Working with a real estate agent for investment property
Real Estate Agent · Kansas City · Member since 2023 · 23 posts · 14 votes
Working with a real estate agent for investment property
Most Popular Reply
Real Estate Agent · Phoenix, AZ · Member since 2020 · 74 posts · 58 votes
2yQuote from @Bob Mills:
Chase, correct me if I'm wrong but isn't New Western a wholesaler? As such, isn't the biggest motivation to flip contracts for the biggest markup possible? I could be mistaken but as such I think most investors would look at an agent w/ New Western as not being on their side like a typical RE agent who happens to work with investors might be, but really just more someone trying to squeeze the most money out of them possible with no strings attached. The motivation of your company making money off the upside really removes most of the trust with an agent. From my limited experience with NW it was a situation where you had 24 hours to look at the property, no inspections, show up with cash ready to buy type of situation. Basically the opposite of a friendly buying experience for a purchaser. So long way of saying if you're looking to forge good relationships with investors it might be best to move to a different firm with a more client-friendly approach.
Hi Bob, really interesting points you brought up. Full transparency, I am also a New Western agent, so I am biased in my response. But I just wanted to add my two cents!
- New Western is not a wholesaler, we are a marketplace. Our contracts are non-transferrable and we close on every property.
- You are correct, we do not represent our clients in transactions. While most other Real Estate Agents do represent their clients in traditional transactions, we still foster amazing relationships with our clients. Most of our clients are repeat buyers, so it's in our best interest to find the best deals possible for our clients. We want them to have a great experience AND make the MOST money possible, so they come back to us for their next deal! You questioned if our business model is in best interest of the clients, so I want to mention that our clients do NOT pay us commission, whereas traditional agents are paid commission.
- You are correct, our deals move FAST and there is not an inspection period. Our properties are sold as-is. This is pretty common for investment properties, especially for investors using hard money loans. We always encourage our investors to bring their contractors onsite when viewing our properties to have a realistic understanding of what will be needed.
All in all, it's going to depend on the client on what business model works best for their goals and needs. If someone wants to do a traditional mortgage, with traditional closing processes then you're correct- New Western might not be the best fit. But if a client want's to build a relationship with an agent who specializes in off-market investment properties & is using non-traditional financing to maximize their return, then New Western could be a great fit for them!
Lastly, I purchased both of my rentals before I became a Real Estate Agent. One of my properties I bought from a marketplace (similar to New Western), and the other property I bought off the MLS with a traditional Real Estate Agent and traditional closing process. Both properties are doing great, and have been awesome investments :)
4 Replies
- 2yPeter StewartBusiness MemberReal Estate Broker · Indianapolis, IN · Member since 2018 · 160 posts · 168 votes
A large portion of my business is investor focused, and on top of the general realtor duties (writing offers, protecting their interests at all times, etc) they expect the following:
1. Hyper local area information. Know all the different areas (A/B/C/D), know the up-and-coming areas, the path(s) of progress, etc. About 98% of my investment clients are not local and probably 95% have never visited Indianapolis or IN, so they rely on me heavily for this kind of information. Our city can vary drastically street to street, block to block, neighborhood to neighborhood, and you need to know all these nuances to get your clients into the right areas and to keep them away from the wrong ones.
2. Help building out a team - need recommendations for good property managers, lenders, contractors, attorney's, etc.
3. Understand all the investment strategies and know what works in your market, examples of what the #'s look like, etc - so you can help guide investors to the right products that fit their needs.
4. Personal investment experience. Investors want an agent that walks the walk, not just talks the talk. Nothing teaches better than doing, so the more personal investing experience you have, the more value you have to add to the conversation.
- 2yPreston DeanBusiness MemberRealtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
Hey Chase,
As an agent myself and working with a handful of investors already. Most of them don't want to be put on a email chain drip like we would our regular buyer clients, as most of them are out of state and do not know the area. What I found out that works well is doing most of the leg work up front for the investors letting them know this is an A+ or B+ area and the rent rolls are _________ & who their renters will most likely be.
United Real Estate DFW Properties 565 Reviews - Professional · Durham, NC · Member since 2017 · 14 posts · 11 votes2y
Chase, correct me if I'm wrong but isn't New Western a wholesaler? As such, isn't the biggest motivation to flip contracts for the biggest markup possible? I could be mistaken but as such I think most investors would look at an agent w/ New Western as not being on their side like a typical RE agent who happens to work with investors might be, but really just more someone trying to squeeze the most money out of them possible with no strings attached. The motivation of your company making money off the upside really removes most of the trust with an agent. From my limited experience with NW it was a situation where you had 24 hours to look at the property, no inspections, show up with cash ready to buy type of situation. Basically the opposite of a friendly buying experience for a purchaser. So long way of saying if you're looking to forge good relationships with investors it might be best to move to a different firm with a more client-friendly approach.
- Real Estate Agent · Phoenix, AZ · Member since 2020 · 74 posts · 58 votes2y
Quote from @Bob Mills:
Chase, correct me if I'm wrong but isn't New Western a wholesaler? As such, isn't the biggest motivation to flip contracts for the biggest markup possible? I could be mistaken but as such I think most investors would look at an agent w/ New Western as not being on their side like a typical RE agent who happens to work with investors might be, but really just more someone trying to squeeze the most money out of them possible with no strings attached. The motivation of your company making money off the upside really removes most of the trust with an agent. From my limited experience with NW it was a situation where you had 24 hours to look at the property, no inspections, show up with cash ready to buy type of situation. Basically the opposite of a friendly buying experience for a purchaser. So long way of saying if you're looking to forge good relationships with investors it might be best to move to a different firm with a more client-friendly approach.
Hi Bob, really interesting points you brought up. Full transparency, I am also a New Western agent, so I am biased in my response. But I just wanted to add my two cents!
- New Western is not a wholesaler, we are a marketplace. Our contracts are non-transferrable and we close on every property.
- You are correct, we do not represent our clients in transactions. While most other Real Estate Agents do represent their clients in traditional transactions, we still foster amazing relationships with our clients. Most of our clients are repeat buyers, so it's in our best interest to find the best deals possible for our clients. We want them to have a great experience AND make the MOST money possible, so they come back to us for their next deal! You questioned if our business model is in best interest of the clients, so I want to mention that our clients do NOT pay us commission, whereas traditional agents are paid commission.
- You are correct, our deals move FAST and there is not an inspection period. Our properties are sold as-is. This is pretty common for investment properties, especially for investors using hard money loans. We always encourage our investors to bring their contractors onsite when viewing our properties to have a realistic understanding of what will be needed.
All in all, it's going to depend on the client on what business model works best for their goals and needs. If someone wants to do a traditional mortgage, with traditional closing processes then you're correct- New Western might not be the best fit. But if a client want's to build a relationship with an agent who specializes in off-market investment properties & is using non-traditional financing to maximize their return, then New Western could be a great fit for them!
Lastly, I purchased both of my rentals before I became a Real Estate Agent. One of my properties I bought from a marketplace (similar to New Western), and the other property I bought off the MLS with a traditional Real Estate Agent and traditional closing process. Both properties are doing great, and have been awesome investments :)
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