Realtors can make big profits working with and for real estate investors. You’ll spend less time, money, and energy pursuing clients. Instead, you’ll spend more time (and earn more money) working with a select few who buy and sell real estate regularly. But working with real estate investors can be a challenge: you’ll have to rethink your strategy and learn some new skills.
The number one challenge? Investors want to make money. Therefore, many view real estate agents as unnecessary. After all, hiring a Realtor means paying you a portion of the profits. It’s up to you to convince investors that your services are worth every penny.
Finding real estate investors
If you think you’re up for the challenge, working with real estate investors can be a lucrative career move for Realtors. However, to be successful you’ll need to find investors, and then earn their trust and their repeat business.
Rely on the internet
Content is the most useful marketing tool you have. By regularly producing content that appeals to investors, you’re more likely to break into that niche and establish lucrative, long-term relationships with clients. Your online strategy should include a dynamite website, informative blogs and articles, social media marketing, and email marketing campaigns.
Attend investor seminars and workshops
Go where the investors are. Not only will you learn about the investment world and have a greater understanding and appreciation of what buyers want, but you’ll also connect with potential clients.
Come ready with renters
Many investors are looking for properties that can be easily renovated and quickly rented. Incorporate renters into your contact database, and know who is ready to move. This way, you can approach investors with a two-for-one deal: you’ve not only found a property for them to purchase, but also have renters ready to move in upon completion.
Have access to financing
Landlords are in the business of making money. Investors want the best financing options available (to learn more about financing options, read this article). If you surround yourself with lenders, mortgage companies, and banks that offer low rates to buyers, investors will be more likely to give you their business.
Building trust with real estate investors
Now that you’ve found investor clients, it’s time to wow them with your skills. Your clients should come to trust your advice and value your service. Many investors don’t see the need to hire a Realtor, so it’s up to you to show your worth and earn their repeat business.
Listen to your clients and understand their goals
Are they looking to fix and flip, or to rent the property? What’s their budget? Investors know what they want – so it’s your job to find it for them.
Investment properties don’t stay on the market long. Some don’t even make it to the MLS. If your client finds a property, you should be prepared to drop everything and schedule a showing as soon as possible.
Focus on profits
Investors are less concerned with the attributes of the house and the neighborhood. Instead, they want to see the profit. Come prepared with data that helps the investors make an informed decision.
Don’t sell to emotions
Unlike working with traditional buyers, investors won’t be living in the house. Appeal to the bottom line: what does this house offer in terms of profit for the buyer?
Become an expert
If your buyers intend to fix and flip, make sure they understand the tax considerations and how they can avoid capital gains taxes. That means you’ll have to do your homework and be well-versed on the topic, as well.
Establish yourself as a trusted expert in real estate investing. Investors won’t mind spending money on your services if they find value in the work you’re doing. A long-term relationship with real estate investors could mean a boost in your real estate business.
Have you worked with real estate investors in the past? Drop a comment below and tell us your secrets!