lessoned learned. The realtor matters.

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lessoned learned. The realtor matters.

Sean Link
Member since 2023 · 11 posts · 9 votes
Lesson learned. Most realtors are helping families buy their forever home. When picking a realtor, it is very helpful if they have a lot of experience helping others achieve goals similar to your own.
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Carlos Valencia
Lender · 92703 · Member since 2022 · 326 posts · 538 votes
3y

Hello Sean, 

Yes very well said. Its also just as important when working with lenders dont pick a lender solely on rate. Make sure you see the big picture and value they offer. Once you find your team to help you on your RE journey try not to let them go. 

@Albert Bui @Matthew Kwan

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  • Michael J.
    Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes
    3y

    100% if you are looking to purchase investments then you definitely want a realtor who has experience/is an investor themselves.   Most agents have no clue about investing and how buying an investment property differs from helping a family buy their first home.   Be sure to interview the agent before signing a buyers rep agreement with them.  You can typically find a local real estate investor group and ask in there and get good recommendations for investor friendly agents.

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Sean Link:
    Lesson learned. Most realtors are helping families buy their forever home. When picking a realtor, it is very helpful if they have a lot of experience helping others achieve goals similar to your own.

    REALTORS are a waste of money . . . until they're not.

    People see real estate transactions going smoothly and think it must be easy to buy/sell property. Then they hit a bump in the road and realize they are in over their head.

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  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    3y

    100% it does - an awesome realtor is worth their weight in gold - someone who knows the market intimately, has access to the best deals or even off-market deals first, understands your goals

    Problem is, especially in the last two years when houses sold themselves, is the market was flooded with "bad" realtors. On top of that, some of them are simply transaction coordinators. Some of them don't understand the code of ethics - had one recently tell my elderly parents they were "forced" to use a certain lender if they used a certain builder (there can be a preference but you cannnot tell someone they have to use a certain lender). Long story short - I brought it up to her broker, she wasn't their realtor anymore and I'm not sure what happened after that

    You also have a lot of "transaction coordinators" - they do paperwork and maybe have a little knowledge and can maybe slightly help the average homeowner - but they are not true experts and don't understand all the ins and outs of the real estate industry. I'm always disappointed when I find out I know more than a realtor

    2Reply
  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y

    100% the realtor matters. I'd put it like this, you don't notice the realtor that much and think everything is easy because the process went smoothly. When it doesn't, you'll notice the realtor either fixing the problem or failing. A good realtor solves problems, advises you to get towards your goals and gives you all the info/positives/negatives regarding a property/neighborhood that he can. I have told a client "no, this is not the property for you" on properties so many times because I was looking out for their best interests. A bad realtor will just take the easy path to make the quick money. I am an investor and realtor and let me tell you...most realtors drive me crazy lol. Choose your realtor wisely!

    2Reply
  • Billy Daniel
    Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes
    3y

    That's a fact!  Most realtors work with families to find their personal residences.  This involves a lot of emotion and a little financial savvy.  Working with investors is the exact opposite, which is why so many realtors struggle to work with them.

    I taught an "investing basics" class to a group of realtors a while back.  I was shocked at what they didn't know about working with investors.  But I also appreciated they were able to acknowledge that and seek help!

    Always ask your Realtor if they own investment properties AND if they like having them.

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Sean Link:
    Lesson learned. Most realtors are helping families buy their forever home. When picking a realtor, it is very helpful if they have a lot of experience helping others achieve goals similar to your own.

     I would say most realtors are not good and they are programmed to be quick commission chasers with more bias protecting the seller. Especially in the California market.

    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y

    You can follow pareto on this one too: maybe 20% of agents are good, very few are great. And even fewer have a personal background in investing.

    We have close to 5,000 licensed agents in the Milwaukee metro area, which is absurd, because the vast majority does 0-5 deals a year. About 150 stand out in volume and usually they are very good at what they do, provide a high level of service and expertise. As an agent you start paying attention, because there is a big difference in how a transaction can go, depending on how good you co-broke is on the other side.

    Agents with an REI background are even more rare. Which I find shocking, because they would have the inside track! We have 3 major investor associations in Milwaukee, the AASEW focuses on buy&hold, the REIA more on flipping and the third one is the very popular Brew City FB group. I am active in all 3 and believe I know most agents who are active in the investing space personally, which tells you it's a really short list.

