Rental Property Investor · Hallandale Beach, FL · Member since 2019 · 33 posts · 24 votes
I am in the midst of buying my first rental property and I am searching for an investor friendly realtor . I was contacted by a realtor who also has investments and who seems pretty knowledgeable . The only issue is that he lives 5 hours away , in Jacksonville, Florida. Do you guys think this is a good move or should I look for a realtor who is closer to my area ?
@Charles Seaman I’m actually trying to get an fha loan , so definitely in my area. I’m just not sure if it could become an issue because he is so far away.
@Stephanie Sicard I have more expertise with investment properties than with personal residences or house hacks, but my general philosophy with either is that I want to work with an agent that's an expert in the area that they're working in. It's very tough to be an expert when you're so far away because real estate is a very localized business. So if it were me, I'd find somebody closer to your area.
@Stephanie Sicard Real estate is a hyper-local business. I would pass. Since you are also referring to realtors, I assume you are looking at 1-4 unit properties, maybe a little bigger. But when you get into the 20+ unit properties, typically you are not using realtors.
If it were me, I would be spending time on here learning what you can, attending local meetups of investors, and REIA meetings. Learn all you can.
But for actually looking at properties, I always called listing agents to let me know. They will be default be pulling for you more since they can get both sides of the commission. And just take what they say with a grain of salt. Do your own homework on market rents, what tenants expect finish wise in the area, etc.
SHOP AROUND, SEARCH TOP REALTORS OR BROKERAGE IN THE HALLANDALE AREA AND CALL THEM, AND SEE SE IF THEY ARE INDEED INVESTOR FRIENDLY .. I THINK YOU SHOULD NOT HAVE A PROBLEM FINDING A LEGIT, KNOWLEDGEABLE AGENT OR BROKER IN YOUR AREA. IF YOU WANT I CAN RECOMMEND YOU A FEW.
I would go local. When something is listed and you want to see it a realtor that is 4 hours away will drop everything to take you out to see it. What he will do is maybe come out once a month to show you whatever dogs are still listed when he happens to fit the drive into his schedule, or more likely sell your contact to a local realtor who will get less money for taking you out to see listings.
And when in escrow, a far away realtor will not meet your inspector, but have the listing realtor to do that, possibly influencing the negotiation process (hearing/seeing the issues before you get to know about them). And he will not have local contacts to recommend to fix any issues that come up. Having that contact that can fix an issue in time to close is priceless.
Unless that Broker has significant experience in your target market I would discourage working with them. Each and every market, even sub-market, is very unique and requires a high level of experience from any RE professional to be successful there. 5 hours away is a long ways away. Perhaps stay in touch and build a relationship to leverage knowledge but find another knowledgable broker in your target market.
Here are some tried and true methods to find good brokers in any market:
1. Referrals - Connect with other industry professionals in Atlanta such as property management companies, commercial lenders, Lawyers with CRE experience, etc.. and ask for a referral, or even better an introduction, to brokers.
2. Go to local meetups, events, seminars and everything else multifamily in and around Atlanta. There are bound to be Brokers and several of the industry professionals mentioned above at these events.
3. Meet and align with other multifamily investors and owners. Build a relationship and ask which Brokers they have had success with in the past. You may find a partner and Broker, win-win.
4. Do some research on Loopnet, find a listing that matches, or is similar to, your criteria and cold call the listing Broker. Similarly, take a look at some of the major CRE brokerage sites like CBRE, Cushman and Wakefield, Marcus and Millichap, etc.. If you get an answer from cold calling a Broker here is my rough script:
"Hi, my name is _____, I see your listing on Loopnet at xyz, is it still available? What's the story? Ok, great, could I have some more information? Do you have other listings similar to this one? Here are my criteria..."