How to find the right agent?

Question

Hey, over the past few months I’ve been working with an agent who turned out not to be the right fit for my needs. I’m an out-of-state investor and I really need someone who can be my eyes on the ground, someone who’s as hungry for deals as I am. My question is: where and how do I actually find the right agent? I know a lot of investors don’t like sharing their agents for obvious reasons, but how can I do this efficiently without wasting time on trial and error?

P.S. If you have any recommendations, I’d really appreciate it.

Michael Smythe · Answer

@Elon Hayon

Why does everyone want to start with an agent, when 95% of agents really only know how to work with owner-occupied properties?

Don't believe us? Ask several random agents what the Cap Rate, ROI or Cash-on-Cash is on a property they recommend you buy!

You should be building a team to maximize your probability of success!

While building your team, it's important you understand the motivations of everyone on your team.

Property Management Company (PMC): No one else on your team should be as vested in a long-term relationship with you as a PMC. They will have to manage whatever you buy on a daily basis until you sell the property or terminate them. You need to find a good one though, that is honest & competent. An honest PMC's incompetency will still cost you.

Sourcing: whether agent, wholesaler, flipper, etc. many only have a vested interest in a transaction. You want to find ones that are vested in developing a long-term business relationship with you. Otherwise, they will screw you for their own compensation.

Inspector: You want an unbiased and competent professional that will properly do their job and document it.

Contractor: Finding contractors that don't cut corners and overcharge is EXTREMELY difficult. Even if they are referred, you really don't know until AFTER they've done a job. The other 3 above should be able to provide referrals, but don't blindly trust anyone!

Nadeem Alamgir · Answer

Appreciate the shoutout here @Abel CurielHappy to help here @Elon Hayon

Joseph Tadres · Answer

Hey Elon! Sorry to hear that the agent was unable to assist you. I think it is very important to have an agent who understands your criteria. I'd love to hop on a call and see how I can help!

Seth McGathey · Answer

@Seth McGathey one additional thought I just had. Also, be a good client! Some clients start hot and like they are looking for a deal immediately. Then a few days or a few weeks later they stop responding or are slow to respond. As an agent, my natural response is to focus on the clients that seem invested in finding a deal. If I send you a deal and don't hear back for 2-3 days, you likely won't be the first person I message when another deal comes my way, because I want to give those deals to clients that are active.

Abel Curiel · Answer

Hello Elon,

I'd recommend speaking with @Nadeem Alamgir who mainly works with OOS investors.

I spoke with Nadeem a few weeks ago for the first time and he had great insights on SFR, MFR investing. He also shared more details related to the types of deals his clients are buying, market rents, expense estimates, renovation budgets, etc.

All the best!

Abel

Adam Bartomeo · Answer

You have to Kiss a Few Frogs...

Rebecca Knox · Answer

Do you use property managers? Aligning with your property manager and building a strong relationship could be beneficial. In Wisconsin, they are agents as well.

Charles Clark · Answer

@Elon HayonTotally get it, finding the right agent can make or break your investing experience. I’d look for investor-focused agents through local REI meetups, BiggerPockets, or Facebook investor groups in your target market. Focus on agents who personally invest or work with other investors, they’ll understand your goals and move fast. If you share your target area, I might be able to recommend someone.

Seth McGathey · Answer

First, are they on BiggerPockets/familiar with it? If not, they probably don't know much about investing, or at the very least they might be using different terms for things. Not a dead in the water issue, but it is a nice easy way to compare.

Second thing, ask them how many properties they own. If it's one or less, they might still be able to help, but they are not that experienced an investor so I wouldn't lean too heavily on their knowledge, deal analysis, or contacts unless they can explain why those things are better than you would expect for a new investor.

Third, ask them if they are willing to run analysis on properties with/for you. If they don't know how or are not good at it, then they might not be the agent for you.

Final thing is communication. Are they willing to communicate the way you want to communicate? Calls, text, email? If they won't communicate the way you want to, it might not be the best match.

But all of this is going to tie into the market you want to be in. Because obviously they have to be in or close enough to the market that you want to invest in.

If you decide to invest in Milwaukee and would like to talk and see if we are a good fit to work together, feel free to reach out. But regardless of where you invest, best of luck to you and hope you find an agent that knows how to help you!

Zachariah Hays · Answer

Hey Elon,

Finding the right agent is a big part of your core team. Yes it can be difficult and to be honest, the first agent you work with may not be your best one. For me personally, the first property I bought was with 1 agent and then my next 9 were with another agent who turned out to be alot better.

This business can be trial and error, that is how we learn and grow. Some folks get lucky with the first agent they work with. The best thing to do as well is leverage any reviews or referrals.

Last piece I will add is simply just to have a conversation with an agent. Get on a phone call, tell them about your goals, ask them questions to test their knowledge and feel if it is a good fit. This business is relationship based and if you can find someone you connect with and know they have good intentions, chances are they are a good piece to have on your team!

How to find the right agent?

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