- 17 percent plan to buy 11 or more houses
- 63 percent are looking for homes priced at $200K or more
- 34 percent are looking at opportunities outside their home state
- Florida, Georgia, Texas and the Carolinas lead with the states whose investors are likely to roam
- 44 percent of full-time and 39 percent of part-time investors focused on flipping houses
- 52 percent of part-time and 43 percent of full-time investors had a focus on rental properties
So, What Does This Mean for Real Estate Agents Like You?
- Time to put on your business hat! Real estate investors are all about numbers, numbers, numbers. They want to hear “ROI” on the property you are presenting and that you know enough (not necessarily all) about the local market to lead them to the right properties for them. Home buyers, on the other hand, focus on the schools in the area, the color of the house and other, more qualitative things to sway their decisions.
- They talk and act quickly. You are a business partner and vice versa in their eyes. While they aren’t totally immune to the social aspect of partnership, they might not tolerate “fluff” and schmoozing as much as home buyers.
- They know what they want and expect you to deliver. Investors are very purposeful in their decisions if it’s the right business one, so you might not have much room to convince them to go in another direction. Plus, they do have a lot of knowledge and quick access to it to keep their focus narrow. Home buyers might not have as much knowledge, so they will rely on you and, therefore, have a more open mind when it comes to recommendations you make.
Now that you know a little bit about what investors are like, what’s in it for you? Well if the numbers presented above didn’t put a twinkle in your eye, think about this: Real estate investors see buying and selling as a numbers game. The more they buy, the more they sell, the more money they make. And you can be a part of that process and reap some of the benefits.
Investors are also “hooked up”. They live, work and play in tight circles, so you never know what real estate leads they can bring you, especially if they trust and like working with you.
While you will have a lot to teach real estate investors, they will have information to share with you as well. They can give you insights into the real estate market that you may not have thought about and provide a different perspective that may shape your own investment portfolio and business decisions.
Focusing on the specific needs of a real estate investor will be key in having a successful relationship with him or her, as in all real estate transactions. So be sure to ask a lot of questions (what type of properties are they looking for, do they specialize in a specific niche, what their intentions are in purchasing real estate property) and keep your eyes and ears open. It may just be a new niche that will not only be more fulfilling and speak to the even greater business mind you didn’t know you have and be your most lucrative source of real estate leads.