7 Tips for Agents to Attract Real Estate Investors | Become the Go-To Agent
Investors who achieve success in the real estate industry often purchase and sell several properties within a brief timeframe. They frequently cooperate with the same agent for these transactions, which can result in a consistent source of income for you as an agent. If you aspire to be their preferred agent, here are seven tips for how agents can attract real estate investors.
1) Learn the language of real estate investors
Investors commonly converse about financial terms such as ROI, cap rates, 1031 exchanges, cash-on-cash returns, and net present value. If you require assistance in understanding these concepts, you may explore some of the continuing education courses that are available.
2) Know their investment goals
To effectively communicate with real estate investors, it’s important to understand their priorities. They aren’t concerned about the aesthetics of a property such as paint or carpet colors, but rather the practical aspects like potential repairs and associated costs. It’s also crucial to tailor your approach based on their investment strategy, whether it’s buying and flipping, wholesaling, or rehabbing and renting. Remember to keep these considerations in mind when pitching a property to an investor versus a traditional buyer or seller.
3) 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.
4) Do the math
Discover the various calculations that can be utilized to assess and choose profitable real estate investment properties. Strengthen your rapport with your investor client by identifying appropriate properties and analyzing their ROI.
5) Do your market homework
As a local market expert, your skills become valuable once you grasp your client’s objectives. You can assist them in identifying the trendiest neighborhoods, upcoming areas, top-notch schools, and new job opportunities. By doing so, you can provide your investor with a selection of properties to ponder upon.
6) Become the go-to person for real estate investors
To provide top-notch service to your clients, it’s crucial to understand their objectives and assist them in finding appropriate properties. However, that’s not enough. To add more value to your services, you must comprehend their concerns and suggest resources that can help them. Are they in need of a reliable handyman or a tax advisor? Perhaps they require estimates from painters or flooring contractors? Be their one-stop-shop and offer them your trusted recommendations.
7) Be an insider
Joining a local real estate investor group can be beneficial for agents and brokers as it provides an opportunity to connect with potential clients, gain knowledge about the interests of investors in the area, and offer valuable insights about potential properties. While it’s not necessary for agents and brokers to be experts in real estate investing, acquiring these fundamentals could help them become investor-friendly agents.
