What exactly does "Investor Friendly Agent" mean?
Real Estate Agent · Colorado Springs, CO · Member since 2014 · 13 posts · 15 votes
What exactly does "Investor Friendly Agent" mean?
Most Popular Reply
Realtor · Chicago, IL · Member since 2014 · 137 posts · 103 votes
9yHi @Josh Rowland!! I am an "investor friendly" REALTOR in Fort Wayne, IN. I actually prefer to work with Investors rather than someone who plans on actually occupying the property. Honestly, it is more fun for me and that is why I prefer it!! I am an investor myself so working the numbers with other investors, making connections with people that have similar goals/ interests and enjoying going through some crazy houses makes me investor friendly. :) It also helps a lot that I work at a property management and realty company not just a real estate company!! A LOT!! I get to meet and talk to a lot of investors that already have property in Fort Wayne or are looking to acquire property here. If you have access to such a company in your area I would recommend contacting that team/ individual. No, I am not afraid of submitting a low offer, making offer after offer, bugs or hoarder houses. My Daddy always said it never hurts to try and I just make sure I always keep a pair of sneakers in my car.
36 Replies
- Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes9y
@Josh Rowland one who doesn't mind writing a bunch of offers on properties sight unseen
- Realtor · Chicago, IL · Member since 2014 · 137 posts · 103 votes9y
Hi @Josh Rowland!! I am an "investor friendly" REALTOR in Fort Wayne, IN. I actually prefer to work with Investors rather than someone who plans on actually occupying the property. Honestly, it is more fun for me and that is why I prefer it!! I am an investor myself so working the numbers with other investors, making connections with people that have similar goals/ interests and enjoying going through some crazy houses makes me investor friendly. :) It also helps a lot that I work at a property management and realty company not just a real estate company!! A LOT!! I get to meet and talk to a lot of investors that already have property in Fort Wayne or are looking to acquire property here. If you have access to such a company in your area I would recommend contacting that team/ individual. No, I am not afraid of submitting a low offer, making offer after offer, bugs or hoarder houses. My Daddy always said it never hurts to try and I just make sure I always keep a pair of sneakers in my car.
- Real Estate Agent · Colorado Springs, CO · Member since 2014 · 13 posts · 15 votes9y
Originally posted by @David D Painter:
One who doesn't waste my time
Hey David, please elaborate. I'm sure there are folks out there who waste time but I'd love a few examples. I'm more concerned with what makes a good agent for the investor. I've heard writing multiple offers sight unseen, providing lots of comps and doing lots of ground work to get a deal but I'm wondering if there's anything else other investors are really hungry for that they don't find or that are rare and I like to know what my peers around the country are doing for investors. Most realtors I talk to will work with investors but the line share try not to for the following reasons...
I've worked with a few investors and done about 5-6 investor related transactions so far. From my experience the flippers want me to bring them deals and then they want me to turn around and list for 4% which means I take 1% and pay the buyers agent 3%. I've turned down some of those offers because I can't justify spending my professional time for 1/3 the income on listings that I frequently make working with consumers. I've even had a couple guys go with the "discount agent" and call me later on to ask me why their property isn't selling and when I look at the listings it's quite obvious that they just don't know what they are doing and the marketing is garbage and their agent is basically a warm body to post to the MLS and take orders. That's not at all the kind of agent I am and I have to make the margins I need to reinvest in my business and provide excellent service.
This post is really more about what makes a good Investor-Friendly Agent so keep it coming.
- Member since 2016 · 143 posts · 157 votes9y
I have a great agent. He doesn't lie to me. He sends me listings and waits for a call from me, no pressure. He always says he doesn't care what I offer as long as I do offer. He works wonders in getting me from an accepted offer to the close in less than 7 days usually. And doesn't insult my intelligence by telling a tear down just needs "paint and carpet". I try not to waste his time either by generally only viewing properties that I will likely offer on if things check out. I only make offers that I intend to honor. I have bid on and bought a few houses sight unseen because I was away just by a few internet pictures and him going from room to room with me on the other end of the phone. We don't socialize but I consider him a friend. I wouldn't ask a realtor to reduce his fee for me. I want him to value me as a customer and continue to feed me deals. I am not willing to jepordize that for a small percentage of the sale. We aren't scared of "bug houses" either. I get excited at the thought of a cat house cause I know I will likely be the only bidder and that means $$$. Hope this helps you!
