STR's and ABB's and VRBO's

One of the hottest trends in the real estate industry in the past 10 years has been investment properties.   'Passive income' has become more than a term, it's become a hot button topic.  Many buyers believe that the income will flow simply by acquiring an income/ investment properties.  However, investing in multi family or commercial real estate is serious business and must be treated as such.  


However, there is serious upside in acquiring investment property and generating long term cash flow and passive income if done properly, with the right strategy and guidance.


There are 4 main ways your investor clients will make money:

  • Cash flow of the property
  • Debt pay down by the tenants
  • Annual Appreciation
  • Tax benefits related to using depreciation as a method to 'reduce' shown income

Qualifying and Supporting Investor Clients


1. Vetting Investor Intentions and Knowledge

  • Ask clarifying questions, especially with remote investors, about comfort levels and market understanding.
  • Confirm they’ve consulted financial professionals, and are comfortable pursuing real estate.

2. Acting as an Advisor, Not a Financial Planner

  • Avoid giving financial or legal advice.
  • Provide resources like rental calculators and market comps to aid decision-making.

3. Focus on Investment Fundamentals

  • Prioritize properties that attract and retain high-quality tenants.
  • Highlight proximity to employers, good schools, and commuter access.

Working Successfully with Investor Clients


✅ Expect to screen multiple prospects—only 1 or 2 in 10 may be a good fit.

✅ Be prepared to say "no" more than "yes" to listings that don’t meet investment goals.

✅ Emphasize process, expectations, and data-driven decision-making.


Property Management Matters


  • Recommend trusted, locally managed companies with strong portfolios.
  • Stress early on the importance of professional management to reduce owner stress.

Example: Locator's Management consistently sets expectations, finds quality tenants, and keeps investors informed and confident.

Conclusion

Working with real estate investors can be incredibly rewarding, especially when you focus on strategic planning, honest communication, and long-term value. Whether you're just entering the investor niche or looking to sharpen your skills, remember: