Why Real Estate Agents Should Be Working with Investors

The real estate industry is evolving at a rapid pace. While traditional residential buyers remain an important part of the market, real estate agents have another significant opportunity: investors. As real estate investments grow in popularity, savvy agents who recognize the benefits of working with investor clients can open up a continuous stream of business.

With nearly 30% of residential real estate sales coming from non-institutional investors, there’s a compelling case for why agents should prioritize this growing sector. As Jared James, a national speaker and trainer in the real estate industry, said: “Did you know almost 30% of the residential real estate sold in the last year was from non-institutional investors? Better question… did at least 30% of your overall business last year come from investors? If not, you need to change that, and I’ve never seen a tool make that more of a reality for you than Privy. It’s THE pivot agents need to implement right now.”

Real estate agents who haven’t yet tapped into the investor market are missing a valuable opportunity to grow their business. Better understand why, as an agent, you should be working with real estate investors, the benefits of doing so, and how using tools like Privy can streamline the process and maximize returns for both you and your investor clients.

The Growing Impact of Real Estate Investors

Real estate investing is no longer confined to large institutions or seasoned professionals. With the right strategies and tools, non-institutional investors are now actively competing in the market, making up a sizable portion of real estate transactions. The rise of real estate investing can be attributed to a variety of factors: low-interest rates, increased access to financing, and a growing popular interest in generating passive income through rental properties and house flipping.

For real estate agents, this means that investors are becoming more common clients, and learning how to work effectively with them can be a significant advantage. Investors are constantly on the lookout for new opportunities, and agents who can provide them with profitable deals are more likely to build strong, lasting relationships.

Why Investors Make Great Clients for Real Estate Agents

Investor clients offer several advantages over traditional residential buyers. First, investors are often more frequent buyers, meaning they can provide agents with a steady stream of business. Unlike homeowners, who may buy a property once every few years, investors are constantly in the market for new deals, whether for rental properties, fix and flips, or wholesale opportunities. This ongoing activity provides agents with a reliable source of commissions.

Additionally, investors tend to approach transactions with a more business-minded, analytical perspective. This often leads to faster decision-making, less emotional attachment to the properties, and smoother transactions overall. Investors are focused on the numbers and potential returns, simplifying the buying process and reducing the emotional rollercoaster that sometimes accompanies residential home purchases.

Working with Investors vs. Traditional Buyers

The key difference between working with investors and traditional buyers is the nature of the transactions. Investors are typically more interested in the financial potential of a property than its aesthetics or how it fits their personal needs. As a result, investors make quicker decisions, are more open to a variety of properties, and are willing to compromise on certain aspects if the numbers make sense.

On the other hand, traditional homebuyers often make emotional decisions and may take longer to close deals. They are typically focused on finding a home that meets their personal preferences, which can involve more back-and-forth and negotiation. While both types of clients offer unique rewards, working with investors can provide real estate agents with a more streamlined and consistent workflow.

The Continuous Flow of Business from Investor Clients

One of the biggest advantages of working with real estate investors is their constant need for new deals. Investors are not one-time clients. They buy, sell, and hold properties on a regular basis, which can lead to multiple transactions within a single year. Agents who position themselves as trusted advisors to investors can enjoy a continuous flow of business and sales.

Investors often have extensive networks, including other potential clients and partners. By delivering consistent value, agents can tap into these professional networks, leading to new business opportunities. This can be a passive way for agents to grow their client base and brokerage without constant outreach.

How Privy Transforms the Relationship Between Agents and Investors

To be successful with investor clients, real estate agents need the right tools, especially technology. Privy is a cutting-edge platform that transforms the way agents work with investors. By providing real-time data and investment insights, Privy allows agents to quickly identify profitable opportunities for their clients. This eliminates the need for lengthy property analysis and enables agents to instantly present deals that align with their clients’ investment goals.

Privy not only makes agents more efficient but also enhances their role as trusted advisors. With the ability to offer valuable insights and expertise in a matter of seconds, agents can build stronger relationships with their investor clients, positioning themselves as indispensable partners in every transaction.

“Did you know almost 30% of the residential real estate sold in the last year was from non-institutional investors? Better question… did at least 30% of your overall business last year come from investors? If not, you need to change that, and I’ve never seen a tool make that more of a reality for you than Privy. It’s THE pivot agents need to implement right now.”
– Jared James

Privy’s Role in Efficient Deal Finding

One of Privy’s standout features is Auto Deal Finder. This tool automates the process of finding investment properties, saving agents countless hours of manual searching. By filtering through live MLS data, rental information, public records, and lending data, Privy instantly surfaces the most profitable opportunities for agents and their clients. What used to take hours or even days can now be done in minutes, giving agents more time to focus on building relationships and closing deals.

This enhanced performance is especially valuable when working with investors, who often want to move quickly to capitalize on a good deal. Privy ensures that agents can meet their clients’ demands and present deals that fit their specific criteria without delay.

The Learning Curve for Agents Working with Investors

For agents who are new to working with investors, there can be a steep learning curve. Understanding investment strategies, analyzing property potential, and knowing how to serve investor clients effectively can take time to master. However, with Privy, agents can eliminate this learning curve. The platform’s built-in investment analysis tools and real-time data make it easy for agents to provide the right advice and close more deals.

Using Privy, real estate agents can quickly become experts in real estate investing, empowering them to better serve investor clients and advance business growth.

Building Confidence with Investors

Confidence is key when working with investors. Clients rely on their agents to provide accurate and timely information that helps them make smart investment decisions. Privy gives agents the tools needed to deliver that confidence, from instant deal analysis to real-time housing market insights. By consistently presenting profitable deals and staying informed about real estate market trends, agents can build trust with their investor clients and become their go-to resource for future transactions.

Expanding Client Networks Through Investors

In addition to helping agents close more deals, Privy also supports client expansion. Privy’s platform connects agents with active investors in their MLS market, allowing them to expand their network and secure new leads. When an investor selects an agent as their Privy Preferred Agent, the agent is instantly notified of the new lead, streamlining the process of building new relationships.

This feature makes it easier for agents to grow their client base without the need for constant prospecting. By delivering value to investor clients and leveraging Privy’s network, agents can build a steady stream of new business opportunities.

Building Long-Term Investor Relationships

Maintaining long-term relationships with investor clients is crucial to sustained success. Privy makes this easier by providing tools like Deal Alerts and LiveCMAs™ that allow agents to stay engaged with their clients. By setting up customized search criteria and delivering branded reports to clients, real estate agents can ensure they remain top of mind and continue to deliver value, even when their clients are not actively searching for new properties.

This ongoing engagement helps maintain client satisfaction and encourages repeat business and referrals.

Privy and Real Estate Market Volatility

The real estate market is constantly changing, and agents need to adapt to new conditions to stay competitive. Privy equips agents with real-time data to navigate economic and market volatility and provide clients with up-to-date information. Whether adjusting to rising mortgage rates, identifying new investment hot spots, or offering advice on navigating a shifting market, Privy gives real estate agents the tools they need to thrive in any environment.

The Pivot Agents Need to Implement

Jared James’ quote highlights the importance of adapting to the growing influence of investors in the real estate market. As he says, “If at least 30% of your overall business last year didn’t come from investors, you need to change that.” Tools like Privy can make this pivot a reality for agents, providing them with the insights and efficiency they need to serve investor clients effectively.