion of which is donated to the local Habitat for Humanity - anyone can tour foreclosed homes with Kelly and his team of housing and legal experts, which includes an attorney, a home inspector, a mortgage broker and a property manager. Not only do tour participants see what's selling in the market and for how much, they also learn the legal and construction intricacies of purchasing foreclosed properties.

  "The tours allow them to see what's on the market and what kind of bang they can get for their buck," Kelly says. "Having a team of experts on hand to answer questions and provide insights not only benefits the investors, it also boosts your business-to-business networking and referrals. Make sure you choose people you know do good work and with whom you have a solid business relationship."

• Game night - Who says board games are for kids? Robert Kiyosaki's "Rich Dad, Poor Dad CASHFLOW 101" is a board game that teaches real-world investing with play money. Kelly calls it "Monopoly on steroids." Kelly hosts a game night for two dozen seasoned investors and curious novices at a local bakery so they can learn how to create long-term passive income and financial freedom.

  "The game nights are a hit. Everyone loves it," Kelly says. "We have to limit participation because we can run only four games at once. The game teaches you the basics of fundamental investing and how to take control of your personal finances, build a business through proper cash flow management, and learn how to invest with greater confidence in real estate and other businesses."

• Investor clubs - If you want to be known as an investment expert and network with the right people, then join investor clubs, Kelly suggest. Not only does it help you stay abreast of local investment activity, but it provides an opportunity to speak to the group and boost your credibility. Who knows? They may become your clients.

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Copyright © 2008 RE/MAX International Inc. 12/29/08

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