Crucial Knowledge To Help You Survive in Today’s Market
What do you NEED to know about Marketing to Investors?
The San Jose Mercury News reported today that the percentage of homes sold to investors in the last 3 months has increased, and that there are many more investors buying homes now than 5 years ago. According to Alexis McGee, president of Foreclosures.com, clients are asking less about flipping foreclosures, and more are becoming interested in maintaining and renting out properties. “Even if the market stays flat and they don’t see any appreciation for a while, they’ll know the rents can cover the mortgages. That’s something that’s been unheard of in the Bay Area recently.”
If investment properties and cash flows are beginning to make sense and get attractive in a market like the Bay Area, the opportunities must look even better to investors in other markets! The investors are buying more now than ever because they are finding good bargains – it seems like they’ve figured out their solution to the housing crisis. Have you found yours?
Current housing conditions have turned the market into an investors’ playground, and half of the buyers in some markets are investors who purchase SFHs, Townhomes and Condos. More investors are purchasing foreclosures now than ever before, and agents who are not marketing to investors are missing out on some prosperous opportunities.
There are many different ways to cultivate relationships with investor clients, and a lot of it starts with knowing how to market to them. Accomplishing a productive phone call for example, can be difficult for those who don’t think they understand investors well enough. Some agents use FORD (Family, Occupation, Recreation, Dreams) as a framework for conversation, which is a step in the right direction because it lets your clients know that a business transaction is not your only concern – but it can be difficult to pull off, especially with investors who know you are not being genuine.
Here are common misconceptions about investors:
- The market is small
- The majority of investors are flippers
- Investors buy multi-units and commercial properties
- Most investors understand 1031 exchanges and the tax ramifications of real estate investments.
Here are some key things to remember:
- Investors are very similar to people buying primary residences and consider the same factors when purchasing
- Future investment value of a property is the most common decision criteria
- Investors use “Buy-Improve-Hold” more than any other strategy
- Investors primarily buy single family homes in nice neighborhoods that will attract good tenants
Investors are positive people, they like to be surrounded with positive people, and they want you to have a “how can I help” mentality without expecting something in return. They want a real estate professional, who can provide for their needs. If you can cultivate long term relationships with investor clients, the business is sure to follow!
T-ReX Global is a RealTown Approved Vendor and a participant in the Seal of Approval program. Learn more about increasing your business with investors, and co-brand your own free investor marketing tools by going to TReXGlobal.com.
Negotiating Tip 114: Retreat Negotiations
Negotiating Tip 113: Activating Our Opponent
Negotiating Tip 112: Misconceptions
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