Are Investor-friendly Real estate agents a thing?
Member since 2018 · 9 posts · 3 votes
Are Investor-friendly Real estate agents a thing?
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesOriginally posted by @Brandon Sturgill:
@Frank Nabors As a professional association, real estate agents are a horrible group. They are consistently the least trusted profession in the country and for good reason...they will lie, cheat, and steal to get a commission. They are largely deceptive and misinformed...this is a volatile and unhealthy combination. That said, there are very few agents that add value to the deal...just do your homework, conduct interviews, and don't settle. Trust but verify. You can eliminate 95% of bad agents by asking them how to calculate a simple return like cash-on-cash..or even CAP...just ask and they'll freeze like a deer in headlights.
Glad to chat more about this.
Best of luck.
agents that want to work with investors are niche agents.. just like some agents like to sell new construction.. or like to be PM's or any other facet of the business.. although I disagree with your assumption that 95% of agents are clueless. maybe as it relates to how to run proforma's on income property.. and they are retail owner occ agents.. I have owned 4 brokerages spanning 3 decades and have had 100 s of agents work for me.. what you will find is that some are just smarter than others.. and most are not investment cash flow analytical types.. its not their skill set.. but you take a good retail agent that works with the top of the retail market and they make big bucks like 500k to over 1 million a year in commissions.. I mean even my wife who I think is pretty great she sold 15 million last year and only one of those sales was an income property.. and only because it was someone from BP who reached out to me and wanted our specific market and we went back into our client list and got them an off market deal.. plus they were highly qualified and very nice to work with..
NO way no how is she going to work with most investors which are just time sucks.. so it goes both ways.. why would she when she has a retail business that makes her great money ALL based on referrals.. and her dynamic personality.. Like yesterday at the car wash ( full service) the owner who she talks to every month.. Said they want to list their home at 750k and my wife had them get pre approved for new loan with her loan officer and they want to buy in the 1.1 to 1.2 range.. it simply does not get better than that.. that's a 30 to 50k income to her selling two properties to a very nice business owner.. so you can see both sides.. or should she talk to a investors who has a laundry list of questions .. and criteria.. ( I love that one) that is so unrealistic that its simply a waste of time.
with my agents only a few were really good with investors.. they knew how to vette them and cut lose the time wasters..
but to say an industry is 95% bad is just a poor statement in my mind.. its just like saying all wholesalers are scum.. or all of anything are scums.. if you choose to work with investors buying low end SFR;s I get it more power to you.. but there is another world out there and for good agents that are investors agents know where the deals are and get fed off market deals.. they simply choose who they work with .. they don't need to take on newbie type buyers.. Buyers have totally unrealistic expectations most of the time.
I have agents in the 7 or 8 markets that work with us.. but we are proven.. and its what they do.. and I don't need and agent to run my due diligence or numbers for me.. they just need to present us with opportunities I will tell them whether I like them or not or want to buy them.. No one should rely on another for numbers.
26 Replies
- 7yBrandon SturgillBusiness MemberReal Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
@Frank Nabors As a professional association, real estate agents are a horrible group. They are consistently the least trusted profession in the country and for good reason...they will lie, cheat, and steal to get a commission. They are largely deceptive and misinformed...this is a volatile and unhealthy combination. That said, there are very few agents that add value to the deal...just do your homework, conduct interviews, and don't settle. Trust but verify. You can eliminate 95% of bad agents by asking them how to calculate a simple return like cash-on-cash..or even CAP...just ask and they'll freeze like a deer in headlights.
Glad to chat more about this.
Best of luck.
- Hardin County, KY · Member since 2018 · 129 posts · 145 votes7y
There are investor friendly agents for sure just not very common. Most agents work the traditional market with traditional buyers and sellers. I would personally suggest going to REI meetups in your area and fellow investors will gladly point out the stars of the realtor world. I deffinatley will say, no matter where you get your deal from, always verify because even the best of the best miss things and make mistakes!
- Member since 2018 · 9 posts · 3 votes7y
@Brandon Sturgill As an agent/investor yourself, what benefit to you would it be to not invest in a deal yourself and push it on to a client? I know for REO properties, an agent is required to make offers on those properties. I've been listening the BiggerPockets podcasts and have watched a few of the webinars/reading through threads here but I'm still a bit confused on what value a small-time investor can add to an agent who has access to deals?
