{"id":151904,"date":"2023-05-12T09:53:24","date_gmt":"2023-05-12T15:53:24","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?post_type=phase-level-3&p=151904"},"modified":"2023-09-06T12:41:43","modified_gmt":"2023-09-06T18:41:43","slug":"real-estate-investor-friendly-agent","status":"publish","type":"phase-level-3","link":"https:\/\/www.biggerpockets.com\/blog\/real-estate-investor-friendly-agent","title":{"rendered":"Do You NEED an “Investor-Friendly” Agent to Buy an Investment Property?"},"content":{"rendered":"\n
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Discover the right questions to find the right agent.<\/mark><\/h2>\n\n\n\n

\u201cI\u2019m looking for an investor-friendly real estate agent<\/a>.\u201d Have you heard this statement before\u2014maybe at meetups<\/a>, on the forums<\/a>, or in Facebook groups? <\/span><\/p>\n\n\n\n

It\u2019s really one of the most common things new investors are looking for as they go about finding deals<\/a>.<\/span><\/p>\n\n\n\n

And yet, I have never seen a definition of an investor-friendly agent! I <\/span>think<\/span><\/i> what everyone means when they are looking for an IFA (that\u2019s my handy new acronym for the rest of the article) is the right agent to help them achieve their goals. Aren’t we all!<\/span><\/p>\n\n\n\n

One of the main assumptions I think investors make is that they want an agent who <\/span>knows <\/span><\/i>investment properties (and is most likely an investor themselves). The question is: why?<\/span><\/p>\n<\/div><\/div>\n\n\n\n

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Who Is an Investor Friendly Agent?<\/h2>\n\n\n\n

In my humble opinion, based on my experience, this is what I <\/span>think <\/span><\/i>investors mean when describing the perfect IFA:<\/span><\/p>\n\n\n\n

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An investor friendly agent<\/strong> is a licensed real estate professional who has experience with investment properties, has worked with investors, and has knowledge of the local market. Said agent will be an investor, as well. They will help find deals, analyze them<\/a>, make offers, and sell properties as necessary.<\/span><\/i><\/p>\n<\/blockquote>\n\n\n\n

This seems reasonable enough, right? Sounds like every investor\u2019s dream agent. But let\u2019s revisit the previously mentioned question, \u201cWhy do I want this type of agent?\u201d<\/span><\/p>\n<\/div><\/div>\n\n\n\n

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Avoid Asking the Wrong Questions<\/h2>\n\n\n\n

A lot of consumers <\/span>and<\/span><\/i> investors make the mistake of going with the first agent that shows them a house. While this can be an indicator of hustle and competence, it can also mean negative things (like desperation).<\/span><\/p>\n\n\n\n

Instead, it\u2019s important to interview agents first. Let\u2019s dig into some questions investors think are relevant but are actually the wrong ones to ask.<\/span><\/p>\n\n\n\n

Don’t Ask: Are You an Investor?<\/h3>\n\n\n\n

Again, the assumption investors make is they need an agent who is also an investor. Why is that the case? <\/span><\/p>\n\n\n\n

Personally, I\u2019d almost prefer that they\u2019re <\/span>not<\/span><\/i> an investor. I don\u2019t want to be in competition with my agent for the same properties. I\u2019ve heard of cases where agents cherry pick the best deals (usually before they even go to market) and then push their investor clients into less favorable MLS deals. <\/span><\/p>\n\n\n\n

Wouldn\u2019t it be better for you if your agent gave you those sweet off-market deals instead of keeping them?<\/span><\/p>\n\n\n\n

Related:<\/em><\/strong> Signs of a BAD Real Estate Agent<\/a><\/em><\/p>\n\n\n\n

Don’t Ask: How Long Have You Been in the Business?<\/h3>\n\n\n\n

I think this is pretty irrelevant. Many people think you need to go with a super experienced agent. While sometimes this is helpful, let\u2019s look at it from a broader perspective. <\/span><\/p>\n\n\n\n

If an agent is \u201cexperienced,\u201d they probably have many repeat clients and lots of referral business, are quite busy, and are probably doing just fine financially. Are they really going to work hard for you to find that severely distressed property that will only pay them a whopping $1,500 commission?<\/span><\/p>\n\n\n\n

I\u2019d rather work with a newer, hungrier agent who’s looking to build their business. They\u2019re more likely to have the time to help you, they\u2019ll go the extra mile, and they want to earn your future business. <\/span><\/p>\n\n\n\n

While they may be less experienced, these newer agents tend to lean heavily on their managing broker for help, advice, and resources. It\u2019s kind of like you\u2019re getting two agents for the price of one.<\/span><\/p>\n\n\n\n

Don’t Ask: Can You Help Analyze Deals?<\/h3>\n\n\n\n

Don\u2019t be lazy, guys. Your agent shouldn\u2019t be analyzing deals for you. You should be running all your own numbers. <\/span><\/p>\n\n\n\n

Of course, you can lean on them for certain information, like local rents, comps, etc. But these you can also find on your own using Rentometer, Craigslist, Zillow, etc.<\/span><\/p>\n\n\n\n

