I think I'm expecting too much of buyer agents

Commercial Real Estate Investing
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I think I'm expecting too much of buyer agents

Jeff N.
SFR Investor · Virginia Beach, VA · Member since 2010 · 150 posts · 36 votes

Recently I have been working with two investor friendly buyer agents to find a potential rental property (100-150K with 25% down).

Both said there are a lot of good deals out there for rentals that match my criteria. Both sent me an initial MLS query of a few properties they like, but when I replied with a cashflow analysis of the properties showing they didn't cashflow well, I never received a response from either. I assumed they would shoot me a few more properties to look at, but never expected no response, especially after they both said a lot of good deals where in the area.

When a buyer agent says there are a lot of good deals, Am I expecting too much to ask them to prove it on paper? I have bought in the area a few times in the past so they know I'm not wasting their time, what gives?

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  • David Wedemire
    Real Estate Investor · Bellingham, WA · Member since 2008 · 407 posts · 90 votes
    15y

    You're not expecting too much. You have to train them to send you what you want. If they don't then move on to other "investor friendly" agent. It's not like they are family.

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  • Danny Day
    Developer · Houston, TX · Member since 2008 · 488 posts · 121 votes
    15y

    Jeff-

    Any investor friendly agent should be able to complete a simple cashflow analysis for you based on your financing information.

    As a licensed agent, I would not say this is expecting too much from a buyers agent. Have they shown you the property yet? Doing a cashflow analysis takes 15 mins tops..

    I would simply move on to the next one.

    Good luck

    Danny

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  • Jeff N.
    OP
    SFR Investor · Virginia Beach, VA · Member since 2010 · 150 posts · 36 votes
    15y

    Thank you for your input. I didn't think I was asking too much either. Unfortunately I have a feeling their definition of "Good Deal" is based on value compared to 2006 highs. Which is another discussion on its own.

    I guess I can only assume business is doing well for agents if they don't want to spend a few minutes to analyze deals for a qualified buyer.

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    15y

    Jeff -

    It boils down to the fact that you asked them to do a little bit of work -- and they are lazy. They were hoping you'd just jump at the first deal(s) they threw at you, but when you pushed back and asked for them to do a bit of legwork to justify the numbers and ensure it the deals were actually deals, they realized they'd have to work for their commission and decided to try to find someone else that wouldn't make them work so hard.

    That just says that they weren't the right agents for you...

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  • Kathy V.
    Involved In Real Estate · Rochester, NY · Member since 2011 · 138 posts · 11 votes
    15y

    Jeff,

    I'll admit it. As an agent, I have been quilty of this in the past. It wasn't because I was lazy but because I couldn't answer the questions proficiently.

    As with any relationship, if both parties can communicate their needs and wants effectively,then everyone can win.

    But then again, I also know a lot of "lazy" agents. Just remember: the agent that does a lot of volume isn't necessarily the "best" agent. Don't be afraid to ask questions.

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  • Mike Morrison
    Contractor · Woodlands, TX · Member since 2010 · 95 posts · 18 votes
    15y

    J.Scott has it.Agents are lazy or inept. Please remember, getting a RE license does not make you profecient. You're not asking too much. Before I pass on a deal to an investor, I've already done all the homework.I want the deal to close and I want a continued relationship with that investor.
    I hate to say this but,training in this industry is sorry at best.

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  • John Wu
    Commercial Real Estate Broker · Newcastle, WA · Member since 2011 · 1 post · 0 votes
    14y

    Jeff N.

    Have you explicitly tell the broker you are only working with her/him? Or they know you are working with someone else at the same time?

    I've found most buyers who work with many brokers concurrently were ignored (disqualified) by brokers as no broker feels the time invested will be rewarded eventually and hence give up on the client in the early stage.

    Best way is to decide early on a good broker (knowledge + hard working) exclusively (let the broker know also) from the beginning and continue to work with the person unless you don't like the results provided.

    Good luck!

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  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    Not all investors are looking for the same thing in a buyers agent. For me I want someone that will bring me deals that meet my general requirements. I want to the analysis and will do my own negotiating.

    I also have found that an agent that already has lots of volume is probably a poor choice because they are not likely to spend the time needed for an investor.

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  • Michael Lauther
    Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    Jeff I am curious about the criteria you gave to your Buyers agent. Was a significant positive cash flow a primary objective or were you more interested to hold these properties for long term appreciation and tax benefits. Real estate agents in my home town are still touting buying properties that don't cash flow well and present a case for large gains when the market rebounds. Even at the new low prices properties would barely pay for themselves because of the high tax structure and the low rent to purchase price. I concluded that it was time to search for a different market altogether not a new agent. The agents in my area were not the problem, I was the problem. I was looking for something that did not exist in my market. I live in NY and invest in Ohio because I found that the properties I Purchase in Ohio meet my individual investment criteria. Perhaps it is time to expand your horizons.

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  • Andy Chu
    Involved In Real Estate · Las Vegas, NV · Member since 2010 · 341 posts · 86 votes
    14y

    A good deal could mean anything. I've had client say that they wanted a good deal and they turned out just wanting a turn key property. Be specific in what you want.

    For Instance:

    I am looking at a cash on cash return of X% which assumes the following items.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    Jeff it's simple.If they have 10 other investors willing to buy and take less margins then it will be much easier to get the seller on board and close it and make the commission.

    If the agent has to get a big reduction even if your numbers are right it makes the deal going through a long shot.

    So the broker/agent wants the commission and you want to buy real low to make great cash flow.Those can be at odds sometimes.

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  • J. Gary
    Flipper · Chicago, IL · Member since 2012 · 35 posts · 4 votes
    14y

    Jeff,

    That has been my experience with agents. It about quantity over quality and if there is the slightest hint of work on their end, they bail immediately.

    I don't use a buy side agent for deals anymore because 99% of the ones I have worked with are full of it and lazy. They have really given Realtors a bad name.

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