Wondering how to be a successful real estate agent? First, know that the wealth in real estate is in owning it, not listing homes and selling them to someone else. So, learn to deal with the right people.
Dealing with individual homeowners can be tough. Marketing to the average homeowner is expensive too. Most of the time, new real estate agents have to have to budget 10% of their commission income for marketing.
The real money is becoming the go-to agent for real estate investors. These professionals (often institutional) investors have money to buy and no time to waste. With more investors in your portfolio, you’ll be selling more homes faster than ever before.
How to Be a Successful Real Estate Agent Investors Can Rely On
Here are eight ways to get started.
1. Become an Investor Yourself
Investors like working with investors, so you need to become an investor yourself. This way, you know what they know and earn their trust and confidence. If you can talk like a landlord instead of a tenant, investors will gravitate toward you.
Learning how to start investing in real estate from square one yourself is the best way to learn. Immerse yourself in it. Learn the basics. Then get started. Buy a property. Start small. Learn the ropes and the process. You’ll not only meet other investors, but you’ll have something worthwhile to say when you do.
2. Obtain a Financial Education
What blogs, websites, newspapers, magazines, and books are you reading?
You should be constantly striving to learn, and how you spend your time matters. Valuable insights are constantly given for free through TV, radio, internet, and so much more. Dive into the economic topics of the day and understand the language of commerce. This will help you understand all the financial lingo necessary to speak like an investor.
3. Learn the Language of ROI
What investors really care about isn’t money, it’s ROI. There are a lot of words that ultimately mean, “you are making money” in the investment world like:
- Gross Rent Multiplier (GRM)
- Capitalization Rates (Cap Rates)
- Initial Rate of Return (IRR)
- 1031 Exchanges
- New Tax Rules
- Tax Code Changes
Learn what these terms mean and how they apply to every situation. This is the best way to transition any conversation into one any investor understands.
4. Learn How to Value Property
In residential real estate, the property value is determined by sold properties. This is historically tracked and used to gauge a fair market value that both parties agree on. To ensure everything’s on the level, either a Comparable Market Analysis (CMA) or appraisal can be done by either or both parties. Each is a similar process with different licenses needed.
In commercial real estate, the property’s income-generation is factored into its value. Each property and investment are unique to the investor. Although the same methods are used, the criteria greatly differ, since everyone has their own investment tastes.
5. Learn Property Values
With all this said, you need to know which areas are trending up or down to attract investors. Understanding local opportunities in condos, apartment complexes, office buildings, senior living facilities, warehouses, and more, gives you the inside edge on connecting them to the right investors.
6. Network in Real Estate
Networking is the most important part of meeting investors. Attend real estate investing events like luncheons and speeches. These are often thrown by local investing clubs, the local chamber of commerce, and other professional groups. Subscribe to real estate publications and newsletters so you’ll know what and where the latest real estate investing events are. put the word out that you are looking for wholesale, distressed properties to buy.
7. Find Out Who the Movers and Shakers Are in Your Community
Learning how to be a successful real estate agent involves connecting with the right people. Gather their email addresses, build a database, and send relative pertinent market information to them. This helps you build solid relationships with investors who see you as a go-to when they want to learn how to start investing in real estate.
8. Connect with Real Estate Service Providers
You’re already an agent, so get connected and get educated. Connect with real estate service providers like title companies, lenders, contractors, and leasing agents. Start showing up and doing deals. It won’t take long before you start climbing the social and professional ladder to more real estate opportunities.
Learn How to Be a Successful Real Estate Agent
Once you know how to start investing in real estate, you begin connecting with a whole other world. These long-term investments take some commitment, but they generate easy, passive revenue in a scalable way.
To become the go-to real estate agent for investors, be sure you’re updated with the latest TREC rule changes, broker responsibilities, and other issues with our Continuing Education courses.