Educating Agents in Creative Deals with Mark Shaw
Last updated: 19 Sept 2024
Meet Mark Shaw
Mark Shaw, known as "lifestyle investor," has been in the property investment sector for over 25 years, leveraging creative strategies to find and secure deals. Having owned and operated multiple estate and letting agencies for more than two decades, Mark brings a wealth of experience in property negotiation, creative finance, and deal structuring. He now shares his knowledge as a coach through his Lifestyle Investor Mastermind Program.
In this week’s episode of Deal Finder’s Corner, Mark Shaw joins us to discuss how to educate estate agents to bring you creative deals, such as lease options, assisted sales, and joint ventures. He breaks down practical strategies to help investors make the most of their relationships with agents, gain exclusive deal access, and structure win-win scenarios.
"You're not just making offers; you're providing solutions that make the agent’s job easier and more rewarding."
Understanding the agent's perspective
To succeed in property investing, Mark emphasises the importance of thinking like an estate or letting agent. When you understand their point of view, you can communicate more effectively and educate them on your creative strategies.
"One of the first things we've got to do is start thinking like an estate agent or a letting agent. Once we start understanding things from their viewpoint, we can start communicating better with them."
By aligning your objectives with the agent's needs, you'll increase your chances of being the first investor they think of when a new opportunity arises.
Trigger points: There are specific scenarios, such as slow progressions, chain breaks, or properties with high price expectations, where agents will think of you if you've educated them well.
Communication via email: Mark prefers communicating through email, as it allows for clear explanations and reduces misunderstandings. This strategy also enables agents to relay your offer to the vendor accurately.
Creative deal structures and scenarios
Mark shared several creative deal structures and scenarios that investors can use to work with agents effectively:
Slow progressions
When a property sale drags on for several months without completion, both the vendor and the agent are often frustrated. This presents a perfect opportunity to step in with a solution. By educating agents about your ability to complete transactions quickly, you become their go-to investor for these situations.
"Agents will start actively promoting you as the investor to work with when they know you can offer solutions to slow progressions."
Chain breaks
A common issue is where one buyer in a property chain pulls out, causing the entire chain to collapse. Mark suggests presenting a delayed completion strategy to agents, allowing you to step in, save the chain, and complete the sale quickly. This approach makes you invaluable to agents dealing with stressed vendors.
Assisted sales
In cases where the property needs significant refurbishment but is priced too high, an assisted sale can be the perfect solution. This strategy involves partnering with the vendor to refurbish the property while keeping it in their name, thus avoiding stamp duty and reducing the initial investment.
"With an assisted sale, you're not just asking agents for leads; you're asking for relevant, qualified leads. You're offering them a simpler, quicker way to complete deals."
Educating agents for better deals
Mark provides practical tips on how to educate agents to bring you deals before they hit the market:
Use specific examples: Pick properties from an agent’s existing listings and explain how you would handle them using your creative strategy. This helps the agent understand your methods and think of you for future opportunities.
Be clear and specific: When approaching agents, always be precise about the type of properties you’re looking for and the strategies you use, such as lease options or assisted sales.
Follow up with emails: After an initial conversation, follow up with detailed emails to reinforce your strategies and keep your approach clear in the agent's mind.
Conclusion
Mark Shaw's insights on educating agents and leveraging creative deal structures can significantly improve your property investment strategy. By understanding the agent's perspective, using specific scenarios like slow progressions or chain breaks, and employing methods like assisted sales, you can access off-market opportunities and build stronger relationships with agents.
Connect with Mark Shaw on Facebook and Instagram to learn more about his strategies and upcoming Mastermind Programs. For the full conversation with Mark and more valuable insights on property investment, head over to our YouTube channel and watch the full interview.
