How to Build a Network of Repeat Clients

Are you looking to build a loyal client base that returns to you with new business year after year? Partnering with Real Estate Investors (REIs) is a powerful way to build a network of repeat clients and transform your business in ways that traditional clients may not. In this article, we’ll provide information and ideas on how to grow your business by serving REIs. We will explore the benefits of focusing on this niche, the opportunity in Alberta and Ontario markets, and effective strategies for building strong, long-term partnerships.

Why Focus Your Business on Real Estate Investors?

Here’s why this under-served, high-potential niche is worth focusing on:

Access a Niche Market

Real Estate Investors operate differently from typical homebuyers. They may flip properties or hold rental units as long-term investments, and their financing needs reflect these strategies. Traditional Mortgage Brokers often overlook this niche, which creates a substantial opportunity for you to specialize in the unique needs and challenges of Real Estate Investors. By offering tailored mortgage solutions, you can stand out as a go-to expert, tapping into a growing market with a high potential for recurring business.

Establish Long-Term Client Relationships

Real Estate Investors are more likely to return for financing as they grow their portfolios. Once you’ve built trust and shown an understanding of their business, REIs may approach you repeatedly for future projects. With each new investment, you’ll grow more familiar with their needs, making transactions more efficient and fostering loyalty. This rapport often leads to referrals, as satisfied clients are more likely to recommend you to others in their network.

Meet Diverse Financing Needs

While some REIs focus on short-term property flips, others implement a buy-and-hold strategy and add rental properties to their portfolios. This approach presents you with repeat financing opportunities, including initial purchase and renovation financing and potential long-term refinancing once the project is complete. By supporting both short-term and long-term strategies, you can offer continuous value and a reliable business pipeline.

How to Find Real Estate Investor Clients

Finding Real Estate Investor clients involves proactive strategies. Here are some effective ways to expand your reach:

Leverage Your Existing Network

If you’re already working with REIs, ask for referrals or recommendations within their community. Engaging directly with the REI community, perhaps by attending local events or participating in online forums, can help you connect with potential clients. Being part of the community allows you to gain their perspective and build credibility as a peer, not just a service provider.

Collaborate with Realtors® Working with Real Estate Investors

Partnering with Realtors® who specialize in REIs can open up new opportunities to support their clients in financing projects. This approach can create a reliable pipeline of deals and enhance your visibility among REIs, building trust through referrals from a Realtor® they already work with and fostering lasting connections within the investment community.

Attend Industry Events

Conferences, meetups, and other real estate investment events are excellent opportunities to meet active Real Estate Investors. These events allow you to share your expertise, answer questions, and demonstrate your understanding of their unique challenges. Without a hard sell, you can showcase your knowledge and build relationships that may convert into future business.

Engage with Online Communities

The online REI community is expansive, with numerous groups on LinkedIn and Facebook (such as Canadian Flipping Nation), and dedicated forums where Real Estate Investors share tips, ask questions, and network. Actively participating in these spaces by answering questions, sharing resources, and showcasing your expertise can help you connect with REIs on a larger scale. By providing value in these communities, you can establish yourself as a knowledgeable Broker invested in their success.

Becoming a Trusted Partner for Real Estate Investors

To truly support REIs and encourage repeat business, you must go beyond standard mortgage services. Here’s how you can establish yourself as a trusted partner who adds value to their real estate investment journey:

Provide Strategic Insights

REIs appreciate guidance that helps them make informed decisions. By offering insights on aspects like renovation choices that yield the best ROI or financing options aligned with different investment strategies, you can position yourself as an essential partner. This type of support shows you’re not just closing deals but helping Real Estate Investors maximize their portfolio’s value and potential.

Showcase Case Studies

Highlight successful deals where you’ve helped clients achieve their investment goals. For instance, show how strategic financing solutions allowed clients to complete a profitable flip or expand their rental holdings. Concrete examples like these can be a powerful tool to attract new REIs, as they see real-world evidence of your commitment to helping clients succeed.

