Print this page

Working with Investors: Tips from the Investor’s Realtor

Written by Greg Moser Posted On Thursday, 16 December 2021 18:45
Working with Investors: Tips from the Investor’s Realtor

Whether you’re a real estate agent now or thinking of getting involved in real estate, you may one day find yourself working with an investor. If you have already, then you probably know it can be a real 'Odd Couple' situation. Not all investors understand what they’re doing and many are a challenge to work with if you don’t have the right attitude. Your motivations and priorities may not seem to line up, and it can feel at times like you’re speaking different languages.

Luckily, there are some simple ways through this learning curve. Before you know it, you will be on your way to cultivating a fruitful, profitable, synergistic business relationship.

Investors know how things work and won’t get hung up on specific details that would likely be stumbling blocks in the process for the personal homeowner. The whole approach is streamlined, and without the need for a big sit-down every step of the way, you can get the process down to a science. Working with an investor can help you make more money with fewer clients.

As an 'investor-friendly' realtor, I have formed connections with investors at The Moser Group. Speaking from experience here is how to maximize the agent-investor relationship.

Know the Fundamentals

While you don’t have to know everything about investing, learning the fundamentals can help when working with an investor. Knowing the types of real estate investments and the basics of financing such investments will enable you to speak to investors in their own language.

Think Like an Investor

It’s vital to know that investors won’t always appreciate the intricacies of buying and selling homes. What you present as prized assets could strike them as irrelevant details. It can be confusing, even disheartening, but if you know what to expect going in, you will be able to understand where they are coming from.

It’s important to know what the investor you’re working with prefers to invest in and how they wish to do so. There are several different areas of specialization within real estate investment, from fix-and-flip to buy-and-hold to wholesale. Don’t be afraid to ask questions. It’s crucial to familiarize yourself with what your investor wants so that you can make solid decisions and deals.

While homeowners may take years to finalize a purchase or sale, investors are continually looking to buy and sell in a very short timeframe. Investors are less emotionally attached to properties, allowing for quicker, more transactional deals.

When pitching properties to an investor, real estate agents often speak as though to a prospective homeowner. But the things that will catch an investor’s eye are typically quite different. They’re more interested in hard numbers and profitability, passive cash flow potential, and factors that could reduce costs and maximize returns. Basically, whether the money they’ll put in is justified by what they’ll get back.

Keep to the 70% rule, making sure that total costs do not exceed 70% of the projected end value. Strengthen your ability to quickly tell if a property is a worthwhile investment. Know what constitutes a good deal before you send it over to your investor. Nobody likes sifting through stacks of so-so or even junk offers to get to the few good ones in-between. Don’t exaggerate, be realistic about likely returns before urging your investor to commit to a property.

Preparation and Flexibility

Working with an investor will take some getting used to. Many aspects of the process will suddenly seem askew, as investors approach things differently than you’ll likely be used to.

For example, there will probably be more rejected offers than you’re used to, as investors always seek to maximize returns with the best possible deal. Discuss proposals beforehand and decide how many offers you’re comfortable making. After all, your credibility is on the line.

The pace, too, might be surprising at first. Many investors, particularly those who fix and flip, will like to do so in a brief timeframe, which can take some getting used to. Furthermore, whereas you might be used to holding out for the best price, investors typically aim for the quickest possible sale. When discussing these things, keep it realistic.

Smooth collaboration with investors can minimize your effort while maximizing your income and net you further connections and recommendations. Not only that, but you’ll get investment advice for yourself, free of charge. Just remember, as much as investors can help you, you can help them, too. Your expertise is essential. And you can be an invaluable resource by learning a bit about investing to go along with your real estate skillset.

About Greg Moser

President Greg Moser of The Moser Group has over two decades of real estate investment and management experience and is the driving force behind many of the nation’s property acquisitions today. Focusing on elevating portfolios and scaling businesses, The Moser Group combines data, relationships, and real estate to create the perfect recipe for success. To learn more, visit  http://themosergroupusa.com

Rate this item
(0 votes)

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries