Many novice real estate investors readily call a roofer when the roof is leaking or a contractor to renovate a bath or kitchen, but they often view real estate agents as superfluous overhead. They focus on the agent commissions they have to pay, while overlooking the value that an agent can add to their investment business. As a real estate agent, you can expand your business by proving yourself indispensable to investors who purchase distressed properties.

To appeal to investors, adjust your business model to meet their needs and then market your services accordingly. Following are five ways you can reach out to buyers of distressed properties and expand your business by attending to their needs.

1. Buy distressed homes yourself.

To sell anything, you have to know what your prospective clients need, and there's no better way to learn what investors need than by becoming one yourself. Start by investing in one property a year. Then invest in two properties a year, then one every quarter. By the fourth year, you should be buying about one property each month. Through investing, you not only build your own personal wealth, but you also establish valuable contacts with lenders and with contractors, which you can share with your clients.

2. Attend monthly real estate investor and landlord meetings.

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

Consider hosting a free workshop on buying and selling distressed properties. Far too many agents believe that by giving away valuable information, they are empowering investors to fly solo without an agent. Although this may be the case for a few investors, most soon realize that having you as a resource is worth every penny of commissions you earn. Use your unique knowledge strategically to generate more clients and more business.

3. Help investors find the financing they need.

Investors need cash to purchase and renovate properties. By leading prospective clients to sources of cash, you enable them to buy more properties, and you prove that you're dedicated to their success.

The next time they buy a property, they're more likely to buy it through you. And once they buy the property through you, they're more likely to sell it through you later.

Tip: Team up with a mortgage broker in your area and exchange referrals. Not only will this empower the investors you work with, but it will also generate additional business as the mortgage broker sends home buyers and investors to you.

4. Assist investors in finding investment opportunities.

Learn how to use the tools in your MLS system to automate the process of finding attractive investment opportunities. You can set up your MLS system to notify you of bank foreclosures, homes that are priced significantly below market value, and properties whose prices have recently been reduced. If you're investing in real estate yourself, you're likely to find more leads than you have the resources to pursue. Don't be selfish. Share surplus leads with your clients.

Tip: Some of the best opportunities come from networking. Hand out your business card to everyone. Let them know that you specialize in working with clients who buy and sell distressed properties. The more people get to know you as someone who deals in distressed properties, the more likely they are to send leads your way.

5. Create and distribute a handyman list.

Once an investor acquires a property, the next thing she needs is help renovating it. Generate a list of top-notch contractors and handyman, and when you sell a property, provide your handyman list to the buyer as a part of your service. Update the list regularly and ask 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 you do -- success. Show them that they can be more successful with your services than without them. Prove daily that you are an indispensable contributor to their success, remain in monthly contact with investors and real estate investor groups, and you will build a solid and ever growing base of loyal clients.

Published: March 18, 2008

Use of this article without permission is a violation of federal copyright laws.

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.