The Hybrid Model For Investor & Agents

Carrot’s Hybrid Model for investors and agents to succeed in the changing real estate market

As the industry continues to shift, the market is moving more and more towards a “one solution” model for sellers. Those experts who can deliver sellers with multiple options to sell their house will win. 

Agents who try to fit every seller into their pretty little box of it having to look like a listing (not many repairs, is showable, a non-urgent seller, has equity, etc.), those agents will lose business more and more. 

A growing number of sellers are requesting “iBuyer” offers before they list OR would rather have speed and convenience in exchange for equity. Up to 20% of agent leads may be better served with a cash offer OR creative finance, meaning agents are leaving huge profits on the table and under-serving their clients forcing them to look elsewhere for a solution. 

Inventors who try to fit every seller into their pretty little box of it having to look like a discount cash deal (willing to take a deeply discounted offer, want speed over money, etc.), those investors will lose business more and more. 

On average 80% of the leads investors get thrown away because “they’re not serious” or “they want too much” or “they’re tire kickers”. These leads are retail OR creative finance and can and should be served by the Investor/Agent Hybrid Model by moving it to a listing or owner finance. 


The future is the Hybrid Model

Hybrid is a seller strategy NOT a buyer strategy. 


Why isn’t the Hybrid Model a buyer strategy? 

Hybrid isn’t a buyer strategy because retail buyers are retail buyers and very rarely will venture to buy wholesale for cash. They tend to be buyers living in the home themselves. 

Wholesale cash buyers are very rarely retail buyers. They tend to be investment property buyers or house flippers. 

What is the Hybrid Model? 

  • You market to motivated house sellers
  • As the Hybrid expert dig in to find out their goals and motivations for selling
  • You give them the different options to sell, each option has different benefits. 
    • We can list it for $XXX,000 as-is, and likely have cash in your pocket within 90 days. We’ll market your house, do open houses, show it, etc. Our listing fee is the standard X%
    • We can make an all-cash offer and have cash in your hands in as little as 7 days. We’ll pay all closing costs, you won’t have to do any repairs, you can even leave the junk you don’t want and we’ll haul it off. 
    • ADVANCED: A third option the most successful Hybrid Model is the “Fix and List” Model. The Hybrid expert brings their remodeling expertise and cash to do a light renovation on the house (usually less than $30k), they bring their own construction crew and sell it for a new higher price. If the house would have sold for $300k before, and they put $20k into renovations and increased value by $60k, the Hybrid gets their $20k back at closing, they split the extra $40k in profits w/ the seller, and the Hybrid lists the house and gets the normal listing commission. Helping the seller put more cash in their pocket, having a beautiful house the buyer doesn’t need to renovate and adds an additional $20k+ in profits

This way every seller lead that comes through can be helped in one way or another and leads don’t get thrown away. We suggest using a Hybrid Model using one of two strategies. 


The Agent/Investor Hybrid Model

Your primary business is as an agent and you also invest.

This Hybrid Model is a person who is known as an agent in the marketplace. People may know they invest as well but they are a very active real estate agent in the community and treat it like a business vs. a side income. They consistently list and sell houses and pick up investment opportunities as they can find them as a way to add on extra income and build wealth. Some markets are making this a necessity, such as Philadelphia, so it’s a great idea to get ahead of the game now.  

Website Strategy

Have an AgentCarrot website to grow trust and authority as an agent. In addition, this will have the IDX feed, your featured property listings, and ways to generate retail buyer and seller leads to feed into your business. Adjust the copy on the agent site to make it clear that you can sell in multiple ways and that you even will buy houses. This offers you as an agent a huge advantage vs. other agents who are all using the same messaging. Have a link in your main nave that says “We Buy Houses” or “Cash Offer Program” or “Guaranteed Sale Program” that links to your investor site OR a page on your site w/ a hero section form and content explaining your value proposition.

Have a motivated house seller site to attract highly motivated sellers. Attract them through Search Engine Optimization (SEO) and paid ads. Once you get those leads, then you find out if they’re best for an investor strategy or listing. This website should be updated to include any state disclosure requirements as an agent AND you should adjust the copy to be along the lines of “put the most cash in your pocket” or “here are our 2 or 3 ways to sell” or “We’ll offer more than anyone else in this market” or “Check with us last before you list or accept a cash offer” etc. Use this to your advantage.

Examples: 


The Investor/Agent Hybrid Model

Your primary business is as an investor and you’re also an agent.

This Hybrid Model is a person who looks at every transaction from the investor perspective first and the listing/agent side second. They primarily focus on buying houses, fixing/flipping, fix and lists, etc, and will list houses as an extra way to serve their seller leads and for extra income potential.

Website Strategy

Have a motivated house seller site or an Investor / Agent hybrid site (Advanced Marketer only) to attract highly motivated sellers. Attract them through SEO and paid ads. Once you get those leads then you find out if they’re best for an investor strategy or listing. This website should be updated to include any state disclosure requirements as an agent AND you should adjust the copy to be along the lines of “put the most cash in your pocket” or “here are our 2 or 3 ways to sell” or “We’ll offer more than anyone else in this market” or “Check with us last before you list or accept a cash offer” etc. Use this to your advantage.  

Advanced Marketer members: check out our step-by-step guide that walks you through the recommended updates to your existing motivated house seller site and get our Hybrid On-Demand Training series with over 3 hours of insights and strategy from top Carrot Investors/Agent Hybrids! Click here to get the guide and our Hybrid On-Demand Training →

OPTIONAL: If the agent/investor wants to foster the retail side and attract retail buyers and market their retail listings then they should have an Agent Carrot website as well. If they don’t, and they just use their license to list or share in commissions but they aren’t actively looking to market their listings or get buyers, then they can go without an agent website.

Examples: 


Resources

How Aaron and Krista Farr and how they make the Hybrid Model work for them