The REI Referral Network
Forming Relationships to Enhance Investment Strategies
By: Monica Mansfield
Now that the real estate investment industry is returning to normal following the COVID-19 pandemic, it is prudent for investors to begin establishing new relationships for acquisition and disposition strategies by enhancing their networks with real estate agents and brokers who have advanced access to the REO and foreclosure assets that are coming to market following mortgage forbearance.
Suzanne Andresen, the Chief Revenue Officer at REI INK Magazine and one of the founders of the REI Referral Network, stated six months ago that the pandemic would create more opportunities for investors once we got back to business, and that investors need to be ready. She advised both investors and real estate agents to build their networks and relationships during the down time. By doing so, agents would already be familiar with what their investor clients were looking for and could make sure they got first glance at properties that match their portfolio strategies.
The Impact of Mortgage Forbearance
Mortgage forbearance programs caused complications and uncertainty for real estate investors, property management companies, traditional and non-traditional lenders, service providers and renters. And these programs had a “trickle-up” effect on Wall Street. Some private money lenders quit lending temporarily and investors were having an increasingly difficult time sourcing new investments. Some investors have pivoted to Build to Rent initiatives. While this may provide a long-term higher ROI, it requires an extended timeframe to complete the developments. Adding complementary assets to the peripheral will help get the project producing revenues in the short term. Regardless, for the most part, renters were still paying their rent on time.
However, according to Federal Reserve research, as of August 2020, the monthly supply of houses dipped to 4.0. This means it would only take four months to sell all the homes currently listed for sale. This demand for more inventory alerted investors that they needed a paradigm shift.
The Referral Network
REI INK developed an online network to connect real estate investors, real estate agents/brokers and service providers. Although Andresen did not foresee the pandemic at the time, she did see a hole in the market that needed to be filled.
Since its inception, the Referral Network has developed affiliations with national real estate companies, investment companies, asset management companies, lenders, and multiple service providers. Through these affiliations, the Referral Network was made available to thousands of real estate professionals seeking to create new relationships and a new way of doing business…a paradigm shift. And they took advantage of the oppor-tunity. Andresen shared that understanding an investors acquisition appetite will help cultivate the portfolio regardless of the buy & hold or fix & flip strategies. Advance intel of these assets will provide a first look – first purchase opportunity.
As a Realtor herself, Andresen saw the value in an affordable online platform that could connect agents and investors. The modest fee, with no contract, is more than paid for in just one deal. Currently, the REI Referral Network is waiving its fee until March 2021 so real estate professionals and investors can recover from 2020 and set a strong foundation for 2021.
Not only does the REI Referral Network help you build your relationships, but it also gives you a premier access at investment opportunities, many of which are not yet listed publicly. This “first look” includes advanced access to the REO and foreclosure assets that have started to come to market following mortgage forbearance.
Broadcast Opportunities
Each week, the Referral Network sends out a newsletter to over 60,000 people nationwide featuring one of their member’s listings. Not only do investors see the listing, but they also have access to a real-time comparative market analysis for the property, along with information on the market it is located in. Investors can access market metrics directly from the newsletter and then connect with real estate agents/brokers who have expertise in that specific area. The featured asset has a direct link to the listing agent. Andresen states “We are now taking real estate, a traditionally local business engagement to a national platform. We provide local market intel to the entire national audience.” The REI Referral Network’s mission is to connect agents and brokers with investors and not to take a referral fee.
“You may not realize you have a California investor that wants to buy in Albany, NY, and we take that asset and share market metrics. Now your listing is marketed to more than 60,000 people with no marketing fee,” says Andresen. “Real estate is a relationship business, and this is an opportunity to expand your relationships well beyond your current markets. By developing relationships with agents, investors put themselves in a position to get a first look at opportunities that hit the market, oftentimes before they are made public to other real estate professionals.”
Agents and brokers can list up to three states and up to 20 counties as areas of expertise on their REI Referral Network profile. This allows agents working in tri-state areas, such as New York, New Jersey, and Pennsylvania, to attract clients interested in their entire market.
REI INK launched the REI Referral Network late last year without any idea of what was on the horizon. Now that COVID-19 has created new opportunities for both agents and investors, the timing could not be better for real estate professionals to engage in this network, especially since the fees are waived until March 2021. REI INK is in a unique position, having relationships with both investors and national real estate brands. “We want to bring everyone together,” Andresen says, “because we have the platform that can do that.”
