Do investors ever work with newbie agents?

Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes

I've been an agent for about a year and a half. An investor contacted me through a business card I left at one of his house flips. I'm a little skeptical as I mentioned that I'm a fairly new agent and have no investing experience. Thought/experience??

3 Reply

46 views

Most Popular Reply

Account Closed

Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes

10y

Some investors like new agents. They might like a person that is willing to work harder for less money. That would be a new agent.

5 Reply

See this reply in the discussion

52 Replies

Jump to latestLatest

Sort by

Jeremy Pace
Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes
10y
@Mona Medina if you'll work with investors, there are investors that will work with you. The most important thing to remember is that investors have a different set of criteria than a retail buyer, you just have to be able to see what they are interested in, and get it to them.
2 Reply
Account Closed
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
10y
Some investors like new agents. They might like a person that is willing to work harder for less money. That would be a new agent.
5 Reply
George P.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
10y
yes.
1 Reply
Account Closed
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
10y
@Mona Medina I originally forgot to include your name.
0 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
Thank you all for responding. I look forward to learning a lot about working with investors on this site!
0 Reply
Andrea Castor
Investor · Dayton, OH · Member since 2015 · 73 posts · 25 votes
10y
We are working with a new realtor, although he has experiencing with investments of his own. We're extremely picky and have never been impressed with a realtor ever, and we really like him. He's always as excited to see the property as us, gives us good/prompt reports/comps, timely in making offers and on our requested terms. I've suggested him to several people.
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
I would probably ask an investor what is important to them. My agent was giving us a gift card at every closing for a restaurant. It was a kind gesture, but I finally told him to save his money. I told him what is important to me is that he responds quickly when I need something. He stopped giving me gift cards. He always responds to me immediately.
Some people may argue that a realtor should give a thank you gift and respond quickly. For me, telling him to keep the $50 was a gesture to show I value him. It was also out of respect for the fact that he may take my phone call when he is out to dinner with friends or enjoying family time.
You will learn a lot by asking what the investor needs. If they need someone experienced with investors, you cannot offer that today. If they need someone hungry and willing to go all-out for them, that is likely something you can do. If they need you to reduce commission based on volume, you need to figure out if that works for you.
One other thing to consider is whether investors are an area you want to deal with. Some realtors do better with first time home buyers. Some deal with foreclosures. Some are trying to move up to higher priced homes. It is ok if you decide investors are not a good fit for you.
3 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
10y
@Mona Medina, the most important thing you can do for a potential relationship with any client is to be honest. Don't misrepresent your experience. If they are still looking at using you, that's great.
Brandon Turner wrote a phenomenal piece called The Real Estate Agent's Ultimate Guide to Working with Investors. It's a monster post, but read it when you have some time. It is worth its weight in gold.
See also, How to Screen Tenants and How to Analyze a Deal. Both written by Brandon (who is amazing!) and both excellent places to go next.
What sort of investing do they do?
[email protected]Podcast Guest on Show #261
4 Reply
Mike H.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
10y
I don't know that investors would work with a new agent because they'd take less money. I guess if you're talking about the sell side, then maybe that does make sense.
But the reason I, personally, would use a new agent is if my agent stopped being responsive and the new agent demonstrated that they were hungry and were going to be very responsive.
Ultimately, as an investor, I no longer look to my realtor to find me deals. All I want from my realtor is to get me in to houses when I want and get my offers in immediately. Thats the very basis of my definition of a great agent.
And because everyone is human, sometimes a good agent today is not so good tomorrow and that would cause me to want to switch.
My realtor was great in the first few years and then we ran into a patch over about a 6 month period where I couldn't get them to get me into showings when I needed to get in. So I started calling the listing agents directly to get in and put my offers thru them.
Then my realtor realized I was getting deals without her and I told her why. Ever since, she's johnny on the spot. And that need may sound petty but I can tell you for a fact that some of these deals I've gotten over the last two years have been a direct result of getting my offer in on the same day the listing came out and only because I was able to see the house on the same day I asked for the showing.
So yes. I can definitely say that an investor would be willing to use a new agent - likely because their current agent isn't giving them the attention or the effort that they want. Or maybe there is a conflict of interest with the current agent having other investor clients.
As a new agent, you may be the investor's number one client so they may assume you'll give them the attention they feel they deserve......
2 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
@Mindy Jenson, thank you so much for feedback. I will definitely read the posts you suggest!
@Mike H., thank you for your honest feedback. I am definitely responsive...too responsive some might say lol. I will keep your post in mind!
0 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
@Andrea Castor, you sound like an investor that I want to work with! lol I am actually always very excited to see homes, I think that's what scares me about investors...I read that they are in to the bottom line and have no connection to the property. The reason I got into real estate to begin with was because of the feeling I get when I walk into a property and can see what "it can" be. Thank you for your feedback!
@Joe Splitrock, thank you for your feedback! The investor is a flipper, so "typically" what's important to him is to find a good deal on a property. However, the reason I say "typically", is because he reached out to me to help him find His home. He is not currently looking to use me in his flipping deals. I don't know why he would seek me out instead of using the agents he currently uses.
0 Reply
Mark Callazzo
Lender · Lakehurst, NJ · Member since 2015 · 176 posts · 51 votes
10y
@Mona Medina the good thing about working with an Investor, especially a busy one, is that you will probably have a repeat customer. My company does some investing in Philadelphia and we have 2 agent that we love to work with. But like @Jeremy Pace said, you have to be able to understand what we are looking for.
1 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
@Mark Callazzo, thank you for you for your feedback!
0 Reply
Tom Webber
Real Estate Broker · North Liberty, IA · Member since 2014 · 42 posts · 22 votes
10y
@Mona Medina from a perspective of an agent who has worked many years with investors. I can recommend a few things.
As an Agent TIME is your number one asset. Second is market knowledge. I have dealt with every kind of investor and they are an interesting bunch. I know because I am one as well.
Some will want to be spoon fed everything, some will never do anything, some will be so picky that they never find the "right" deal even when it is staring at them in the face!! Some are so busy and making deals they need properties all the time. Find those investors. They are professionals. You are a professional, treat yourself as such and you will be fine.
Work with everyone to some capacity but know who your A players are, your B players and those that are C. C are the ones who might do a deal in the next 2 yrs and then may do another in the next 2 yrs. Follow up with them less frequently and if they demand too much of your time, feel free to cut ties.
As an investor you need an agent who knows what you want, your level of risk, where you want deals, and potentials outside your comfort zone. IF you provide them that service and when you see or hear a deal that fits their needs- call, email, text, smoke signal, morse code do whatever you can to get their attention that you have a hot deal.
If they don't jump on it, tell the next one and so on down your list. Keep updating your list and your notes on your investors. Their needs change as they grow and learn more about their business.
BY ALL means you will want investors in your pipeline. They provide repeat business, referrals, exposure, advertising, etc.. This all aids in developing your brand and your business.
Hope this helps
Tom Webber
4 Reply
Dev HornPro Member
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
10y
Investors need agents because they need someone to do comps for them - quickly - so they have that info before making an offer on a house.
Often when we make our cash offer, it's less than the homeowner hopes to get. In that case, we might tell them that listing the property (on the MLS via an agent) may be their best option, and then we make a handoff to our agent friend who often gets the listing.
And just so you know... A licensed agent cannot give a non-licensed person a share of their commission. They can help an investor pay for a marketing campaign, purchase leads from the investor, etc. So there are some other ways you can work together for a win-win in your market.
3 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
@Tom Webber @Dave Horn, thank you both so much for your thoughts and advice! I'm confident this is the perfect forum for me to learn a great deal from investors such as yourselves.
0 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
@Dev Horn, sorry Dev, I spelled your name wrong, so I wanted to make sure I said thank you!
0 Reply
Joseph CatalanoPro Member
Rental Property Investor · Lewiston, NY · Member since 2014 · 192 posts · 97 votes
10y
@Mona Medina the answer is definitely. Our favorite broker was a newbie and she worked her tail off on her first two deal which should have been straight forward but turned out to be a couple of nightmares. New brokers are like new investors theu are hungry and I love that.
1 Reply
Tim K.
Real Estate Agent · PHILADELPHIA, PA · Member since 2015 · 1 post · 1 vote
10y
@Mona Medina Yes!! I am a new agent and only work with investors and they know that. I sure don't know the standard real estate procedures and paperwork yet, but I have colleagues who do! I learned on the go and create relationships by proving value as THE resourceful connection. It's all who you know, you need to be the connector. What solutions, knowledge, and opportunities do you have in your back pocket that new or seasoned investors need? (off-market deals, buyers, financing connects, construction connects etc.) There is a fine line between investor friendly agents and traditional agents. I've found it takes a lot of creativity that some just can't get a grasp on. Network yourself as much as possible and you will quickly pick up on how investors think and what they need. The stronger your network, the more educated you will be.
1 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
@Tim Keene, thank you so much for your response and your advice! I look forward to building a large network.
0 Reply
Matt Motil
Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes
10y
The nice thing about newbie agents is that they typically don't have a huge clientele yet so they have time to be used and abused by investors. I know I have worn out more than a couple agents just bombarding them with properties I want info on and want to see. Newbies tend to have more time to actually devote to investors so it can be a great relationship.
1 Reply
Alex Franks
Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
10y
Originally posted by @Account Closed:

