What does an "investor friendly" realtor mean to you?

Question

The term "investor friendly" realtor is used all the time and I'd like to find out what this means to you:  What special skills or knowledge does the "investor friendly" realtor have that another average realtor doesn't?  Do you have a special process you use with an "investor friendly" realtor that wouldn't work with a average realtor?  Your replies are very much appreciated.

Bill Gulley · Answer

Realtors, like investors will have different skill levels, saying investor friendly may not mean a certain skill level so much as simply understanding the strategies used by investors.

When I see the term "investor friendly" anything it indicates an inexperienced investor. I see investors asking for attorneys, title companies and Realtors that will allow them to carry out some guru thing instead of taking their guru thing and adapting to the parameters of their local market.

Some Realtors don't have time to mess with working out lease-options for example, they are busy making money, a good indication they are a good Realtor. What they want to see is how they get paid and when. A broker is not entitled to a commission until there is a sale, so they need to enter into some other agreement to get paid. The investor needs to be aware of what Realtors do, can do and can't do by ethical standards or regulation, asking them to do things that aren't allowed is asking the to act unethically (if they even are aware).

Solve the problem, approach them with the solution of how they get paid for doing certain functions.

If the brokers and the Board of Realtor's have rules, say perhaps that agents can't get involved in certain areas, (many brokers won't allow Sub-2s, good or bad, the default rate is too high and they don't want the future issues from failed deals). In such an instance, "investor friendly" might be appropriate but I don't see it as much in that light as mentioned above. The investor needs to adapt to local requirements and common practice, the issue is that new investors lack the skill level to adapt so they seek ones who will work with exceptions to common practice.

I'd say the trick is educating that good Realtor in what you want to do, overcome objections and give expertise as well as an attorney opinion of your process if necessary, many Realtors are just misinformed.

The biggest kick I get out of the "investor friendly" term is when investors ask for an attorney, especially wholesalers. They ask a good RE attorney in their area about wholesaling and they are told it's illegal. They then disregard the opinion of the attorney in favor of what their guru suggests or what they read others doing in other areas and ask for an investor friendly attorney.. The first rule in RE law is that all RE is local.

So, the investor is asking for two basic things, an IF Realtor that is aware of strategies or an IF Realtor that will act contrary to local customs, ethics or laws which I'd bet is usually the case as the investor is unaware of the consequences.

I'd rather educate a good Realtor and work within the legal framework in a community than try to find the exceptions.

Investors may find that the IF type may not be putting their tail and reputation on the line, they aren't they ones that may end up in court. An IF attorney (or Realtor) may cost you much more in the long run as they may represent you in your ploy, you lose and owe them for services of defending you, (or fees) that or they just walk away when you hit problems saying get a different attorney or Realtor. You'll find it very hard to get a local attorney to sue another local attorney or place any blame at their feet, you're on your own. :)

Bill Jacobsen · Answer

We use realtors who live and work in areas different than where we live. They have to identify properties that meet our requirement but we have to make those requirements known to them. Their knowledge of the area is important so they can identify good and bad areas. They have to be able to determine ARV as well as a guess at rehab cost. They have to understand that we will only further investigate properties that we are interested in. That may be a small % of those they identify for us. We will make offers on an even smaller % of them. Our offers may be less than they think we should offer. They are required to help the seller/listing agent understand why our offer is what it is.

We are not able to invest in other states and areas without good realtors. We owe a lot to them.

Good Luck.

Bill

We are not able to invest in other states and areas without good realtors.  We owe a lot to them.

Good Luck.

Bill

Ali Boone · Answer

The shortest explanation is just that an investor-friendly agent understands what makes for a good investment property. Most agents don't know this because they aren't usually investors themselves and/or have only worked with primary home buyers.

Andrew Syrios · Answer

Most realtors look at properties from a perspective of what is the nicest, best place to live in. I see an investor friendly realtor as someone who can ignore that and look at the bottom line; can you flip/rent this and make money. Our agent has a background in construction too, which is an added plus as he can help when analyzing the rehab. It's also key for them to be willing to make lots of offers.

Account Closed · Answer

Thanks to everyone all the great answers I've gotten so far.

Justin Case · Answer

To me it means the agent knows how to run a business. They know all aspects of purchasing a property. From interest rates, permitting, zoning, what numbers to run, taxes etc.

Usually they have or have had rental properties in the past.

I know of agents who sell themselves as investor friendly agents who do not know what depreciation is or that it is optimal to have a duplex on separate meters. I have also had a lot lie and say they have rentals when they do not.

Anthony Gayden · Answer

I had a real estate agent arguing with me that my offer price on a property was too low. After I politely explained to him that my offer was based upon, not the Pro-forma rents which were $25-50/month higher than identical buildings surrounding it, but the average rents for the area. I explained to him that the price the seller was listing the property was $30,000 higher than all of the comparable buildings around it. I explained to him that if I paid the asking price, my cash on cash return would be negative after all of my expenses.

Finally I explained to him that I would not be working with him anymore.

Manny Cirino · Answer

Investor Friendly Realtor;

A Licensed Real Estate Agent/Broker how understands creative real estate investing techinics, can calculate and identify offers as an investor would and is willing to negotiate and sructure commission pay out according to the techinic the investor may be using to purchase a property with.

This is my definition in a nut shell.

George P. · Answer

great question and i'd love to answer what applies to me... i use 6-10 realtors and know a thing or two what i like and dont like..

- dont like when i have to look for deals
	- dont like when i have to push them
	- come to the showing with rental comps/flip comps/sales comps
	-like when they communicate continuously. i want to feel like they think of me all the time (i know, that makes me look like i am needy)
	- have a spare flash light in case i forget mine
	- if rental, suggest what renters like, keep up during remodel and offer to go see the reno. keep the relationship going
	- submit offers quick
	- if you have a backup person, make sure they ARE GOOD. i just had a guy go out of town and the backup never called me back. i texted my guy, told him "he never called back, not working with you again". the backup called back 10 mins later and i ripped him apart.

ask if you have more questions

Brie Schmidt · Answer

It is just a different mindset.  A residential realtor may be more familiar with seeking out certain school districts or layout/beds/baths vs a realtor who does investment would need to be familiar with area rents and ROI and marketability of units.

What does an "investor friendly" realtor mean to you?

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