How do I get Realtors to work with me as a new investor

Question

I started this thread to keep from threadjacking another thread that is trending here.

I am new to this type of real estate investing. Of all the properties I have bought over the years, (a whopping eleven properties) I have only purchased with the help of a real estate agent once. He was great he knew what I wanted found it for me and helped through a difficult closing. That being said, in the past year as I am beginning to try to put together a buy and hold portfolio I have had a different experience. The 3 properties that I have managed to close on I found off market and put the deals together myself.

I did look at a house that I wanted to offer on where the managing broker of the agency sent me to look at the place by myself, I went directly back to the office and they were already closed I sent her a text and told her I wanted to write an offer. She text me back right away saying she was busy that evening but would call the next day. I waited 4 days then called the listing agent who said he would get in touch with my agent for me. By the time she got back to him the house was under contract.

Second time I called an agent it was the listing agent who had a house i was very interested in. She tried to talk me out of looking saying it didn't fit for me. I insisted I wanted to see it and she made an appointment for the next evening. I got a call about 2 hours before our appointment saying the house had been sold. I suspect she had another investor she wanted to show it to and I helped the process along.

Just recently I sent an email to an agent I had talked to before to get a look at a bank owned property. I got no response. So I emailed the listing agent and didn't get a response. Next I called the listing agents office and got to talk to a young hungry agent who has been working diligently to make this deal happen even though she doesn't seem to know much about investing.

I am not bashing real estate agents, I am just trying to get an idea of what I am doing wrong in talking to agents. I realize I am just small time and I have a very short track record, (just buying SFH this past year) but I would think if I am too small for the top producers maybe they could refer me to a newer agent who is trying to get a start too. I would like to hear from some of the top producers who may be able to give me some advice.

Jonathan Greene · Answer

Here is your problem. You are acting like all realtors are the same. You'll just call the listing agent (terrible idea 100% of the time) or call whoever is available at a brokerage. 99% of realtors, if not more, know nothing about investors and what they really want and need and their long-term plans. Most (not all) realtors have commission breath and want to close one deal and can't see how investors want to do multiple deals a year. It's a failure of short-sightedness and the low bar of real estate and the pay (commission only).

So, to change that you need to try to meet investor-friendly agents. What that means is going to REI meetups and finding agents who also invest. See who lists flips, they are often investors in your area. No offense to you, but your approach to realtors has been lazy. If you think everyone with a license is the same, you are missing out on an agent who could have helped you close better deals and find better options off-market. I hope that helps.

Nathan Gesner · Answer

This is a great question!

Many REALTORS have dealt with "investors" that do nothing but waste our time. They find a $300,000 house in perfect condition and want to write up an offer of $185,000 because, "that's what I need to make it cash flow." Why would I waste my time working with a buyer that will never purchase?

It's all about relationships and trust. You need to find a way to demonstrate you're serious. One option may be to offer to pay them an hourly rate (even $20 an hour) for their time. If you buy something, they get the commission. If you don't, they get paid $20 an hour. That's only $400 for 20 hours of work.

Once you've established a working relationship and proven yourself, they'll probably bring you deals!

Bryan Scibilia · Answer

@Gail W. I was In your position about two years ago, I think you're asking the exact right question:

"I am just trying to get an idea of what I am doing wrong in talking to agents"

@Jonathan Greene gave you incredible advice and that is to find agents who also invest, they will have their finger on the pulse of the deals, get more deals across their desk, and not just concerned about the 'right fit' home for you but the 'right fit' for your portfolio.

What worked for me was finding what top producing agents were working with investors in my area that were doing the type of deals I was interested in and targeted those. I then scheduled about 4 different showings at potential properties and explained what my goals are including where I am currently and talked to see if our 3-5 year goals were cohesive, this includes asking about their goals and discussed their track record. I also provide a 'bonus' or tip to my agent now in order to make up for the lack of commission they get on helping me get the best deals possible. Remember, when you have a GOOD agent, they will fight for your best interest but every dollar the purchase price is reduced, that typically equates to money not going into their pocket. Good luck!

Joseph Cacciapaglia · Answer

I think you're probably approaching the wrong agents. Agents that list a lot of properties are rarely the same ones that like to work with investors. There are some exceptions, but I find that is generally the case. You need to be a little more deliberate in how you're locating agents. Find one with the BP search or at a virtual meetup. Ideally you'll find an agent that works exclusively with investors, but if not, you want one that investors make up a larger percentage of their business. Most agents would prefer to take a new listing over working with an investor, so you have to find the rare exceptions. A lot of agents just like to work with investors in the off season.

If you've found agents that work with investors, and you're still having problems, then it may be your approach. I'm all for making low offers, but only when it makes sense. I occasionally fire clients that just want to low ball every property on the market, without having a reasonable expectation of closing a deal. That's just not how successful investors operate. If you have buying criteria that makes sense for the market, and you're willing to make reasonable offers when we find properties that meet that criteria, then you should have no problem, if you've found the right agent.

Joe Aiola · Answer

@Gail W. Sorry to hear you're having some trouble! As with any business, not all agents are good at their jobs - so it may be possible that you haven't connected with a rockstar yet. But @Nathan Gesner offered great advice, as usual. Agents want to know your serious because they are cautious with their time. The one thing I would add is to try and bring value to the agent to help build the relationship. Agents love leads, so if you can find a way to bring them some then maybe you'll get more of their attention.

Best of luck!

Gail W. · Answer

Thank you for the responses. Some really good advice here, and just what I needed I think.

Layton Gilbraith · Answer

So i'm pretty new to the game and should be removing subjects on my first deal today. So since i've literally just been through this, here's what I did.

I googled (and searched BP) for a bunch of different realtors in the area I wanted to invest in and made a short list. I called each of them and to talk to them about their market and the types of deals I am looking for. I was sure to ask them if they were investors themselves or had worked with investors before. Many will say no and are happy to stay within the pure home owner space. This is fine, but they are probably not for me.

Eventually I found a realtor or two that met my criteria. I got signed up on their email lists and I kept talking to them about most of the new listings that were coming up so that I could better understand the market and areas . There was no expectation that I would be buying today or even within the next month, but we were building a rapport on how we want to work together and nailing down exactly what type of deal would be the right deal so we could jump on it when it came up. A good investment focused realtor understands this and is not annoyed with all the questions, because they know that there will be multiple deals in the future not just this one.

How do I get Realtors to work with me as a new investor

How do I get Realtors to work with me as a new investor

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