Let’s discuss how I go about finding an investor friendly real estate agent and at times, mold an agent into one.
Using a Real Estate Agent
Obviously you can not use an agent, but for new investors this makes zero sense. Especially on the buy side, where it costs little to nothing.
Plus, if you’re making your first purchase it’s good to have someone that understands all the terminology and has done the process before.
As long as the the agent doesn’t do a Houdini coming into closing like happened on my very first deal. Needless to say I was a bit lost at the closing table and don’t want that to happen to you too!
So it makes sense to find a good agent on your first purchase, if not all of them.
How do we find a investor friendly real estate agent?
I’ll admit, they are a bit like unicorns. You hear people claim to know one, but never end up meeting them in real life.
I will say that if you want a shot at finding one be sure to hit up meetings, such as your local Real Estate Investors Association (REIA). I go to mine monthly and there are always agents there looking to work with investors.
Now it’s just a matter of if they are qualified to help…
Here are the steps I take to qualify or even mold an agent:
Find an agent with a track record of happy customers of regular home purchases
Seeing they can provide good service to John and Jane Doe on their owner occupant home purchase, let’s us know they are competent in the basics and likely have a network of resources.
Let them know you are an investor
By putting that out there the agent knows what they are getting into. As investors we are going to look at more properties and put out more offers than their typical homebuyer.
Give them your search parameters to see if they can competently provide what you need
Specifically: Price range, Geographical area, # of Beds, Baths and square foot range.
If they send you a bunch of properties that do not meet your criteria there should be an explanation as to why. If not, move on to someone else.
Find someone teachable – willing to learn.
In my experience finding an agent that has 1-2 years under their belt has worked out well.
The reason is two-fold. They have been around just long enough to be established and competent, but not so long that they are no longer hunger and willing to hustle.
An investor’s agent is going to hustle more than for owner occupants, it’s that simple. We simply look at more properties, put in more offers and thus – do more deals!
Also, see if they understand what a good deal looks like on a rental property. If not, give them examples of returns you look for and the basic math to see if a property will meet that goal.
Holding Up Your End
You also need to show the agent you are not blowing smoke and are a serious investor – even if it’s going to be your first deal.
To do this – be prepared with the items listed above and then…
- Confidently share what your property search criteria is.
- Confidently express what your investor goals are over the short-term and long-term
- Be clear what type of percentage return you’re looking for and that you’ve done the research to know those returns are attainable in your given market
Now go find yourself that agent!
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