Working with Investors
When looking at your target market, you should include investors in the mix.
Capturing real estate investors in ongoing business relationships can help you create a continuous flow of income without incurring the marketing costs usually associated with customer gain. Because successful investors tend to buy and sell numerous 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 discerning, successful agents? Consider these tips:
1. Learn the Language.
Investors speak an entirely different lingo than the average homebuyer. They consider things like cap, cash-on-cash returns and net present value. You don't need to be an expert on these conditions in order to work with investors, but you should be conversant.
2. Be an Insider.
There are a number 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.
3. Understand the Intent.
Investors aren't looking for places to live or to raise their families - they're looking for properties they can use to make a profit unlike traditional homebuyers. Your approach to securing their business shouldn't be the same as your pitch to those 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? And you need to know the investment horizon: Is this a long-term hold, or does the investor need to sell this property before buying the next one? The more you comprehend your investor's objectives, the more useful you can be in customize your efforts to help achieve them.
4. Do Your Homework.
Once you understand the intent, your skills as a local market expert come into play. Where are the best rental opportunities? Which neighborhoods are 'hot' right now for sales? Where are new jobs being created or new schools being built? Help identify those opportunities, and present properties for your investor to consider purchasing to take advantage of market conditions.
Invest some time into learning how to work with real estate investors in your area. Then be prepared to watch your business grow!