I think we can all agree that there is currently a feeding frenzy going on with people either buying investment properties or wishing they could figure out a way to buy investment properties. Just last night while tailgating at the UCLA football game, several of what I consider to be sophisticated investor types, pointed out to me that with interest rates so low, rents on the rise, and values having declined as they have - they wanted to start buying. Additionally, they pointed out why they were staying away from the stock market and how the returns they could get from banks or government bonds were simply not acceptable.

But, as usual, they wanted to somehow find those elusive “special deals”. Well, here are some tips on how, YOU, the realtor can put yourself right in the middle of those “investor types” that want to get into the game of buying real estate.

1. Most Private Money (hard money) Lenders can only lend on non-owner occupied properties. (i.e. Investment properties). That is due to ever changing compliance restrictions that are being applied to owner-occupied properties. Therefore, they are spending all of their marketing dollars and time finding those “investor types” so they can lend them the money to buy the properties. YOU could be meeting their investors/borrowers.
2. YOU may have sellers that would like to find buyers that are pre-approved and ready to close fast. Private Lenders are swimming with “investor types” like that.
3. Private Money lenders have investors that will discount their inventory to get it moved in the timeframe that is required by the demands of their business. So they can also help you find those “special deals” for your buyers.
4. They are talking daily, as I am, to people that want to buy investment properties but don’t know how to get started. You can offer to teach and hold their hand through a few deals and start to build up a steady group of buyers and sellers.
5. Finally, consider this, the synergy that is happening now in the private money arena is unprecedented. Banks have layers of guidelines that prevent them from lending to investors, so investors are turning to the private money lenders in record numbers to get the loans they need and in the timeframe they need them. YOU have the opportunity to tap into that synergy.

My recommendation is to call a private money lender today and offer to start exchanging leads and marketing ideas. Who knows, you just might find the best partnership your business has ever seen.  What do you have to lose?