@David Espinosa I have found a Central Florida group that seems to be quite established who holds meetups. At this stage, it probably is in my best interest find some people who can nudge me in the right direction or, at the very least, keep me from going in the wrong direction. Luckily my parents(engineer/accountant) are very supportive and can be a second and third set of eyes (in addition to this forum) to make sure that, if anything, I don't start off investing in something that is a disaster.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Brandon Sturgill:
@Frank Nabors As a professional association, real estate agents are a horrible group. They are consistently the least trusted profession in the country and for good reason...they will lie, cheat, and steal to get a commission. They are largely deceptive and misinformed...this is a volatile and unhealthy combination. That said, there are very few agents that add value to the deal...just do your homework, conduct interviews, and don't settle. Trust but verify. You can eliminate 95% of bad agents by asking them how to calculate a simple return like cash-on-cash..or even CAP...just ask and they'll freeze like a deer in headlights.
Glad to chat more about this.
Best of luck.
agents that want to work with investors are niche agents.. just like some agents like to sell new construction.. or like to be PM's or any other facet of the business.. although I disagree with your assumption that 95% of agents are clueless. maybe as it relates to how to run proforma's on income property.. and they are retail owner occ agents.. I have owned 4 brokerages spanning 3 decades and have had 100 s of agents work for me.. what you will find is that some are just smarter than others.. and most are not investment cash flow analytical types.. its not their skill set.. but you take a good retail agent that works with the top of the retail market and they make big bucks like 500k to over 1 million a year in commissions.. I mean even my wife who I think is pretty great she sold 15 million last year and only one of those sales was an income property.. and only because it was someone from BP who reached out to me and wanted our specific market and we went back into our client list and got them an off market deal.. plus they were highly qualified and very nice to work with..
NO way no how is she going to work with most investors which are just time sucks.. so it goes both ways.. why would she when she has a retail business that makes her great money ALL based on referrals.. and her dynamic personality.. Like yesterday at the car wash ( full service) the owner who she talks to every month.. Said they want to list their home at 750k and my wife had them get pre approved for new loan with her loan officer and they want to buy in the 1.1 to 1.2 range.. it simply does not get better than that.. that's a 30 to 50k income to her selling two properties to a very nice business owner.. so you can see both sides.. or should she talk to a investors who has a laundry list of questions .. and criteria.. ( I love that one) that is so unrealistic that its simply a waste of time.
with my agents only a few were really good with investors.. they knew how to vette them and cut lose the time wasters..
but to say an industry is 95% bad is just a poor statement in my mind.. its just like saying all wholesalers are scum.. or all of anything are scums.. if you choose to work with investors buying low end SFR;s I get it more power to you.. but there is another world out there and for good agents that are investors agents know where the deals are and get fed off market deals.. they simply choose who they work with .. they don't need to take on newbie type buyers.. Buyers have totally unrealistic expectations most of the time.
I have agents in the 7 or 8 markets that work with us.. but we are proven.. and its what they do.. and I don't need and agent to run my due diligence or numbers for me.. they just need to present us with opportunities I will tell them whether I like them or not or want to buy them.. No one should rely on another for numbers.
- Rental Property Investor · Niceville, FL · Member since 2019 · 89 posts · 62 votes7y
@Frank Nabors
Investor friendly agents are a thing....however...it can be hard to hang in there with new investors. Specifically if they have not figured out what they want to do...or established guidelines for their "buys". I worked with some new investors recently that were all over the map. SFH, STR, Mobile Home Parks...that is fine but they had no set ROI, no real direction. That was hard. When that happens I generally try to help by asking about their goals.
I went the other way with real estate. I get excited about the crappy house and sad about the perfectly done, brand new. Therefore, I find it difficult to work with residential (retail) clients.
Take your time finding one that is right for you....it matters!
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Melissa Jolley:
@Frank Nabors
Investor friendly agents are a thing- I am one....however...it can be hard to hang in there with new investors. Specifically if they have not figured out what they want to do...or established guidelines for their "buys". I worked with some new investors recently that were all over the map. SFH, STR, Mobile Home Parks...that is fine but they had no set ROI, no real direction. That was hard. When that happens I generally try to help by asking about their goals.
I went the other way with real estate. I get excited about the crappy house and sad about the perfectly done, brand new. Therefore, I find it difficult to work with residential (retail) clients.
Take your time finding one that is right for you....it matters!
yes in your niche you MUST take control.. don't let the buyer lead you around .. that's what I like about good commercial agents NO BS zone.. they can sniff out wanna bee's and time wasters.. most agents that are new or not that experienced tend to let the buyer take charge.. first thing my daddy taught me when I started to sell real estate at 18 in 1975 was always be in charge.. do not let buyers take control.. it was hard at first but once I learned the correct way to do this.. my business just took off..
