What exactly makes a good ‘investor friendly’ real estate broker/agent?

[AJ Wong]

While I can't speak for all 'investor friendly' Real Estate brokers/agents I can shed some light into what I consider a real estate professional specialized in working with investors.

Investors are a unique breed. They require a bit more attention, resources and discipline than most animals and a good real estate pro knows when to listen and when to command. 

There are many brokers that can facilitate a home purchase or facilitate the purchase or sale of a property, but it takes a similarly attentive, resourceful and disciplined Realtor or broker to consistently deliver worthwhile investments to demanding clientele. 

Capital, like quality real assets are limited. Identifying, qualifying and executing transactions seamlessly while coordinating with seller, other brokers, title companies, lenders, managers, tenants, inspectors, contractors and appraisers is not dissimilar to conventional residential real estate transactions but the margins for error and the foresight to avoid or solve potential issues and overcome them is often the difference between a successful transaction/investment and a disappointment. 

Recently I assisted a BP client close on a Oregon coastal six plex. Initially, due to the condition of the property the sellers and listing broker only offered the property as a cash only sale. After a unrelated failed transaction and a declined owner carry offer, we submitted a financed offer with a local credit union relationship I’d been nurturing for just this scenario: A  property with exceptional potential and borrower with exceptional credentials to get a deal closed.

Fast forward 45 days and the transaction closed. The buyers got a gem and the sellers are liquid. Without the lending relationship somebody else buys the property, for cash at a lower sales price and I’m probably still looking for a property, while my clients liquid assets sit stagnant. 

Furthermore several days prior to closing it came to my attention that an insurance policy had not been issued. I texted my client and she was unable to secure a policy with her current insurance agent. I referred her to a local broker that had provided exceptional service to a prior client and within 24 hours and at 9pm at night provided my client with remarkable policy options for a difficult to finance and insure six plex. 

The point is not that I’m some extraordinary broker, but through years of personal and professional experience and relationships there is an intangible value to the services provided that others could possibly duplicate but never replicate. Much like the real assets investors acquire, no two properties are identical and no two transactions, even hypothetically involving the same property, are exactly the same. 

As the investments, risks and stakes increase, the need for higher level professional support increases. Successful businesses have successful lawyers and accountants..often because of them. 

So what makes a ‘investment friendly’ broker? 

- Experience, they’ve done it for themselves and done it well. In this game there is absolutely no substitute for having been there and done that. There are levels to this game. I personally know my strengths and my limitations. If it’s beyond my scope, as confident as I am in my ability to lear and adapt, real estate is a good teacher but a poor master. If you’re in over your head, the truth will reveal itself and when it does you’ll want to be on the right side of due diligence, consideration, analysis, liabilities and good fortune. 

- Relationships. Beyond the hand holding of the listing broker, there could be a dozen other parties to a transaction. If those ‘partners’ are not fully integrated, motivated, coordinated and vetted, good luck. And you’ll need it. Is it me or is it getting harder to get even good deals closed? At least until AI takes all of our jobs..(more on that later.)

- Good listening skills. I know a lot, but mostly that I don’t know enough and even what I know is limited by perspective and ignorance. I especially don’t know what is going to meet individual or familial investor needs and goals unless I take the time to hear and understand them. It’s possible for me to send you a list of properties that are eligible for investment but much more difficult to project if a property will actually become a successful investment. Some of the most critical elements to understand are the timeline for investment realization (example: 5-10-20++ years) the leverage and borrowing capacity and the age, income and portfolio of the investor.

Investments and lives change. And good investments, like bad, can change lives. Although it’s not the responsibility of a real estate broker to be adviser, therapist and planner to clients, often the relationships developed between professional and client becomes  personal. All healthy professional and personal relationships require understanding, empathy and compromise to grow. 

Likewise an ‘investor friendly’ real estate broker or agent should be a friend. Someone you can trust, rely on, share your concerns, story and very personal details while communicating clearly, openly and with your best interests at heart. 

Personally being recognized as an ‘investor friendly’ real estate broker isn’t a title I sought, but is more an effect of my interests, experiences, network, goals and passions. It’s a process I’ve performed for myself, family and friends and increasingly the service area of real estate I feel I provide the most value. 

Since I presume many brokers/agents on BP are focused on investment property representation maybe share some insight, tips and tools you’ve used to grow your portfolio and business? 

I’ll try to post a bit of my trials and tribulations with my own investments and investor related transactions in the next post. 

Cheers.