Building Relationships with Flippers

Building Relationships with Flippers Building Relationships with Flippers to Grow Repeat Biz Flippers are a special breed of real estate customer. They have different priorities and knowledge levels than typical residential property buyers. Flippers also have different needs and goals. But working with investors like flippers is a smart way to establish a niche and standout from competitors. Also, there’re great opportunities for referrals and repeat business. Flippers prefer to work with agents who are familiar with real estate investment and know how to accurately analyze a deal. Flippers may be more likely to work with an effective agent again and again instead of “training” a new agent. So, if you can learn the processes and lingo and develop productive relationships with flippers, you can establish a lucrative source of repeat business. A few things would be helpful toward that end. Understand How Flippers are Different Investors are motivated and have more real estate knowledge than your usual residential buyers and sellers. They have different goals and priorities than a family looking for a dream house. Flippers won’t get emotion over a property; all they care about is the numbers. But they still need the advice and expertise of an experienced real estate agent. Flippers want agents who think like an investor and will analyze deals the same ways they do. They prefer agents who already know some common investment strategies, methods, and formulas so they don’t have to explain everything. Learn to calculate cash flow, offer prices, expenses, and after repair value (ARV). Practice Active Listening Flippers and other real estate investors often know exactly what they want, and they aren’t shy about telling you. A first-time homebuyer might be vague or indecisive. But flippers know what kinds of properties they’re looking for, how much work they’d need, and how much profit they could net. So always, listen closely during initial interviews. Ask follow up questions to ensure you understand. They may have a specific formula they use when evaluating real estate. They’ll have niches, strategies, and processes, and once you know what they are, later you can establish a system. You’ll offer advice based on your expertise and what they’ve told you, but always let the client make the decisions. They will analyze your suggestions and the property and then decide how to proceed. Be Prepared and Systematic Investors do dozens of deals a year, buying and selling quickly. You have to be ready to respond quickly or a great property may get snatched up in the blink of an eye. Flippers might want to make lots of offers; it’s a numbers game. Make 10 offers to get one great deal. Determine how many offers your flipper client typically makes. To keep up with a fast, competitive market and a high volume of offers, you must have comprehensive preparation and efficient systems. In the middle of a bidding war, you may not have time to get up to speed. Great systems and prep work allow you to juggle multiple offers and deals without having to check with your client. At the beginning of the relationship, learn what interests the flipper, such as cap rate, income potential, and neighborhood; then you can set up automatic emails to send information to her quickly. Know Your Clients Flippers want an organized agent familiar with investor strategies, formulas, creative financing, technology, and deal analysis. But each person is different. You need to know where a specific flipper is coming from and their preferred property types and strategies. Investors may favor multiple strategies and niches, but if you know their preferences, you can better predict how they’ll view a deal. How does a flipper like to make offers? What formula does he use?  It might be something like: “all cash, X days close, X day inspection.” Processes can be streamlined when you already have all this information in your offer system. Create Happy Clients The best way to cultivate repeat business and referrals is to provide excellent service and facilitate a great deal with minimal stress and mishaps. When you represent a flipper, you are part of a team. If you prove to be knowledgeable, quick, and reliable, your investor clients will keep coming back. Learn more about the real estate industry and take care of your continuing education at 360training.com. With self-paced, online courses available anytime, professional development can easily fit into your busy schedule. Enroll today!