A real estate investor is any person who sees buying and selling real estate as a financial opportunity rather than to simply fit a need. Whether they choose to rent it out or flip it, their goal is to make a profit off of the purchase.

As an agent, there are many benefits to working with real estate investors. Investors tend to be looking at higher-value properties, allowing you to earn higher commissions. Also, they are far more likely to become repeat — or even frequent — customers than the typical buyer in the market for a home to live in — especially if that home is meant to be their "forever" home. If the transaction goes smoothly, they will likely refer you to other investors from whom you can gain more business. 

Adapt Your Strategy When Working With Investors

Since their goals and motivation for buying differ from the average homebuyer, you will likely have to adapt your strategy to meet the unique needs of investors. 

Here are some tips to find success working with investors and turn them into repeat customers:

1. Stay Knowledgeable About the Market

To best serve any client, the first strategy is to stay tuned in on the market. This is especially helpful for investors who are looking for the optimal time to buy and sell their properties. Although you might make some quick cash, convincing them to buy or sell at an inopportune time could cost you their trust in the long run, ultimately losing out on their business in the future. 

2. Build a Strong Network

Having a strong network full of other industry businesses and professionals enables you to provide recommendations to your clients. It also works both ways in that these people and businesses will likely refer you to their customers as well. For investor clients, contractors, attorneys, lenders, inspectors, and property managers are all worthwhile connections to have. 

3. Understand Key Investment Strategies

The next tip to take you to the top of your market is to understand the key investment strategies, such as fix-and-flip, buy-and-hold, and rent. 

Fix-and-flip means the buyer is planning to renovate the property within a relatively short period and sell it at a higher price. In this instance, the buyer will use basic renovations, higher-end finishes, and the implementation of increased amenities to drive up the price, rather than waiting for the market to change. 

In a buy-and-hold scenario, the investor will be looking to buy at a relatively low price in an area where the market value is predicted to increase in the future. Therefore, they will want to hold onto the property for years — maybe even decades — until the property value has reached a new level. 

A rental strategy means the buyer is planning to purchase the property and make a consistent income through short-term or long-term rentals. This strategy calls for far more day-to-day operations, such as marketing the property and finding tenets to collecting payments and maintaining the look and safety of the property. 

4. Keep Their Specific Goals in Mind

Aside from having general knowledge of the different investment strategies, it's essential to know what your client's exact goals and plans are for the property. Since not all investors are looking for the same thing, not all properties will be right for everyone.

Knowing their goals is important so you know whether they are seeking a single-family home, condo, or multi-unit complex. Plus, some investors may want an already renovated property they can use or rent out immediately, while others may want something that requires a bit of work but they can get at a great price. They may want to purchase a property in an already well-established area where they can gain a profit fast or want something in a more affordable  area considered more "up-and-coming." 

Provide better service and save yourself time and money by keeping the investor's specific goals in mind when searching for potential properties. 

5. Analyze the Property by Doing the Math

The next step you must take when it comes to working with investors is to fully analyze any property before presenting it to them. This means doing the math.

Winston Widdes, Author of How to Work With Agents and How to Work With Investors, says, "Understand the numbers that your investors are looking for. Learn how to pencil out the numbers before sending your investors an opportunity. Show them that you have an understanding of their business model, and what makes a good investment for them specifically."

6. Be Tenacious 

Unlike the typical homebuyer, real estate investors are often looking for off-market opportunities. This means that if you wish to succeed as an investors' agent, you need to be tenacious and be willing to go out and speak to current homeowners about selling their property, along with contractors, auctioneers, and even divorce lawyers to get ahead of the game. Oftentimes, it can take some convincing to get a homeowner to sell to an investor, so you must be diligent and willing not to back down even if the first offer isn't accepted. 

7. Only Bring Qualified Leads

While you may be tasked with finding homeowners who are willing to sell before their property hits the market, you must solidify the opportunity before bringing it to the investor as a lead. To continue to build trust with them, you should only bring them qualified leads, meaning the seller is motivated to sell at a price that meets the client's requirements.

8. Maintain a Mutually-Beneficial Relationship 

Most real estate investors don't stop at just one transaction; they continue to invest. This presents an opportunity for you as an agent to continue to earn their business. Although the first step in earning their continued business and converting them into a life-long customer is to do a great job at servicing them during their first transaction with you, you must also keep in touch and consistently reiterate your value.

Maintaining a relationship with your investor clients can be simple through your CRM. With tools like automated email blasts, drip campaigns, newsletters like My Customer for Life (MCFL), and Market Watch Reports. You can also send them flyers and other marketing materials in the mail (just be sure to send all mail to their primary residence as opposed to their most recent investment property). And, you can stay connected with them through social media.

Follow These Tips and Gain New Business

Take these tips with you as you adapt your marketing, lead-generation, and sales strategies to appeal directly to investors in your area. Building a steady client base of investors can take your real estate business to the next level. By learning new skills and adapting your strategy, you can win higher-value, more frequent transactions, and a roster full of new, repeat customers who will keep your business booming for decades.