What kind of Real Estate investor are you? All Investors should read
This piece might rub some investors the wrong way but that’s the point. The truth hurts and if you don’t like what you are reading more often it’s because you are reading something about yourself that didn’t digest well. Instead take on board this information and grow to be a better Real Estate investor.
All these different types of investors have come from personal experiences during my time as a Realtor and the interactions I’ve had. For Realtors who want to have investor clients this is a good guide so your time is not wasted. As you’re most valuable asset is your TIME and KNOWLEDGE. I prefer to have an investor dislike me because I don’t have time to service them then I spin my wheels to never have them close because it’s just not a good enough deal or doesn’t fit 100% of their investment criteria.
Tire Kicker– This investor usually has attend an investing seminar or read some investing forums and picked up some key real estate words, now they are contacting every Realtor in their market regurgitating some key phrase “I’m going to make close 10deals in the next 6 months with you” but sadly never will. Will want to submit on every property that they ran their numbers but always submits way under asking price to where it doesn’t make sense for a Realtor to write up the offer. Will come up with excuses “But that’s what I was taught by my Guru or I read on X forum” while the Realtor is advising they are not in tune with the market. Eventually the Realtor walks away and this investor pitches the same lines to the new Realtor. Usually never buys because they can’t find a deal that hits their numbers.
Blood Sucker / Vampire– This investor is exactly as the name reads. They might have one or two deals under their belts already. They want to always get the best deal in the market. Some investors can hide it better than others thou but it comes out eventually. The first phone call to a Realtor usually has the lines, “I don’t want just a deal; I want to find properties that are 30-40% under market price”. They negotiate hard but are always trying to get more and more. They walk over dollars to make pennies. Not satisfied with the fact they got a great deal under contract they want another further discount off the price because of small things that came up in an inspection. These investors are the ones that make other investors look bad; they are not helping anyone themselves, no care is given to any other parties in the real estate transaction.
Grower– A newer investor, they seek to learn from someone with experience. They want guidance in this journey they are about to embark on. This investor actually wants a WIN/WIN for everyone. They are willing to listen, take information on board, do their own research, and make changes to their criteria for investing. It may take some explaining from the Realtor about the current market conditions but they understand that a Realtors time is valuable so they are submitting offers that are competitive. 9 times out of 10 this investor will buy and will be a returning client because of the guidance/advise they received.
Realist– This investor is prepared. They have done some self learning of the market, run numbers on properties and maybe already have a preapproval on hand. They might have fallen victim to analysis paralysis OR just need to pull the trigger but need some reassurance. This investor WILL BUY. As a Realtor you need give them some of the finer details of investing. They negotiate well and actually see the bigger picture. It’s a long game that they are playing and one deal is not going to make get them into retirement status. They will be repeat customers with the right guidance; this investor is the one a Realtor calls when a great deal comes along because a Realtor know they put their money where their mouth is.
It’s worth noting that these four investor’s types can always can during their investment journey. But as we all know first impressions make a huge impact.