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??

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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.

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Leigh C
Brooksville, FL · Member since 2012 · 429 posts · 220 votes
10y
@Mona Medina To reference someone's name type @ and then the question mark and pick their name under the box you type in.
@? brings up the box, then click the name. The @? will disappear then in exchange for their blue name.
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Leigh C
Brooksville, FL · Member since 2012 · 429 posts · 220 votes
10y
@Mona Medina Advertising that you have another FT job isn't going to really get highly active investors to give you the time of day. I've tried it a few times and its always ugly.
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Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
@Leigh C Thank you so much for both of your responses!
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ 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."
"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."
Wow the mindset of the SFR investors! lol
Mona,
You might not find working with SFR investors to be that great. It depends what range you are working in. If they are buying high end properties to renovate and flip it makes sense. Dumps not so much. I know a high end flipper in Cali and they are fixing to exit the market as they see a drop there coming soon.
You could run yourself ragged selling 50 -100k homes for 5 million in volume. You might enjoy the high end luxury market more.
Define your business model and do not be used. Build up demand and then you can choose who you work with.
I am in commercial but my minimum per deal size is in the seven figures. Take a big part of each commission and start building passive cash flow for yourself. Have your investments give you stability and not living or dying per each deal that you do for income.
Good Luck
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Jack L.
Palatine, IL · Member since 2015 · 20 posts · 3 votes
10y
Hi Mona,
Read this from bigger pockets and all the links embedded within the article.
"The Real Estate Agent’s Ultimate Guide to Working with Investors"
https://www.biggerpockets.com/renewsblog/2013/08/2...
Jack

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Scott Raley
Real Estate Agent · San Jose, CA · Member since 2015 · 84 posts · 50 votes
10y
I suggest you consider teaming up with a seasoned, successful agent who specializes in real estate opportunites for investors. You can do it on a per transaction basis and therefore not be married long term to this agent. This was a strategy I used when I first got into buying and selling real estate for others. Here are a few advantages to this arrangement in my opionion: shorter learning curve, more likely to close transactions , bringing greater knowledge and credibility to attract new investors, two heads are usually better than one. If your hard working, enthusiastic and committed, you will have no problem finding a great agent to help guide and partner with you.
The only downside is you will have to share your commission. That sum is negotiable but most mentors in this relationship will ask for 50%. You will also be the one bringing in the investors. Make sure you have a clear understanding of how you will work (split commissions) with those investors should they end up doing several transactions.
Knowledge is power and investors want power agents.
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Mona Medina
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Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
Thank you all for these responses. It's definitely a lot of great advice and resources for me to look in to. Thank you!!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Mona Medina simple answer is yes most investors work with all sorts of agents.. just like investors work with wholesalers... and 90% of wholesalers are totally rookies that don't know anything about RE and waste investors time..
What I use to council my agents on when they were knew and some investor who has been reading BP or been to a guru seminar and wants to all of a sudden be an investor... is you need to protect yourself.. And by that I mean protect your time and your spirit.
there is nothing worse than having some Yahoo tell you they are an investor and they really can't perform...
So do your normal Qualify Present and Close.. in this market ability must be established up front or your wasting your time.. a real investor will know this and will provide POF or PRE Qual that is not some buy it off the internet piece of crap..
And once you get a good one then take the advice above and provide excellent service.
Much of what investors want is instant information or feedback. So get your self in a position to do that... Just answer your phone live will separate you from 90% of the agents out there that hide behind text messages... and e mail.
@Joel Owens I suspect in her farm average sales price even for wholesale is closer to 400 to 500k .. not 50 to 100k.. and I totally get you on agents that work in those price points.
And I suspect if she put her mind too it and created a luxerey Real Estate agent persona the idea of working with anyone but the most high end flippes would not be worth it to her.
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Chan K.
Lowell, MA · Member since 2014 · 335 posts · 52 votes
10y
@Mona Medina
I would say if you are nice, reliable, professional, and good at showing, yes.
You also need to know investor terminology and know your number.
If you don't, it won't be a long term relationship.
Investor who is active and have vision only wants agent that can sync with their conversation.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
10y
The key is to decide what business you want and what you don't as a broker/agent.
Throwing stuff to the wall and seeing what sticks gets marginal results.
For instance I only do commercial real estate and nothing else. I do not need to do anything else. As a specialist I am highly sought after versus a generalist who dabbles in a little bit of everything hoping to make something go for a sale.
Conservatively I will break 9 figures in total sales this year and have my best year yet. This is me alone and not a team of people. Some claim to do monster sales but have like 10 agents on their team so I don't count that the same as a one person accomplishment. Don't get comfortable and always be learning. That extra edge you work for everyday builds up over time and puts you farther ahead of the rest.
People have the drive to be the best everyday or to just be average and get by. I have never been the get by type and never will be.
Mona your first year typically agents try a few types of sales and then settle on one they enjoy more than the other. That is when you find your niche.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Joel Owens I find it very odd on this site that no one really ask you about being a commercial broker.. and how to do it ext ext.. all the commercial guys I know that have been in this for years just kill it... and retire quite wealthy far more than wholesaling or buying cash flow SFR';s in low value areas.. I would think some of the folks on this site would want to talk about what it takes to be a commercial broker ...If I was not so Old and in my end of the business yours would be the next thing I would do..
for a few reasons
1. the obvious compensation
2. dealing with pretty sophisticated folks.. they don't drink wine out of a box.
3. total control of the deal.. and client loyalty
4. access to bigger deals and throw in a large commish for a equity stake...
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Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
10y
Most investors would probably require that their agent have a working website...
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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
Originally posted by @Mona Medina:

