How important are Real Estate agents to the investors ?

Question

What are the duties of a real estate agent ? And how important are they to the investors ?

Jacob Sampson · Answer

Good ones are very important. 70% of my 38 units were purchased through my real estate agent. Her and her husband used to own a construction company and so she adds a ton of value in estimating remodel. She is also very aware of our town and does a great job of estimating ARV value.

Additionally, she is critical in my effort to scale my business. I can't do all the sifting through deals, checking out properties, and facilitating the transaction. She is able to handle all of that for me.

I will often send her to 10 properties to look at for me, she will go view each of them and then pick the subset she knows I will want to look at. This saves me a ton of time.

Jonathan Greene · Answer

A good agent, who understands your investment profile, is invaluable to the growth of your business. They will save you from bad deals with bad listing agents, let you know the inside scoop on MLS deals and why they are still sitting, and they will help you find the deals the first day they hit the MLS. When you have a buyer's agent they have a fiduciary duty to represent your best interests which means they can't spill any secrets to the listing agent like you would pay 230 if you have to when you are at 215.

Michael Lowe · Answer

I agree with Jacob on this. I think it's very important to find a good agent.

1. they have access to the MLS, which is the a great place to find the good deals.

2. they'll be able to handle your contract for you and do the negotiations and you can focus on other things.

3. they, if they're a good agent, should be able to like Jacob mentioned vet your properties you send them and tell you which ones will be worth your time.

Yes, it may cost you 6%-7%. You just have to calculate that into your projections as a cost of doing business.
I suppose, ideally, you could get your license and go through your own broker for the sales contract and legal support in purchasing your properties. But, if you're like the majority of us, you have a different job and probably a family too that demands your time.

How important are Real Estate agents to the investors ?

How important are Real Estate agents to the investors ?

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