How do I capitalize on my brokers license

Question

I currently am an independent licensed RE broker in NY, MA and RI. Any ideas on how I can use my license to work with interested out of state clients? With the wealth of online out of state data readily available to buyers how can I promote myself as the go between to examine/survey out of state properties of interest, conduct the deal as the buyers broker while acting as a discount broker for out of state buyers? How would I market myself?

John Dirgo Deweese · Answer

Why would you want to market yourself as a "discount broker for out-of-state buyers"? The buyer's aren't paying your commission. As for promoting yourself to potential investor buyers, it seems like you need a little focus. You're licensed in three states - two of them pretty large and diverse (I know almost nothing about RI - sorry). Are you trying to promote your services in Buffalo or Manhattan? Boston or Cape Cod? It seems a bit scattered. Which areas offer the best potential returns for people wanting to employ a BRRR strategy? Which communities currently have the right numbers for simple positive-cash-flow buy-and-hold investment? Identify the areas with good potential, become knowledgeable on those areas and promote them. As you are out sharing your knowledge and expertise, the investor/buyers will find you.

John Dirgo Deweese · Answer

I think it always comes down to "what value can you add?" Here's good ol' Irving the Investor - he's looking for a new investment property. Do you expect him to identify where he wants to invest (out of that large three-state area) and then magically locate you to help him? Or would it be more plausible for Irving to be scoping around on something like Bigger Pockets and see a posting that says "10% Return/Single Family in Rochester, NY" (I am ENTIRELY making this up - I have no idea if that return is possible in Rochester). Looking at the advertisement or posting, he sees where someone has identified a possible investment property with a good return. Someone has done some of the homework and shown him their value as an investment-minded broker. If Irving is looking for a single-family home to invest in, he's going to want to find out more and then he'll meet you. You brought value to the table and attracted him to you.You could promote properties (even those not listed for sale by you -- check your local laws, MLS, etc for the rules on that), you could promote neighborhoods where you regularly see good investment returns, you could point out areas where rents are increasing faster than purchase prices so returns are improving -- you get the idea. In short, bring value to the table as a broker that knows and speaks investment real estate, get out and talk about it, and investors that see the value will find you. You have limited time. For a while, you need to spend that time becoming the knowledgeable expert those investor-buyers need. Then, in sharing that knowledge confidently, the clients will find you and say "man, he's the guy to talk to - he knows his stuff".

David Blue · Answer

@Sam .... I think this is more the direction I am looking to head in. Finding a niche not many others are interested in pursuing. As mentioned above I know person to person contact is key in this industry, but this generation (millennials) seem set to change that. I’d like a head start in that direction. Eg ... the last two investment properties I closed on I never came into contact with any of the parties until I went to the close. Everything was conducted via email, text messaging and electronic contact. If that works for me in three nearby states why won’t it work for client on the west coast or outside the country.

David Blue · Answer

@cheryl ... good insight. That means working with fellow in and out of state agents to network with potential property management candidates. Networking can take up time, maybe “again” there’s a way to do that electronically.

David Blue · Answer

John Dirgo Deweese I’m not trying to sell myself cheap. I am looking at where the RE industry is headed and how business in the future will be conducted. As a Software engineer I am trying to see how I can use my background in computers to gel with the direction of the RE industry giving me a jump start. I believe this industry is geared to go global and electronic.

Sam Shueh · Answer

I have seen broker with multiple state licenses to work as a in name only listing agent. Provide lock box, signs, and put on MLS. Often they charge a few 100 dollars limited liability broker. They do not do contracts.

Cheryl Butler · Answer

Not sure how it works in other states, but I'm licensed in Ohio and an Indiana and you must have a brokers license to manage property in both of those states. One option may be to find someone who wants to do third party management (or who is doing it illegally) and be their managing broker for a fee. Believe it or not, companies are fined all of the time by the state for managing property without a license. Of course you have to make sure they are compliant because your license is on the line.

John Dirgo Deweese · Answer

Your willingness to do more than the local agents (who probably would not be willing to do the leg work you mention) already can set you apart. But if you don't think that's valuable and worth compensation, no one else will either. Don't sell yourself, your time or your skills cheaply.

David Blue · Answer

John Dirgo Deweese Understood. Makes sense! I guess I need to do some homework. I have MLS access in all three states so I don’t bring anything more than the local agents, that’s where I thought my pricing/services could be offered at a lower rate especially to out of staters who need a middle man to do the leg work. Thanks for your input.

David Blue · Answer

John Dirgo Deweese Ok I didn’t mean to have to get into this in depth, but depth does add to the discussion. I am a full time engineer. I got a NY RE brokers license 22 years ago and never really used it, I currently live in Mass and work in Newport RI. So I used reciprocity from NY to obtain Mass and RI licensure. I am looking for ways to use my licenses on a “part time” basis to gain added income. Currently I own two buy and hold properties in Mass but am looking to take full advantage of my three licenses and possibly help out of staters procure property. If I were to pursue this route how would I market myself to out of staters looking to invest. Working alone makes it a little more difficult but at least I am working for myself.