How to Work with a Real Estate Investor: Tips, Tricks and Advice
When you hear the term real estate investor what comes to mind? Usually, most 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. In this video, Alexander Fazelani breaks down how you can work alongside real estate investors and make it an actual win-win situation for all parties involved.
Proactive and Direct Communication
When working with investors, communication is key. Real estate agents should proactively and directly convey information to investors, whether it's about a good deal or potential issues with a property. Clear communication builds trust and strengthens the agent-investor relationship, ensuring investors feel informed and involved throughout the process.
Speaking the Investor Language
To establish a strong connection with investors, agents must familiarize themselves with investment jargon and concepts. Understanding terms like "after repair value (ARV)," "cap rate," and "rent roll" allows agents to speak the same language as investors. By demonstrating knowledge in these areas, agents gain credibility and become valuable resources for investors.
Proficiency in identifying numbers is crucial for real estate agents working with investors. Agents should be well-versed in market values, rental income potential, and renovation costs. By understanding these figures, agents can provide accurate information to investors, which enhances their trust and confidence. Additionally, agents need to know the specific market they operate in, including neighborhood pricing and recent sales data
Active Deal Finding
Real estate agents must actively search for investment opportunities. In addition to working with traditional buyers and sellers, agents should dedicate time to find potential deals for investors. Being the go-to person who consistently brings lucrative opportunities to investors helps agents solidify their position as trusted advisors. Agents should also develop relationships with various industry professionals, such as inspectors, hard money lenders, and 1031 specialists, to offer comprehensive support to investors.
Work with Multiple Investors
Collaborating with multiple investors expands the agent's business prospects. Different investors have diverse strategies, with some interested in buying and holding properties, while others focus on flipping. By working with a variety of investors, agents can cater to different investment preferences and maximize their opportunities to find suitable deals. It's important to note that exclusivity is rare in investor-agent relationships, as investors often work with multiple agents simultaneously.