Don’t Ask: Do You Have a Deal for Me Right Now?<\/h3>\n\n\n\n

Even if they did, why would they offer it up to you if you haven\u2019t proven <\/span>yourself <\/span><\/i>as a closer yet. Agents don\u2019t get paid until closing, so they\u2019ll tread carefully until you can prove yourself to them as a serious buyer. Have your financing lined up, know your criteria inside and out, and don\u2019t waste their time. <\/span><\/p>\n<\/div><\/div>\n\n\n\n

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Ask These Questions Instead<\/h2>\n\n\n\n

Here are some questions you\u2019ll definitely want to keep in mind as you interview IFAs.<\/span><\/p>\n\n\n\n

Do Ask: How Do You Find Deals For Clients?<\/h3>\n\n\n\n

If an agent is <\/span>only <\/span><\/i>going to set you up with an MLS feed based on your criteria, just understand that from the beginning. Bonus points if they can score off-market properties for your through their network or other marketing they do.<\/span><\/p>\n\n\n\n

Do Ask: How Do You Communicate?<\/h3>\n\n\n\n

This is critical and can ruin a relationship if done poorly. Communication styles vary from person to person. For example, when I was an agent, I noticed that clients would tend to lean on one form of communication over another. Some would prefer a phone call, while others would prefer an email. Many people just want to text. <\/span><\/p>\n\n\n\n

Once I noticed that pattern, I would ask clients before working with them in earnest: “What is your preferred method of communication?”<\/span><\/p>\n\n\n\n

I would always do my best to honor their choice if the situation permitted. Make sure you and your agent are on the same page when it comes to communication\u2014both <\/span>how<\/span><\/i> you\u2019ll be communicating <\/span>and<\/span> how frequently<\/em>.<\/span><\/p>\n\n\n\n

Related:<\/em><\/strong> 3 Tips for Finding a Real Estate Agent (for Investors!)<\/a><\/em><\/p>\n\n\n\n

Do Ask: How Fast Can You Act?<\/h3>\n\n\n\n

Speed is important in real estate. You never know when another buyer is around the corner, ready to snatch up your deal. So, make sure your agent can quickly write up a contract (preferably using DocuSign or Dotloop) or get you into a property with relatively short notice. Ask them: if for some reason they can\u2019t show a property, can another agent in their office show houses in a pinch?<\/span><\/p>\n\n\n\n

Do Ask: Are You Working With Other Investors Who Share My Criteria?<\/h3>\n\n\n\n

Kind of a no-brainer here, but you probably don\u2019t want to be competing with other investors. Plus, it can be really tricky for the agent to represent both parties faithfully.<\/span><\/p>\n\n\n\n

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What Investors Really Need From Their Agent<\/h2>\n\n\n\n

So, as an investor, what do you really <\/span>need <\/span><\/i>from an agent? Here are a few things I think are critical.<\/span><\/p>\n\n\n\n

Deals<\/h3>\n\n\n\n

It\u2019s a very competitive market out there, so give your agent a little grace. You may need to take up deal-finding on your own a little bit. <\/span>They probably won\u2019t drive for dollars for you or send out direct mail<\/a>.<\/p>\n\n\n\n

But they are usually very well networked and constantly out on listing appointments. Also, if they work for a larger office, they can let the other agents know what you need.<\/p>\n\n\n\n

Work Ethic<\/h3>\n\n\n\n

There are some lazy agents out there. Yes, I said it. <\/span><\/p>\n\n\n\n

Find one who puts in the work needed to make both of you successful.<\/span><\/p>\n\n\n\n

Communication<\/h3>\n\n\n\n

Like I mentioned above, you need someone who communicates in a way that you like to be communicated with. And they need to feed you information in a timely manner.<\/span><\/p>\n\n\n\n

Keeping the Deal Together<\/h3>\n\n\n\n

Don\u2019t 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 seamless as possible. <\/span><\/p>\n\n\n\n

Things go wrong\u2014often\u2014and your agent needs to act quickly to find solutions to problems that are bound to occur.<\/span><\/p>\n\n\n\n

Honesty<\/h3>\n\n\n\n

It\u2019s vitally important to find an honest agent, one with integrity. I\u2019ve been tangled up with dishonest agents in the past, both as an agent and as a buyer. It ends up being a huge waste of time and energy.<\/span><\/p>\n\n\n\n

You also want an agent to have your best interest at heart. I\u2019ve told clients in the past to walk away from a deal for many different reasons. They appreciated my insight.<\/span><\/p>\n\n\n\n

Alignment<\/h3>\n\n\n\n

The best business partnerships have perfect alignment. Just like your car needs to be aligned from time to time, your partnership with your agent needs to have the same goals. If they\u2019d rather be showing clients luxury homes than helping you find a fixer-upper, you\u2019re going to be in for a bumpy ride.<\/span><\/p>\n<\/div><\/div>\n\n\n\n

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Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n

Step #1: Use Agent Finder to match with top investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n

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Join the community<\/h3>\n\n\n\n

Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n

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