When you hear the term real estate investor what comes to mind? Usually, some inexperienced real estate agents consider investors "slick talking bottom feeders. They are only interested in a good deal and willing to pimp real estate agents out in order to put more money in their pockets."
Ironically, when I first got into the business I thought the same. However, the more I came across investors and started working alongside them I quickly realized that working with real estate investors is one of the most lucrative avenues we can take as real estate professionals. Also, they usually don’t talk as slick as we think. We are often on the same side most of the time.
Not everyone is looking to put their home on the market. In fact, not every homeowner is in the same situation. By adding instant offers to your sales pitch you will likely convert more listing and make quicker sales. You also might even find yourself getting into the investing space yourself with wholesaling, flipping, holding, and developing.
If you want to collaborate and close deals with Real Estate Investors there are a few key things you'll need to understand. No matter what's happening in the real estate market...investors are always buying. Being able to work with them can keep you and your pipeline full – always!
Be Proactive & Direct
This goes without saying for ANY of your prospects/clients, but this is especially true for investors. Just like you, they too are running a business and if they're working with you there's a level of honest, transparency, and communication they will expect. Don't be a sugar-coater. You may not even know how experienced the investor is and sugar coating the situation of a deal could harm not only their pockets and livelihood, but YOUR reputation! I share a perfect example of this in this video.
Speak & Understand Investor
There are unique acrynoms and some lingo investors typically used. For example, ARV (After Repair Value), NOI (Net Operating Income), Cash-on-Cash Return, 1031 Exchange, and more. Study up on these and others so when they do arrise in a conversation you know what you're talking about.
If an investor is "Buying and Holding" you've got to know what the rent roll is. If they are Flipping the property you need to be able to break down the top and bottom of the market. Bonus points if you can shed light on what finishes consumers are loving.
Get Good At Finding Deals
I know, you may be thinking – well, if I can find really good deals why wouldn't I just buy them for myself? ...Think BIGGER. There may come a time in your career where YOU are the investor, but it's still very possible to hone those skills, earn money, AND build relationships on the way there. If you get good at finding deals you'll always have a pipeline, and you'll always have investors happy to collaborate with you.
Don't Marry ONE
Investors don't typically work with JUST ONE Realtor. Same applies to you. Many investors will have a certain criteria they are looking for in their portfolio. Which means the deals you find may not work for just one investor. Diversify your database and cast a wider net in order to make sure the deals you potentially find will have a MATCH in your CRM.
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