Selling a house to a first-time buyer is not even close to what it takes selling an investment property. It seems the home-buying cycle is always the same, or at least similar. The buyer contacts you searching for a house to live in. Luckily, if you two 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’s always the word of mouth. But that’s it.
You won’t get any bigger profit from 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 realtor and, of course, also recommend you to other investors. Helping them get the best benefit will turn you into an ally on who they can rely on. So how can you approach these kinds of buyers? Yes, in case you are wondering, you need to approach them, as with strategic planning.
Approaching real estate investors
In order to better know how to approach an investor you need to have a clear view of who they are. There are several kinds of commercial real estate investors.
- There are those who haven’t even think about investing yet. Your approach will be about why investing and what kind of properties they can invest in.
- There are those who have given a thought to investing but they are afraid or haven’t decided yet. Your approach, in this case, will comfort them with security and providing answers to their doubts.
- There are expert investors who you’ll be able to target directly by name. In this case, the approach should be focused on being an ally, take care of your investors budget and benefits, assessing them with a vast knowledge of the market.
Now that you have in mind which kind of investors could you target, what is the next step?
3 keys for realtors to sell more investments 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 proper, wise answers as a professional realtor. Advice them on the best moments for buying or selling, on the tax benefits, on the opportunities available for them.
- Help your investors defining a budget. Ask them about investment sizes, equity, main goals. Are they willing to expand their portfolio? Are they just looking for an extra income? Do they have other real estate holdings at the moment? Connect them with expert lenders so that they will gain more negotiation power and access to better investments.
- Provide an investment analysis. Most of all if your clients are those afraid of investing for the first time, show some initiative and check the previous rental price of the property, compare it with other similar, show them the math you’ve done
Once your real estate investors are already trusted and willing to start, provide some extra added value by connecting them with the ones you recognize as the bests in the market. Your clients should have access to the best vendor, to the best lender, even maintenance person or taxes expert. Offer investors a premier service and you’ll be turning into a premier realtor while you grow your portfolio and your sales.