Successful investors tend to buy and sell multiple properties in a short period of time—and work with the same agent to do so—meaning this could be a steady stream of income for you.
Want to become their go-to agent? Consider these seven tips.
- Learn the language of real estate investors. Investors discuss things like ROI, cap rates, 1031 exchanges, cash-on-cash returns and net present value. Brush up on your investment lingo so that you can better position yourself as someone who knows the business.
- Know their investment goals. The way you approach a real estate investor about a property shouldn’t be the same way you pitch a property to traditional buyers and sellers. You need to understand your client’s investment strategy: Buy, fix and flip? Buy at wholesale and sell to another investor? Buy, rehab and rent? Whatever it is, you should be able to come up with the marketing and pricing strategies to fit their desired outcome.
- Identify the timeline of real estate investors. What’s their investment horizon? Is this a long-term hold with a five- to ten-year profit window, or does the investor need to sell the property before purchasing another one? The more you know about your investor’s timeline, the more useful you can be.
- Do the math. Learn how to use the many calculations available to evaluate and select real estate investment properties. The relationship between investor client and agent will be strengthened if you can locate suitable properties and help analyze their return on investment.
- Do your market homework. Once you understand their objectives, your talents as a local market expert come in handy. What neighborhoods are hot right now? What areas are up-and-coming? Where are the best schools? Where are the new jobs located? Help identify those opportunities and present properties for your investor to consider.
- Use your connections. Once you know their goals and can help identify suitable properties, look for additional ways to add value to your services. One way to do this is by understanding their pain points and suggesting resources. Do they need a good handyman? Estimates from painters? Flooring quotes? A tax advisor? Be their go-to source for these referrals.
- Be an insider. Joining a real estate investor group in your area is a great way to find prospective clients, learn what investors in your area are looking for, and give your insight on potential properties.
As an agent or broker, you don’t need to be an expert in real estate investing—but if you want to become an investor-friendly agent, it’s wise to learn these fundamentals.
Real Estate Express is the nation’s premier online real estate school, providing pre- and post-licensing courses, continuing education courses, and professional development to hundreds of thousands of real estate agents across the country. RealEstateExpress, along with its sister schools McKissock Learning, Superior School of Real Estate, Allied Schools, The Institute for Luxury Home Marketing and Hondros Education Group, helps real estate professionals achieve sustainable success throughout each stage of their real estate career.