It is every real estate agent’s dream to have their lists filled with successful investors who purchase multiple properties in a short period, closing quickly and not dragging you to open houses on weekends. Working with investors is a well-suited career move for many realtors looking to upscale their real estate skills.
However, it may not help you achieve success overnight, but it will help you close upto 100 deals per year working with various investors where you might have to dig into the soft market to highlight undervalued properties and present them with your dexterities. Here are a few tips you must stick to before working with investors.
1) Know the Basics of Market Well: Knowing your market well not only on the days when the market is on but all year round can give you a better understanding of various aspects of real estate. Attracting real estate investors becomes seemingly effortless when you have your hands full of strong basics and complete market knowledge.
To stand out from your fellow real estate agents, you need to dig deep into various aspects, such as reviewing your local housing statistics and economic policy news which will keep you updated about changing policies and new trends. Besides, you must never miss out on upcoming development projects, amenities, and areas of public interest.
Main markets are the attractions, but you never know when the sub-markets gain attention, which may include the next neighbourhood the investors might be interested in.
2) Get in the Shoes of Your Real Estate Investors: Analysing investor behaviour and characteristics is the key to having a fair idea of the investor’s horizon. Whether they are planning for a short-term hold with a 2-3 years of profit window or a long one with more than five years of profit window. Therefore, it becomes essential to know your investor’s timeline.
3) Always Keep an Eye on Worthy Deals: Real estate investors crave real estate agents that can provide a perfect set of deals that matches their requirements. Stacking them with various deals they cannot benefit from will frustrate investors, and they may end up blacklisting you. Therefore, research the market before you present potential deals to your investors. You must know how to differentiate between the following categories -buy and hold, fix and flip, and speculationand screen out valuable deals from them.
4) Know How to Find Undervalued Properties: Investors who understand the game of real estate pretty well usually search for off-market properties that do not carry much value. These properties are not listed on various platforms and sites; therefore, you must actively search for them and create a deal out of them.
5) Never Lag in Market Homework: While researching the market, you must keep in mind the basic requirements of your investors when they are looking for a property. Your market research may include better neighbourhoods, properties near local markets and traveling spots, popular areas of the town, and so on.
6) Be the Best in Providing Resources: Once you have interpreted their goals and come up with the right deal, try to make additional efforts by including valuable services. Real estate investors like their agents to be a source for everything who understands their pain points. Therefore, keep your list full of hard money lenders, flooring quotes, attorneys, accountants, tax advisors, painters, and other referrals.
7) Uplift Your Negotiation Skills: Negotiation skills are a must if you are a real estate agent; for investors, real estate is strictly business. Therefore, you must try to acquire and sell properties at the highest price at the right time and crack the deal. Don’t be shy when it comes to business!
8) Be A Market Insider: To know what is happening around you, you need to join various local real estate groups that can provide vast information before carving a deal out of it. It will inform you about the actual demands of your investors and what they are potentially looking for.
9) Invest in Real Estate: It is easy to advise other people to make an investment when you yourself have not been in the game and risked it all. Therefore, when you also witness the side of investors by investing in real estate and comprehend various situations to offer better solutions to your investors.