realtors take a good investment first?

Question

ok so im new here and about to buy my first rental prop. i was told find a realtor who can bring me good investment props and who also owns some of his own.   but my question is,,,,why wouldnt my realtor buy the great deal for him self while in his search comes across the good ones? i mean if i were a realtor searching for great investment props and came across a great one there would b no harm in taking it for myself thats not unethical to buy some more of my own. so how does that work? 
thanks for the advice!!

Bill Gulley · Answer

As mentioned, agents who work the buyer's side usually don't get involved in buying. Good listing agents may make offers or buy at the asking price before listing, but they can't buy them all.

Most agents seem to view thier work more as a job. Brokers build a sales force. While you will see a car dealer drive different cars or own a few in his garage, his business is selling them, not owning them.

There are wheeler-dealer agents, they are easy to find and unless an investor is pretty tight with one, investors usually avoid them. It's easy for a Realtor to be seen as a competitor if they collect properties.

And, most agents can't buy, they have a hard time qualifying on commission, they can get loaded up pretty quickly.

Bottom line, don't worry about it, IMO.

Bill Gulley · Answer

No agent can beat you to any listing on the MLS, if it gets listed, it's out there. The trick is to stay on top of new listings as it hits the public side the same time it hits the agents side.

The only way to have advance notice is for a listing agent to call someone before they list it, if you have a good relationship with great agents, they can call you.....and frankly, would rather call you as another agent where they have to split commissions!

There are some advanatges to having a license, like finding comps, but no agent will locate a great deal off the MLS before a good investor can.  :)

Mark H. · Answer

In my area, there are thousands of licensed agents that maintain the license for the primary purpose of investing.  You cant get too hung up on it, because you arent going to beat them to the easiest/best deals on the mls.   You'll get leftovers in my area without a license, which can still be fairly lucrative.  The only way to beat them is to join them, which really isnt much of a hurdle in most states.

Jeremy Cyrier · Answer

Great question. Most spend their time to make fees, not equity, because they need to make a living.  Plus, they have a fiduciary obligation to represent their client and when they meddle with investor/broker roles, they can create liability for themselves and damage their business.

Wayne Brooks · Answer

Unfortunately, 99.5% of us agents don't make enough to buy the investments we would like.
 Be able to show a realtor1) exactly what you're looking for  2)exactly how you're going to pay for it, with POF, a strong pre approval

realtors take a good investment first?

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