When investing in real estate, buyers create a short-term goal, and that goal helps them develop an investment strategy. As a seller, there are three proven ways that you may use to find buyers; it is beneficial to find a licensed real estate professional who is an expert in the kind of commercial real estate you invest in. You may also find buyers by using social media and joining investment groups with in-person networking.
How do I find Property Buyers for my Investment Property?
1. Hire an Investment Property Real Estate Expert
Do your due diligence and find an expert in the type of commercial real estate investment you wish to sell. A licensed associate may help you find a buyer and handle transaction management of the purchase and sale.
A professional will know the ins and outs of the real estate market and may have potential buyers for a property you are trying to sell from their extensive network. Professional associates can specialize in many types of real estate, including but not limited to mid-market mixed-use, retail, and multifamily assets. If you hire them to sell your property, they have a fiduciary responsibility and must do everything in your best interest.
When you visit a real estate firm’s website, you can learn more about that specific firm, see examples of their transactions, and understand if they are the right fit for you. By following a commercial investment real estate firm on social media, you’ll benefit by seeing what transactions are happening in the markets where you own properties.
When selling a property “on-market” through an exclusive agreement with a professional real estate firm, you will get the highest price when selling your commercial real estate.
“I truly believe competition drives pricing. The more eyes on a property, the more tours, the more offers, etc. There is no substitute for a full marketing process led by a qualified Investment Sales Broker under an exclusive representation agreement to create an environment where as many qualified bidders as possible are pursuing a property. Objectively that process will yield the highest possible price at the best possible terms for a seller.” -Bradley Balletto, VP of Investments
When considering which brokerage firm to hire, look for one with a current and well-developed website. Ensuring the firm has a company website will make you feel more comfortable knowing who you are working with and can provide you with valuable knowledge about your trusted partner. Seeing what properties licensed associates have sold and what’s for sale on their website shows they have experience; understanding a firm’s history and core values allows you to feel confident in your decision to work with them.
Sales and marketing activities Commercial Investment Real Estate Professionals
Here is a list of what licensed associates do when they want to find a buyer for your investment property.
- Make outbound calls
- Networking & Advertising
- Talk to past clients
- Qualify leads that come in through listing platforms
- Follow up on inspections
- Complete due diligence
- Work with attorneys
- Create sales marketing documents such as current and pro forma rent rolls and offering memorandum
- Communicate with contractors
- Make sure everything is ready for closing on a property
What is due diligence?
Due diligence is the process of confirming that you, as the seller, accurately represent all aspects of the property to the buyer. By doing this, you will have an easier time selling your property.
“Before you close contingencies on a property under contract, check for any hidden costs and loose ends associated with the deal that could cause grief down the road. It is best practice to create a checklist involving inspections, audits, and property analysis to accomplish this. Two categories define this checklist: physical due diligence and financial due diligence. In simple terms, due diligence confirms that a seller accurately represents all aspects of the property to you.” – Jake Levin, Northeast Private Client Group
In our blog post on Multifamily Due Diligence, you can read more about what due diligence items need review.
The benefits of working with real estate associates who are part of a team
When you hire a licensed real estate professional, it benefits you to work with one who works as part of a team. By selecting a team to represent you in the sale of your asset, you minimize your hassle and will have more than one person working on your sale. They will qualify buyers and help you sell your property to the right buyer.
Additionally, they may hire a professional photographer to take pictures. With more hands working on your deal, things may move more quickly. Each team member can help with talking to the lawyers, creating contracts, and giving the buyers’ representatives all the information they need about the property.
Collaboration is inherent in a commercial real estate company. Companies with a team-structured atmosphere participate in the overall success of their organization, advocate teamwork and celebrate each other.
Professional associates can be an outstanding resource to connect to on LinkedIn. They are often connected to buyers, licensed mortgage professionals, escrow officers, appraisers, and contractors.
2. Social Media
When it’s time to sell your commercial real estate investment property, being on social media has advantages. You can see which properties have sold or are for sale (FOR FREE) at your fingertips on social media platforms. When you follow professional associates, you’ll see how that organization promotes its listings; and you can leverage your social media follower to get the word out that your property is for sale.
