I will be meeting with a real estate agent by the end of the month. I was wondering what should I do to be prepared for this meeting? What kind of information do I need to share with the agent? What questions should I ask the agent? What other advice can you provide for me?
Thank you very much in advance!
@Tyler Fuchs All you need to share with the agent is what you want and that you can financially qualify to get it, as I am assuming this is a first deal? You should ask your agent what investments they have? What resources after the purchase of the home they can specifically help you with e.g. contractors, investor friendly banks, mentors. Example of past investments they aligned clients with? If they cannot provide you great answers to all three then they are not the right person in my opinion. Be careful if they deflect. For example, a lot of real estate agents are used to getting these questions so they may say they have been in real estate for 15 years, to which I'd ask, why would a real estate professional of 15 years not invest in real estate if you know so much about it. That's like a financial advisor not owning stocks. You will be amazed that many of them will say because it's risky or their spouse does not want them too.
If you're new to the game then tell the agent that you're new. There's absolutely no shame in being new to this world - everybody needs to start somewhere, BUT you do need an agent who is okay working with new investors (some are, and some are not) So be sure to hire somebody that is down to work with your experience level and your style of investing.
I have never had an agent bring me a deal that was truly doable. I hope you get a rocking agent that understands how you want to invest.
I had better success finding a deal first. Then contacting the sellers agent/broker
Do not sign any exclusive agreements. The agents I've worked with were fine with agreements listing the specific properties they show me. I'm an agent, and that is how I work with my clients as well.
I recently sold a property to someone who had to pay an agent 2% (and the agent wanted more) because they did the deal with me personally before realizing the document they signed with an agent they had just met the week before was an exclusive agreement. So even though that agent had told them my FSBO wasn't a "real listing" and she wouldn't show it to them or even contact me on their behalf, she still got 2% from them just because they signed that paper. I wouldn't pay it as we'd already worked out price and closing assistance, so they had to.
@Tyler Fuchs I would get qualified with an MLO so you have a number your able to work with. Then the agent can go from there. If you don't have a number an agent might be reluctant to scour the MLS for you. If you need a good MLO shoot me a DM.
Hi @Tyler Fuchs ,
Welcome to the site and glad to see you are starting your journey. I would recommend having a POF (Proof of Funds). The agent needs to know what and how you are going to pay for the property before they do any work. Is it a cash gig (screenshot of bank account), Preapproval for a FHA loan, Preapproval for a conventional loan, Hard money lender are you hoping for an owner finance. Anyway you have available is going to determine what properties to show. I am not going to show the run down shack that will never pass a FHA inspection to a FHA buyer.
The next thing is specifically what you are looking for "I am looking for a rental duplex in this zip code". or "I am looking for something low end that when I put in XYZ amount it will have a resale value of PQR". "I want something that is already rented out that needs a bit of work, I can raise the rents when I am done". What I normally get is: "Well, I kind of want a flip, but would be OK with a duplex, but if some land was a good price, hey do you know anyone that sells apartment buildings" every week. Those don't generally get called back because everything on the MLS or in my sphere of knowledge is a "possibility".
Odds are that I am not going to have exactly what you are looking for today. But when I see it in 2 weeks the first name that pops into my head should be yours (Hey this one is in the range, he said he had a cheap roof guy and his dad gets appliances wholesale... this might just be what he wants). If you are specific and ready, that will happen. If you are like every other "Find me something with a 10 Cap" I have 50 of those already.
As far as the agent just get into a conversation, you should be able to tell if you are right for each other pretty quick.
I like to ask what their favorite ice cream flavor is.
@Tyler Fuchs Welcome to BP and congrats on looking into REI. I would suggest asking them if they are an investor themselves. This will really help, because you want to find an investor friendly agent. I am sure there are plenty out there, but I have not found one. Since I am young, and am not looking for a 200-400 thousand dollar house most of them ignore me or stop replying. Don't get discouraged and just keep hunting for deals! My best advice would be to find an investor who is a licensed agent and use them! Have them help you and give them a portion of the deal/lead you bring them. It's a very hot market so don't get discouraged or quit, just keep persevering and eventually you will find the perfect match.