Working with Investors

[Jose Robles]

As a new real agent, I would love for my target clients to be Real Estate Investors because I plan on being an investor! Is there a way to attract real estate investors as my primary client base? Thanks in advance!

[Karen Margrave]

I disagree with Joe. Many homebuyers these days are looking at their homes as investments, not just a place to raise kids, live, etc. Some are looking for an extra unit they can Airbnb, or rent to students, etc. 

Investors are looking at cash flow, or appreciation, ideally if they could get both it would be the perfect storm. Every market is different. In high dollar areas cash flow on LTR of SFR homes is difficult. The same home though may cash flow well as a STR. At the same time, if you're going to focus on STR properties you need to know the local regulations, because not every community allows STR. In CA on almost any lot you can now add additional units. On ADUs some areas will allow them to be rented as STR, others they're strictly LTR. If you're selling a house on a large lot to someone wanting to add an ADU, you'll need to know set backs, parking requirements, etc.

On the other hand, there are investors looking for "value add" units, where they can do work, increase rents, and values. Then there's people focusing on storage units, mobile home parks, and many other niches. 

Whatever niche you want to get into, the foundation starts with knowing the product, and the regulations that follow it. Learn everything you can about whatever it is you're going to sell and know how it compares to others. 

I will caution you many times when people ask if you're an agent that works with investors, what they're trying to find is an agent willing to spin their wheels, run a ton of comps, get estimates for them from contractors and then end up using someone else. Always make sure people are qualified buyers and have realistic expectations of the actual market in your area before putting any time into them.