How Agents Create Long-Term Real Estate Investor Clients
Real estate agents and brokers often miss out on good opportunities with real estate investors that could grow their business because they are instinctively only looking to close a deal and pay little attention to building a long-term relationship with the investor.
Closing a deal is paramount to selling real estate, of course, but keeping customers loyal enough to close a deal and then come back with repeat business later is even better.
In this article, I want to show you how you can build a relationship with real estate investors that will keep them loyal for the long haul. It’s not about flair and flair, it’s about embracing a concept I call “partnering with the investor.”
Here’s the idea.
Appreciate investor money
Unless otherwise noted, appreciate the fact that the money for the investment could come from a fund established by the investor to send a son or daughter to college. Which is probably not money from a windfall, but rather the result of hard-earned dollars, scrimped and saved to serve the family.
Even if the client seems to have made enough money to care for the family ten times over, keep in mind the fact that he or she is still worried about money and surely doesn’t want to lose a penny.
It matters how money is spent
Let your client know through your actions and deeds that you are as committed to protecting their savings as they are and truly care how it is spent.
A snippet from a TV commercial from several years ago illustrates this best. During a conversation with his financial advisor and the subject of children comes up, the bewildered client wonders, “Are you talking about your children or mine?” In other words, the customer had doubts about whose interests the seller had in mind.
You must remove this doubt if you hope to build long-term relationships. Partnership requires trust. You must assure your client through actions and deeds that you will treat his money as his and that he is as committed to protecting it as they are.
Be prepared to warn an investor against rental properties that are not good real estate investment opportunities, even if it means losing a sale. Keep in mind that the agent who only has eyes for the commission (perhaps to the detriment of the investor) is less likely to establish a trust relationship that could evolve over time into multiple sales than the agent who is unwilling to simply take the money. and run.
Give reliable advice
Above all, know what you’re talking about because nothing else you do will hold up unless the investor can trust your judgment.
This is how it is prepared.
1) Learn the basics of real estate investing to properly talk about investment property. At the very least, know the difference between the cap rate and the gross rent multiplier and be able to create an APOD. Numerous sites on the web are dedicated to real estate investment definitions and formulas where you can easily learn what you need.
2) Understand your local market for rental properties. Learn what rental properties have sold for and are currently listed, breaking them down by cap rate, cost per unit, and cost per square foot. You need to be informed about market values so that you can distinguish between a good investment opportunity and a bad one.
3) Run the numbers yourself and create your own cash flow presentations. This is easy with good real estate investment software. Real estate investors will trust you more when they can trust you to verify the data you present to them.
Here is the end result.
Winning over an investor is not difficult, even if you lack style and panache. Real estate investors are generally ready and willing to build a long-term partnership with any knowledgeable real estate agent they can trust to help them make sound investment decisions; regardless of whether you drive a Mercedes or not.
Here is your success.