Thank you all for responding. I look forward to learning a lot about working with investors on this site!
Investors are HUGE pains in the ***. If you're doing it right, you will spend 5x as much time on them per closed deal as a typical FTHB.
This is worth it to you because if you help them make a crap ton of money on this first deal, they will come to you in the future and you will make a crap ton of money over the long term.
If you can only think short term, they aren't worth your time. Skip it, look for another Jessica looking for her boring turnkey first home with a lawn and a hallway closet.
If you can think strategically, they are awesome because they will hit you up twice a year... instead of every 5-10 years like your average FTHB that falls in love with you.
<-- Not a realtor, a lender. I know why I love these pains in the *** that populate this website.
1 Reply
Account Closed
Real Estate Professional · Dayton, OH · Member since 2015 · 423 posts · 187 votes
10y
I have operated a robust wholesaling business for over 10 years now. I work with agents all the time.
1 Reply
Dan Vleck
Deerwood, MN · Member since 2014 · 184 posts · 122 votes
10y
I have worked with two new agents, by choice. The reason was that I did not want advice from agents, I only wanted someone who would answer their bleeping phone and let me in houses.
2 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
From what it sounds like, I think I will fit right in with working with investors. I am definitely one of the most responsive people I know. I answer my phone, respond to texts & emails, and reach out when I say I'm going to. Thank you all for your time and advice!
1 Reply
Patty Hinojosa
Real Estate Agent · Richmond, TX · Member since 2016 · 7 posts · 2 votes
10y
As a real estate agent I attend a lot of Meet-ups in the Houston area to learn what investors are looking for and then put plan in action to do it! As agents we look for listings that sometimes are a better fit for an investors than for the retail market. Go for it!!!!
1 Reply
Mona Medina
OP
Real Estate Agent · Glendora, CA · Member since 2016 · 12 posts · 4 votes
10y
Patty Hinojosa Thank you so much for the encouragement!
0 Reply
Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
10y
@Mona Medina The main thing I have learned from working with investors as their agent is that it is important to qualify the investor first. Make sure they have the ability to move on a deal if one arises. Otherwise it is a gigantic waste of your time.
The investors who do deals know you are going to vet them like they vet you.
2 Reply
Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
10y
While I work with one agent for the most part when seeking out properties, I would work with any agent who brought be a deal, newbie or not. If you can find good deals, you can hook pretty much any investor, at least on the buying side.
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1 Reply
David G.
Wholesaler · Jersey City, NJ · Member since 2015 · 14 posts · 3 votes
10y
Another important item to point out---> many investors only want to work with the listing agent directly. Having listings is a great way to attract investors Investors like being close to the seller and the information provided by their representative. Good luck!
1 Reply
Brendan Griffin
Investor · Middlebury, CT · Member since 2016 · 31 posts · 6 votes
10y
I am a new investor. I have flipped four homes and just recently found this BP website. O purchase Bank owned foreclosures. It seems that the agents that take these listings are already working on a dramatically reduced commission. If another agent comes into the picture seems to take the fun out of it on both sides. I go directly to the selling agent for this reason.
I do use a proven sales team on the sell side. After reading this post i am wondering if a selling agent may be able to bring some off market deals. i would be a little concerned that they would steer me to deals with more "meat on the bone" in terms of commission.
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Don Souza
Rental Property Investor · San Rafael, CA · Member since 2016 · 57 posts · 16 votes
10y
I'm a new investor, and would be willing to work with a new agent. Looking forward to it.
1 Reply
Stephen Barton
Real Estate Consultant · Indianapolis, IN · Member since 2014 · 322 posts · 238 votes
10y
Join the croud @Mona Medina. I just became an agent last year and literally had almost no experience. I have experienced in my life that just "jumping in" and making things happen is the best "education" anyone could ever have. Did you know what you were doing on your first listing or working with a buyer? Probably not. I know I had no clue, but I was determined to serve my client to the absolute best of my ability.
The world of investing has really been over glorified in my opinion. Investors are really just people like you, me, anybody. I think the only thing you should keep in mind is that investors are a frugal bunch. We are always looking for the "edge" or that "secrety sauce" that can separate us from our competition. If you chose to work with an investor just look at your strengths and find ways to "fill in the gaps" where your investor comes up short. Such as, they may need a listing agent who can do a reduced fee listing for them. Or, they may need an agent who can go check out properties for them.
Do not be intimidated by the whole "investor" title. Just be yourself and find ways to excel where they might be weak! Investing can be very rewarding, and especially in your market an investor might be your "bread and butter" type of client where they will always depend on you for your expertise. You got this!
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
10y
Originally posted by @Joel Owens:

"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."
"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."
Wow the mindset of the SFR investors! lol
Mona,
You might not find working with SFR investors to be that great. It depends what range you are working in. If they are buying high end properties to renovate and flip it makes sense. Dumps not so much. I know a high end flipper in Cali and they are fixing to exit the market as they see a drop there coming soon.
You could run yourself ragged selling 50 -100k homes for 5 million in volume. You might enjoy the high end luxury market more.
Define your business model and do not be used. Build up demand and then you can choose who you work with.
I'm just going to guess that Joel was referring to me based on a recent conversation we had going. I work in the luxury market and for an agent, it is not a whole heck of a lot more work selling a $2M property than a $400k property, yet your payday is 5 times greater! This is the point Joel was making and he is right. But as he stated, you NEED to define your business first.
As far as working with new agents as an investor, it has its pluses and minuses on both sides. From your end Mona, since you pride yourself on returning calls and being professional, you already have a leg up on your competition. I Find most (yes I said most not all) agents to be lazy so removing that from the equation and you are already way ahead.
Knowing your market and investor wants and needs is crucial. I am happy to work with a new agent IF they bring value to the table. Doing your own direct marketing and picking up distressed sellers will be a vital part of your success as an sfr agent working with investors.
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