Selling a home to a first-time buyer doesn’t even come close to what it takes to sell an investment property. It seems that the home buying cycle is always the same, or at least similar. The buyer contacts you looking for a house to live. Luckily, if the two of you have had a good experience together, they will contact you after two or three years to sell the first house and buy a bigger one. Of course, there is always word of mouth. But that’s it.
You will not make a higher profit by selling a residential property. On the other hand, selling an investment property could take you to a whole new level. An investor can buy several times from the same real estate agency and, of course, also recommend you to other investors. Helping them get the best benefit will make you an ally they can trust. So how can you approach these types of buyers? Yes, in case you were wondering, you should approach them, like with strategic planning.
Approaching real estate investors
To better know how to approach an investor, you need to have a clear view of who they are. There are several types of commercial real estate investors.
- There are those who have not even thought about investing yet. Their focus will be on why to invest and what type of properties they can invest in.
- There are those who have thought about investing, but are afraid or have not yet decided. Your approach, in this case, will surely comfort them and answer their questions.
- There are expert investors that you can address directly by name. In this case, the focus must be focused on being an ally, taking care of the budget and the benefits of its investors, evaluating them with extensive knowledge of the market.
Now that you have in mind what kind of investors you could target, what’s the next step?
3 keys for real estate to sell more investment properties
- Start valuable conversations. Don’t just contact them to say Happy Birthday or Happy 4th of July. Ask them about their concerns and listen. Listen and give appropriate and wise answers like a professional real estate agent. Advise them on the best times to buy or sell, on tax benefits, on the opportunities available to them.
- Help your investors define a budget. Ask them about the size of the investments, the capital and the main objectives. Are you ready to expand your portfolio? Are they simply looking for extra income? Do you have any other real estate at this time? Connect them with expert lenders for more negotiating power and access to better investments.
- Provide an investment analysis. Above all, if your clients are ones who are afraid to invest for the first time, show some initiative and check the previous rental price of the property, compare it with similar ones, show them the calculations you have done.
Once your real estate investors are trustworthy and ready to get started, provide additional added value by connecting them with those you recognize as the best in the market. Your clients should have access to the best salesperson, the best lender, even a maintenance person or tax expert. Offer investors top-tier service and you’ll become a top-tier real estate agent while growing your portfolio and sales.