Every property has the potential to generate far more income than you think.
Possibilities include buying and selling models, rental income, and house flipping.
Have you considered the additional income of partnering?
For example, if you're developing a rental property or an apartment complex, you can partner with local services to increase each other's businesses. Local services may include laundromats, plumbing services, and HVAC technicians.
Another lucrative opportunity is a real estate agent referral program. This creates a longer chain of opportunities, resulting in profit for multiple parties.
Here are a few things to consider about this strategy.
Implementing a Real Estate Agent Referral Program
This type of program allows property owners to refer prospective buyers to a specific real estate agent or firm. In turn, this agent can refer the lead to another agent to close the deal. The first agent acts as the referral agent and the other as the closing agent.
Three parties benefit in the above scenario.
If you want to start generating income from this strategy, you'll need to implement it before listing your first property on the market. This way, the referral program is ready to go.
Think about the marketing benefit from the lead's perspective. There are two agents on the job instead of one.
Prepare Your Property Marketing Material
There are a few ways to include this strategy within your marketing material.
When creating property listings, you can include the referral agent's number within the real estate copy. You'll also need to include it on any traditional print marketing like signage and brochures.
A property manager can also provide leads with the business cards of the respective agents.
Your property marketing must be as professional (and clear) as possible for this strategy to work.
Financial Accounting
An additional income model also means your financial reporting must be on point.
You'll need an accountant or real estate finance professional to document each referral transaction and home sale, providing financial reports to each party involved.
Property Management Referral Programs
The above scenario speaks to the necessity of having a property management company at the helm. For example, Blue Line Property Management has a team of real estate professionals to assist property owners, buyers, and agents themselves.
Agent referral programs also let real estate agents refer property management services to property owners who want to rent out their properties to tenants. This facilitates a quicker buying and rental process for real estate investors.
When an agent refers a property management company to a client, they don't have to worry about the company working with another agent. The agent can focus on generating even more sales, and they have a reputable property management company by their side ready to go after closing the sale.
Offering a full-service option provides the peace of mind (and income) investors need to scale their portfolios quickly.
Enjoy a More Lucrative Venture
Whether you're a real estate investor or an agent, you can benefit enormously from a real estate agent referral program. Consider the above ideas when building your career or portfolio.
Browse Blue Line Property Management's service to learn more about what we do or book a consultation with a professional today.
