How is representing investors in residential and small multifamily properties different from representing homebuyers?
Investors have different goals than do the average homeowner. Typically, investors have specific criteria for which they are investing, which can be highly dependent upon the individual. However, investors are all similar in that they are seeking some type of return on the investment of their capital. This is contrasted with someone looking to purchase a personal residence who will often have many personal and emotional factors wrapped up in their decisions; separate from and in addition to financial concerns. For the agent representing an investor, it is vital that they learn to “Speak the Language” of real estate investing as well as learn the proper questions to ask potential clients such that they can build a mutual understanding.
How can you ask intelligent questions about investors’ goals?
Well, first of all you need to show that you care about their goals in the first place. A realtor looking to work with investors would be smart to take an active interest in real estate investing, themselves. It is only by digging into the terminology, characteristics, and industry benchmarks of local real estate investors that you can build a bridge of understanding to them. A vital component of that bridge, and of positioning yourself to provide value to them, is asking the right questions. Here are a few that any good Realtor should be asking their investor clients: