RE agents know nothing about investment properties
OK, maybe some agents are really good and do understand investing. However, I am amazed how many I meet that know nothing about different financing methods, how to determine true cash flow, cap rates, and some are terrible salesman/women.
After one agent sent me the numbers I found the property just would not work for my investing strategy and did not cash flow at all. I kindly told her that it would not work because I would need rents to be much higher or purchase price to come down a lot (listed $399k with gross rents at $1650 monthly) She then responded and told me that I would be crazy not to see it and if I did I would understand how profitable it is. She insisted it is cash flowing. How does seeing something have anything to do with profitability? I again declined and she then told me that I need to change my investing strategy! I left it alone and didn't respond... She then sent me another email a week later asking if I realized she was right and if I needed her help with me my strategy. I again let it go so I could vent on here!
To end on a positive note I have a solid couple of go to RE agents that really understand the investing game. They are a huge help to me.