The nation is learning an important lesson in economics -- nobody has to buy a home. Buying a home is a choice, and unless the choice is attractive, buyers will sit on the sidelines.

If you're a Realtor watching the number of transactions you're involved in dwindle to half what you did last year, more of the same isn't going to be good enough. Time to rethink, regroup, and go after a different market. Instead of dealing with the angst of the credit-crunched first-timer, the bloodthirstiness of the bargain-hunter, or the denial of the seller, let someone else do that -- the investor. Your job is to sell the investor first.

Not too long ago, I heard a Realtor sniff, "If a homebuyer tells me he's an investor, I run the other way."

Some Realtors have been burned by investors who use the Realtor's knowledge and experience and then cut them out of the transaction.

Well, that may be true of the short-sighted amateur, but professional investors think long-term. They want your help and are willing to pay for it.

One thing that's good about investors is that they have to buy homes or they logjam their income stream.

The trick is in attracting them and building a long-term mutually profitable relationship and the first step is setting mutual distrust aside.

HomeVestors is a national franchisor that sells its unique brand to franchisees -- professional housing investors. You've heard of them -- they buy ugly houses, and have a caveman as their mascot. HomeVestors supports its franchisees with prodigious training (I've seen the programs) from how to buy older homes, to how to rehab older homes, to putting together a contracting team, to building an office team complete with a designated home buyer, to getting the homes successfully marketed once they've been cleaned up, repaired and remodeled.

The suggested formula for success is to buy older homes below the median price for the area, typically the low to mid 100s, then rehab the home to appeal to first-time or credit-challenged homebuyers.

Realtors typically don't like investors because they try to buy 20 percent or more below market price, bringing comparables down in the immediate neighborhood, in addition to often cutting the agent out of the deal. But there's an upside. Once the home has been repaired and remodeled, it raises values in the neighborhood, possibly setting off a chain reaction that rehabilitates an entire area. Rehabilitated homes serve a greater community purpose by setting new standards for habitation.

The positive side of that is obvious. If the homes aren't rehabilitated, their values will continue to go downward. If the homes are fixed up, they sell for higher prices, inviting new interest to the neighborhood. Of course, Realtors like higher priced desirable homes over harder-to-sell dilapidated homes.

At an annual HomeVestors convention recently, I learned two surprising facts -- HomeVestors was founded by a Realtor -- the late Ken D'Angelo. The company not only encourages its franchisees to work with Realtors, but credits much of franchisees' success to partnering successfully with Realtors.

I wanted to know more, so HomeVestors promised a survey of its entire franchise network about their relationships with Realtors, and the results are as follows:

• 39% of HomeVestors franchisees are licensed Realtors

• >39% have an employee that is a licensed Realtor

• 78% of HomeVestors offices use a Realtor (either in-house or out of house) to sell their properties

• 44% of HomeVestors offices use a Realtor to help them find properties to purchase

• 88% of the properties that HomeVestors offices rehab are sold through Realtors

"As we discussed, the relationship between HomeVestors and Realtors is contrary to the stereotypes of real estate investors and Realtors as strict competitors," says John Hayes, CEO of HomeVestors.

So the next time you see a billboard that says, "We buy ugly houses," call the number and ask to work with the franchisee finding and negotiating ugly houses for them. If you develop a good working relationship with the investor, you'll also get the listing when the house is ready for the market.

And one other thing. Homevestors supplies financing to its franchisees, so you don't have to worry if your investor is going to get funding or not.

Published: August 31, 2007

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.