In real estate, specializing can increase your potential earnings. Investing is an area that has proven to be lucrative. Here are our best tips for how to get started with real estate investing. And be sure to check out our latest video outlining 5 advantages to getting a real estate license if you’re an aspiring real estate investor.
Becoming a Realtor for Those Interested in Real Estate Investing
It’s hard to get repeat clients in real estate since most people stay in their homes for 13 years. However, home property investors tend to buy and sell multiple properties in a short period—and work with the same agent to do so. Consider these strategies to become a real estate agent specialized in real estate investing.
Know your community.
When we say “know your community,” we mean KNOW your community. Go to city council meetings. Read local bloggers and media outlets. Get to know the movers and shakers in your area.
Keep your ear to the ground to learn about developments in the works. Pay attention to city, county, and state government plans and policies that may affect the property value in specific regions.
Become a local market expert. What neighborhoods are hot right now? Where are the best schools? Where are the new jobs located?
Having this knowledge will help you guide your clients on properties to consider. If your client receives a great return on investment (ROI) from a property you recommend, you can bet they will be a client for life.
Learn the language of real estate investors.
Working with clients interested in property investing differs from working with clients looking for their forever homes. So, learn the language of investors who want to discuss ROI, cap rates, 1031 exchanges, cash-on-cash returns, and net present value.
Of course, you learned about these concepts while taking your pre-licensing classes. But perhaps it’s time for a refresher course?
Get to know the interests of each client.
Some of your clients may only be interested in buying rental properties. They may not be concerned that the house is in an undesirable area – as long as the price is right.
Others may be interested in flipping houses. Still, others might want to buy wholesale and sell to another investor. Some investors might be interested in as-is properties, and others may only be interested in houses in specific locations.
Of course, some may only want to invest in commercial properties.
Learn as much as possible about each client’s interests, including their investment horizon. (Are they looking for a long-term hold with a five-to-eight-year profit window? Or does the client need to sell the property before purchasing another one?)
Know how your client wants to earn money. This will help you determine which properties to pitch to which clients.
Set realistic expectations.
Someone new to real estate investing may not consider how unexpected costs can affect their profit.
Again, if your goal is to have repeat clients and a reputation for picking winning investments, you need to do what you can to make sure your clients make the purchase with their eyes wide open.
Grow your network within the industry.
You don’t need to be an expert in every facet of real estate to be an excellent agent. But it would help if you had a network of reliable, knowledgeable people who offer great advice.
Get to know inspectors, contractors, accountants, loan officers, and lawyers in your community with great reputations. Direct your clients to these professionals; hopefully, they will do the same for you.
Get to know those interested in real estate investing in your community.
Your new clients interested in property investing aren’t just going to land in your lap. If you focus on this niche, you must go after your preferred clients.
Is there a real estate investment group that you can join?
Who owns the rental properties in your community?
What potential investors are coming to your clients’ open houses?
Once you understand who is interested in property investing, you can . . .
Focus your marketing strategies on real estate investors.
Focus your marketing budget on strategies to draw in investor clients.
For example, consider learning more about Search Engine Optimization and internet advertising to learn how to capture clients looking online for local real estate investments.
Some real estate agents get investor clients by organizing seminars for people who want to learn about property investing.
Colibri Real Estate Can Help You Grow Your Business
You may have taken your pre-licensing courses with Colibri Real Estate (formerly Real Estate Express). Now that you are a working real estate agent visit the Colibri Real Estate Career Hub to learn more about attracting clients interested in property investing.
Colibri Real Estate also offers continuing education courses designed specifically for those interested in real estate investing. We can also help you learn how to market to investor clients, so you can enjoy repeat business and develop this lucrative niche.