| Investors are a unique kind of buyer. As a real estate | | | | each. Flipping is pretty straight forward. The investor |
| agent, there are certain advantages to working with | | | | wants to buy at a low price, make some repairs to |
| investors. First, most investors buy multiple | | | | the property, and then sell for a profit. |
| properties. So for one extra client, you might sell 10 | | | | With a buy and hold property, many of the same |
| extra houses. Second, many investors flip houses, | | | | factors will come in to play, but you also need to |
| which means you may get some really nice listings | | | | know if the property will provide a positive cash flow. |
| out of the deal. Third, it is fairly common for | | | | You should know how to figure out a CAP rate if |
| investors to either be able to make a cash purchase, | | | | you plan to work with investors that own rentals, |
| or already funding lined up. And fourth, most | | | | especially if they are buying properties larger than 4 |
| investors already understand the real estate buying | | | | units. |
| process, so often times the transaction is easy to | | | | Marketing For Investors |
| close, and you won't have to spend a lot of time | | | | Plain and simple, investors want good deals. The best |
| walking them through the process. | | | | way to find investors is to locate a good deal, and |
| So if you are convinced now, read on for some ideas | | | | advertise it like crazy. Start with Craigslist and I |
| of how to get in the game of selling real estate to | | | | would also recommend contacting people you know, |
| investors. | | | | and post it on Facebook. If you really want to go for |
| Knowing What Investors Want | | | | it, set up some paid ads on Facebook that target |
| Know what your potential client wants. The typical | | | | your specific region. |
| investor is more interested in numbers than anything. | | | | What if you don't have any good deals to offer right |
| Here are some questions you should be able to | | | | now? Then you need to take a different approach. |
| answer: | | | | You will need to market yourself as a deal finder, |
| How quickly will the house sell after repairs are | | | | often times referred to as a bird dog. You can |
| made? | | | | advertise on the same sites as mentioned above, |
| What is the after repair value (ARV)? | | | | only instead of having a specific property, advertise |
| What is the average rental rate in the area? | | | | that you can find properties below market value. |
| You also need to understand the different types of | | | | Remember, be consistent with your advertising. Keep |
| investment strategies that you will see. The two | | | | track of everyone that has contacted you. If you |
| most typical that you will deal with are 'buy and hold' | | | | happen to find a spectacular deal, be sure to call |
| and 'buy, repair, sell' often called "flipping". These are | | | | people about it. You could end up landing yourself a |
| very different strategies, so you need to understand | | | | great client. |