"Training" a fresh real estate agent to the ways of investing.

14 Replies

Hello, this is my first real post. Been following the site for probably a year now but had some down time with a little one's arrival. I still don't have the most time, but trying to start getting things together. I was thinking about the whole getting a team together before you start with your first deal and got to thinking about the agent and how you want someone well versed in investment real estate. I've heard on the podcast here and there and seen people mention that a new agent can be a good thing to have as you can get them to learn what kind of deals to look for (read get them to realize you are looking for low priced deals with smaller commissions, but will be worth it to them in the long run because they will get more deals from you). So the question is, say you are able to get a hold of a new agent, how do you get them going in the right direction and learned to the ways of investment? I would think if I was a veteran investor I could probably answer this question myself, but since I'm just starting out, what would be the best course of going about it? Any tips, advice, or opinions welcomed.

Hi, this is Anita,my husband and I are excited to get started in investing in real estate. We are newbies as well and i have the same questions that Aaron has. To add another What type of questions should I ask to interview the Real estate agent to make sure that he/she will be able to assist me in the way that I need them too?

I think a better solution is asking an agent if they own rental property.

If they do they will likely understand what you are looking for and there will be little training involved. Otherwise you have the untrained investor trying to teach the untrained agent. You will find very few agents who actually own multiple rental properties. Find one who either does flips or owns rentals for income. Not only will they know what you are looking for they will understand your thinking. Remember most agents work for commission and will likely tell you "you can't do that here" and "it is not possible". An agent who tells you this only wants the path of least resistance and won't spend any time looking of you as he or she doesn't believe it's possible.

Many agents are just lazy. For example I wrote an email to 6 agents in a town where I own rental property. I told them I had a duplex in a prime lake location. I further told them I wanted to sell and to exchange into a larger property. I told them I wanted a listing price that would guarantee a sale in 3 months or less so to not give me an airy fairy bs price. You would think that all 6 would have been back to me in the morning at the latest. I live 1000 miles away and my agent that I bought several properties from has retired so I knew no one.

Only one agent even answered the email, one.

Find an agent with experience that owns the type of property you want knows you can do this and will work for you.

Telling them if you find me something good I will keep using you is a worthless statement to the agent because they well know who ever brings you a good deal you will use. Their attitude is why bother.

That is an empty statement to contractors for flips as well. Most flippers will sell the contractor down the river for some else if it saves them $100.

One other suggestion, find one who is not afraid to present a very low offer. Most agents are too embarassed to present anything under a couple percent below asking. Be blunt ask if they are prepared to present a very aggressive below market price. If they balk they are not for you.

@Aaron Scott and @Anita Blout

Let me save you a lot of time and aggravation... don't bother.

99% of agents don't know and aren't willing to learn what a deal is. And the 1% who do are buying the deals for themselves.

If you want to buy real estate for asking price and pray for the next 50 years that it appreciates, agents can help you. If you want a DEAL you have to negotiate directly with the owner. It's as simple as that.

Originally posted by @Doug Pretorius :

@Aaron Scott and @Anita Blout

Let me save you a lot of time and aggravation... don't bother.

99% of agents don't know and aren't willing to learn what a deal is. And the 1% who do are buying the deals for themselves.

If you want to buy real estate for asking price and pray for the next 50 years that it appreciates, agents can help you. If you want a DEAL you have to negotiate directly with the owner. It's as simple as that.

 Respectfully disagree. As a Broker, Wholesaling Investor, Rehabber, etc. I find that incredibly short sighted as advice.  

First, a good investing agent will not "do the buying the deals themselves" 100% of the time.  

It is physically impossible for me to do all the deals available in Tucson on a monthly basis.  (we have over 1500 homes that sell per month, of which you could reasonably expect 1% to be "good deals".  As such, I am not going to be doing 15 deals a month, nor would most agents. 

The assertion however that 99% do not know and aren't willing to learn is probably more accurate however.  I doubt that a majority of agents will spend too much time if you feel like you are "training" them.  

May I suggest an ALTERNATIVE?  Instead of "Training" the agent, why not offer out a happy medium?  Their help in exchange for the leads that you generate that you will not do anything with anyway. 


Since a large majority of the prospects that you will generate in your marketing will not want to do business in a "wholesale" capacity or may not be able to do owner financing or other forms of creative financing; you might as well as get SOMETHING for your efforts.

While it is illegal for them to pay you fees (yes I know its done however) for those leads, there is absolutely nothing wrong with them agreeing to help you with exchanging information. i.e. Expired Listings, Comparable information, contracts, addenda, making offers on MLS Property.

For assistance in the actual dialogues you could use with agents, feel free to check out the BP Marketplace for a complimentary script book complete with scripts for Agents, Attorneys and Escrow! 

Again, while the sentiment of the writer is common, it is not as powerful a mindset as you could have.  

Just my two centavos!

Have a powerful sales day!

@Karl Krentzel  The only way I can see this being a mutually beneficial relationship is if the agent was willing to exchange warm leads for warm leads. I'll send you my retail leads for you to list and you send me your wholesale leads for me to buy.

So what I hear from everyone is that the perfect realtor for my team has -

Zero money themselves but lots of expenses so theyre hungry.

