There are more than 50,000 real estate brokers in Illinois and over 1.4 million across the county. Yet, very few of these brokers can and are willing to work with real estate investors.
From my understanding, less than 5% of brokers are even qualified or have the desire to work with investors. A specialist that can assist an investor in growing their real estate portfolio is much different than an agent who practices common real estate.
To be an investment-minded real estate broker, you must first possess specific knowledge. This knowledge can’t be acquired in daily business dealings. There is a lot more to working with investors than selling owner-occupied properties and farming neighborhoods with postcards.
From the investor standpoint, the ideal broker candidate would act as a guide who can provide the financial information to find a specific return on investment. Investors also want to work alongside someone who has experience in specific marketplaces. This includes working with a broker who is aware of any municipality requirements for specific properties based in certain areas.
Types of Investment-Minded Brokers
I often explain to investors that these investment-minded real estate brokers are very hard to find. Real estate brokers who want to or are willing to work on the investment side of things often fall into three categories.
The Beginner Agent
This broker obtained their license because they want to become your “go-to” agent. The problem is, they are often new to negotiating and have limited experience in investing. What they lack in those areas, however, they make up for in determination and tenacity. These brokers will strive to be better and learn more. Soon enough they will fall into one of the other two categories.
The Professional Real Estate Investor
When a broker becomes so good at what they do, they often stop doing it for other investors and work solely on their own portfolio. They give up working with third parties, and we lose their expertise in the day-to-day world of real estate investing.
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