Starting out as a new real estate investor with excellent credit and some decent cash in hand, about $225K.
Do I need a real estate agent? I'm working with someone whom I love dearly but I'm wondering as an investor is it more customary to do the hustle myself and contact listing agents, owners, etc. to take 3% of cost out of the deal?
I've done exactly what you want to do but now days you will be known as one of those investors that cut out the full comish.
I don't recommend it.
Your reputation is worth more than 3 % .
Having agents go the extra mile to find you deals is worth it and do you really think it is fair to cut them out of their livelihood.
I go back to Brandon's deal funnel where you need deals coming from a lot of sources to find good ones. If you are only going to use your license for yourself I say save your time and money and drive for dollars or direct mail or networking with others. Then use a great agent as another deal source. The good thing for you is this agent is basically a "free" source in your leads funnel as they wont get paid unless they find you a deal!
Thanks. I’m not an agent at all and I have little to no experience. I’ll stick with my agent. Honestly I was more curious as to what is customary as an investor.
@Ryan M. Lean on the team. Especially starting out but more importantly, it builds the process that ultimately allows you the investor to align with your goals. If you have as a goal to be the agent, then act like the agent.
However, if like many you are in it for financial freedom or income or early retirement, then ensure you are positioning your investments to work without your every move. This ultimately means leaning on the team and experts in various fields. Plus, this will mitigate alot of mistakes. Most new investors make enough already, no need to compound the problem :)
@Chris Levarek thanks man!!
@Ryan M. I would recommend using your own agent. Just be sure to ask them a lot of questions so that you know that they understand the investor type of client.
I’m a Realtor and investor in Louisiana. I can’t speak for other states but using a listing agent to represent you doesn’t really mean that the seller is saving any money on the commission. Unless the seller and listing agent work out a deal, the listing would still receive approximately 5-6%.
The only advantage would be that there is one less person to communicate with but I don’t think it’s worth it. You definitely want to get someone that has your best interest at heart. Good luck and Best Wishes!
The listing agent will just make double.
A listing agent typically charges X%. If another agent brings a buyer to them, then they usually share roughly half of X with the buyers brokerage. If there is no buyer broker, listing broker keeps the full amount of X%.
@John Walker thanks man!