While many novice real estate investors readily call a roofer when a roof is leaking, or a contractor to renovate a bath or kitchen, they often view real estate agents as superfluous overhead.

Unfortunately, investors focus on an agent's commissions, while often overlooking the value an agent can add to their investment business. As a loan officer, you can expand your business by helping agents understand how they themselves can be indispensable to the rehab investor.

To appeal to investors, agents simply need to customize their business model to meet the investor's needs, and then market their services accordingly. Here are five tips you can share with real estate agents today, which ultimately will bring both you and the agents you work with more business!

1. Encourage real estate agents to become real estate investors themselves.

To sell anything, agents have to know what their prospective clients need, and there's no better way to learn what investors need than by suggesting that the agent become one themselves. Suggest to your agent friends that they start by investing in one property a year. Then invest in two properties a year, then one every quarter. By the fourth year, they should be buying about one property each month. Through investing, they not only build their own personal wealth, but they also reward you with their valuable business, all the while establishing contacts with contractors which they can share with their investor clients.

2. Tell the agents you work with to attend monthly real estate investor and landlord meetings.

Suggest to agents that they show up at the monthly meetings and talk to the investors in their community. Tell them to hand out their business cards and let people know what you have to offer. If the meeting includes lunch or dinner, the agent might be sitting at a table with eight or nine other people, all of whom buy and sell real estate, providing the agent with a perfect opportunity to network.

3. Encourage agents to steer investors to lenders like yourself.

Investors need cash to purchase and renovate properties. By leading prospective clients to sources of cash, the agent enables them to buy more properties, and they prove that they are dedicated to their success. The next time the investor buys a property, they're more likely to buy it through the agent. And once they buy the property through the agent, they're more likely to sell it through the agent later on.

4. Assist agents in assisting investors in finding investment opportunities. Encourage agents to learn how to use the tools in their MLS system to automate the process of finding attractive investment opportunities.

Agents can set up their MLS system to notify them of bank foreclosures, homes that are priced significantly below market value, and properties whose prices have recently been reduced. If the agent is investing in real estate him or herself, they're likely to find more leads than they have the resources to pursue. Tell them not to be selfish, and to share surplus leads with as many potential clients as possible.

5. Create and distribute a handyman list.

Once an investor acquires a property, the next thing she needs is help renovating it. Have the agent generate a list of top-notch contractors and handyman -- or better yet, you yourself could generate this list and give it your agents -- and when they sell a property, provide the handyman list to the buyer as a part of their service. Update the list regularly and ask agents and investors for feedback, so you can remove anyone from the list who is providing less than stellar service.

Remember, rehab investors want the same thing agents do -- success; and you too want the same thing agents want -- success. Show your agents that they can be more successful with these tips than without them.

Prove daily that you are an indispensable contributor to their success, and encourage them to remain in monthly contact with investors and real estate investor groups. Do these things now and you will build a solid and ever growing base of loyal agent referrals.

Published: December 13, 2006

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Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker. Throughout his career, Ralph has proven his commitment to helping other real estate and sales professionals build upon their past and present success, grow and expand their businesses, and provide a rich and rewarding future for themselves, their customers, their employees, and their families. As president and CEO of Ralph Roberts Realty, Ralph has personally helped thousands of consumers realize their dream of homeownership. While selling over 10,000 homes (and buying and selling over 3,000 investment properties) throughout his 30-year career, Ralph has made the time to mentor and coach hundreds of professionals in real estate, sales, and a host of other fields. Ralph is a recognized authority on Real Estate and Mortgage Fraud; Residential Real Estate; Personal Salesmanship; Sales Force and Office Management, Motivation, Design, and Team Building; and Foreclosure Self-Defense and Loan Modification, fields in which he has demonstrated his commitment to preserving the American Dream of Homeownership. Ralph's numerous websites, blogs, seminars, and speaking engagements engage, entertain, and educate both consumers and professionals. Ralph is also an accomplished author with several successful titles to his credit, including: Power Teams: The Complete Guide to Building and Managing a Winning Real Estate Agent Team Financing Real Estate Investments For Dummies (John Wiley & Sons) Mortgage Myths: 77 Secrets That Will Save You Thousands on Home Financing (John Wiley & Sons) Foreclosure Self-Defense For Dummies (John Wiley & Sons) Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan) Foreclosure Investing For Dummies (John Wiley & Sons) Foreclosure Myths: 77 Secrets to Saving Thousands on Distressed Properties (John Wiley & Sons) Advanced Selling For Dummies (John Wiley & Sons) Flipping Houses For Dummies 52 Weeks of Sales Success (John Wiley & Sons) Walk Like a Giant, Sell Like a Madman (John Wiley & Sons) Cross-Cultural Selling For Dummies (John Wiley & Sons) To learn more about Ralph, visit AboutRalph.com, check out his daily insights on real estate and mortgage fraud prevention at FlippingFrenzy.com, or visit his latest blog dedicated to helping distressed homeowners fight foreclosure, KeepMyHouse.com. You can reach Ralph at or by calling (586) 751-0000.