Looking to expand your real estate business? Given that there are currently more real estate agents than houses for sale, you’ll need to do everything in your power to help your business stand out. This can include everything from hiring a professional cold calling company to conducting extensive research on the properties in your area.
One of the best ways to succeed as a real estate agent is to specialize in a niche that best suits your interests, goals, and personality. In particular, specializing in investment real estate can give you an edge and help grow your real estate business. While this niche doesn’t require any special training or extra certifications, you’ll need to understand what landlords are looking for in your area. If you want to sell rental properties, below are some tips that will simplify the process.
1. Emphasize Amenities That Landlords Value
When your goal is to sell rental properties to a landlord, consider their perspective. Likely, their criteria is quite different from that of someone who intends to live in the home themselves. Traditional homebuyers will be on the lookout for amenities that improve their quality of life and serve them for the long haul. They may be seeking perks such as luxurious appliances or a spacious backyard for their children.
While these qualities may also appeal to landlords, they aren’t paramount. Landlords tend to place value on very different amenities. For example, they are much less likely to be concerned about high-end features if the property is visually appealing. Classic decor or architectural touches are often better than trendy or cutting-edge, so landlords can keep the same model for years to come.
Durability is also a factor. Remember, a landlord’s goal is to rent the property to another person, and each new tenant will mean a new round of cleaning and maintenance. Landlords value low-effort properties that don’t require constant upkeep or updates.
2. Guide Them Through Their Financing Options
While buyers might be able to secure a low deposit for a home you’re planning to live in, investment properties are very different. Obtaining financing for a rental property can be more challenging because an investment property poses a more significant risk for lenders. Inform potential buyers that they’ll likely need a credit score of at least 740, along with a down payment of 20%. If they may have difficulty meeting the requirements, suggest that they obtain financing from a local bank rather than a large financial institution.
Sometimes financing an investment property requires a little creativity from potential buyers. They may need to resort to leveraging pooled funds from private investors, friends, and family. However, remind buyers that it will require a very high level of trust from investors. As a result, this option will likely only work for experienced buyers.
When trying to sell rental properties to landlords, they’re much more likely to trust your advice once it becomes evident that you are well-informed. Do some research on rental property financing, and assist buyers throughout the process as much as possible. They will be more than willing to work with you for their next investment property once you have proven yourself able to understand a landlord’s perspective.
3. Point Qualified Leads Towards Lower-Priced Properties
Naturally, a landlord’s primary goal will be to profit from their investment, so they typically shy away from higher-priced properties. To close the deal with more qualified leads, point your prospects toward properties on the lower end of their budget. While it may be tempting to show landlords the cream of your portfolio, doing so significantly lowers your chances of selling a home. On the bright side, many landlords eventually invest in more than one property, so they’ll be likely to work with you again once you have proven your value.
Keep in mind that rental property loans function differently than a home owner’s loan. Rental property loans require a larger down payment, higher interest rates, and higher reserve requirements. Essentially, this means that landlords will typically be less inclined to close on a property that’s at their maximum budget.
4. Suggest Fixer-Upper Properties
Contrary to what you may have heard, many homes are not suitable to live in when a deal is signed. If you’re serious about trying to sell rental properties to landlords, make it a top priority to find fix-upper properties in your area. Many landlords prefer fixer-upper properties, given their propensity for a higher return on investment.
Finding fixer-uppers for qualified leads requires a more calculated strategy that you would otherwise use. If you’re not sure how to get started, consider driving through nearby neighborhoods. Properties that appear distressed and look out of place compared to their surroundings are telltale signs of a suitable fixer-upper. You can also surf the web for fixer-uppers on the Multiple Listing Service. The MLS is the official database for every property listing in the US housing market. In addition, you can also use real estate investor websites like Mashvisor.com to find off-market property listings.
Call Motivated Sellers
Landlords value criteria that may differ from other buyers, but earning their business is well worth the effort. Specializing in investment real estate is a great way to expand your network and build a lasting relationship with your clientele. However, you’ll need persistence and extensive knowledge of investment properties to succeed. Once you’ve primed yourself as an investment property authority, Call Motivated Sellers can supply you with a steady stream of customers and help you close more deals.
Set yourself up for success in the real estate business by recruiting a team of experienced cold callers. Call Motivated Sellers can raise your sales to unprecedented heights during both the busy and slow months.
We are an American-based real estate cold calling service, complete with a highly skilled sales staff. Leave the hard work of vetting your leads to us so that you can focus on closing deals and increasing profits. By partnering with Call Motivated Sellers, you can augment your online efforts and expand your reach without losing that human touch.
Ready to uncover new leads for your real estate business? Contact our team today.
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