Questions to ask a rental investor/What to learn as an agent

[Stephany D.]

Hello everyone, I am a newer agent and during an open house I met an investor from the Bay Area of California who is looking to purchase rental property in the Central Valley.

I of course do not want to waste his time and I have the understanding that investors work with multiple agents. That is fine with me.

I would like to however use this as an opportunity to learn what rental investors look for and how I can learn to find good deals for them so I can present them.

English is not his first language and I had a small bit of trouble understanding him in a few parts of our conversation, but it seems he may also be a bit new to this.

I offered to sign him up for the MLS client portal.

I just know he does not have a price point (is that common?), I know where he is looking, and that he wants a rental for…. this is where I failed to understand him a bit, but overall, my understanding was the cash flow and I believe he said something about percent.

I’d like to thank him for visiting the open house and I would like to follow up with questions by email to clarify his criteria. I plan to call him to let him know I’ve sent the email. I would ask these questions over the phone, but feel we may have trouble here and there understanding a few things. What are important questions to ask for starters?

I won’t bombard him, nor waste his time since I myself have learning to do, but I would like to keep him in my database. Thoroughly learn and become a valuable resource to him and send him listings that meet his needs. Are there any good books or other resources to start?

Bigger pockets seems to have so much to offer so I’m hoping to hear recommendations. 🙂

Any advice is appreciated.

[Bob Okenwa]

@Stephany D.

Qualify the potential buyer. Get all of the information upfront in terms of what he's looking for and make sure you have a very clear understanding of this.

If he's cash, then let him know you'd need POF before making an offer. If he's getting a loan, make sure he is preapproved and can give you his PA to submit with an offer.

There is an old phrase that says "buyers are liars". This is especially true with investors. Lot's of people talk a good game, but don't know how to run numbers or source a deal. They look to agents to run the numbers for them, find them deals, plug them with lenders and contractors, and offer 25% off retail homes where you need to be above asking to get it.

The quicker you can disqualify time-wasters, the better off you'll be in the long run. Value your time like it costs you money, because ultimately it does when you spend time doing things that don't lead to closed transactions. 

@Stephany D.undefined