Stay Updated on Policy Changes

The real estate investment landscape is heavily influenced by regulatory changes, from zoning laws and rental policies to tax implications. Brokers who keep clients informed on these shifts provide invaluable support. By staying up to date on relevant policies and explaining their potential impacts, you can support REIs in making better investment decisions. This proactive approach not only strengthens your role as a partner but also increases trust.

Investment Potential: Alberta and Ontario’s Aging Housing Stock

Both Alberta and Ontario present many opportunities for real estate investment due to aging housing stock, which creates demand for renovations and upgrades. Understanding this local context allows you to position yourself as a valuable partner to Real Estate Investors in these regions.

Alberta

In Alberta, the challenge of older housing stock presents an opportunity for real estate investment. According to CMHC data, over 1 million homes in the province are over 20 years old. On average, 32% need minor repairs, and 9% need major repairs. Assuming only 5% of the homes in need of minor repairs are good flip candidates, and 20% of homes in need of major repairs are good flip candidates, there are approximately $15.7 billion dollars* of inventory available. This means there would be roughly 35,000 properties to flip, which represents only about 3% of the total homes over 20 years old.

*Assuming an average value of $450,000

Ontario

Similar to Alberta, in Ontario, the challenge of older housing stock presents an opportunity for real estate investment. According to CMHC data, over 4 million homes in the province are over 20 years old. On average, 28% need minor repairs, and 7% need major repairs. Assuming only 5% of the homes in need of minor repairs are good flip candidates, and 20% of homes in need of major repairs are good flip candidates, there are approximately $106.4  billion dollars* of inventory available. This means there would be roughly 125,100 properties to flip, which represents only about 3% of the total homes over 20 years old.

*Assuming an average value of $850,000

How Calvert Home Mortgage Supports Real Estate Investors

Calvert Home Mortgage specializes in funding properties that don’t fit conventional standards. Here’s how we can support Real Estate Investors in Ontario and Alberta: 

• We understand the urgency in securing Flip/BRRR mortgages and can provide funding on a rush basis in as little as 1-3 business days in Ontario and 1-2 business days in Alberta after receiving all required documents. A rush fee of up to $1,000 may apply.
• No appraisals are required for properties valued up to $1.5 million. Our team of Real Estate Analysts conducts free in-house valuations, typically completed within 1 business day. Appraisals are required on multi-family properties greater than four units.
• Minimum $20K down in Ontario and $10K down in Alberta on properties valued up to $800K. We do this by lending against the after-repair value on approved projects
• Fully open mortgages with no prepayment penalties and a no renewal fee option for borrowers in good standing.
• We fund properties in all conditions.
• We can pre-approve you before submitting a project and before you make an offer to purchase. To do so, we evaluate the property’s after-repair value and determine the likelihood of success.

The Bottom Line

Focusing your business on Real Estate Investors offers a unique opportunity to build a network of repeat clients. By understanding their needs, finding ways to connect, and providing strategic support, you can position yourself as a valuable partner in their journey. In doing so, you’ll not only help your client’s success but also foster long-term relationships that increase the stability and growth of your brokerage business.

Let’s work together to support Real Estate Investors in Alberta and Ontario.  Click here to book a Broker Presentation and learn more.

Sources:

• https://www.canada.ca/en/immigration-refugees-citizenship/news/2022/12/canada-welcomes-historic-number-of-newcomers-in-2022.html
• https://www.canada.ca/en/immigration-refugees-citizenship/news/notices/supplementary-immigration-levels-2023-2025.html
• https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/accelerate-supply/housing-shortages-canada-updating-how-much-we-need-by-2030
• https://publications.gc.ca/collections/collection_2023/schl-cmhc/NH21-25-2023-eng.pdf
• https://www.cmhc-schl.gc.ca/blog/2024/what-canada-potential-capacity-housing-construction#:~:text=Even%20with%20a%20record%2Dhigh,have%20not%20kept%20the%20pace.
• https://www.mpamag.com/ca/mortgage-industry/market-updates/cmhc-reveals-housing-market-outlook-for-2024/487606