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@James Wise you guys should all follow JIm in his u tube and see how he runs his investment real estate shop..
no letting buyers waste his time or run him around.. he takes control or its next.
- Rental Property Investor · Niceville, FL · Member since 2019 · 89 posts · 62 votes7y
@Jay Hinrichs I will certainly look into this. I like to treat everyone like a friend so I tens to go above and beyond....there is a fine line. Glad you posted this.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Melissa Jolley:
@Jay Hinrichs I will certainly look into this. I like to treat everyone like a friend so I tens to go above and beyond....there is a fine line. Glad you posted this.
there are ways to do this that your buyer will never know you took control. many in real estate sales never really learn proper technique its a learned skill.. there is a reason there are top performers in real estate.. they simply have better skills you can learn those skills.
I was taught them at a young age and by some very sharp salesmen.. Once U learn the techniques your buyers will never know your controlling them not the other way around..
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes7y
Tip, when looking for an agent that works with investors, dont use the term "investor friendly." Thats a huge red flag that you are going to waste someones time. Real investors dont use the term and only wannabe ones do.
District Invest Group545 Reviews - Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes7y
@Frank Nabors. As usual I essentially agree with @Russell Brazil. I’m still not really sure what “investor friendly” in any context means. That you’re cheap?
I have simple realistic criteria for what I want a deal to look like. I saw a property that met this a couple weeks ago, that just hit the MLS. I drove by it the next day, and worked with my agent to submit an offer that same day.
She knows I’m a known commodity, and she had a prior relationship with the listing agent, so she got it done.
She even went and took photos of the inside (tenant occupied) without me asking (or being there. I think she’s great to work with for investors (she lists a lot of flips too), but you still have to run your own numbers and not waste people’s time.
So many people waste your time in real estate. It’s quite annoying.
- Member since 2018 · 9 posts · 3 votes7y
I really appreciate all of the responses. I'll avoid "investor friendly" from now on.
Just as a little bit of background, I've joined on recently with a small family engineering company and am working on growing it. We're starting to have more good months than not so cash is becoming more available and I want to start my investing with buy and hold (with house hacking the first one). Funds permitting, I set a goal for 5 SFR's in the next 3 years and see which direction I'd like to take investing from there on.
My bosses old business partner had an agent who brought him properties. By retirement, he had something like 14 SFR's so that's what I had in mind when I said "investor friendly."
I was avoiding talking to agents until I had the funds in place for the exact reasons stated. I've learned how to run numbers from this website and have some criteria in place. Regardless, it's still nerve-racking getting property #1.
- Real Estate Agent · Brentwood, CA · Member since 2018 · 285 posts · 225 votes7y
@Frank Nabors - Great job! I consider myself as @Jay Hinrichs calls it, a "niche agent".
- 7yBrandon SturgillBusiness MemberReal Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
@Frank Nabors To answer you question, its a matter of principle...there have been numerous times where I have personally withdrew offers to not compete with buyer clients. And I have plenty going on...I invest in markets that are largely outside of where my clients invest...intentionally. We have active marketing campaigns that bring in deals and they go into a "best use" funnel. As a licensed agent, licensing/agency laws require us to inform sellers of the highest and best use of their property...most agents that claim to be investors ignore this fundamental concept...there is a lot more too this and I would be glad to chat more, but sourcing good deals from any agent that practice according to the rules is a rareity...especially in a strong market where the best play is to list. Again...this is just the tip of the iceberg in this discussion...
- 7yBrandon SturgillBusiness MemberReal Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
Wisdom, prevails...per usual ;) Good points @Jay Hinrichs.
- China, ME · Member since 2014 · 3k+ posts · 4k+ votes7y
@Brandon Sturgill That was the most toxic, misinformed, broad-brushed statement of demagoguing, self-serving lies I've see in a very long time. It's beyond shameful.
"All the other agents except me suck", right?
"Glad to chat more about this" - right?
Just call me and I'll treat you right - not like all those other horrible, lying, cheating thieves.
Those are accusations that you should be ashamed of. If I were in your Realtor association, I'd haul your *** in front of the board for a violation of the Realtor Code of Ethics (Standard of Practice 15-2).
Maybe you're drunk-posting. Maybe you're so unsuccessful and desperate for a commission check that you'll fabricate lies about everybody in the business - except your perfect, sainted self.
What a load of absolute horse crap.
No matter what your pitiful excuse is, it's not a good look. You should apologize to every other agent on this forum and look hard in the mirror. Promise yourself and all of us that you won't beclown yourself like this again.
