How to make the transition from being an investor to becoming a buyer’s agent

However, the transition proved to be harder than they thought since Australians weren't used to the idea of paying a professional to help them find properties. It was, according to Mr Handler, “like headbutting a wall for the first 12 to 16 months”.

Aside from that, the “emotional factor” was also difficult to take out, Mr Handler said.

According to him: “I'll give you an example: If a client had engaged me to buy their family home moving outside of the investment space … I would always, sometimes, put my emotion into it.”

“If I felt like we were potentially overpaying, I would tell the client, ‘I think we're paying too much.’ That is putting my emotion into it because they may want to pay market value or even over to secure that property because it's their family home. Buying under value may not be an objective of theirs,” he explained further.

As a buyer’s agent, he also tends to be “too forward” about having his way, even when dealing with experienced investors.

Mr Handler said: “Investors that already had portfolios … [have] their approaches as well. Having a fine line [on] how to integrate each other's knowledge was also a challenge.”

Investor-agent relationships

While the transition proved to be challenging, Mr Handler and Mr Cohen were able to grow their business to become one of Australia’s leading property buyer’s agency group. Following their success, they have decided to launch The Buyer’s Agent Institute, an online five-week learning program that aims to create “superstar buyer’s agents” across the country.

One of the first things they want to teach budding agents is the difference between investing for yourself and helping others in their investment journeys—having a great track record as an investor will not necessarily translate to success as a buyer's agent.

As an investor, you study the fundamentals, work with professionals where appropriate, pick the right investment property, and implement the most effective strategy based on your personal goals. Aside from exceptional market intelligence, customer service plays a big role in the business of buyer’s agents, Mr Handler highlights.

He said: “Obviously, a lot of people have bought property over the last five years, [and] they've done very well … You could get lucky. … However, in order to be a good buyer's agent, the difference is ... working with a client.”

“You need to have good emotional intelligence, you need to be able to offer good service. It's not about yourself, it's about them. You've got to understand different marketplaces [and] you've got to have very strong relationships,” the property professional added.

Agent-agent relationships

Mr Handler and Mr Cohen also emphasises the importance of agent-to-agent relationships, which can give you access to pre- or off-market stocks with reduced prices. Your relationship with real estate agents can improve your market intelligence and provide more wealth-creation opportunities for your client, according to Mr Handler.

For example, he said, real estate agents can tell you about the circumstance of a seller, which you can capitalise to get better outcomes or deals.

The property professional explained: “Let's just say you are looking to focus [on] Sydney's northern beaches … You need to make sure you know all the real estate agents there. … If you've got those good relationships with the real estate agents, they'll give you some inside intelligence.”

“Real estate agent [can say] … ‘The vendors are going through a divorce, [so] they need a quick sale ...Let's wrap this up quick.’ A lot of the other buyers aren't privy to that, and that's what we capitalise on and leverage in order to get good outcomes for our clients,” he added.

A ‘musical’ process

Finally, before you start in the business, Mr Handler and Mr Cohen encourage having a clear process to follow.

According to them, it has to flow very well, almost like a “musical”.

“[You] need to have your process down pat. It's a bit like a musical, everything needs to flow— from getting your client to make a decision, to getting a signed contract, to getting your due diligence done on time, to making sure that the property … it ticks all the boxes,” Mr Handler said.

The first 30 days

Once you have finalised your decision to make the transition from being an investor to becoming a buyer’s agent, you have to be willing to train yourself in every way possible, according to Mr Handler.

Your first 30 days as a buyer’s agent will be about building your skills and your network. If you’re lucky enough to be a part of a buyer’s agency group, you will be shadowing another buyer’s agent on your first 30 days, according to the property professional.

“You're seeing how he sits in a meeting with a client, you see how he searches for a client, you see how he communicates with the client … You're starting to build your skills in that first 30 days, and, obviously … [trying to] find your first client,” he shared.

As you progress in the business, one thing will never change from your very first day—prospecting.

Mr Handler said: “Prospecting never sleeps. That style of diligence doesn't go on holiday, that's 365 days a year … It's very much about, I think, sharpening up your sword and building your skills.”

Is your transition successful?

Based on Mr Handler and Mr Cohen’s experience, the transition from being an investor to becoming a buyer’s agent is not an easy journey. Progress will not always come immediately, Mr Handler said, but once it does, agents usually earn a good amount of compensation.

In fact, in CohenHandler, an agent may be able to take home around $120,000 to $125,000 within the first 12 to 14 months.

“Within our respective company, the average take home after around 12 to 14 months is usually around $220,000 in GCI [or] Gross Commission Income. Then, they've got to pay splits to the company, so they'll say they're left with around $120,000-$125,000,” Mr Handler explained.

The buyer’s agency business is thriving across Australia, according to him, and being able to flourish in the industry is only a matter of providing exceptional services and always putting your clients first. 

Tune in to Ben Handler’s episode on The Smart Property Investment Show to know more about establishing a career in the real estate industry.