When working with a real estate agent what are some things that you expect as an investor that you wouldn't necessarily expect when buying a primary residence. What are some things that an agent has done that were helpful or set them apart that exceeded your expectations?
Providing MLS access with targeted auto searches, then providing tax records, area rental history, and flood zone asap on any property marked as a potential is very valuable, easy to do and saves a lot of time as if it doesn't pass that initial evaluation, no sense in taking it further. Knowing lenders who work with investors, especially with more than 4 properties and that can actually get a loan to closing is very important. Understanding each investor has different priorities on cash flow, condition, etc., and doing their best to work within those different parameters. Definitely being prepared to put in lower offers and negotiate when reasonable (many agents who work with primary home buyers expect to write at near list or higher only and don't have any interest in researching to help make a lower offer presentable).
When working with a real estate agent what are some things that you expect as an investor that you wouldn't necessarily expect when buying a primary residence. What are some things that an agent has done that were helpful or set them apart that exceeded your expectations?
Thanks
Anyone on bp already knows cap rate, 1% rule, etc etc. Nothing wrong if you also learn that stuff, but they already know it.
What a local Realtor can bring to the table for an investor is hyper neighborhood specific knowledge. Things like "yeah I see why you like the theoretical numbers on 123 Main St, but check out these income numbers for the area, median incomes aren't keeping up with inflation, which means that over time your rent might be forced down relative to inflation, and you told me your goal is buy and hold with 15+ year ownership horizons. Check out 456 Alternative street, this neighborhood has median income increases beating inflation. The rent to price ratio isn't as good today, but there's no new construction (supply) going on in the area, and if income increases beat out inflation, making it a more desirable area to live in over time, that might result in upward pressure on rents."
That sort of analysis isn't super hard to do, but investors in the 1-4 unit space rarely do it. It's where you can come in and add some insight they weren't thinking of. And I'm sure you can think of other stuff too -- basically, what is NOT commonly talked about, that SHOULD be talked about? That's where you can add value.
The agent we use the most has a background in construction, which is quite rare in real estate agents from what I've seen. This is helpful as he can help with rehab estimates and evaluating structural issues and the like.
In addition, the willingness to make a lot of offers, some of them quite low is nice. And I don't want any agent trying to talk me into a purchase. I want someone to help me evaluate it. And I don't care if it's cozy or modern or whatever. I only care of a potential tenant or end-buyer thinks that. In other words, I want someone who looks at it from a more analytical perspective.