Right now, hundreds of small-time property investors are offloading their properties to some of the real estate industry’s biggest investors. These large investors typically come with all-cash offers and work with local investors to put together large portfolios of properties in areas poised to increase property value.
Especially now, as the pandemic continues to roil the residential real estate industry, there’s never been a better time to sell properties to large investors interested in your portfolio.
While getting your foot in the door with these big investors might seem daunting, with the right properties and a bit of know-how, you can take your investment hustle up a notch — and make good on your investments at the same time.
Get familiar with the area
Here’s the tough truth: Not every real estate portfolio is going to be worth anything to the kind of cash-rich institutional investor you’re looking to sell to. These large investors look at a whole swath of factors — factors you should be considering when making your own investments — when making purchases.
Before you sit down at the table with the investor of your dreams, get all your information in order. Have in mind your properties’ market metrics and be ready to present them to investors as part of your sales pitch.
“You should be asking yourself what the hot areas are, how long the market is projected to stay the way it is, and how you’re measuring what makes the property a good investment,” said Greg Moser, president of The Moser Group which helps top investors find properties. “If you show the property’s value from a financial and investment standpoint, you’re more likely to interest investors.”
Prioritize working with big investors to sell groups of properties in high-value areas or in areas where real estate is selling at a premium. Make sure you’re staying abreast of markets that are moving quickly, especially during the COVID-19 housing market boom.
And remember, there’s a good chance the market is never going to be the same, so don’t treat this as an outlying set of circumstances — treat the market as if this is the way it’s always going to be.
Customize your campaign
For most large investment groups, the appeal of residential property investment is in their ability to round out their portfolio with high-value properties in markets that are always on the move.
Knowing that this is many groups’ base priority is one thing, but the way to set your properties apart as a potential business venture — and signify that you are someone these investment groups may want to partner with long-term — is to demonstrate that you know where the best residential properties are and have the connections to purchase them and deliver them to big investors.
“Each property is an opportunity to create a tailored market action plan, and these big investors know that,” said Moser. “Demonstrating how to consistently find and purchase residential investment properties that offer major terms is the way to not just make a one-time sale to these big investors, but broker long-term working relationships.”
By demonstrating that you are the right investor to assist large firms in setting market trends and unlocking market value, you’re one step closer to being the go-to investor for these firms in your area — which is great news for your portfolio and your wallet.
Shift your mindset
If you’re dipping your toe into the big pond by selling properties to big investors instead of keeping your venture local, why not think bigger? You know the markets in which you buy and sell residential properties, and there are lots of large-scale investors who want to harness that expertise.
If you have a robust portfolio of properties in areas with fast-moving, lucrative markets, there has never been a better time to expand your offerings past local residential real estate and to large investors interested in the market and your portfolio.
By leveraging your connections and holdings, you’ll be able to break into a larger pool of investor resources and make a killing off of your existing investments. There’s never been a better time to take the leap.
Victoria Kennedy is CEO of Atman Real Estate. Connect with her via email.
