“I am looking for an investor-friendly real estate agent.” Have you heard this statement before – maybe in meetups, on forums, or in Facebook groups?
This is actually one of the most common things that new investors are looking for as they look for deals.
And yet, I’ve never seen the definition of an investor-friendly agent! I Thinking What everyone means when they are looking for an IFA (that’s my handy new acronym for the rest of the article) is the right agent to help them achieve their goals. Aren’t we all!
I think one of the main assumptions investors make is that they want an agent who knows investment properties (and most likely an investor himself). The question is: why?
Who is an Investor Friendly Agent?
In my humble opinion, based on my experience, here I am Thinking Here’s what investors mean when describing the perfect IFA:
One investor friendly agent Is a licensed real estate professional who has experience with investment properties, worked with investors, and has knowledge of the local market. The said agent shall also be an investor. They will help find deals, analyze them, make offers and sell properties as needed.
It seems fair enough, doesn’t it? Seems like every investor’s dream agent. But let’s revisit the question I mentioned earlier, “Why would I want this type of agent?”
get clear about your goals
When it comes to real estate investing, many people have trouble choosing a location or deciding whether to buy their first or second property. I always come back to, “What are your goals?”
If you have clearly defined goals and a plan to get there, many of these other questions (and sometimes excuses) go away.
When you’re looking for an IFA, start with your goals. How do you plan to get where you’re going? How does an agent fit in?
If you are looking to purchase a single family, cash-flow rental in a specific market, it will help to inform the type of agent you are looking for. If you are looking for homes to flip, you may actually need a different IFA skill set.
avoid asking the wrong questions
many users And Investors make the mistake of going with the first agent who shows them a home. While this can be an indicator of hustle and potential, it can also mean negative things (such as frustration).
Instead, it’s important to interview agents first. Let’s explore some of the questions investors think are relevant but are actually the wrong ones to ask.
Don’t Ask: Are You An Investor?
Again, the assumption investors make is that they need an agent who is also an investor. Why is that the case?
Personally, I would almost prefer that they are No an investor. I don’t want to be in competition with my agent for similar properties. I’ve heard of cases where agents cherry pick the best deals (usually before they go on the market) and then push their investor clients into less favorable MLS deals.
Wouldn’t it be better for you if your agent gave you those sweet off-market deals instead of keeping them?
Connected: 7 Signs of a Bad Real Estate Agent
Don’t Ask This: How Long Have You Been in Business?
I think it’s pretty irrelevant. Many people think that you need to go with a highly experienced agent. While sometimes this is helpful, let’s look at it from a broader perspective.
If an agent is “seasoned,” they probably have many repeat clients and lots of referral business, are fairly busy, and are probably doing fine financially. Are they really going to work that hard to find you that severely distressed property that will only pay them a $1,500 commission?
I’d rather work with a new, hungry agent who wants to build her business. It’s more likely that they’ll have time to help you, they’ll go the extra mile, and they’ll want to earn your future business.
While they may be less experienced, these new agents rely heavily on their managing broker for help, advice and resources. It’s like you’re getting two agents for the price of one.
Don’t Ask: Can You Help Analyze Deals?
Don’t be lazy guys. Your agent should not be analyzing deals for you. You should run all your numbers yourself.
Of course, you can rely on them for some information, such as local rents, comps, etc. But you can also find these yourself using Rentometer, Craigslist, Zillow, etc.
Don’t ask: do you have a deal for me right now?
Even if they did, why would they impose it on you, if you haven’t proved it? you yourself So far as a close. Agents don’t get paid until closing, so tread carefully until you can prove yourself as a serious buyer. Have your financing ready, know your criteria inside and out, and don’t waste their time.
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ask these questions instead
Here are some questions you’ll definitely want to keep in mind as you interview IFAs.
Ask: How do you find deals for customers?
if there is an agent Only I’m going to set you up with an MLS feed based on your criteria, just go through it from the start. Bonus points if they can score off-market properties for you through their network or other marketing.
Ask: How do you communicate?
This is important and can ruin a relationship if done poorly. Communication style varies from person to person. For example, when I was an agent, I noticed that clients became dependent on one form of communication over another. Some will prefer a phone call, while others prefer email. Many people just want to text.
Once I noticed that pattern, I would ask clients before working with them: “What is your preferred method of communication?”
If the situation allows, I will always try my best to respect their choice. Make sure you and your agent are on the same page when it comes to communication—both How you will communicate And how often,
Connected: 3 Tips for Finding a Real Estate Agent (For Investors!)
Ask: How fast can you work?
Speed is important in real estate. You never know when another buyer is ready to snatch your deal. Therefore, make sure your agent can quickly write up a contract (preferably using DocuSign or Dotloop) or get you into a property in a relatively short amount of time. Ask them: If for some reason they can’t show the property, can another agent in their office show the house in a pinch?
Ask: Are you working with other investors who share my criteria?
No brainer here, but you probably don’t want to compete with other investors. Plus, it can be really difficult for an agent to represent both parties honestly.
What Investors Really Need From Their Agent
So, as an investor, what do you actually do? need from an agent? Here are some things that I think are important.
deal
It’s a very competitive market, so give your agent some grace. You may have to do some of the deal-finding on your own. They probably won’t drive or send direct mail to you for a dollar.
But they are usually very well networked and have frequent listings. Plus, if they work for a larger office, they may be able to refer other agents to what you need.
work ethic
There are some lazy agents out there. Yes, I said.
Find one that will do the work necessary for both of you to be successful.
Communications
As I mentioned above, you need someone who communicates in a way that you like to communicate with. And they need to give you information from time to time.
putting the deal together
Don’t buy into the notion that a realtor just shows you a house, writes up an offer, and then collects a fat commission check at closing. Great agents work behind the scenes to make sure the transaction is as smooth as possible.
Things go wrong—often—and your agent needs to act quickly to find solutions to problems that do.
Honesty
It is very important to find an honest agent with integrity. In the past I have tangled with unscrupulous agents both as an agent and a buyer. It ends up being a colossal waste of time and energy.
You also want an agent to have your best interest at heart. I’ve had clients walk away from deals in the past for many different reasons. He appreciated my insight.
alignment
The best business partnerships have perfect alignment. Just like your car needs to be aligned from time to time, your partnership with your agent should have similar goals. If they’re showing clients luxury homes instead of helping you find a fixer-upper, you’re going to be in for a bumpy ride.
What do you look for in a real estate agent? Would you define the agents you have encountered as investor-friendly? does it matter?
Share your thoughts in the comment section below.
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
