5 Steps to Finding an Investor-Friendly Brokerage

During my daily scouring of the Bigger Pockets forums, I always seem to come across this question over and over again. "I just got my real estate license. How do I find an investor-friendly brokerage in my area?" I want to give you 5 steps to do this the right way:

1. Know Your Goals

Top question: Did you get your license just to get access to the MLS to find deals for yourself or are you planning on actively working as an agent with investors and/or regular buyers and sellers?

Most people who ask the question are partial to the first part of that question and that is the lure of finding an investor-friendly brokerage. However, there is a big difference between the brokerages you should focus on depending on how you answer that question. Once you know your goals as a licensed real estate agent you can move to the next step.

2. Know Your Brand (and theirs)

Top question: What does your real estate investor brand represent and what type of properties are you targeting for acquisition?

If you are looking for buy and hold properties your investor brand profile is different than if you are looking to flip. Why does this matter? It matters in your value proposition presented to the brokerages you approach and the one that you ultimately choose. Buy and hold investors don't need much more than MLS access to succeed and their brand is built on finding properties, fixing them and renting them. If you are looking to flip, your brand and the brand of your future brokerage are much more important.

Secondary question: If you are going to flip, are you going to want to list the properties yourself or with another agent inside your brokerage?

Your brokerage, when finding deals and working with buyers, is less important than when marketing your own flips for sale or working with sellers. Branding matters when listing homes, especially as the price point gets higher.

3. Drive for Information

As investors and Bigger Pockets fanatics we all like to go Driving for Dollars, but when you are looking for an investor-friendly brokerage to align yourself you need to be Driving for Information. Your game plan is different for this task. You are looking for on-market investment properties and your goal is to write down each agent's name and company who has a listing of the type of property that would be attractive to investors. Once you see the same name and agency come up a few times, there is your first stop to locate a potential mentor and brokerage.

4. Scour the MLS (or Zillow if you don't have access yet)

You are doing it anyway, but the MLS and/or Zillow can be very revealing when looking to find an investor-friendly agent/mentor or brokerage. Look for REO properties, look for short sales, look for rehab-ready properties and see whose name and agency you start seeing the most. Again, start there.

5. Be Upfront About Your Goals as an Agent

There is no reason to tell a brokerage you plan on working with friends and family if you aren't going to do it. The bigger brokerages won't care because they will make more money off of you if you do fewer deals and pay their fees. If you are an investor looking to get MLS access for you own deals, come up with a value proposition as to why they would want you at their brokerage. You can't assume all brokerages are just looking for a pulse. You never want to start a business relationship with unrealistic expectations on either side.

BONUS: So Where Should I Hang My License?

A. If you are just looking for MLS access and not planning on working with any other clients then you should definitely be looking for a brokerage with the best split and one that likes having investors as agents. Think smaller agencies with less technology and less training (if they have good tech and training even better) who are just happy to let you do your thing.

B. If you think you might work with some friends and family and might like being an agent for others, you might want to look towards larger brokerages with name recognition in your marketplace. You have a much better chance of finding a mentor and getting better training in this environment.

DISCLAIMER

There is no right way or wrong way to find an investor-friendly brokerage, but far too many new agent/investors don't do steps 1-5 above and then wonder why it isn't working the way they thought it would. If you follow these 5 steps I can guarantee you that, at the very least, you will have a much better opportunity to make the best decision for you.