Working with Investors: The Realtor’s Guide
Working with investors can be a rewarding yet challenging part of your real estate business. In this episode, we shift our focus from being the investor (as discussed in episodes 51 and 52) to being the agent helping investors navigate the market. Whether you’re considering building relationships with investor clients or thinking of walking away from them, this episode offers practical insight, boundaries to consider, and helpful tools to manage expectations and workload.
Why We’ve Stepped Back from Investor Clients
While investor clients can bring repeat business, working with investors is often time-intensive. For Alyssa and Katy, the return on time invested began to dwindle. Many new investors need education, ask for unrealistic deals, or don’t follow through. You may spend hours researching, writing offers, and gathering documents—only to have nothing close. Sometimes, these clients aren’t truly ready, and you’re left doing a lot of free coaching with little to show for it.
Defining Boundaries and Saying “No”
It’s okay to set boundaries. Alyssa shared how she reached a breaking point and created a saved email template to gently decline investor clients. She included her reasons: she’s a conservative investor, she had trouble advising investors she didn’t agree with, and she wanted to focus her energy where it made business sense. She now refers those leads to trusted colleagues. If you’re feeling burned out, crafting your own “why I don’t work with investors” message can help you gracefully say no while maintaining professionalism.
Set Expectations Early
If you choose to continue working with investors, set clear expectations. Require your investor clients to:
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Drive by properties before contacting you
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Have proof of funds or pre-approval ready
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Understand they need to do some legwork
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Communicate their budget, goals, and desired timeline
Katy uses a list of investor intake questions to quickly gauge readiness. These include cap rate importance, cash flow goals, property type, timeframe, and location preferences. This process saves time and filters out clients who aren’t serious or don’t understand the market.
Investor Clients Require More Research
Unlike traditional buyers and sellers, investor clients often ask for:
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Comps on current and post-renovation value
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Rental income potential
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ROI projections
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Access to foreclosure and off-market deals
This means you’re pulling more data, writing more offers, and working harder per transaction. And when working with distressed properties or bank-owned homes, you’ll face more complex paperwork, tight deadlines, and unresponsive listing agents.
Know Your Limits (and the Law)
Agents cannot act as CPAs or financial advisors. When clients ask about taxes, capital gains, or ROI, direct them to their accountant. Document that recommendation via email to protect yourself. Real estate professionals can help interpret market data—but shouldn’t give tax or financial advice.
When It’s Worth It: The Long Game
Some investor relationships can be worthwhile if you establish mutual respect and guidelines. Alyssa shared how she kept one investor client who adjusted his process to fit her boundaries—driving by homes first, handling research, and only sending serious leads. As a result, she listed a property for him at $250,000 that he purchased for $84,000. The work paid off because it was approached as a true partnership.
Real Talk: Not Every Deal Is Worth It
Investor clients may want to chase pre-foreclosures, sheriff sales, and off-market properties. But many of these paths involve complex processes, legal timelines, or cash-only deals. It’s essential to explain these nuances and know how they work in your market. Having strong email templates that outline foreclosure timelines, required documentation, and realistic expectations can save hours of back-and-forth.
Commercial Real Estate? Refer It Out
If a client asks for help finding a restaurant or office space, you don’t have to do it yourself. Commercial real estate is a different world—different contracts, systems, and expectations. Instead, build referral relationships with experienced commercial agents. You’ll save yourself the stress, and they’ll often return the favor with residential referrals.
Is Working With Investors Right for You?
Working with investors can be ideal for newer agents who want to gain experience, learn fast, and handle multiple transactions. But it’s not for everyone—and that’s okay. Be honest with yourself about your bandwidth, skill set, and goals. If you’re unsure where you stand, start with a clear intake system and set boundaries early. If it’s no longer serving you, let it go.
Final Thoughts
Every real estate agent will eventually encounter a client who wants to become an investor. Preparing now will help you guide them with confidence—or refer them with grace. Whether you love it or leave it, working with investors is a part of our industry worth understanding.
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