Before getting my Real Estate Brokers licence in IL I have had investment experience in real estate. Some of the tricks or techniques I've learned in no money down deals I've learned no doubt is valuable information. A lot of Realtors in my area,it seems, focus on their comminssion rather than serving in the best interest of thier client. I thought it might be a nice nitche to offer my knowledge and experience to investors speciffically in a program so it's win win. Am I the only one who thinks investors would tell other investors about an agent that would take less commision on some deals just to help the invetor buy an investment deal with no money down. seems like a good nithce.

2 quick thoughts:

First, many agents will cut commission if it helps a deal close so you aren't unique in that respect. And many of those agents are promoting themselves to investors even though they may have much less experience or knowledge than you do, leaving the burden on the investor to sort out the unique value proposition of the agents. You'll definitely want to find a way to get potential investors to see the value you bring to the equation as someone with investment knowledge and experience.

Second, an investor who has asked you to always be on the lookout for XYZ type of deal, is unlikely to share your name with any other investor who might also be interested in XYZ type of deal.

Investors are a good niche, but they're going to expect you to be an expert and prove that you can save them money. I don't discount, but instead offer valuable market knowledge, insight, creative problem-solving, and being able to quickly sell their properties if they want full value.

They refer me a lot, but understand that I only work with experienced investors or new ones who will listen to what I say. It's a good niche, but real investors are sharp and will want an agent who is an investor too.

Investors can be a real pain to work with if they don't trust you more than they trust themselves and do what they say. I used to try and find investors the type of property they told me they want. Now I tell them what type of property they want based on a discussion of their goals, funds, risk level, etc. My niche for investors is pre-construction. I've set up a team of agents that each specialize in a differnet aspect of investing- duplexes and fourplexes, multifamily, commercial, flip properties, etc. If they fall into another niche, they still stay with my team. We always keep our eyes peeled for good oppertunities with our niche. When we find something we send an e-mail blast to our investors. Then it's first come, first serve. If you spend time working with 20 differnet kinds of investors that may or may not trust you, you will be working a lot of hours for not much money.
We offer free monthly classes to our investor clients.

Thank you for your time responding I appreciate it. Im basically going to be selling distressed properties to investors and showing them how to re sell using a lease option over 18-24 months.I ve personally sold and closed 12 in the last 5 years. I dont think ill be able to buy as many house deals that are out there so i thought why not show investors (new and seasoned) this method if they dont already know. At least I get paid on deals I dont buy?

why would you want to work with investors? My experience is they nickel and dime and frequently pull out of escrow. Most of the time they dont need an agent anyway. Be prepared for that

" Why would you want to work with investors?"
Mike,
That is the dumbest thing you have ever said to date. Lets see if we can count the reasons to work with investors.
1. Repeat Business
2. Frequency of that Repeat Business
3. No Emotions...All comes down to the numbers
4. Frequest Repeat Business
5. Can Close quickly and Rarely does a deal not close once an offer is accepted.
6. This is a business to them. They do not need you to be their friend and hold their hand through out the entire process and beyond.
7. Frequent Repeat Business.
and the list goes on!

Sounds like you really need to find some new investors and screen your clients better. Investors are great to work with as it is all about the bottom line. My investor clients are very realistic or I would not work with them.

Another point is you had better know more than your investors or they will drop you fast! I have a detailed profile of all my present and past investor clients. I know what types of funding they have available and what types of deals they are interested in. I always run the numbers on any investment property before I contact the client with the details and have all the information at hand. Then if the numbers work the client does a drive by and calls me if they want to see it or pass on it. I know when they purchased a property and I know when it will reach its max depreciation and then I do a return on equity analysis and show then it is time to 1031 that property into a better performing property. Guess what I get both sides of that transaction.

Your problem is you are not an experienced investor so you do not know what your investor clients are looking for.

Careful suggesting your clients go the lease-option route. A lot of law-suits over the last couple of years have been going in favor of the tenatns/buyers, and judges in general are getting the feeling that a lot of investors who are doing lease-options are crooks. It's not always the case, of course. Just know you could be leading investors into some shakey legal territory. I've also heard of some rulings where some investors were forced to foreclose instead of evict in lease-option situations, even when the lease and the option were completely seperate agreements. I'm not giving any legal advice here, I'm just saying to get it... My investors are all offering first rights of refusal now instead of a lease-option. But probelms even exist with first rights of refusal. If the investor is ready to sell and list the property and someone has a first right of refusal, it doesn't show up in the active listings in our MLS. If I'm the one that suggested the first right of refusal, could one of my investors argue that I wasn't working in their best interest by not having the property show up as "active"? I disclose all of this up-front and let them know how showings will be effected by first rights. Investing has changed over the last few years, and it bugs me that most investment "experts" aren't adapting to the times.

Carla,
If the property does not show as active in MLS with a FRR then what status does it show as?

I still use the option as it is still a superior method over a first right of refusal based on my attorneys legal opinion.

All of my options are for 11 months so that the option expires 30 days before the lease expires. At the end of the year we re-evaluate their situation and decide if both parties are interested in extending the option for an additional year should should either party decide not to extend then it automatically expires on the stated date.

From the date I serve the option holder with my intent to sell they have 3 days to accept or decline their option. Should they accept they then have 14 days to secure a mortgage commitment for the proprty. Should they not be able to secure the mortgage commitment then the option is void.
Should the option holder decide that they wish to exercise the option the same time periods apply.
If there is any problem over non-renewal of the option then I would then serve then with a 30 day notice that I will not be renewing their lease and they will need to be out at the end of the lease period with no extensions.

belvideregroup /carla

what kind of problem exists when giving a first right of refusal to a tenant?

when suggesting a lease option or some sort of seller financing strategy to your investors, how do you disclose due on sale issues, tax reassessments, reconveyance fees, judicial foreclosure versus eviction from a defaulting tenant/buyer, equity claims, rent credits or small downpayments deducted from a predetermined purchase price, shielding the investor's property from creditor claims or judgments, including IRS liens, and death/probate issues regarding the investor and/or tenant/buyer.

would you allow your agents to do these types of creative investing?