Real estate investors are prime leads for agents, offering repeat business through frequent transactions, whether flipping properties or expanding rental portfolios. Their practical, business-focused approach often results in smoother, faster deals, free of the emotional challenges typical buyers may face.
If you’re an agent looking to boost your efficiency and earnings, targeting real estate investors could be your winning strategy—let’s explore why in further detail.
1. Investors typically perform more frequent transactions than the average buyer, leading to potential repeat business for agents.
Fix and flip investors repeatedly purchase and sell properties, offering substantial business for agents if they can form connections within this niche. Flippers may need help finding opportunities and selling once renovations are completed, offering two transactions per lead and maximizing lead generation efforts.
Even buy and hold investors (AKA landlords) continuously purchase properties once their portfolios have grown to a point where they’re ready to expand, making the help of a trustworthy agent vital.
2. Investors may be less emotionally invested in the property, leading to swifter transactions.
When a potential homeowner is looking for a property they plan to live in, they’ll likely be more picky about the condition, amenities, features, etc., since these aspects impact their daily routines and quality of life.
However, if an investor plans to purchase a property to renovate and/or rent out, they’ll likely be less emotionally invested in the property and instead focus on its profit potential. This detachment may allow for quicker, simpler transactions.
3. Investors often have background real estate knowledge that can make them easier to work with.
When working with newer homeowners, you often have to explain the various contracts, jargon, processes, etc., related to a transaction. Because of this, you may have to spend a significant amount of time on education, along with the typical showing, pulling listings, etc., that you would for any other client.
However, investors (particularly seasoned investors) typically have a foundational understanding of the industry, potentially saving you time on having to educate them, which can leave you additional time to take on more clients and increase yearly earnings.
4. Real estate investors may perform cash transactions, making the process simpler for agents.
Investors with substantial capital under their belts may prefer to work with cash primarily for their transactions. This is because working with cash can make the transaction simpler and quicker compared to having to secure financing.
While all-cash transactions make the process easier for the buyer, it can make your job as an agent easier as well. With no need to wait for loan approval or worry about financing falling through, you can close deals faster and with greater confidence in the transaction’s success.
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