Can any real estate agents/brokers give me advice on how to get started working with investors? Investing seems pretty lucrative to the industry, and I want to know everything there is to know about how I, the agent, am beneficial for the investor.
Hi @Alexa Williams ,
I would suggest getting out there and learning not just the market but studying the inventory. Go scope out what's out there as far as multi-family props, REO's, short sales, etc. If you start a conversation with an investor and can immediately be able to speak to the specifics of current condition, it will make the conversations go smoothly. Also, having previewed some props you'll be able to include or exclude them from your list of potentials based on your investor's criteria. The rehab cost estimating book in the "Learn" section of BP will be very helpful when it comes to previewing props for investors.
Hope this helps. Good luck!
When we have used agents in the past for investment properties, it was essential that the agent knew how to analyze the numbers--whether a flip or long-term rental (in our situation). Many agents will try to work with an investor in the same way they work with a typical buyer and that doesn't work.
Also, be available and able to move quickly. In our experience, a good deal, especially if it is on the MLS, doesn't last long. If a new property comes on the MLS that is a prospect, your buyer may need to see it and make an offer on day 1. At least that is what we would do. Every extra day is more competition.
Well, for starters, being a member of Bigger Pockets is a great way to meet investors and get to know them better. I would spend some time every day reaching out to investors and adding them to your network. Once they get to know you, they will open up about doing more business with you.
You bring value to the investor by providing Comparative Market Analysis (CMA) as based on the up to date information in your Multiple Listing Service (MLS). Many investors will not have access to the local MLS data so will need an agent to help them to price their properties for either purchase or sale.
Often, the investors I work with will seek me out to ask my opinion on how to approach a property negotiation. They will also use me for our promulgated contracts in order to make offers.
Finally, I have been told by almost every investor I have worked with in the last few months that they like how responsive I am to them. I respond within thirty minutes on a phone call or email. I always respond immediately on a text. Investors are in real estate for the return it brings them. Time is money and you have to be very responsive to them every step of the way.
I hope this helps. I will be happy to answer direct questions.
Thank you all! This was very helpful.
Lots of good advice has been given but I'll just add that you should read that ebook and also attend the local investor's association meetings to find the actual investors in your area.
Hi @Alexa Williams . I would suggest attending a local REI club.
We work with Realtors, and there are several things that make us really love certain Realtors.
INITIALLY - showing us that you understand the wholesale, or buy and hold investment, or whatever it is you are focusing on, and that you have the know how and eagerness to work in this area. That you aren't going to turn around and say it is too hard because there is too much work involved in getting deals for investors. There is nothing worse than investing time and finding out the Realtor had no idea of what they were working with even though they said they did at the beginning.
FINDING PROPERTIES - Find suitable properties. We like to make many offers per week, and have to do numbers on all properties we are presented with. When we are given properties that don't match our criteria or are just randomly picked off the MLS it is a big waste of our time and we will soon tire of previewing your lists.
If you show us that you are finding properties that other investors may not have found yet, by using other methods than the MLS search, we get rather excited and focus more on those properties.
INFORMATION - many investors work out of the area that they live in, so are working remotely. You are the agent in the area. You know which areas or properties are promising and why. Give an investor good information on a property and why it would be a good investment, and we will look at it more intently, otherwise it is just another number and might be by-passed.
It takes literally minutes to do some comps, give comps! It makes our number workings quicker, and our offers more accurate. Saves all of us much time.
CONTACT - as others have said, be easily contactable, quick to reply. The minute an agent takes too long to send through offer contracts, or respond to a query, we lose interest. Personally, but this isn't important to everybody, friendliness is very important to me, after all I work with you regularly and I want to feel good about doing so.
GUTS - getting good deals for investors requires guts. You need to be willing to approach sellers, drive a hard bargain. If you enjoy doing that, you will do so much better at it. If you are going to just email off all offers, you will be spending too much time making offers that will have very low success rates.
They are just some random thoughts, hopefully of help. Good luck!
Thank you @Linda Quinton !!!!
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