Real Estate Tip of the Week: How to Work with Investors
Have you worked with real estate investors?
If not, then you probably should consider it.
Real estate investors usually buy and sell multiple properties within a short period of time – which would mean you could become their go-to agent when they’re looking to jump back into the market.
But what do you need to do to set yourself apart from other real estate agents and impress this potential inventor client?
Investors won’t be like your “regular” clients. They’ll want to talk about things like ROI, cap rates, 1031 exchanges, cash-on-cash returns, and net present value. You’ll want to have a deeper understanding of “real estate math” when talking to these gurus.
Goals and Priorities
An investor client might already have tasks in mind for what they’d like you to do. They don’t necessarily want to be wooed with how you’d pitch properties to a traditional buyer or seller – so do away with the talk of existing paint or new backsplash colors and get down to the nitty gritty.
Are they needing to repaint rooms? Update the kitchen or bathrooms? They’ll want to know how much things will cost. Are they wanting to fix and flip? What is their overall goal here?
You’ll also want to know what their overall timeline is with properties. Are they looking at a long-term hold, or are they needing a quick sell before purchasing another one?
Don’t forget – you’re the professional! Your talents and insight as a local market expert will be something of incredible value to the investor. Be familiar with the hottest neighborhoods, areas that are up-and-coming, and where the best schools and newest jobs are located.
As an agent, you probably know referrals who would be great for your investor client. If an investor is looking for painters, a tax advisor, or an overall handyman, think about putting a list together for suggestions.
Working with a real estate investor won’t be the same as your couple looking to purchase their first ever home. You’ll want to be armed with the right knowledge – and hopefully, they’ll keep coming back to you.