Engaging real estate investors in ongoing business relationships can help you create a steady stream of income without incurring the marketing costs typically associated with customer acquisition. Why? Because successful investors tend to buy and sell multiple properties over the course of a year – and will often work with the same real estate professional on every one of those deals.
How can you become one of those savvy, successful agents? Consider these tips:
1. Learn the Language. Investors speak an entirely different dialect than the average homebuyer. They discuss things like cap rates (which are not hat sizes, in case you’re wondering), cash-on-cash returns and net present value. You don’t need to be an expert on these terms in order to work with investors, but you should be conversant. Investopedia.com is an easy-to-use website with plain English definitions and explanations of all sorts of investor lingo.
2. Be an Insider. There are hundreds of real estate investor groups across the country. Most of these groups welcome real estate professionals as members. Joining one of these groups is a great way to find prospective clients, and to learn what investors in your area are looking for. You can find local groups on websites such as REIclub.com and NationalREIA.com or by simply doing a Google search for real estate investing groups in your city. The website BiggerPockets.com also has useful information for agents who want to work with investors.