How To Win Over Pig-headed Real Estate Investors

We've all been there. Anyone who has worked with real estate investment properties long enough has undoubtedly had to deal with a pig-headed real estate investor. That inflexible so-and-so who makes unreasonable demands as either the seller or buyer of rental property.

Pig-headed investors are easy to identify. They demand that we list their property for a price that far exceeds market value in the hope of making a huge and unwarranted profit. Or they have us write and present an offer far below market value hoping to steal and make a once-in-the-lifetime deal on the rental property.

Sound familiar, probably. If we sell income property long enough, we simply are bound to encounter at least one obstinate investor eventually. It's the law of the jungle.

Okay, so how is a decent, law-abiding real estate agent who is simply trying to pursue an honest career supposed to react? It generally boils down to one of several.

1. You can cower to the investor - Yes, you can list the investor's rental property at the over-priced price and hope someone ill informed enough (or maybe in a tax exchange and desperate enough) will pay the price, or present your headstrong customer's low-ball offer and keep your fingers crossed. Bear in mind, though, that unless an all cash offer in involved you will have to await an appraisal that either makes or breaks the deal. Moreover, when you fail to produce (which does happen) the investor could lose patience and unfairly dump you (which also happens). Either way, at the end of the day you could walk away with nothing.

2. You can defy the investor - This is maybe the least popular option for several reasons. Real estate agents often aren't knowledgeable enough about rental income property to stand toe-to-toe with unyielding investors, or just too greedy to rock the boat if it means losing a potential sale, which, of course, is understandable though, it does happen. There really are agents who won't waste their time marketing over-priced listings or writing unreasonable offers.

3. You can refer the investor to a colleague - This is not a bad alternative. If you're astute enough to recognize all the signs early on, you can spare yourself the time and frustration of having to deal with a hardnosed and uncompromising buyer or seller and bank on the efforts of a colleague. It will mean less commission, of course, but it's smart to know when you're outside your comfort zone and should trust a colleague deemed better-suited to maybe close a transaction.

4. You can inform the investor with the facts - This is the high road, though it's much more than simply voicing your opinion. A strong willed investor is not about to be influenced by the opinion of a real estate agent. It's about presenting clear, concise, and accurate data, and almost certainly, the best opportunity for you to influence an unreasonable investor. You will have to research and create comparable market and cash flow analysis presentations, but quality real estate investment software can help you do this easily. This is far and away the most professional reaction you can make to a pig-headed investor, and not surprisingly, also the most profitable for you over the long run.