Are REALTORS Necessary for Investors?

Stuart Gethner

By Stuart M. Gethner

Where do REALTORS fit in to the serious real estate investor’s business model? After all, don’t you have a fiduciary responsibility to sell a property for as much as you can? And doesn’t the real estate investor want to buy that same property for as low as they can? However, the more the house sells for, the larger you commission. That’s not greed, that’s human nature.

I like to say that real estate investors and REALTORS attend the same church. They just pray in different pews!

First and foremost, investors want to ensure that our REALTOR is investor-friendly. This means our REALTOR appreciates we work on volume and are transaction driven, thereby giving you multiple transactions.

Did you know the average REALTOR does 2.6 transactions a year? Most investors can average 2.6 transactions a month! Did you know 87 percent of all agents are out of the industry within five years! Would additional transactions be helpful to your household income?

Many times investors do not have all the resources but we can be resourceful. REALTORS can be a resource on the “inside” of the business. For example, they can refer us to an investor friendly painter, title company and short-term lender. A REALTOR is a terrific resource. They can be a source for deals as well as a resource of information and referrals.

Almost every REALTOR I know has experienced a “Grandma Died” deal. This is when grandma passes away and the family lives out-of-state. Your advice to the family is sound, “Spend a few bucks upgrading grandma’s shag carpet along with a fresh-coat of paint before bringing to the marketplace,” Yet the family would rather sell grandma’s house at a discount than spend any money. I want that phone call!

Active REALTOR know the pulse of their marketplace, specifically their neighborhood. Are prices trending up or down? Which family had twins and might be moving soon? Is this an area ripe for regentrification? Where is the new freeway being built? Or, are the schools here desirable? This information is invaluable to an investor.

Many experienced investors are looking to invest outside their current area for a better return. For example, my daughter, Sydni, is currently living in San Francisco. As she looks to invest in San Francisco real estate, it becomes apparent that this area is cost prohibitive. However, as she expands the radius of where to invest, she knows less and less of that area. An investor friendly REALTOR is the perfect solution to help one navigate an unfamiliar real estate market. There are plenty of investors looking to get into our market! Would you be an excellent resource for them?

As you know, REALTORS also take an additional Oath of Ethics; more specific than the oath you took as real estate agents. However, this Oath of Ethics states that a REALTOR won’t be a part of a “Subject To” transaction. Hence, REALTORS are a great source for “Subject To” opportunities!

We have had many referrals from REALTORS who find that there is not enough spread in listing a property for sale.

I once asked my REALTOR friend, Janis Pelletier of Berkshire Hathaway HomeServices Arizona, how many investors can he work with at once? Without hesitation she said, “Four!” I asked, “How come just four?” To which he replied, “If I have a great deal, it’s gone by the fourth phone call!”

Isn’t it time you started another revenue stream working with investors? Let me show you how!


Stuart Gethner is a full-time practicing real estate investor and consultant in Scottsdale, Arizona. He facilitates workshops on real estate investing to investors and REALTORS all over the country, creating additional income from their existing database. For his free e-Book, “Realtor Strategies to Work ON and not IN Your Business,” go to StuartGethner.com/eBook.