I am curious what is an "investor friendly" agent? Why would someone not want to work with investors? How would this transaction be so different from more of a traditional purchase or sell?
An investor friendly agent is someone who is use to doing non-traditional sales, as-is, evaluating after repair values, helping determine rehab level and finishes if you want them to, etc.
Finding properties and working with an investor is a lot different then working with a Husband and Wife who want a starter home to raise their family in, or the 2nd time home buyer looking to upgrade to a better neighborhood.
Realtors who work with investors are use to having to put a lot of offers on properties and deal with us demanding investors.
I am not a real estate agent, but I have had a lot of experience over the years in dealing with them, and this is my prospective from working with them.
Hi Sam, Tari is quite right in his definition of an agent who is investor friendly. Investment properties are very different in the processes of buying and selling. Learn all you can from posts here, on BP. I also suggest that you find a local Real Estate Investment group, (look for them on MeetUp) sit with them, learn from them, and become their investment friendly agent. Oh, and start your own investment property portfolio while you are at it. ;)
nowadays investors tend to implement the GAMBLE factor of:
1. Private Money / Hard Money loans
this involves proof of funds letters that are often not worth even the paper they're written on. an investor-friendly agent is likely to be okay with working with private/hard money and the shady proof of funds letters (rather than VODs to show actual cash savings or mortgage pre-approvals to show creditworthiness already guaged by lender/s).
many many investors today are making offers on houses they simply cannot afford to buy AND will NOT buy unless they find a buyer to assign the purchase contract to at a premium. this adds a huge contingency and lowers the chances of an accepted offer actually closing cause not only does the accepted offer have to secure cash/loan within a reasonable time frame, with wholesalers an accepted offer means a buyer hasn't really even been found yet unless the wholesaler removes the assignment contingency altogether.
note many wholesalers claim to buy the home if they don't find a buyer, but my response to that is then why are you including an assignment contingency that states if you don't find a buyer, you are free to cancel the contract?
Ahh.. the conundrum of finding a "Investor Friendly Agent".
The definitions given above are certainly accurate. A "Investor Friendly Agent" to me is someone who thinks outside the box and is willing to work with a special clientele.
However, this leads to the dual problem of Agency.
As an Investing Agent, the MORE I Invest for myself... the LESS I am willing to represent some idiotic, terrified first time investor.
As to getting a license, My advice?
Get your License, become an Investing Realtor®, act as your OWN Principal, and eliminate all the middlemen. (I.e. skittish buyers, flaky sellers, etc.)
I've been an Investing Broker with nearly 19 years experience now.
It is FAR Better than being a listing agent, or a buyers agents representing customers.
Not trying to be on a negative rant here.. but traditional real estate customers in a real estate transaction are many time poisonous to your monthly cash flow.
Have a Powerful Sales Day!
An agent who works with investors is in a different mindset then one who works with owner occupied buyers and sellers.
For me, being an investor myself it was a very natural choice which side I wanted to be on. I have only sold a handful of homes to owner occupants and I knew most of them. Last one was my brother who bought a house down the street from me.
Don't know a Realtor in my area that isn't investor friendly, the problem with investors seeing the unfriendly agents are those asking the agent to violate ethics or legal requirements they must deal with, it's not the Realtor, it's the "investor" not having a clue or money or credit or knowing the business. Asking for friendly title folks, attorney, agents often means someone who will allow an "investor" to do something out of the norm. So, be careful holding yourself out as "investor friendly". :)
yep, keep in mind more and more ppl are calling themselves 'investors' in order to back offers on properties they aren't personally qualified to buy on their own creditworthiness (ie, FICO score or pending mortgage approval) and/or own funds available (ie, down payment from cash on hand).
I love your question! I like not to have to deal with realtors, because it tends to be problematic.
1-I have run into realtors who say they work with investors, than don't know how to put in a bid for a hud or homepath property. Or get annoyed when I call to ask them details about multiple properties.
2-It seems that they tire quickly if they send you properties that are over priced and you are not happy with the numbers.
3-I have found them to be unicorns and after a few years of doing this have only met a few who actually want to work with us.
I personally would find it better to work with investors, having been a real estate agent in my old life, because we do ask a lot, but will buy and buy if we are happy. Right now I tend to get my properties from other sources to cut out that aspect of the transaction.
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