I'm a wannabe investor looking to enter the real estate game. Having been studying the topic for the last few weeks now, I keep coming across topics that stress the importance of having an agent to buy property. I have a few questions regarding this:
How important is it to find an agent when I don't plan on buying properties in a regular fashion? I feel like this would turn off many agents due to the fact that they wouldn't be generating as much money by having me as a client. Additionally, I've seen that many agents aren't very receptive to newbie investors, so how do I change this mindset? How would I find an agent that best fits my specific needs as an investor?
Also, what innate advantage does an agent offer me that shopping for property on my own won't accomplish? I believe I've read that they are likely to come to with deals that might not be posted on MLS and sites of that sort, but are there any other advantages?
@Logan Hartley what do you mean by you don't plan on buying properties in the regular fashion? Many agents don't like new "investors" because they come in saying things like I plan to buy a house every six months, and build a portfolio and then can't qualify for a single mortgage or they want returns that are double what is available in the area. The easiest way to combat this is to get lender preapproval and have realistic expectations.
Hi @Aaron K. , thanks for responding to this.
I suppose I probably could have worded that a little bit better. By saying I'm not buying properties in a 'regular' fashion, what I mean is that I don't plan on buying properties at regular intervals. For example, my plan, especially starting out, is not to buy a house every six months or any other recurring intervals. My strategy as it stands is to buy properties as I build up and have the capital to do so. So while I may purchase another property after 6 months, I might wait a year to buy the next one. I felt my current strategy would deter agents, but if I'm understanding you correctly, that is not the case which -- which is comforting.
As it stands, would the best piece of advice be to just reach out to different inidividual agents with my current plan in mind? Or would it be more wise to reach out to the companies they work for?
Thanks a ton,
@Logan Hartley most agents deal with people who only buy the house they live in so even the possibility of future business is good for them. As long as you can actually close that is all they care about, agents generally work individually and the company they work for doesn't have much influence over how well you will click with them, make it clear you are interviewing them because a lot of agents like to jump into "I had one conversation with you and your are my client now". Once you pick one you like make sure they know they are the only agent you're dealing with, that way they can focus their effort on you (a person who is highly likely to convert)
You can't buy a property on the market on your own, so unless you want to buy with the listing agent, who has first fiduciary duty to the seller, you will need your own agent. You shouldn't worry about turning an agent off, you should worry more about finding the less than 1% who actually know anything about real estate investing. This might help - https://www.biggerpockets.com/member-blogs/10015/64777-5-tips-to-find-an-investor-friendly-agent. When you find an agent who is also an investor they won't mind as much showing you properties if they are looking for themselves as well. It's regular agents who don't like spending the time and find it a waste.
Thank you very much. I will definitely give this a more thorough read-through tomorrow.