    1Reply
  • Richard Loniewski
    Real Estate Agent · NJ · Member since 2021 · 570 posts · 127 votes
    3y

    I am a realtor and investor when I started out I connected with realtors that were investor friendly and spelled out for them exactly what I was looking for, preferable a younger agent that is highly motivated and willing to help find on and off market properties that fit your parameters. That's how I got my first deal!

    1Reply
  • Carlos Valencia
    Lender · 92703 · Member since 2022 · 326 posts · 538 votes
    3y

    Hello Sean, 

    Yes very well said. Its also just as important when working with lenders dont pick a lender solely on rate. Make sure you see the big picture and value they offer. Once you find your team to help you on your RE journey try not to let them go. 

    @Albert Bui @Matthew Kwan

    3Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    3y

    @Sean Link The realtor makes the difference! I’ve been with mine 26 years and he brings me the best deals. I just closed one that will build me $400,000 in equity in 9 months through good management.

    My sister on the other hand has a bad realtor bringing her deals that don’t work such as one with a negative $4250 monthly cash flow. Fortunately I have been able to explain to her he’s only after the commission, analyze the deal for her and help her realize that no deal with negative income is a good deal.

    It’s all about the realtor.

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Sean Link:
    Lesson learned. Most realtors are helping families buy their forever home. When picking a realtor, it is very helpful if they have a lot of experience helping others achieve goals similar to your own.

     every realtor matters.
    every PMC matters.
    every turnkey PMC matters.
    Every GC matters.
    every lender matters.
    Every tax pro matters.
    Every plumber and contractor matters.

    I have been noticing to do succesful in REI you need to contact the same set of people and avoid the majority/average.

    1Reply
  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y
    Quote from @Carlos Ptriawan:
    Quote from @Sean Link:
    Lesson learned. Most realtors are helping families buy their forever home. When picking a realtor, it is very helpful if they have a lot of experience helping others achieve goals similar to your own.

     every realtor matters.
    every PMC matters.
    every turnkey PMC matters.
    Every GC matters.
    every lender matters.
    Every tax pro matters.
    Every plumber and contractor matters.

    I have been noticing to do succesful in REI you need to contact the same set of people and avoid the majority/average.


     100% agree on this. I usually keep the same team players. Every once in a while, I try a new plumber, handyman, etc and am usually heavily disappointed! The majority aren't great at their job or way overcharge for the quality of work.

    2Reply
  • Chris Stonestreet
    Member since 2019 · 42 posts · 26 votes
    3y
    Quote from @Sean Link:
    Lesson learned. Most realtors are helping families buy their forever home. When picking a realtor, it is very helpful if they have a lot of experience helping others achieve goals similar to your own.

     I'm sorry you had to learn the hard way, but one of the best things about real estate is learning and growing!! 

    1Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y
    Quote from @Sean Link:
    Lesson learned. Most realtors are helping families buy their forever home. When picking a realtor, it is very helpful if they have a lot of experience helping others achieve goals similar to your own.

    It's best to think of Real Estate Agents in context of Doctors. 

    Because with Dr's most readily "Get-it"; that there is those "Specialist's" for Pediatricians, Pediatrist's, Allergist's, ENT, and then the "Generalist" that most don't ever really care to go to unless one needs to and even then you know what your dealing with, a "generalist" who you kinda trust but not for anything big or specialized right. 

    Exactly the same with Real Estate Agents there is a ton of "Generalist's" who can get by on simple, and then there is SPECIALISTS; your Relocation Specialist, your 1st-time-home-buyer Specialist's, Lake/Water Front Specialists, Condo Specialist's, Luxury Specialist and, yes, there is REI Specialists.

    The problem is people thinking ALL Real Estate Agents are just 1-same-thing. No, we are not. And, yeah you throw a dog a bone it won't care what kind of a bone IT'S HUNGRY, so approach a Generalist there starvin-marvin, there gonna say sure they can do that because they want that commission. It's on YOU to know who your talking to, what KIND of R.E. Agent are they, a "Generalist" or a Specialist, and what kind of Specialist. 