This is the kind of crap that I'd expect from a used car salesman, not from a real estate professional - and that's an insult to used car salesmen, who actually work very hard for their paychecks.
If you really think the profession is that bad, I suggest you do all of us a favor and get the hell out of it. If you really don't think it's that bad, then stop lying about it and about those of us who work hard to represent our investor clients every day.
There are plenty of investor-friendly agents. People who know what investors need and want. People who don't waste their client's time and help them execute deals every day. People who put their client's interests ahead of their own. People who take their fiduciary obligations seriously.
And yes, of course there are bad agents. Just like there are bad doctors, cops, mechanics, grocers, barbers, bakers, pilots, financial advisors, teachers and any other profession you can name.
But the reality is that when it comes to Realtors, their reputation will quickly drive them out of the business - especially in this age of social media.
Promise us all that you'll think hard before posting garbage like this again.
- Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes7y
Long winded response alert!
Every agent is investor friendly if you can/do:
A) actually have the ability to close.(probably cash or no inspection in this market cycle)
B) make the relationship two ways. (My agent knows about every off market deal I come across, because he's going to get the listing.)
C) know your ****, podcasts and webinars do not apply, only previous experience will. Buzz words raise red flags!
Don't take this the wrong way but if you're looking for your first house hack, you don't need an agent who deals with investors because you're not an investor and also, the wrong agent, with their best intentions, may sell you on the numbers based off living there, possibly not as a viable investment.
Just because an agent may be investor friendly, doesn't mean they know anything about investing. My agent is a wealth of knowledge about the market in my area and deals with rental, construction and development every single day. Hope this long winded answer helps, any questions send me a pm, glad to help if I can.
- 7yBrandon SturgillBusiness MemberReal Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
Wow, great vocabulary @Charlie MacPherson You're way off base. And I'm not in this for the commission...I would be willing to bet you are though?...how many months away from bankruptcy are you?...
Think about numbers...how many agents are there in the country...NAR is in the top 5 professional associations in the universe...let's just pretend there are a million agents out there...what's 5 percent of that?...saying that 95% of agents are incapable of providing value add services to investors is generous. The topic at hand is agents that are fully capable of providing services to investors...and most investors need a lot of guidance...99% of the agents in my market (and yours) can't offer guidance to investors...not meaningful guidance anyway.
So, what's your response when a new investor asks "is this a good deal, Charlie?"...well...
Tell me why cash-on-cash is important...and what is means...without looking on Google for the answer...
Real estate agents are a thing of the past, Chuck...disruptive technology is going to ravage this industry...and tools like you will be the first to fall.
- China, ME · Member since 2014 · 3k+ posts · 4k+ votes7y
@Brandon Sturgill Setting your attempted distractions aside, let me call your own words back to mind.
Here's exactly what you said "As a professional association, real estate agents are a horrible group. They are consistently the least trusted profession in the country and for good reason...they will lie, cheat, and steal to get a commission. They are largely deceptive and misinformed...this is a volatile and unhealthy combination."
That's the rancid load of verbal manure I object to. You broad brush an entire profession - except of course, yourself.
This pathetic attempt to elevate yourself by belittling others is such an immature rookie move that it's hard to believe that you did it sober.
- Member since 2018 · 9 posts · 3 votes7y
Thank you all again for the help! I will hold off on trying to find an agent to work with until I have a couple properties under my belt and know what I'm looking for exactly. In the meantime, I'll keep reading and attend the meetups I've mentioned a bit earlier.
- Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Melissa Jolley:
@Frank Nabors
Investor friendly agents are a thing- I am one....however...it can be hard to hang in there with new investors. Specifically if they have not figured out what they want to do...or established guidelines for their "buys". I worked with some new investors recently that were all over the map. SFH, STR, Mobile Home Parks...that is fine but they had no set ROI, no real direction. That was hard. When that happens I generally try to help by asking about their goals.
I went the other way with real estate. I get excited about the crappy house and sad about the perfectly done, brand new. Therefore, I find it difficult to work with residential (retail) clients.
Take your time finding one that is right for you....it matters!
yes in your niche you MUST take control.. don't let the buyer lead you around .. that's what I like about good commercial agents NO BS zone.. they can sniff out wanna bee's and time wasters.. most agents that are new or not that experienced tend to let the buyer take charge.. first thing my daddy taught me when I started to sell real estate at 18 in 1975 was always be in charge.. do not let buyers take control.. it was hard at first but once I learned the correct way to do this.. my business just took off..
Some wise words here. Exactly right Jay. As an agent, you dictate the call and you tell the investor how it is. What do I mean by that?