As an 'investor friendly agent', to me it means that I thoroughly understand the principles of RE investing enough to understand the goals of other investors. I became an investor before I became an agent, and it was extremely apparent that many agents don't really have a solid grasp of how investors make decisions. I heard a lot of talk about "appreciation potential" and "the rent will pay your mortgage", but nothing about actual cashflow and ROI. I run the numbers with my investor clients exactly the same way I would on my own deals.
I don't cut my commission. If an investor really can't afford to list at full commission and is comfortable selling without assistance, they can use a flat fee brokerage instead. I'm not insulted if someone decides to go that route; I've done it before myself. I figure that if the investor lists with a 'discount agent', they'll get about the same amount of service they will selling themselves through a flat-fee brokerage, so why spend the extra money if they're comfortable selling without assistance? I don't make money from the commission on their single transaction; I make money from their referrals, which they'll send if they're impressed enough with me!
- Real Estate Agent · Colorado Springs, CO · Member since 2014 · 13 posts · 15 votes9y
Thanks for the feedback guys. It's helpful and encouraging to know that I'm doing the same things that my colleagues are. I think I've had good and bad experiences talking to investors about flips and listings and I've come across a couple that put a bad taste in my mouth. Those ones must have gone to "the seminar" and come out guns blazing with not a lot of real world knowledge or market experience... some of them have even approached me and said they want me to write offers for them but when I ask for their funding source they can't seem to come up with one and come to find out they want to assign the contract. I do have a lot of fun serving investors and being an investor I think I just need to meet more investors that are a pleasure to work with.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes9y
I'm an agent and work with a lot of investors, perhaps even primarily with investors. The second I hear someone say "investor friendly" it usually clues me into the fact that they will waste my time, do not have realistic expectations of the market, myself or other professionals in the business.
District Invest Group545 Reviews Well I have to say that @Michelle Bright and @Evan J. have taken the words right out of my mouth - I second what they have to say. I was an investor LONG before I became a Broker.
Nice topic!
- Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes9y
@Russell Brazil nailed it with his response.
As an agent (and investor/wholesaler), I think "investor friendly" agent means an agent that can walk through a house and put together a realistic rehab budget, determine ARV accurately and knows how to negotiate with bank AMs to successfully close transactions.
Most investors seem to think that it means you'll do all of the above for less money than the bored housewife that just got her license and doesn't know anything.- Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes9y
There aren't 'investor-friendly' RE agents. Either they're knowledgeable about RE or they aren't. When an investor asks, "Are you investor-friendly?" That simply means, will you run all over town looking at 10-15 different houses only to have me close an off market deal.
- Real Estate Agent · Camarillo, CA · Member since 2017 · 26 posts · 16 votes9y
Replying to this thread so I can follow it. Brand new to BP and still formulating my business model but working on a strategy to specifically fill this niche and become an agent that can invest my agency income as a partner in investments.
- Member since 2016 · 143 posts · 157 votes9y
Originally posted by @Justin Fox:
There aren't 'investor-friendly' RE agents. Either they're knowledgeable about RE or they aren't. When an investor asks, "Are you investor-friendly?" That simply means, will you run all over town looking at 10-15 different houses only to have me close an off market deal.
I have to agree, either you are a good agent (or any occupation) or not. I never thought about looking for an investor friendly agent.
I am surprised reading this and other threads that agents provide re-hab costs. I had never heard of that. Me and my local fellow re-habbers figure our own costs. I don't expect my RE to know what Level of finishes I am planning or what I intend to replace or repair.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes9y
I have a different take. I tell investors on commercial real estate how I work on the first call and do business. We are either a match or we are not.
My time is very precious these days and I only work with serious buyers one on one who communicate in a timely manner and show financials. If they do not do that we do not even start.
Words are just words and I like to see buyers are real with financials before spending any time on them as my time is money.
Residential you run into more clowns than you do in commercial. I only do commercial. Those investors even if they have zero experience tend to have lot's of money from their executive jobs, businesses they own or have sold, stocks,etc.
My clients tend to buy properties a minimum of 2 million in price and up into the tens of millions. A broker/agent should define how they optimally want to run their business and build a structure and focus around that. By doing that I weed out the time wasters and only work with the serious ones. You also develop a relationship as a closer and then property owners, retail management companies, other brokerages, developers are drawn to you because your buyer pool for quality is high. If a property gets multiple offers and they know you the broker and you closed before and the process was smooth the owner or listing broker remembers that and it carries a bunch of weight.
