What are you looking for in a Real Estate Agent

Question

Good Morning All,

I am a new member of a real estate team in Kansas City. I was brought on to build relationships with investors, builders, and developers. One of the complaints I have often heard is that most real estate agents are only concerned about retail buying and selling customers who will probably only have three real estate transactions in their lifetime. That means that MOST real estate agents don’t understand the needs of investors, builders, and developers. So I am asking the question...

What are you looking for in a real estate agent?

Our team is looking to build a customizable system that makes us an asset to investors, builders, and developers... Not just another headache. Please feel free to comment and share your experiences and let me know what you wish your real estate agent knew about your business.

Thanks!

Gordon Cuffe · Answer

@Tyler HiattA useful real estate agent for an investor is an agent who knows how to find properties that are below value. What the new value will be if the investor makes renovations, updates. A useful agent is one who can find duplexes, triplexes and know what the new rents will be once the place has been renovated, updated. Many agents will try to sell you a property where they use comps over a mile away that do not count. Or they say "the place just needs touch up paint"  or "the carpet just needs cleaning" when in fact the whole place needs painting or the carpet needs to be replaced. I find my own deals because agents are not accurate on rents, repairs ,or ARV's.

Tyler Hiatt · Answer

@Dan Krupa my wife and I both come from the commercial construction industry. She worked for a general contractor and now manages jobs for a residential builder. My experience is on the architectural side.  I was and continue to be a project designer. So the general understanding is there. Maybe I’ll ask you to repeat yourself here, but would you elaborate more specifically on maybe the top three things that an investor’s agent should be knowledgeable about? Also, do you follow the formulas that bigger pocket lays out when you are analyzing new deals? What do yo think makes you successful in the industry?

Thanks!

Dan Krupa · Answer

@Tyler Hiatt I am an agent and GC. That said I only use my licenses for our own investing/business.  The problem I have seen across the board is that most agents simply don't understand the principles of investing, what investors are looking for or how to walk a property and adequately estimate repair costs.

Unfortunately, most of these skills are only acquired through adequate study and conducting your own renovations.

Not sure what your business model is or how exactly you are trying to outreach to investors or builders.  Do you have experience in purchasing land? Renovation or construction? Are you an investor yourself? If so have you flipped or do you acquire and then landlord?  REI, like more things in life, is not complicated but it is nuanced and requires in-depth knowledge. To me, it is hard to see how an agent with only cursory knowledge could be of real value to an investor.