Real Estate Tip of the Week: Investor Clients
Investors aren’t your typical clients. They aren’t looking for a house in the suburbs, and they aren’t looking to make long-lasting memories when they purchase.
If you haven’t worked with investors, you should probably consider it.
Real estate investors usually buy and sell multiple properties within a short period of time – which would mean you could become their go-to agent when they’re looking to jump back into the market.
But if they aren’t like your traditional clients, how do you need to set yourself apart and impress this potential buyer?
Goals and Priorities
Most of the time, investor clients already have a good idea as to how the real estate process works – so they might have specific tasks for the role they’d like you to play. Maybe they’d like you to be more of an advisor or a network connection between builders? It’s important to ask how you can directly help them.
They also don’t necessarily want to be wooed like how you’d pitch to your traditional client – so no need to talk about paint colors. They want to get down to brass tacks. Are they needing to update kitchens or bathrooms? Repaint or think about landscaping? Are they wanting to fix and flip? What is their overall goal?
You’ll also need to consider their overall timeline with their properties – are they looking at more long-term ownership, or are they needing a quick sale before purchasing again?
Investors aren’t going to be talking about the open floorplan or the walk-in closets. They’re going to talk about things like ROI, cap rates, 1031 exchanges, cash-on-cash returns, and net present value. You’ll want to have a deeper understanding of “real estate math” and jargon when talking to these gurus.
Just because an investor knows more than a traditional client would, doesn’t mean you are any less valuable. You are the professional – your talents and insight as a local market expert will be something of incredible value to the investor! Become familiar with up-and-coming neighborhoods, and where the best schools and newest jobs are located.
As an agent, you probably also have some great connections that the investor would be interested in. If your client is looking for painters, a tax advisor, or just an overall handyman, you’d be the one to call. Think about putting a list together for suggestions.
Working with an investor won’t usually mean you’re working with first-home buyers, but hopefully, with your new set of knowledge, they’ll keep coming back to you for more of their real estate investing.