ShareInvestors present unique opportunities for real estate professionals to grow their sales pipelines. Often, they are frequent buyers. Investors also tend to engage in faster decision-making with less emotion attached to each transaction than, say, single-family homebuyers. The investor buying process is often simpler because of those dynamics. However, investors can be highly analytical and business-focused, which requires agents and brokers to understand and deliver the data, facts and figures required to analyze potential investment returns on multiple properties. Real estate professionals who can alert investors to investment opportunities can provide even more value to clients and build lasting relationships.
Using Proptech to Streamline Data Gathering, Investment Comping
Real estate professionals who want to cultivate investor business may face a learning curve. Transactions involving investors often can be complex, time-consuming and demanding. It requires agents and brokers to invest valuable time and resources into researching and identifying markets and properties that are most likely to be profitable for investors, market trends, comparable property values, rental incomes, market variables and more.
The sheer volume of data involved in identifying properties on real estate platforms and MLS systems can be overwhelming for agents and investors alike. But technology can make wading through large datasets on multiple platforms more efficient, which means agents and brokers can be more effective. It can help agents comp investment properties faster than traditional listings, positioning them as experts in real estate investment.
Proptech can automate the labor-intensive process of data gathering to quickly identify potentially profitable properties for investors. For example, the proptech platform Privy can deliver real-time property listing datasets from MLS systems across the U.S. Plus they can provide access to public records and mortgage data, identifying every financial aspect of a property, including tax assessments, deeds, history of ownership and liens. The Privy platform also provides rental comparisons to assess the income potential of properties, and its Long-Term Rental Calculator replaces complicated spreadsheets and formulas to deliver year-over-year returns on any property type.
These types of platforms can eliminate hours—even days—of research to identify the most promising opportunities for investor clients by identifying on- and off-market properties that meet specific investment criteria. They can even align property matches to investor patterns that real estate professionals and potential investors can learn from and use to inform decision-making.
The Benefits for Real Estate Professionals
Market expertise is one of the most valuable skills real estate professionals can develop, and proptech tools can streamline the ability to offer real-time, valuable insights that were previously labor intensive to generate, especially when it comes to understanding investor needs. Consider some of these benefits:
Fueling business growth:
Proptech platforms become a market differentiator by helping real estate professionals establish and build deep connections with investors. They allow real estate professionals to create and share branded investment deal information, custom search alerts, and comparables in raising their visibility and supporting the growing portfolios of potential investor clients.
Combing through large datasets:
Proptech tools can effortlessly sift through enormous datasets to illuminate what the best potential deals in any given market look like from day to day. For example, Privy does it by analyzing data and successful investment strategies to instantly surface profitable investment opportunities. Those results can give real estate professionals an edge when advising investors and offering buying options that can increase return on investment (ROI).
Fostering better client relationships:
These platforms are designed to help agents and brokers build relationships with investors. A proptech platform that streamlines data gathering and delivery, identifies the best investment properties and maximizes opportunities can help real estate professionals build trust with clients and become valued partners in investor deals.
New Solutions to Existing Challenges
The real estate domain is a dynamic and evolving business sector. Developing a portfolio of investor clients is one way to navigate change and expand revenue streams as agents and brokers look to expand their businesses. Proptech can be leveraged to remain competitive and thrive during changing economic and market conditions.
New technology brings ideas and opportunities that can transform the way real estate professionals do business. To partner successfully with investor clients, real estate professionals can incorporate proptech platforms to deliver real-time property data, rapid, accurate market analysis, investment insights, and the most profitable investment opportunities to meet every client’s investment goals.
In today’s tech-driven economy, the right proptech tools often accelerate business growth and, when incorporated wisely, can establish agents and brokers as trusted advisers. It can set real estate professionals on a course for success now and into the future.
References
Aceable, “Types of Clients You Will Run Into as a Real Estate Agent,” Online.
Feeney, C.; F. Metz; “How to Find Investor-Friendly Realtors: Look for These Nine Skills,” Homelight, 21 June 2024, Online.
GC Real Estate, "The Challenges of Real Estate Investing," March 2024, Online.
“Privy,” Online.