Some investors like new agents. They might like a person that is willing to work harder for less money. That would be a new agent.
Agreed 100% because most do not realize there's a huge difference between selling real estate, and investing in real estate.
Two very much different mindsets.
I've been blessed to work with the same agent for almost 12 years. She understands investments, and understands most of our offers are going to be low ball 50% or less most time.
Now on the flip side for Sales of our new construction and commercial projects. We use two of top sales teams in the local .
Good luck and be kind to us crazy investors we are not that bad to work with.
Just my two cents
Alex
1 Reply
Darrell Shepherd
Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
10y
A year and a half in and you're a newbie? A lot of good stuff has been said here. Investors don't care where the deals come from. If you can source deals and not waste their time you're in. We are a results oriented bunch. Kinda like when someone thinks their ethnicity matters, it just doesn't. If you learn to analyze a deal correctly you'll be ahead of 99% of the other agents out there. You prob won't get listings right away unless you do them on the cheap, but if you have a property that's priced where someone will make money, I guarantee they won't ask how long you've been a realtor before they ink a contract.
1 Reply
Matt M.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
10y
@Mona Medina Watch this TED talk
https://www.ted.com/talks/amy_cuddy_your_body_language_shapes_who_you_are?language=en
0 Reply
Martin Scherer
Rental Property Investor · Liberty Hill, TX · Member since 2014 · 285 posts · 166 votes
10y
I personally don't care how long someone has been an agent. Usually one of my first questions to a prospective agent is "Do you own rental property?". If they don't I usually move on. Most agents want to sell property and investors are a picky bunch that are looking for something outside the norm of their typical buyers. Most agents are used to dealing with "people" not "numbers" and do not understand what motivates you the investor.
They are used to people who don't like the pink tile or the color of the living room wall. Not how you can maximize the return on your investment. What the typical buyer finds offensive and not good the investor may find as an opportunity.
Some agents can be trained. If they are squeamish about making a low offer or don't want to ask questions of the seller for you they are not going to be a good fit.
2 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.