What questions should i ask a realtor I'm interviewing to work with to find investment properties?
How do you separate the good ones from the bad ones? Can you with out working with them first? Thanks Matt
What tools do you use to streamline work flow?
What geographical locations do you work in?
And, if it is important to you, do you own investment property?
If you are interested in working with a REA that also owns REI property or is familiar with you needs as a REI, try calling professional property managers for the areas that you are interested in buying in. One organization that I have used regularly is www.narpm.org
Just find the PM, introduce yourself, let them know what you are doing/looking for and ask them if they can provide contact info for agents that either own REI property or work with REI consistently.
It really helps to work with a realtor who also invests him or herself since they usually look at property from an investor's point of view. If there is a specific area you wish to focus in, take a look at what realtors are most active in that area.
Realtors usually follow the 80/20 rule. That is, 20% of the realtors are doing 80% of the business. The more active realtors usually see more deals and will give you a heads up if they know you are serious.
Here is an article that suggests what to look for in a realtor, maybe gear your questions off of this?
Hope this helps!
Put an ad and wait to see who calls and is aggressive enough to come for a job interview.
@Matt Hendrickson I'm a newer agent, so the majority may or may not be doing this, but I keep examples of deals I've analyzed for clients. When I interact with someone who may be an investor, I'll bring up an analysis on my ipad right in front of them to show them I'm capable of doing the work.
I also ask specific questions of them to ensure they know I know the language. For you to find and vet them, it could be as simple as asking specific questions as @Chris Stromdahl suggested. Or it could be asking them to go the extra step and analyze a deal for you, bring it to the pros on BP and see if they pass.
Hope that helps and I Hope you find a good Realtor!
Thanks everyone for the responses. Do we have any good realtors on BP that work in the indianapolis, IN area? Eastside and south side?
The most important thing to ask them is whether they work mostly with retail buyers or investors. If all they do is help Barbie and Ken clients buy their dream home, they're not going to be a good fit. They don't understand the investor mentality and will get frustrated quickly. Work with agents that work primarily with investors and speak the language.
I have bought a couple duplexes from a few realtors in indianapolis. One in particular was excellent and I plan on working with him exclusively in the future. Send me a private message and I will send you his name and contact.
It is important to find out if the Realtor understands what an investor is looking for. Im an investor and Realtor and work exclusively with investors. The key for my investors is working with them to achieve their individual goals. All investors are looking for slightly different properties, areas etc.
Are you looking for completely rehabbed units or one to work on yourself? Most realtors don't get their hands dirty with these properties unless they are pretty aggressive for business has been my experience. The commission on these is not very high typically. There may be some that specialize in it and you would want that kind of person. You could send out an email to several Brokers and let them know your intentions. I would look for a realor that has been feeding the large funds that bought so much up over the last several years. There must be a handful of them that have the pulse of the lower end market. I would judge their capability based on closed deals and responsiveness to a smaller buyer.
@Matt Hendrickson all good responses above.
As mentioned earlier, I would suggest working with someone that works primary [or exclusively] with investors.
Also, check out the local meetups and club meetings for ideas of course.
Here are a few local organizations:
- it's always good to see another Hoosier utilizing this great site!
Of course, you need to read The Ultimate Beginners Guide to REI here on BP
If you haven
To make sure you will be comfortable working with a real estate agent, you need to let him/her know of who you are, and see if they are comfortable. I think you can ask questions, but at the end, discuss with them the following four areas and see if they are compatible with the type of investor you are.
First, time availability. If you have specific times that you can go to the field, you might need someone who will be there for you. Give them exactly when you expect to go out and see deals, and get a sense of their availability (or whether someone else from her office could be available to show you the houses).
Second, volume of showings. As an investor, you need to see a lot of properties before you make an offer on one. Make sure, the real estate agent is used to that type of volume. Ask them what is the typical number of houses that other investors working for him/her need to see before making an offer.
Third, is the notion of value. Most agents use comparable of move-in-ready houses to determine what a good offer would be. This is needed to find the value the property might be sold for after repairs. Ask them how they approach to value a property for investment and if you have one in mind give it to them and ask them to recommend what a good price would be.
Fourth, the notion of offers made to offers accepted. Many time, for the deal to work, the price might have to be lower than the listing price is. A lot of your offers will be rejected, so make sure the agent knows in advance that this will happen. Ask them what percentage of the offers other investors working with him/her get accepted and why (a high percentage might not be a bad thing if they carefully do their homework before making an offer).
At the end of the day, it is getting someone that will be your partner for the long term.
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