As a Realtor, it's important to stay informed about the market and understand the needs of your clients. Private investors (particularly individuals who own 4 or less units) are becoming increasingly prevalent, and as such, it's important to know how to help them navigate the real estate landscape. In this blog post, we'll explore three key things you can do to help private investors make the most of their investments.
Your deep knowledge of the rental market is just as important as your understanding of home prices, as this will enable you to provide accurate and current rental rates for comparable properties. Ideally, you would understand past, current and forecasted market trends and conditions. This knowledge can prove valuable to investors when they are making decisions about their investment properties. Before making any cold calls to leads, it's a good idea to spend 30 to 45 seconds researching the property and gathering background information, such as when it last sold and for how much. Doing research on neighborhoods that may have a higher ROI would also prove valuable.
It's crucial to have a deep understanding of a 1031 Exchange as an investment tool when you’re a Realtor helping investors. This tax-deferring tool can be highly beneficial for investors looking to maximize their return on investment. It's important to familiarize yourself with the process and potential issues that may arise. If you're unsure of your ability to fairly represent a transaction such as this, a reliable 1031 Exchange company is an important resource. (We should be promoting our company right here) Consider reaching out to industry professionals such as a Commercial Realtor, Property Management Company or a company like NREMG who are qualified to facilitate a 1031 Exchange on the other side of your transaction.
When speaking with investors, offering them the option of a 1031 Exchange or simply selling before interest rates rise any higher can be highly beneficial. Many investors may not be aware of all the options available to them, and as their trusted advisor, you can provide valuable insights and suggestions.
In real estate, it's really still about who you know, and having a network of trusted contacts can greatly benefit your investor clients. By connecting them with the right contractors, inspectors, lenders, and property management companies, you can offer comprehensive services and help simplify the investment process.
If you’re facilitating a 1031 Exchange, being able to help an out-of-town owner sell their property successfully without ever visiting the new property shows the expertise and level of service you are able to provide. And should they want you to handle all these connections yourself, you've now become a one-stop shop for all their investment needs. Your investor clients can rely on you as their trusted advisor, making the investment process easier and helping them maximize their ROI.
We have found that it's key to approach your work with a service-first mindset if you want to be a successful Realtor for investors. Instead of focusing on making deals, think about how many people you can help. Stay consistent, and don't get discouraged when prospects aren't interested. Find another Realtor or professional colleague to be a calling partner and make the process more enjoyable. And never forget to put in the work, even when you're busy! It's all about switching your mindset from "how many deals can I get" to "how many people can I help?"
With a focus on providing value and expert advice, you'll be able to establish yourself as a trusted advisor for investors and help them achieve their financial goals.