How to work with realtors when purchasing investment property?

How to work with realtors when purchasing investment property?

Lender · Baltimore, MD · Member since 2015 · 100 posts · 30 votes

Hi BP family:

As a potential buy and hold investor, what is the best way to work with realtors? Do we contact several realtors in the area we are considering who specialize in working with investors? Only work with one? Continue to contact wholesalers, and property managers for deals? As a formerly commissioned sales person, I am mindful of the time that any professional takes in dealing with clients…I don't want to waste someones time. As a potential investor, I realize that there a multiple avenues for finding properties. Would love to hear from investors and realtors alike. 

Chris D.

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  • Lender · Baltimore, MD · Member since 2015 · 100 posts · 30 votes
    11y

    Follow up. Full disclosure. I have a real estate license but haven't written a contract in over 15 years! I feel I'll need some professional help/guidance in this endeavor. 

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    11y

    Hi Chris,

    For my first property, I found a realtor in my target market who is also an investor. He understood what I was looking for, and was able to help me figure out which neighborhoods were better for my situation. For me, as a newbie it was great to have someone to discuss properties with. For my next one, I'll probably look at properties with him, but will also try to find an off MLS deal for better cashflow.

    I hope that helps!

  • Investor · Kansas City, KS · Member since 2014 · 40 posts · 8 votes
    11y

    Here's my two cents. 

    Don't feel married to a single agent. Looking for investment properties is very different than looking for a primary residence. You're not asking a realtor to help you figure out what you want in a property. You're providing them with your investment criteria. If they bring you something that fits and you do the deal, their commission is more of a finders fee than anything else.

  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    11y
    Originally posted by @Chris D.:

    Follow up. Full disclosure. I have a real estate license but haven't written a contract in over 15 years! I feel I'll need some professional help/guidance in this endeavor. 

     Hi Chris,

    Not really answering your question, but a thought I have.  Is there a continuing education class you could take that would bring you up to speed with not only current laws, etc that have changed over the past 15 years, but also the new technology used?  

    Contract signing and closing are MUCH different than they were in 2001.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    11y

    @Chris D.

    Try to deal with the listing broker directly that avoids a split commission and you are dealing directly with the one in contact with the owner.

    Paul

  • Foreclosure Specialist · Atlanta Georgia · Member since 2014 · 25 posts · 12 votes
    11y

    Coming from a fellow realtor, it is imperative you have a realtor with the investor mindset.  One of the most important questions is to ask them if they have investment properties.  With the regular single family home buyer you have to deal with emotional purchases.  Investors buy because the numbers work, they don't have to fall in love with the kitchen!

    If you go to REI meet ups you will usually find investor friendly realtors there.

    As far as continuing ed classes, contact your local board for what is coming up in your area or there are a lot of online courses to take geared towards investment real estate, just be sure it is a certified company so you get your c.e. credits.

    Best of Luck!

  • Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
    11y

    It really depends on the property. For HUD properties, I work with one realtor. He understands the process and how to submit paperwork timely and accurately. Other properties, l contact the listing agent directly.

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