Zero other investors in their stable but lots of good contacts for finding deals for me

Zero properties themselves but impeccable ability to find and negotiate great deals

Zero ambition to work for anyone other than you but endless energy for me

Tongue in cheek (mostly). 

I think this creative tension is always going to be there.  Successful realtors will not be broke realtors for long.  And since they are smart and have money they will invest in what they know and love - real estate.  Can't blame them can we?

So the best realtors have money to do their own deals but you want tot tap that experience.  How  to do that?  The perfect realtor is the one who compliments your strengths not replaces you as the quarterback and coach of the team.  My best advice is to work hard and find a realtor you click with who will work as hard as you.  Then always always always do your own due diligence. Work together and both of your get filthy rich. The more money you make for your realtor the more they will work for you exclusively

Strangely enough I found one of the realtors above - He was the newly licensed son of one of the most successful investor/brokers in the region.  He wanted to prove a few things and we had a good run - thanks Brian B!

Medium ergDave Foster, Exchange Resource Group | [email protected] | 850.889.1031 | http://www.erg1031.com

@Aaron Scott  

The best advice is to look for agents with rental properties themselves or those who always work with investors.

They are out there. You just need to find them.

I imagine there are some on this site who have keywords set up.

I'd make a few posts about how your looking for an agent. Make sure to use the names of the cities/neighborhoods your looking to do business in so they get the keyword alerts

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | OH Agent # 2015001161 | Podcast Guest on Show #127

Originally posted by @Doug Pretorius :

@Karl Krentzel The only way I can see this being a mutually beneficial relationship is if the agent was willing to exchange warm leads for warm leads. I'll send you my retail leads for you to list and you send me your wholesale leads for me to buy.

 Doug, there is ANOTHER way.

Speaking as an Agent who invests (and has done so for some time); an agent can give you things that have value BEYOND a lead.  

Warm lead to warm lead (Quid pro quo) is the LEAST Productive use of your agent.

IMHO, your best use of that agent is to provide you the following:

  1. 1. Access to, or assistance with the MLS for comparable searching.
  2. 2. Contract writing on MLS Deals. (there are several strategies that you and your agent can use to mutually profit on deals)
  3. 3.  Access to the properties that AGENTS Don't want to list. (Yes, they DO Happen.)
  4. 4. Access to HUD Properties. (If they are with a larger firm, high probability of being a NAID Enabled Broker)
  5. 5.  Access to contracts, as is addenda language, as well as tactical advice for negotiations.

The possibilities are truly endless if you are creative, and don't treat agents like sub-human you know whats.  

    i am an investor that got my license recently.

    I have to say.....i got my license bc I am an investor myself and cant find a Realtor that understood me.

    Secondly, I was very surprised that investor friendly Realtor are a very special breed. Not many of us, we are wired differently. My manager keeps stirring me away. Telling me spin different plates.

    When I meet an investor, which is 99% of my clients, we just hit it off. Like minds ;) they don't need to teach me the basics of investing. We just fill in the blanks ;) and I try to do my best with the tools I have.

    All Realtors are given the exact same tools. It depends how they use it...

    Hello Aaron,

    It is fantastic that you are a new real estate investor. First and foremost, investing is a business. It is not a requirement to use an agent to find properties for you. Like many of the other commenters, I agree that it is difficult to find an agent that will search for properties and submit low offers for you. Real estate agents are in business to make money just like everyone else and they typically want to work with someone who is ready to make an offer they can close on quickly.  

    There are lots of ways to find property to buy without the use of an agent.  It may be of benefit to you to implement your own marketing plan and begin to find property on your own.  If you need help in negotiation, you can always enlist the help of an agent. 

    Consider getting a real estate license.  As a real estate investor it makes perfect sense to have your own license.  The main benefit is the power you will have over your own real estate business.  

    No experience is required to get a real estate license, however three real estate courses are required to take the state exam.   A course of study can be completed through any reputable real estate school or through a community college.  It takes approximately 12 weeks to get a license and that is an estimate of the fastest possible time frame. 

    Once you have a license, find a broker that caters to investor agents.  In the meantime you can easily begin investment activities with a plan and target goal. Investing is work, but not necessarily hard work and you can begin right in your own area.  The real work involved is making a decision to stick to your plan and consistently follow it through until you succeed. 

    Best of luck!

    Originally posted by @Jennifer Lee :

    i am an investor that got my license recently.

    I have to say.....i got my license bc I am an investor myself and cant find a Realtor that understood me.

    "Secondly, I was very surprised that investor friendly Realtor are a very special breed. Not many of us, we are wired differently. My manager keeps stirring me away. Telling me spin different plates."

    When I meet an investor, which is 99% of my clients, we just hit it off. Like minds ;) they don't need to teach me the basics of investing. We just fill in the blanks ;) and I try to do my best with the tools I have.

    All Realtors are given the exact same tools. It depends how they use it...

     OMG.... that is absolutely true.  Preach on!

    Free eBook from BiggerPockets!

    Ultimate Beginner's Guide Book Cover

    Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

    • Actionable advice for getting started,
    • Discover the 10 Most Lucrative Real Estate Niches,
    • Learn how to get started with or without money,
    • Explore Real-Life Strategies for Building Wealth,
    • And a LOT more.

    Lock We hate spam just as much as you