    And don't ask grade-school questions to qualify like what is a cap-rate, something any idiot can find with a 3 second google search. Ask what the market prevailing cap-rate is in THAT market, for THAT asset class, and why, where it's going, why. If your not blown away by the answer, by all the data and insight, if they sound anything less then a obsessive market-addict, there NOT a REI Specialist. Because this is ALL I do, 7 days a week for DECADES. Those like me, we can over-whelm any average person with our market insight same way a FT Auto Mechanic can blow my mind with engine talk of sh#t I have 0 clue on. Naming parts, how this manufacturer change dhow they do this and what problem is prevalent with what etc etc.

    A specialist will sound like a genius to a generalist. A generalist sounds like your friend.... Friends are for hanging out, specialists are for getting things done. 

    1Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    3y

    I think a lot of people place a lot of responsibilities / requirements on their real estate agents.

    I think the key requirement for that I have for an agent is
    1) That he / she has a quality network of contractors / Property managers / lenders that serve the properties that you are purchasing.
    I.E. if you are purchasing D class properties, you want a contractor that knows contractors / PM companies / lenders that serve that property class.
    2) They are able to quickly communicate with the seller agent regarding items such as an offer or concessions.

    I think if you want a quality agent to work for you, you also have a lot of responsibilities to the agent
    1) come prepared with the ability to close
    2) be very specific in what you want and not just say "I want a house that will generate me 10% cash on cash"
    I.E. I want a house below $100,000 in cost that is in zip code 11111 that is a 2 bed 1 bath.

    Best of luck

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  • Jordan Alexander
    Member since 2022 · 106 posts · 39 votes
    3y

    Investor-friendly agents can help tremendously, especially when starting out! Both parties are helping each other make money!

    1Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 997 posts · 1k+ votes
    3y

    Hello @Sean Link,

    You have learned a lesson that many others have as well. There are two categories of realtors. I will describe each one and then explain how to find an investment realtor.

    Residential Realtors (and “investor-friendly realtors”)

    Residential realtors sell homes using a simple process. Homebuyers select properties of interest. the realtor sends MLS data sheets and provides access to those properties. Once a property is selected, the realtor facilitates the offer and closing of the sale.

    Although some residential realtors sell properties that can become investments, the buyer does all the work. The buyer selects the properties, the realtor sends MLS data sheets, provides access, and facilitates the offer and close. The buyer does everything else. A residential realtor adds almost no value to investment properties.

    Investment Realtors

    While there are usually thousands of residential realtors in a city, there are usually only one or two investment realtors. Investment realtors must understand finance, market trends, property evaluations, analytics, tenant pool selection information, renovation resources, and more. Investment realtors always work with a team. Once you find a good investment realtor you have all the resources you're going to need.

    The following is a comparison between the information provided by a residential realtor and that provided by an investment realtor.

    https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/20220706-995.png

    How to Find an Investment Realtor

    Start by compiling a list of candidates. Get names from

    • Real estate investing websites (such as Biggerpockets.com)
    • Property managers
    • Local investors
    • Talk to real estate brokers
    • Google searches
    • Local meetups

    Once you have a pool of candidates, evaluate each using the following interview questions. The primary purpose of the questions is to determine the individual's character and capabilities.

    Interview Questions

    Before you start interviewing candidates, compose a list of 10 or fewer questions, you will not have time for more. Ask the same questions of each candidate and note each response. Below are sample questions. If the realtor fails an answer, I would probably disqualify the candidate.

    • Tell me about your investment team
    • Do you or have you owned investment properties?
    • How many investment properties did you close in the last 12 months?
    • Did you or your client select the properties?
    • What were your primary selection criteria?
    • Tell me about the tenant pool you target.
    • Tell me about your renovation process.

    If the candidate provided reasonable answers to the questions, they know what they are doing.

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  • Sheri FluellenBusiness Member
    Real Estate Agent · Cheyenne, WY · Member since 2020 · 123 posts · 64 votes
    3y

    love this!! I even shared it on my FB.  

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  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y
    Quote from @Eric Fernwood:

    Hello @Sean Link,

    You have learned a lesson that many others have as well. There are two categories of realtors. I will describe each one and then explain how to find an investment realtor.

