How Traditional Real Estate Agents Can Benefit From the iBuyer Model

Podcast

Interview with Institutional & iBuyer Expert Dan Noma by Kevin Kauffman

Intro 

The explosion of iBuyers has been met with real estate agent resistance, worries about shrinking commissions, consumers not wanting to work with us, and the fear that we’ll be replaced. The problem is, when we focus so much on the disruption, we miss out on the massive opportunities. What sets our guest Dan Noma apart is how he approached iBuyers with a mindset of opportunity, not one of gloom and doom, and he’s reaping the rewards of that unique way of thinking. 

What consumer and market trends are influencing the massive amounts of capital in the iBuyer space? How can we as traditional real estate agents leverage these offers to deliver more value to clients? On this episode, broker/owner of Venture REI, and co-founder of the iReal Estate Pro Certification, Dan Noma, shares how he built a successful business around selling to institutional buyers and iBuyers, and how we can take this model and implement it into our own real estate businesses. 

Quotes 

If we’re presented with an idea and our response comes from fear, we’ll always have a negative connotation around it.

-Dan Noma

The tech is built around serving the needs of the consumer, and as agents, we have to find where we play within that need.

-Dan Noma

Consumer confidence is building around convenience.

-Dan Noma

Key Points 

IBuyers vs. Institutional Buyers

iBuyers buy and invest in a property to return it to the market as a resale. Institutional buyers do not return the properties back to the market as sales, but rather as long-term rentals, which are often traded on Wall Street.

How single family units have turned into a big asset class

The cost of capital in real estate has gone from 6% to 2.5%, and the property can be rented out at full market value. Many institutional buyers don’t want to invest in commercial properties anymore, so capital stacks are shifting from malls to single family rentals. Additionally, investors can use debt as a vehicle. When they see appreciation, they can refinance the debt, pull out equity and buy more houses.

How we can leverage iBuyers to grow our real estate businesses

IBuyers give consumers convenience, and the option to sell with certainty, and that is driving the massive growth in iBuyer platforms. They are speaking to the consumer and focused on what’s in their best interest. This is where real estate agents are getting left behind. We don’t present iBuyer options to our clients, when we should actually be facilitators of that information. By presenting multiple options, we remove consumer doubt about us and they are more likely to want to work with us.

Summary 

On this episode we discussed;

• Why Dan never saw iBuyers as a threat and how he took advantage of the opportunity. 
• The software VentureREI developed for iBuyers and how they use it to identify sellers.
• Why consumers want to work with iBuyers, and how we can fit into that demand.
• How the real estate industry can protect itself from disruption by joining the iBuyer conversation.
• Why there’s so much capital investment in iBuyers at the moment. 
• The iReal Estate Pro Certification, and how it will help agents compete and win in the iBuyer space.

Closing Paragraph 

iBuyer markets have proven that consumers want convenience and want to be able to sell their houses on demand. Contrary to popular belief, this doesn’t have to spell disaster for us if we focus on aligning with the opportunities within the space. There’s still a huge need for agents who can guide people through the selling process. In order to maintain our value, we have to become a part of the iBuyer conversation, and find a way to play within that consumer demand. Entrepreneurship is all about finding a need in the market and fulfilling it. Ultimately, if we keep our focus on doing what’s in the consumer’s best interest, we will win. 

Guest Info

Dan Noma, Jr. is the designated broker/owner of Venture REI, an award-winning, Arizona-based real estate brokerage and advisory firm specializing in the purchase, sale, rental, and marketing of select residential developments and commercial investment properties. To find out about the iReal Estate Pro Certification, go to https://www.irealestatepro.com/.

Catch the Interview

Listen to the full interview with Dan Noma:

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