Traditional homebuyers and sellers are great, but real estate investors are next-level clients for REALTORS. Not only are investors a source of repeat business (both on the buy-side and sell-side), but they also tend to value specialized expertise, make decisions quickly, and refer other investor clients to you.
But to earn an investor’s loyalty, you have to provide service they’re not getting from other agents.
Here are five things you can start doing today to better serve investor clients and earn that repeat business and those referrals.
5 Ways for REALTORS to Serve Investor Clients
1. Monitor Syndication Projects and Other Off-Market Opportunities
Your investor clients likely have alerts for new listings that meet their criteria, so sharing new listings doesn’t provide any added value. Instead, source off-market opportunities before they’re made available to the general public.
Real estate syndication projects, for example, can be a reliable source of new acquisitions for your investors. Syndication companies often tackle value-add projects or new developments, with the intention of selling the completed project to investors who want turnkey properties (often with leases already in place).
Here at Gatsby Investment, we update our network of REALTORS with the details of properties we plan to sell in the near future so they can give their investor clients a heads-up.
Bonus: you can also get paid to bring us deals that meet our acquisition criteria (distressed property, raw land, etc.), refer qualified renters to our lease-ups, and refer your clients to invest in our syndication offerings (so they can benefit from the development phase even if they don’t purchase the completed building)! Learn more about the five ways agents and brokers can earn money with Gatsby.
2. Provide Market Intel
Keep investors informed about market changes that could affect their portfolios or acquisition strategies.
Local factors (like rental rates, vacancy rates, new construction, major employers entering or leaving the area, zoning changes, and neighborhood development) could all materially affect your investor clients. As could macroeconomic trends (including interest rates, lending regulations, and federal tax changes).
Be the local insider investors rely on for updates that matter most to them.
3. Help Investors Evaluate Potential Deals
Any licensed agent or broker can facilitate real estate transactions for your investor clients. Set yourself apart by serving as a knowledgeable advisor rather than a standard facilitator.
Rather than simply forwarding listings for potential acquisition, run a basic analysis for your clients on investor-friendly properties. You can quickly search rental comps, sales comps, and other available info to calculate key real estate investment metrics like return on investment (ROI), cash flow, and after-repair value (ARV).
This increases your value to your clients, saving them time and garnering more trust in your expertise.
4. Build an Investor-Focused Referral Network
Expanding your referral network can help you better support your investor clients while reinforcing your pipeline of new client leads.
Nurture relationships with industry experts like:
- Real estate syndication companies
- Property managers
- Lenders
- Contractors (including electricians, painters, landscapers, plumbers, etc.)
- Inspectors
- Appraisers
- Real estate attorneys
- CPAs
- Insurance representatives
- Escrow agents
- Title reps
5. Support Investors After the Purchase
Don’t disappear after closing. In addition to serving up regular acquisition leads for your investors, take some time to support each newly acquired asset and offer guidance on overall portfolio strategy.
You could, for example, make sure the tax assessor enrolls a fair value for property tax purposes after the purchase (or even help your clients appeal their property tax bill). Or educate your less experienced investors on 1031 exchanges if they’re looking to defer capital gains taxes on dispositions. You could also discuss different real estate investment strategies with your clients that may serve them better over the long term.
Leverage Investors to Boost Your Real Estate Business Today
Investor clients can become one of the most valuable parts of your real estate business when you give them a reason to keep coming back.
By consistently providing opportunities, market insights, deal support, industry connections, and post-closing service, you can position yourself as a long-term resource for investors. And generate repeat transactions and referrals as their portfolios grow!