Being in 14 years almost I have people approach me these days to become a client. So I can decide if we are a match or not versus new people starting out as an agent can become desperate for any business (throw stuff to the wall and see what sticks approach). It always amazes me when I ask other brokers/agents WHO if you could create it would be your ideal client and then list the attributes. Many just scratch their heads and says ( Whoever calls me I work the lead to see what happens! ) That is inefficient, not focused, and wastes time and production. You can't accelerate results for yourself without having a clear vision of how you want to conduct business. The investor is looking for a return on their time by asking key questions to see if you are qualified to help them and can find what they are looking for. You as a broker/agent should be doing the same qualifying them just as hard to see if they are realistic for market conditions. The way I look at it if I accept a marginal and flaky buyer then I stand to lose thousands or more per hour for my time versus waiting to find my optimal buyer to work with. It's kind of like buying a property just to buy something that is marginal and it then stifles you when a good property comes along. Same thing with a mediocre buyer. Better to not engage and give high service to current clients then spend time on a flaky or unrealistic buyer.
- Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes9y
Simple...someone who knows how to find/spot a good investment property, preferably an investor themselves. I worked with the same agent for 10+ years and she has been the most important financial professional in my life. She brought good deals and I was decisive...efficient on both ends.
- Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes9y
Yes, I'm an investor friendly agent and enjoy working with investors. However, I realize, I must be somewhat selective. I tried working wit a Newbie and it was frustrating. He wanted me to do all the Due Diligence for free. He was not familiar with the market, terminology or sure of what he actually wanted in the under $30,000 market.....Moving Forward......You will learn something new everyday....
- Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes9y
The boss said Let Em Go!!..Lol...
When I started, my realtor was the only one from her office interested in showing under 50,000 properties...She was Awesome!! ..Closed my first 10 deals with her, before she moved....But I never wasted her time looking at the inside, if the outside didn't meet my standard....
- Real Estate Broker · Wilmington, NC · Member since 2016 · 236 posts · 126 votes9y
Someone who knows the numbers and can accurately gauge risk of a property.
1. Many agents will steer people towards properties with high returns without informing them of the potential downsides.
2. You need an agent that can accurately dig up the numbers to check if returns shown are really as they appear. So many agents that pump up numbers.
3. If you are a bigger investor, you need an agent with the ability to find deals off market via coldcalling. 90% of agents won't call and will just search for stuff on the MLS. If you're planning on buying multiple properties thru me, I'll go that extra mile.
- 9yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
this is an interesting thread as I am and have been on both sides of this.
when I owned by brokerages we were primarily consumer oriented... although I was primarily an investor..
It really depends on the market and the median sales prices.. as some have stated above when you have these low value homes through the mid west rust belt and deep south that trade for the price of cars.. there is only so much an agent can do for you... MOST really good OREO agents in those markets rarely leave their desk NEVER show a property.. and have their list of go too buyers. IE buyers that do not require hand holding .. know what rehab costs.. Its not the agents responsibility to figure rehab cost that would be very bad for an agent.. and the investor knows the comps and knows what the homes are worth when rehabbed and what they rent for.. asking an agent to figure this out for the investor is ( well just means your not ready for prime time and you as the investor have not done enough home work and are trusting others when you should never trust others).
At the most a good agent that is choosing to work with investors should present the deals.. and the comps.. its all done for you on the MLS.. you provide that info... that's it.
When one of my newbie agents walked in all excited about this new buyer that wants to build a power team and wants to start shot gunning offers.. my response was get the investor in here I want to talk to them personally... ( my goal is to not burn out my agent with a all hat no cattle seminar or BP Newbie)... I would do just what @Joel Owens does I would qualify them.. I want to see their POF personally I want to know they have the funds to transact.. if they don't hit the road Jack.. and absolutely no wholesaler types..
In our market like ,many the money is made selling to home owners.. My wife for instance last year closed 14 million in retail sale and only one was a duplex rest owner occ.. and at 2.5 to 3.0 BAC that's a nice years work for her.. and as she has 25 years at it .. ALL referral.. she spends not one dime on advertising.. and her desk fee is flat at 12k a year... so pretty productive.
Why give that up to chase investors around... ???
Now if I or my wife was going to go work within investors again I would do what Joel does I would go work for a big commercial broker and do deals that were multi millions and above.. last thing I would do is run around trying to sell SFR's as investment.. especially in a low value asset market. UNLESS I had a direct pipeline to listings from AM and others.. And it was a volume play.
so in conclusion if you want to go investor route in my mind you have to be totally selective. and anyone asking for investor friendly agent is code for probably going to waste your time.
- Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes9y
I call myself "investor friendly" - meaning that:
1. I work with individuals and entities that purchase residential and small commercial properties. "Purchase" being the key word.
2. I understand that you have a business and are buying/selling properties with ROI in mind. If I choose to work with you, I will work within your numbers. If I think your expectations are completely unreasonable for a particular area, I'll let you know.
3. I have a business that includes my reputation and personal ethics - so don't get offended if I ask you to verify your ability and intention to follow through on an offer to purchase. As Jay said, POF is a requirement.
4. I'm no more interested in lowering my commission than you are interested in lowering your rent or sales price or raising your offer price. If we're both going to stay in business, we both need to make money accordingly.
5. I won't lie to you, or anyone else. Period. This includes whitewashing issues with the property, inflating potential rental prices, etc.
6. I'll submit low offers, but they need to be "good" offers - cash with proof of funds, fast close, no contingencies, etc.
7. I'll respect your time, and you'll respect mine. If you find a great prospect, I'm interested too. But we're both wasting our time if we're just out driving around looking at properties that don't meet your specs.
Some of the above means that I'm not a good fit for some investors, and a great fit for others. That's the nature of the business. In an industry where "investor" can mean anything from "I just watched an infomercial on wholesaling options" to "I'm looking for my first multi-family property" to "I build and lease commercial facilities" to... you get the idea. With so many different kinds of investors, the "investor friendly" agent has to specify which the type of investor he works with.
@David D Painter I think your agent's approach is very similar to my own. The investor and the "investor friendly" agent need to have a mutual understanding and appreciation for each other's roles and requirements. Before I got my license, I would have said exactly the same about the agent I worked with. Now I AM that person!
- Lender · Vancouver, WA · Member since 2015 · 482 posts · 316 votes9y
Like what @Jay Hinrichs says.
It depends on the market and your service level. I help buyers and sellers of every level, as I am a facilitator.
For buyers, including investors, I send potential properties to my buyers, and they tell me when they are interested. I offer any and all info on properties that I have access too to any of my clients when they ask about each property. I don't bug my clients. I tell them what they need to know - the good and the bad. I make money when deals close - not on all the BS before there is an offer, so I control my activities that could be a waste of time. I don't perform property tours. I meet my clients at the property they are interested in and want to see. I don't bother with get-to-know-you meetings, I get to know people when they work with me.
For buyers: Here is how it goes for me: My cell phone rings, initial chit chat, I ask buyers what they want, set up a search for them and explain how I do business. They contact me when they want to see a property or put an offer in. The day that we visit the property, after the showing, I ask them about the financing, or POF. If there is a lender, I call them right then and there on speaker phone. Without POF, we don't look at any other properties. To continue working with me, I require that we talk at least a few times a month. Less than that then it is a waste of my time I have found for the most part, and I stop providing info/service as well >> back into the tickler they go as a lead - since they are no longer a "client".
In essence, I am willing to help you, or anyone - if you/they are willing to put an offer or contract in place. I work with anyone that wants to work with me, and I am very flexible.
I don't have quite the volume Jay's wife has, lol. I have only been in the business 1 year, and I work real estate an average of 5-10 hours any time I am awake.
Steve
- 9yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Steve Milford throwing a client in your car and draggin them around to houses is so 1980 ... its simply not done anymore.. at least I don't know anyone who would do that.
you give out the info.. they study on line they do a drive by if interested they call you to make an offer and if its investment property don't even need to get inside.. just get it tied up then do your due diligence like we all do.. those who think they have to get inside and walk around and think about it for a few days well those are folks that are going to miss deal after deal. LOL.
Keep at it.. this Job gets so much better as you build a clientele base.. for the life of me I just can't see how those that think wholesaling is such a great thing.. because you basically build no clientele base other than buyers... and sellers is what you need.. Sellers is money in the bank.. Buyers are on every street corner..
- Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes9yJosh Rowland Doesn't mean anything until you ask them or do your due diligience.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes9y
Originally posted by @Jay Hinrichs:
@Steve Milford throwing a client in your car and draggin them around to houses is so 1980 ... its simply not done anymore.. at least I don't know anyone who would do that.
Weirdly enough Jay the last few years this has for me come back into existence for me. In DC proper no one actually has a car. So they will meet me at the first property, but I'm driving them to the next few properties after that. We always need to see at least several properties because they might have to write offers on 5 at once to try to get one to stick.
In the burbs completely opposite, no one ever gets in my car.
District Invest Group545 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.