Wonder how a real estate agent might be able to help on your real estate investing journey? You can use it to build a network of referrals. In this blog, we're going to recap Paul Myers' step-by-step blueprint for building an agent referral network from scratch. Without further ado let's dive right in.
Paul has built a 7-figure real estate investing business in less than 2 years, primarily through building relationships with real estate agents in his local market of Augusta, Georgia.
Last year, he did over $600k in revenue, but the vast majority came from marketing directly to sellers. He wanted to increase profits and repeat business, so he set an audacious goal to 10x his business.
The strategy he implemented was building an agent referral network through systematic outreach and relationship building. This allowed him to generate over $400k in referral fees from agents last year with zero marketing costs.
There were two main reasons Paul decided to focus on agents:
He broke his business into two divisions:
His goal was to keep scaling his marketing but also add $375k from agent referrals.
In reality, the listed properties division didn’t pan out as expected. But he generated over $400k from agent referrals!
Here is the business breakdown:
So in one year he more than doubled his business from $615k to $1.32 million, primarily through the agent referral network.
Now let’s get into the step-by-step blueprint...
Here are the steps Paul took to generate over $400k in referral fees from agents:
Paul hired an acquisitions manager who had a real estate license and experience as an agent. This helped him understand and relate to agents.
He got a list of all 2200 agents in his MLS and ranked them by production. Focus on top producers first.
Paul adds each agent's name, number, and brokerage to his cell phone. This way any callbacks show up identified.
They called every agent on the list over 6 months. The script explains what you do, offers to connect on social, and asks about potential deals.
After calling an agent, Paul adds them to his CRM and tags them as "real estate agent".
To avoid seeming like a stalker, Paul offers to connect on Facebook/LinkedIn during the call. This helps with:
He follows up via text and email to provide his contact info and a flyer with his buying criteria.
Paul also emails each agent a “credibility packet” that explains his business and credentials. This establishes him as a serious investor.
He regularly posts real estate and agent-focused content on social media. When he does a deal with an agent, he will post about it and tag the agent.
Agents who have closed a deal or referred a deal get tagged as VIPs. He calls these agents monthly to stay top of mind.
Paul sends a monthly newsletter to his entire agent list. When he does a deal with an agent, he features the story in the newsletter.
He commits to looking at any deal an agent refers within 24-48 hours. This is key because agents often have short timelines.
Double dip is when the agent represents both sides of the transaction to get double commission. Triple dip is when they also list the fixed-up property.
If an agent is an investor, Paul gets their buy criteria and adds them to his cash buyer list instead of asking for deals.
He does free educational seminars at brokerages on topics like wholesaling, marketing, investing, etc.
Paul also hosts his own monthly meetups and invites all agents across brokerages in his market.
Getting his broker’s license helped Paul relate even better with agents. This is an optional step.
Look for opportunities to sponsor or speak at local realtor events to build relationships.
Paul started teaching courses at real estate schools. This exposes him to future agents.
Sponsoring meetings is a way to get in front of agents and build rapport.
The biggest takeaways from our interview with Paul were to:
Real estate agents are that untapped and underused resource to help you get deals. Networking is a powerful tool in the real estate industry and investing is no exception. Take action and start building your real estate agent network today!