This made me think.......I know what I look for in a Realtor, but I wonder what a Realtor would look for in an investor? So, here is your chance! Realtors, what do you consider ideal when working with an investor? Some working relationships are obviously more productive than others. It would be helpful and beneficial to see it from the Realtor's perspective.
Jackie, I am a REALTOR® who mostly works with investors. I look for investors who are seriously ready, willing and able to buy. They must be forthcoming about providing proof of funds in their name or their company name. I don't deal with investors who say "just show me some houses" without opening up about their ability to purchase. They must be willing to make realistic offers. I know the market is down right now, but don't expect to get a 4BR/2.5BA move-in ready home in a really nice part of Atlanta for $10K. Making ridiculous offers wastes everyone's time, the buyer, the seller and the agents. In a competitive market like Atlanta, you will most definitely get outbid. Also, I look for investors who take my professional advice on the market. When the investor is the seller, don't insist that just because you have painted the house and put some appliances in that all of a sudden you have increased the value by $50K. It is important for the investor to be informed and realistic about the market and their own financial situation.
Touched on but not identified as a key point in What does a Realtor look for in an investor? is that they really want repeat business. Brokers/Realtors that find Closers not Posers should want to keep their clients. As a 'serial buyer', I'm sure my buyer's broker appreciates that I don't bounce from listing agent to listing agent... trying to eek out the last dollar on each individual deal.
Brokers, like investors, need team mates who perform. That's key. As an investor I try to make their life easier and they reciprocate. I value a knowledgeable independent buyer's broker who digs for my benefit independent from the seller. My broker knows that if one deal won't work, I'll be back for something else on another day. Soon. No commission breath from a hungry double dipper who sees a one time paycheck. And I pay how much for this service? Seller paid commission. Over and over.
I look for a serious investor. One who wants to work with me as their buyer/seller agent. I work with investors who flip or buy and hold but know their strengths. I prefer working with investors who answer their phones and communicate their needs/wants/goals with me. I know my product very well and expect at least one or two properties to be of interest to my investors. Well,that's it for now hope it helps.
I purchased three houses this year for buy and hold. In all three cases I found the deals on my own. My realtor simply facilitated getting me into the house and submitting my offer.
He's a good guy, don't get me wrong, but I'm not sure what sort of value he added. I ran my own comps, I know the market in this area better than he does etc.
I guess when he decided to work with me it was simply because I called his brokerage up and said I needed an agent to submit a HUD bid for me, and that's how we got started.
As an REO broker listing bank owned homes, I get calls from lots of investors and I have to apply some sort of criteria to sort them out because we all know there are more tire kickers than there are buyers. Here are some important points I use in deciding who to work with...
1. Have CASH. Many REO properties won't finance due to condition and lender deals are taking forever these days. There are a lot of problems that can come up when the investor is short on capital. If an investor isn't a cash buyer, I refer them off to someone else.
2. Be knowledgable, but not a know-it-all. If the investor knows everything, why involve me? I enjoy working with investors who know a lot about construction and rehab. I don't enjoy working with investors who want to spend their time doing my job. We both need to focus on our specific roles in the transaction.
3. Be realistic. The #1 complaint I have with inexperienced investors is that they have unrealistic expectations. They think homes are selling for 50% of list price or that they are somehow doing the bank a "favor" by making a ridiculously low offer. Homes are worth what the market will support. If the home is listed at the proper price, it will sell at or close to list. If it's listed way too high, it will sell at a discount to list, but that doesn't mean you got a "steal". It just means the bank dropped the ball when they set the price.
Communication is the key to a successful relationship between a realtor and an investor...
The Realtors I work with simply want to be sure that I have the ability to close and that I am truly serious.
I have a few Realtors that will write almost any offer for me since I've shown value that I am able to close. Also giving them the listing to sell the property that you plan to make a profit on is a good carrot.
A disagree with many investors as a good Realtor can save you a lot of time and can also find you property and bring it to you first as well as introduce you to other Realtors that have property.
I have a few Realtors that can't wait to bring me their pocket listings before they hit MLS because I am able to close and we all benefit.