Investor Friendly Agents, how do you qualify them?

Question

How do you know if an agent is investor friendly? Are there certain questions that you ask to qualify them?

John Warren · Answer

@Kevin Whisler ask them how many investments they have! Ask them if they have ever flipped a house. Ask them about land lording. Ask them about how to cash out refinance. If they know what they are talking about, this stuff will just flow right out!

Account Closed · Answer

@Kevin Whisler Personal experience is a great place to start. You are also welcome to always ask for any references for other investors they may have served. An investor friendly agent should be familiar with the market youre looking in down to what types of buyers, materials/finishes, time to sell, best ways to market in that neighborhood, market trends, etc. (i mean of course an average agent should be familiar with this as well) but as an agent that has experience working for a top appraisal firm, i make sure to note differences on why 1 flip or rental got top dollar vs another or why certain areas are more appealing to investors or buyers (and i mean down to the block/street its on).

Ask questions, some agents will get super annoyed and thats how you know theyre not right for you too. Investor friendly agents know that your questions can be abundant because not only are you investing your money in real estate but you are investing your time in that agent 😊 us investors are a different breed lol.

Ryan Ingram · Answer

Great question! I agree with @John Warren. Try to have a conversation with them that sounds like something that would take place here on BP :) Or even if they’ve heard of BP.

Finding out if they have investments of their own is also a great idea. If they do, are they the type of investments you’d like to have?

Of course it isn’t always fair. One of the most investor friendly realtors here in my area has no investments of his own. But, he understands everything and wants to get started at some point...just hasn’t pulled the trigger :)

Jason L. · Answer

To piggyback off John's questions a little, make sure you follow up by asking about details. Ask them specifically how the flip they said they did went for them (how long did it take? what did you learn from it?). Ask about the performance of the rental property (how they bought it? do you use a property manager? what kind of tenants did you end up with?). Don't just ask yes or no questions that anybody could easily lie about. Make sure they actually walked the walk.

Michael Noto · Answer

@Kevin Whisler I would first check out their Zillow profile or their profile here on BP. If they do not have either ask them for deals they have closed as an agent for the past 2 years. That info will let you know whether they have experience closing the types of deals you are looking to purchase.

Once an agent passes that initial check I would schedule a time to meet with them or jump on a quick call. Make sure they know your target market very well where you want to purchase and ask them for their opinion on the market itself. As this conversation goes you will get a good idea for who you are dealing with and whether they will be a fit or not.

Lastly, be sure to ask at some point if they have actual personal investing experience. That certainly helps a lot if an agent has been involved in transactions as an agent and investor.

Zachery Buffin · Answer

As stated above I might check up on their internet presence and see if they show up at all. If you are looking for a good one you might have to go out to a local REI, investor meetup or other such event and look for the agents in the room. It is unlikely that a bad agent will continue to show up to these things week after week and month after month, this also gives you the opportunity to ask other investors about the agent in question.

In the end it will take time, there isn't a quick way to find a rockstar. You will either have to hire and fire successive agents (shotgun approach) or you will have to study and evaluate an individual for some time to see if what others have told you is true (Sniper approach) sorry there isn't a faster way really outside of a lucky pick.

As to what questions to ask them, well that's easy enough, the tricky part is HOW you ask them. Maybe present them a property you have run through the BP calculator. (The property doesn't even have to be on the market currently, though it would be better if it was.) Mention rules of thumb. If they seem unfamiliar with the basic rules they are likely not who you're looking for, ask them what the local rents are in that area, is it a good area for investors, what would a property like this cashflow, ask them if they have properties/or have seen properties like this, maybe fudge some numbers or have bad rehab estimates and see if they catch it. A good investor agent will correct you and tell you that the local market is more/less expensive. A bad agent who is only looking to sell likely won't catch it or say anything about it if they do.

I would approach the whole thing as an interview, you're the CEO of a company looking to hire a specific professional. Don't just hire them because they need a job, hire the person that fits your needs and will grow your business.

Good Luck!

Investor Friendly Agents, how do you qualify them?

Most Popular Reply