Say you're looking for an investor friendly real estate agent to work with you in your target market....but after lot's of searching, finding one with that kind of experience just isn't happening. Is it worth trying to groom an inexperienced agent for your needs?
Last year, BP put out "The Real Estate Agent's Ultimate Guide to Working with Investors":
Would this be a good resource to share with an agent inexperienced in working with investors? (Said agent would obviously have to WANT to learn this angle of the market and be willing to step beyond their normal processes of property analysis)
But for the sake of conversation...
Have any of you had the need to groom an agent to think and work with you the way you needed them to? And how successful was it? Any tips on how to initially approach an agent and ask them to learn this? I'd love to hear from either the investor or agent perspective.
Thanks for your time in considering these questions!
Finding an agent to work with you mostly hinges on whether the agent believes working with you, and your particular strategy, will be fruitful.
I like working with investors with a strategy in mind. As long as the investor is willing to be upfront and honest about their intentions, I will work with them. Most I have worked with are very open at the beginning about their strategy and we understand that the relationship will end if either of us feel like it is no longer beneficial to continue it.
For the investors buying properties, I also have most of them sign a Buyer's Representative Agreement so we have a clear cut understanding of terms and how either side can terminate the agreement. In the end, it protects both of us from misunderstandings, which can lead to hard feelings.
I would be happy to answer any direct questions about working with an agent.
Thank you Adam...
Based on your response, I would be curious about two things:
1) Would you be willing to share some of the terms that you like to have an agreement on with an investor (either in general or specifically)?
When I find an agent to work with, I want to have a good working relationship with that person. It would definitely help to know what I should be mindful and respectful of when approaching an agent about being a buyers rep.
2) If we were working together as agent and investor, what sort of interaction and milestones would keep you interested in a continued relationship where both parties are receiving benefit, and on the flip side... what would make you want to walk away?
I realize actions seen as overly wasting your time or taking advantage of your resources would be obvious detractors, but maybe there are some other less obvious things that someone with little experience like myself may be unaware of.
Thanks again for your time @Adam Wright
1. With my Buyer's Rep agreements, I am always very specific on the market areas I will help the client with...I will usually go down to the community level, but with some investors who have a wide geographic range, I will use counties. With investors, you don't always get a commission from the seller if you are representing the buyer. I always discuss this with my client to see where he stands on how I get paid if the seller will not pay the commission. We even have a clause in our promulgated forms stating that if the seller does not pay a commission, it will be the buyer who pays my commission. If my client does not like this clause, we revise it to an agreeable terms, usually with what my client feels comfortable paying.
Always realize that you are not the only client and most real estate agents work long hours with clients and still are obligated to go to office meetings and such. I respond within thirty minutes to phone calls and emails. I respond almost instantly to text messages. This does not mean I will drop everything to run a comp for one investor. I will work it in as soon as possible. You might also consider paying your real estate agent for the research, he or she does for you on case by case basis. This helps with the hours spent in front of the computer.
2. As far as milestones, this depends on the client. I would set up expectations with the client to say that we plan on making two to three offers a month, price will be determined together and the investor has to realize that not everyone will accept a low offer on a property. I would hope to get a contract on at least one property a month to make it worth my time with the expectation that I would be listing the property when it comes time to sell it. One of the greatest advantages for me as a real estate agent in working with investors is that it is the steady business, but that is only if offers are accepted. One final thing, if you are serious about investing, get your financing lined up first. Nothing is more frustrating to a real estate agent to work with a client for a month or two to find out that he didn't have the resources to move on a property. I only made that mistake once.
Thanks guys for this Article,
The questions I have, I haven't work with an investor friendly agent yet, but for instance if I want to buy a property using seller financing, or Lease option, anything creative for now,and if I use private money for the downpayment, how would/should I pay an agent? I want to make sure they get paid. That is my concern.
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