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Posted over 9 years ago

Real Estate Investor Etiquette: Dealing with Sellers

realestateinvestor realestateagentAs a real estate investor, one of the most important things you can do is to, well, invest in other people. Making connections brings in leads, and when you prove to be an honest investor, people will be more likely to work with you, recommend you, and generally make your life a lot easier.  We built our entire business which thrives in the Memphis real estate investing market and has grown into the Dallas real estate investing and Houston real estate investing markets, on relationship building.  Every step of the way, treating people great and building relationships was vitally important.

While that doesn’t mean that every real estate investor will be fast friends with every seller and real estate agent, networking is vital to lead generation.

And when you do acquire leads, you have to make sure that you actually follow up on them.

Investment Strategies for Dealing with Sellers

While in some cases you won’t be dealing directly with sellers, the impression you are able to make on them is important if you have hopes that they’ll accept your offer. It requires a bit of finesse. When you meet and talk to a seller, your mindset has to come from a different place than if you were talking to someone in the business.

Don’t Talk Shop Straight Away

First impressions are everything. Sellers can evaluate you and make split-second decisions about whether they’d like to sell to you. Your clothing, your demeanor and your attitude all matter. You want to exude confidence but be genuinely friendly. Don’t immediately jump into talking about the property, specs and dollar signs. Make an effort to get to know the sellers — ask them a few questions about themselves, what their plans are, and build a rapport with them before diving into the details of a deal.

Be Honest

Sellers probably won’t mind if you’re going to turn their property into a rental. There’s no reason to hide or talk around that fact. At the same time, though, you don’t want to ramble about positive cash flows or specific numbers as to how much you hope to make on their house or charge for rent.

Avoid Being Pushy

You might be on a time crunch and ready to close the deal, but the sellers may not be. Don't push sellers based on your timeline and revenue expectations. Honest reminders of your interest in buying from them are fine, but steer clear of being too demanding or pushy about what you think they should do and when they should do it.

The Value of Realtors and Real Estate Agents

While you may only deal with an individual seller once, real estate agents and realtors often handle several projects at once. A great investment strategy for finding leads is to build good relationships with agents and realtors (realtors are recommended for the strong code of ethics they’re bound to) in your area.

When you have a deal to close, don’t waste their time. They only get paid when the property is sold, and if you hold up on closing, it won’t make them happy with you. Be honest, punctual and professional when dealing with real estate professionals. While there will undoubtedly be more shop talk than if you were dealing directly with a seller, that same rapport-building is vital to making good connections that will bring in more leads, more opportunities, and more positive cash flow.

How do you approach dealing with real estate agents and sellers? Let us know in the comments.

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image credit: Mark Moz, pallspera.com



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