    Residential Realtors (and “investor-friendly realtors”)

    Residential realtors sell homes using a simple process. Homebuyers select properties of interest. the realtor sends MLS data sheets and provides access to those properties. Once a property is selected, the realtor facilitates the offer and closing of the sale.

    Although some residential realtors sell properties that can become investments, the buyer does all the work. The buyer selects the properties, the realtor sends MLS data sheets, provides access, and facilitates the offer and close. The buyer does everything else. A residential realtor adds almost no value to investment properties.

    Investment Realtors

    While there are usually thousands of residential realtors in a city, there are usually only one or two investment realtors. Investment realtors must understand finance, market trends, property evaluations, analytics, tenant pool selection information, renovation resources, and more. Investment realtors always work with a team. Once you find a good investment realtor you have all the resources you're going to need.

    The following is a comparison between the information provided by a residential realtor and that provided by an investment realtor.

    https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/20220706-995.png

    How to Find an Investment Realtor

    Start by compiling a list of candidates. Get names from

    • Real estate investing websites (such as Biggerpockets.com)
    • Property managers
    • Local investors
    • Talk to real estate brokers
    • Google searches
    • Local meetups

    Once you have a pool of candidates, evaluate each using the following interview questions. The primary purpose of the questions is to determine the individual's character and capabilities.

    Interview Questions

    Before you start interviewing candidates, compose a list of 10 or fewer questions, you will not have time for more. Ask the same questions of each candidate and note each response. Below are sample questions. If the realtor fails an answer, I would probably disqualify the candidate.

    • Tell me about your investment team
    • Do you or have you owned investment properties?
    • How many investment properties did you close in the last 12 months?
    • Did you or your client select the properties?
    • What were your primary selection criteria?
    • Tell me about the tenant pool you target.
    • Tell me about your renovation process.

    If the candidate provided reasonable answers to the questions, they know what they are doing.


     Very very good Eric, if you don't mind I'd like to "borrow" this. 

    One item not mentioned, in addition to what a REI Realtor does. Well, actually 2.

    First, I screen clients. I don't work with just anyone and everyone. I have criteria that a new client MUST be actionable, I will help guide and direct to get actionable but I don't do the work of getting someone actionable or perpetual tire-kicking. I am too busy doing things and good deals move FAST, so my clients need to be action-jackson. 

    Second, STRATEGY DEVELOPOPMENT. When I talk with a new client, we need a detailed STRATEGY, which forms our action plan. That plan will define the path and target for all to follow. That's the first thing we go over, we don't jump into just "looking at properties". I have been told by many clients the process feels a lot more like an experience of a financial advisor than real estate agent. Because we are doing real estate WITH PURPOSE. A person should really feel that emphasis on "PURPOSE" than anything else. 

    And yeah, we are rare. One broker once coined me a "Unicorn Agent", because that's about how rare we are, and our worth. We take pride that our income is always net positive ROI. Win-win runs in our blood. We will check back on clients just to see how things are going, and if anyone is going off the rails we take it personally, and jump in to help, because to heck if any of our clients are going to loose $, no-no-no, we won't let that happen. We can't guarantee returns but we sure as hell will expend all the blood, sweat and tears to make darn sure it does happen. We take our clients success personally, their success is ours. We do exist.

    1Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 997 posts · 1k+ votes
    3y

    @Sheri Fluellen - Thank you for your kind words.

    @James Hamling - You are a unicorn. You have an awareness and focus that I rarely find.

    My thoughts:

    I completely agree with you. The key to having successful clients is to carefully select people who have the potential to be successful. It may sound cliché, but it's absolutely true. I eliminate dreamers, schemers, and those with unrealistic expectations.

    The second area where you provide a lot of value is in your strategy. As Yogi Berra famously said, "If you don't know where you're going, you'll end up somewhere else."

    I'm curious to know how you go about selecting properties. We’ve spent years developing our data mining software and related processes for finding properties. In Las Vegas, there are very few good rental properties, less than 0.4% of all available properties. However, finding the properties is only part of the problem. They must also be validated and carried through to production. Below is an overview of our process.

    https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/ourProcess20230426.png

    James, let’s stay in touch. There are not a lot of unicorns around.

    [email protected]702-358-8884
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