Real estate agents and investors need each other—but they often don’t speak the same language.
Agents are trained to focus on emotional appeal, neighborhood charm, and retail pricing. Investors, on the other hand, are driven by numbers: return on investment (ROI), after-repair value (ARV), and how fast they can buy or sell.
When an agent fails to understand an investor’s priorities, deals fall apart. Misunderstandings lead to missed opportunities, frustration, and lost income for both parties. But when agents learn how to work effectively with investors, they can build repeat business relationships that generate consistent commissions.
As investors we have seen this happen with many agents over the years. Part of it was our fault, and then part of it was the agent’s fault.
Getting to know a few agents that know how to work with investors, and their purchasing habits can go a long way toward more deals closed.
It isn’t always the agent that is at fault, next week, I have another post being published that lists the top 5 investor mistakes when working with agents.
In this post, we’ll explore the five biggest mistakes agents make with real estate investors—and, more importantly, how to fix them so you can create profitable, long-term partnerships.
Mistake #1: Focusing on Emotion Instead of Numbers
For most residential buyers, purchasing a home is emotional—they imagine family dinners in the kitchen, backyard barbecues, and holiday gatherings. Agents often lean into that, painting a lifestyle picture.
This is where the agent has to wear two different hats, and some days it might not be easy for them to switch.
But with investors, emotions take a back seat to math. They want to know:
- How much can I buy this property for?
- What will it cost to renovate?
- What can I rent or sell it for?
- What’s my projected ROI?
If you try to sell an investor on how “cozy” the living room feels, you’ll lose their attention.
How to Fix It:
- Speak the investor’s language: “This property is listed at $210K, needs about $25K in updates, and should resell for $290K. That’s an estimated $40–45K profit before closing costs.”
- Provide data-rich property packages that include ARV estimates, rental comps, and renovation projections.
- Use spreadsheets, not sales pitches.
Mistake #2: Ignoring Speed and Timing
Investors often operate on tight timelines. A good deal won’t stay available for long, sometimes only hours. Agents who move slowly risk losing deals to faster competitors.
Examples of delays that frustrate investors:
- Taking a day or two to schedule a showing
- Delayed responses to offers or counteroffers
- Waiting too long to send comps or data
How to Fix It:
- Treating investor clients as time-sensitive priority, they often close more deals than retail buyers.
- Set up MLS alerts so they see new listings immediately.
- Learn to write clean offers quickly, even same day if needed.
- Building a streamlined communication process—text updates can be faster than email.
Mistake #3: Overpricing or Mispricing Listings for Investors
When listing properties to investors—or showing them potential deals—some agents misprice based on retail buyer comps. Investors aren’t looking for top-of-market retail pricing; they need room to profit after repairs.
If you present deals priced too high, investors won’t take you seriously. On the flip side, if you underprice without understanding renovation costs, you risk them buying into a bad deal.
How to Fix It:
- Learn to calculate Maximum Allowable Offer (MAO):
- Always factor in holding costs, selling costs, and contingency buffers.
- Use investor-specific comps—look at recent sales of renovated properties, not just average neighborhood sales.
Mistake #4: Not Understanding the Different Types of Investors
Not all investors have the same goals. If you assume every investor is a house flipper, you’ll misalign your property recommendations.
Types of investors include:
- Buy-and-Hold Investors – Focused on long-term rental income
- Fix-and-Flip Investors – Looking for undervalued properties they can renovate and sell quickly
- Wholesale Investors – Assign contracts to other buyers without holding the property
- Short-Term Rental Investors – Seek properties ideal for Airbnb/VRBO income
How to Fix It:
- Ask investors upfront:
- “Are you looking for flips, rentals, or another strategy?”
- “What’s your ideal ROI or cap rate?”
- “Do you focus on specific neighborhoods or property types?”
- Tailor your property searches and pitches to their strategy.
- Avoid sending irrelevant listings—it wastes both of your time.
An agent can certainly pass even a marginal deal to an investor, but explaining it to the investor that it may not fit for them gives the investor the option of exploring it further or not looking at it at all.
Know your investors:
If you work with investors, one of the best things you can do is create a spreadsheet of what types of homes they search for, their criteria, and goals, especially if they have purchased through you before.
If they haven’t, you can do research on their purchasing name, (Jake’s LLC. Etc.), to see what they purchased in the past, how long they owned it, and what the before and after conditions were, you will now know what kinds of properties to send them, and the price ranges.
Mistake #5: Treating the Relationship as a One-Off Transaction
Many agents view investor clients as “one and done” deals, but seasoned investors buy multiple properties a year—sometimes monthly. If you can become their go-to agent, you can build a steady pipeline of commission income.
How to Fix It:
- Stay in touch between, send them new opportunities as they arise.
- Offer value beyond finding properties:
- Share referrals to contractors, property managers, and lenders
- Provide market updates relevant to their investment strategy
- Think like a business partner, not just a salesperson.
Building Stronger, More Profitable Relationships with Investors
If you want to succeed with investor clients, you need to adapt your approach. Here’s a roadmap:
- Learn Investment Math – Understand ARV, MAO, ROI, cap rate, and cash-on-cash returns.
- Be Fast and Responsive – The quicker you move, the more deals you’ll close.
- Deliver Value Beyond the Sale – Bring off-market deals, contractor connections, and insider insights.
- Specialize in an Investor Niche – Be the local “go-to” for flips, rentals, or short-term rentals.
- Think Long-Term – Aim for a multi-deal relationship, not a single commission.
Put It All Together:
Working with real estate investors requires a different skill set than working with retail buyers, but the rewards can be enormous. Investors are repeat customers who value agents that understand their goals, move fast, and bring profitable deals.
Avoid these five common mistakes, focus on speaking their language, and you can turn one investor client into a steady stream of business.
Next week, there will also be another post that references Investors working with agents and the top 5 mistakes they make!