How to Find an Investor-Friendly Real Estate Agent

Finding a real estate agent who is investor-friendly is not as easy as finding an agent to buy or sell the average home.

Real estate investing operates under a different set of standards than buying or selling a primary residence, and it requires a set of specialized knowledge and skills that not every real estate agent has.

If you are considering investing in real estate, you need to find the right agent and the right area to start your investment search.

Looking for a Real Estate Agent? check out BigPockets Agent Match,

5 Qualities of Investor-Friendly Real Estate Agents

Ideally, every real estate agent should know about buying and selling homes. However, most agents focus on working with people who want to buy a property to keep – either to live in or to use for other purposes, such as a housing business. In contrast, many agents are not familiar with the process of using real estate as an investment option. You want your purchase to ultimately turn a profit for you—something only some agents are able to assist with.

Therefore, you need to find an agent who understands real estate investing. Look for these qualities in your next agent.

1. He has personal investment experience.

Ideally, you want an agent who has made their own real estate investments. They don’t necessarily have to have enough experience, but it’s helpful if they’ve gone through the process themselves. This makes sure to be familiar with investing on a personal level, not just as an agent. Such agents will understand your motivations and are generally easier to work with.

2. They are comfortable making (many) offers.

Real estate investing may require making multiple offers, often on the same day. You’re trying to get the seller to bite down on the lowest possible offer you can manage, and that sometimes requires throwing out numbers one after the other until something sticks. Not every agent is able to do this, as it requires the stomach of many disclaimers and the ability to tolerate negative feedback from sellers and their agents.

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3. They are familiar with numbers.

An investor-friendly agent will know: a) what a cap rate is and b) how to calculate one. Even if you don’t personally use cap rates for residential properties, that’s fine, but any agent who is knowledgeable on investments should know the term and its basic workings. More specifically, an agent must understand how to calculate returns. If an agent cannot talk quickly enough and intelligibly about the returns on a particular property, he may not be investor friendly.

4. He has experience of working with investors.

Speaking of investor-friendly, there’s no substitute for an experienced agent when you’re trying to make money buying real estate. You want an agent who has worked with other investors, preferably three or more. Not that you can’t hire an eager newcomer, but you should be prepared to learn the process together if you go this route. If you’re looking for the fastest way to success, experience is usually the way to go.

5. He has a good reputation with other investors.

If the agent has some experience then he should also have some references. Call each reference and discuss the person’s experience with the agent. Not every real estate investment will be successful, and people who lose money may have negative things to say, even if the agent was not responsible for the loss. However, most investors will be aware enough to criticize the agent’s actual work, not the vagaries of the market.

6. They are honest.

Find an agent who will give it directly to you. This means that if he’s not comfortable with sellers throwing ridiculous low-ball offers, he’ll let you know. Honest agents will already tell you what they are and are not prepared to help you with the investment process. Some people are happy to help flip houses, while others may prefer the stable route of buy and hold.

The best agent for you is the one who puts everything on the table up front, leaving it up to you to decide if the fit is right. Honesty goes a long way in business and should be a priority when choosing a real estate agent for investment.

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7. They are local to the market you want to invest in.

If you are like many investors, you are looking for major markets to buy low and eventually sell high. These areas may not even be in your hometown or anywhere near it, which means you need someone who has their finger on the pulse of the market you are considering.

A good local agent can also help you avoid any area scams that try to take advantage of unsuspecting outsiders.

It may take some time, some searching and several interviews before you find an investor-friendly agent in the town or city you want, but it can be done. Just don’t make the mistake of choosing an agent who doesn’t know the local market – even if he or she is otherwise perfect.

Where Can You Find Investor-Friendly Agents?

So, how should you go about finding the ideal agent? The easiest way is probably through referrals.

Thanks to sites like BigerPockets, it’s incredibly easy. Simply scan the agent directory or post on forums, asking for an investor-friendly agent for a particular location. Whether you find an agent through a referral or you scour the internet and call random prospects, you should always ask about their experience working with investors early in the conversation.

What type of investors do they primarily work with? What do they look for from investors in terms of the qualities of a potential property?

Here is where they should mention the location and numbers. If they don’t, be sure to ask.

Is there a need to work with an agent who already knows these things? Absolutely not. You’re welcome to coach an agent on what you’re looking for, but why not work with someone who already knows what they’re talking about?

In some markets, this may be more difficult—especially if it is not a common investment area. You may be forced to coach someone in that position, which is okay too. Regardless, as you find another team member, start asking for referrals and interviewing different people.

Find the right agent for your real estate investment goals

There is no surefire way to be successful in real estate investing. However, you can increase your chances of making a profit by choosing the right market and the right agent for that market. Use this information as a guide, and do your best to find the right agent that will work for you. Remember: Don’t rush when it comes to real estate investing.

Do your homework until you are reasonably satisfied that you are making the profit you expect!

How has been your experience trying to find an investor-friendly agent? Any other qualities you would like to add to the above list?

Leave a comment – we’d love to hear from you!

Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.