Just tell them what's realistic or not in the market place. You can let them what the typical returns for condos, houses etc in these areas 2-4 units are. Based on your needs or money available you have ready to invest this is what you can do. This way you cut right to the chase. If you want to work with me this is what I can help you find. I am not here to tell people a fantasy of a hypothetical low probability of 1% plays. Here is the truth if you want to work with me you have to work within what's realistic. This eliminates a lot of pretenders. The buyers that are left are serious people who get all of my time and effort.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Russell Brazil:
Tip, when looking for an agent that works with investors, dont use the term "investor friendly." Thats a huge red flag that you are going to waste someones time. Real investors dont use the term and only wannabe ones do.
when I had my brokerages I could always tell when a travelling guru came through
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Russell Brazil:
Tip, when looking for an agent that works with investors, dont use the term "investor friendly." Thats a huge red flag that you are going to waste someones time. Real investors dont use the term and only wannabe ones do.
when I had my brokerages I could always tell when a travelling guru came through
Yup. I always get the calls when they come through. The phrase I hear is they are looking for an agent to add to their "power team." Lol
District Invest Group545 Reviews - 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Frank Wong:
Originally posted by @Jay Hinrichs:
Originally posted by @Melissa Jolley:
@Frank Nabors
Investor friendly agents are a thing- I am one....however...it can be hard to hang in there with new investors. Specifically if they have not figured out what they want to do...or established guidelines for their "buys". I worked with some new investors recently that were all over the map. SFH, STR, Mobile Home Parks...that is fine but they had no set ROI, no real direction. That was hard. When that happens I generally try to help by asking about their goals.
I went the other way with real estate. I get excited about the crappy house and sad about the perfectly done, brand new. Therefore, I find it difficult to work with residential (retail) clients.
Take your time finding one that is right for you....it matters!
yes in your niche you MUST take control.. don't let the buyer lead you around .. that's what I like about good commercial agents NO BS zone.. they can sniff out wanna bee's and time wasters.. most agents that are new or not that experienced tend to let the buyer take charge.. first thing my daddy taught me when I started to sell real estate at 18 in 1975 was always be in charge.. do not let buyers take control.. it was hard at first but once I learned the correct way to do this.. my business just took off..
Some wise words here. Exactly right Jay. As an agent, you dictate the call and you tell the investor how it is. What do I mean by that?
Just tell them what's realistic or not in the market place. You can let them what the typical returns for condos, houses etc in these areas 2-4 units are. Based on your needs or money available you have ready to invest this is what you can do. This way you cut right to the chase. If you want to work with me this is what I can help you find. I am not here to tell people a fantasy of a hypothetical low probability of 1% plays. Here is the truth if you want to work with me you have to work within what's realistic. This eliminates a lot of pretenders. The buyers that are left are serious people who get all of my time and effort.
there is a BP member who donated to our charity a heroshome.org and for those donations they get me live on the phone to talk about what ever I can do to help them in a certain transaction or how to sell real estate or whatever.. So I have been helping a new agent in SC/NC who is just starting out and has been frustrated with the lack of control he can get and being ordered around by buyers and sellers.
so it was fun for me to dust off some of my techniques that I used in the 70s and mid 80s when I did street level sales.. and were taught to me by some of the best salesmen in the world who sold in the 50s and 60s.. there is a system.. and most get into this business ( sales be it wholesaling or real estate brokerage) do every thing to get in the business but have no clue how to interact with buyers sellers and no sales techniques.. if they are going to hire a guru they really should be hiring a sales technique guru that is money well spent..
Just go a car dealership those guys are taught every trick in the book.. every trial close every closing technique and real estate is no different..
So any way I dusted off some of my old presentations that help me be number one in my market.. and it was fun.. and I said if you have the gumption to do what I am telling you and you take control not the other way around.. your career will change from not so much fun and no control to one that becomes fun .. and done right the buyers and sellers have no clue our controlling them.. but you are.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Russell Brazil:
Originally posted by @Jay Hinrichs:
Originally posted by @Russell Brazil:
Tip, when looking for an agent that works with investors, dont use the term "investor friendly." Thats a huge red flag that you are going to waste someones time. Real investors dont use the term and only wannabe ones do.
when I had my brokerages I could always tell when a travelling guru came through
Yup. I always get the calls when they come through. The phrase I hear is they are looking for an agent to add to their "power team." Lol
WEll those are the ones that read the BP book on BRRRR make your power team or your dream team.. I mean how many agents are going to be on your dream team when your capacity is to buy one 70k house in the mid west and hope to rehab it.. and want them to do all your ground work.. time suck for agent.. that's for sure.
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