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Building An Investor Niche
Instructor: John Henderson JT@grar.com
Module 1 Lesson: Why Investors need you
Here are 3 basic reasons real estate investors need your assistance:
A. Some investors lack real estate investment experience
Newer investors need your expertise and experience as they develop their strategy and portfolio of properties. Making connections with investors when they’re early in their careers may develop into long term relationships with great future income potential. In later lessons, we’ll identify skill sets that you can develop so that the work you contribute will be invaluable to your clients.
B. Some investors lack available time
Another reason investors seek the assistance of real estate agents is due to the time involved in locating, identifying and researching such properties. Some investors work in other industries, so they may lack the time needed to find suitable properties. Offering your time and assistance will be very beneficial to those clients. In some markets, inventory of investment properties may be very limited. Locating suitable properties may be like finding a needle in a haystack. In other markets, investment properties may be plentiful and easy to find. In those situations, sorting through available inventory will be an additional benefit to clients. In any market environment, having an agent available that can act quickly can help better the position of a client/investor to act on a transaction. And that can be a substantial benefit to any investor.
C. License law requirements
And lastly, investors that handle a substantial amount of transactions each year must decide to either earn their own real estate license or continue utilizing the effort of licensed agent. Many investors recognize the professional benefit of engaging a real estate agent and not depend on themselves to carry out all of the transactional work.
Statute Review - Here’s what the law says…
MCL 339.2502b - Owner of real estate engaging in sale of real estate as principal vocation; license as real estate broker required.
(1) Unless the owner engages the services of a real estate broker in connection with those sales, an individual who is the owner of real estate must obtain a license as a real estate broker to engage in the sale of that real estate as a principal vocation. For purposes of this subsection, each of the following is considered engaging in the sale of real estate as a principal vocation:
(a) Engaging in more than 5 real estate sales in any 12-month period.
(b) Representing to the public that he or she is principally engaged in the sale of real estate.
(c) Devoting over 50% of his or her working time, or more than 15 hours per week in any 6-month period, to the sale of real estate.
(d) If he or she is a real estate salesperson, a sale of real estate other than his or her principal residence.