What is Social Networking?
Social networking allows you to stay in touch with potential buyers, prospects, and friends to establish a connection between you and your contacts.
Why is Social Networking so important?
It helps you expand your network, add friends, make connections, and find licensed professionals. It’s easy to use, and it can help you build relationships.
The Benefits of using Social Networking for Selling Investment Real Estate
- Free advertising
- User friendly
- Increase your visibility
- Brand Marketing (when you hire a professional brokerage)
- Up to date on news
- Making connections with similar interest
Visibility gets a potential buyer wanting to talk to a licensed associate about your investment property!
Social media is only as successful as the time you put into it. If you or the licensed professional you hire doesn’t spend the necessary time to make your efforts successful, they will fail. If you hire a professional, your licensed associate will spend time and money on creating visibility for your property. It’s essential to narrow your focus to a few social media platforms where you can drive results and reshare you’re listing.
For finding buyers for your investment property, the four most effective platforms are LinkedIn, Twitter, Facebook, and Instagram – each for different reasons.
- LinkedIn is the most effective social media platform for professional networking. If your goal is to sell without hiring a brokerage firm, you may find a lot of potential buyers who would be interested in your property, and you can reach out to them directly. LinkedIn also has several private commercial real estate focused groups you can join. If you hire a brokerage firm, they may leverage LinkedIn to post, share, and link back to their website, where potential clients can find more information about the property you are trying to sell. A licensed professional knows what and when to post; and the type of posts buyers want to see to encourage interest in your investment property.
- Twitter offers several benefits with a relatively low barrier to entry compared to other platforms. You or your real estate professional can use hashtags to optimize the visibility of a post and follow the news about commercial real estate investing. You can also follow licensed real estate professionals, see what they post, and engage with posts to network directly.
Here are some popular hashtags used on commercial real estate social media platforms.
3. Facebook is not as popular for commercial real estate. Where Facebook shines for investment real estate is in Facebook Groups. A few groups are for professional connecting. Some commercial real estate companies have their business on Facebook to create a brand, build followers, run advertisements on investment properties, and engage with followers.
Here are a few New England Facebook Groups you may consider joining.
- Commercial Real Estate Multifamily
- Brooklyn Commercial Real Estate
- Connecticut Commercial Real Estate
- Commercial Real Estate
- Commercial Real Estate in New York
- South Boston Real Estate
- Boston Real Estate Investor Group
- Commercial Real Estate Investor Network
4. Instagram has been become a very popular social media platforms. It’s a visual content platform; suitable for posting pictures or videos of assets that have sold, are for sale, or have a reduced price. By having your licensed professional post on their firm’s Instagram, they can list the key selling points of individual properties to grab potential buyers’ attention. They also follow people who post similar content, and you can follow them too.
3. Investment Groups
Whether you are a first-time seller of your investment property or a seasoned professional real estate investor, you need to think about how you’ll sell your property when the time comes and start make connections.
You can follow real estate investment groups on LinkedIn to connect with professionals, potential buyers, legal advisors, lenders, referral network groups, etc.
- Fairfield County Connecticut Real Estate Investor & Investment Group
- New York Business Development Group
- Bulk Real Estate Investments
How do I find an investment buyer?
To find an investment buyer for your property, you must have a list of qualified buyers. Here are a few ways you can find a buyer:
- Hire a licensed real estate professional
- Social media
- Social networking
- Real estate investor clubs
Real Estate Investment Clubs
Per The Balance, “Joining an investment group focused on real estate can help ease some of that anxiety and assist you in reaching your financial goals. Whether you’re a first-time investor or you’ve been at it for a while, knowing the pros and cons of this type of club can go a long way toward helping you decide if it’s something you want to get involved with.”
By joining real estate investment clubs, you will have the ability to do in-person or social network to find buyers.
To find buyers for your investment property, find a licensed real estate professional knowledgeable in the types of property you are selling and the location you are selling in. The increased visibility and competitive selling process a property goes through when listed with a real estate professional may maximize your outcomes when selling your investment property.
If you decide to sell your property on your own, you may consider using social media to make connections. Or you may want to join an investment group with in-person networking to help you find potential buyers.
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