Help Investors Develop an ROI Strategy

Working with inexperienced investors takes a different set of sales skills than working with primary home buyers. You spend more time upfront with the client, getting started with research, checking numbers, determining estimated value after renovation, looking at rental caps and figuring in upgrade costs.

If you do decide to offer your services to inexperienced investors, keep these principles in mind.

Clients’ objectives will help determine their investment strategy.

You need to know how much work investor clients are willing to do and how much they’re willing to spend to turn the property into a lucrative investment. If their dream is quick cash flow, then they may have to put more effort into getting the building ready rapidly. If the goal is steady income over time, they’ll need to think more about long-term maintenance issues. Before you show one property, know “who is your investor, what are their goals, and what makes a great real estate investment in your market.

Knowledge of commercial lending is essential.

You’ll need a network of lenders who specialize in commercial and construction lending. Knowing the current rates and financing terms is as important to investors as it is to primary home buyers. Even to those who pay cash. Sometimes traditional mortgage brokers aren’t an option, so be prepared to offer different lending options.