Investors can be valuable partners for real estate agents. Not only can you get multiple transactions from one investor client, you can also enjoy smoother transactions and faster closings. But before you work with investors, it’s important that you understand them.
Who They Are:• Professionals and entrepreneurs who evaluate the real estate market and buy property to build wealth.
• They purchase residential, industrial or commercial properties and have specific investment objectives. Many are full-time investors and some do it as a way to make extra money on the side.
• Some buy properties, hold onto them as rentals and manage them; some buy more distressed properties, remodel them then flip them for profit; and others participate in joint ventures and wholesaling.
• They are good negotiators. They know what they want and how to get it and usually make quicker decisions.
What They Value:• Profit and the resale value of their property.
• A good real estate agent partner who understands them and their unique wants and needs and who is attentive to them. Agents play a huge role in finding the right property, valuing it and closing the deal.
• Current trends including changes in consumer spending habits, mortgage rates and unemployment rates, as well as regulations and laws so they are able to assess things for the future.
• Referrals, they generate a sizable portion of their business.
• Resources, like dependable contractors and other trades experts.
What They Want:• Properties that can help them earn a profit! They want to buy low (at least 30% below current market value) and sell high.
• Ugly houses. You know those houses that no traditional buyer will touch? They’re beautiful finds to an investor. They’ll flip them and make money on them.
• Short sales, foreclosures, REO properties (real estate owned properties owned by a lender bank, government agency or government loan insurer after an unsuccessful sale at a foreclosure auction), HUD homes (1-4 unit properties acquired by HUD as a result of a foreclosure auction on an FHA-insured mortgage) and sellers who are anxious to sell.
If buying a property to rent, they typically look for location (proximity to major schools) and market rental rates.
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