Questions to ask my RE agent to help me buy a rental property?

4 Replies

I'm looking for some ideas on questions I should be asking the realtor I might work with to buy my first rental property. I am going to meet with him tomorrow and have some questions I am going to ask him, but I am looking for some suggestions as well. I am showing him some properties I am currently looking at that I have ran the numbers on. To give him an idea of what I am looking at. Should I let him know I want to make as many offers as possible? Can he help me estimate property ARV? I'm not really sure what I should be asking and what kind of questions I can count on him to give me an accurate number on. Any suggestions would be helpful.

I would ask questions about him to see if you want to work with him. Does he work with investors? How much does he sell? Does he own rentals or investment property? What is his reputation? Think of his position. He doesn’t want to waste his time. What can you do for him that would make him want to work with you and help you grow in your business? As far as numbers, it doesn’t really matter what you are given, you will verify them before you buy. Normally, the realtor is relying on the seller to provide accurate information.

If I were the realtor, I would ask you if you can close on any of the properties you want to make offers on within a short time. Do you have a proof of funds. Also he should ask you how to determine what a property is worth. Also he would want to know if you ever owned or bought investment properties, or just heard on a crazy website or from a guru tht you need to make a bunch of ridicules low ball offers.

No offense, but know the market where you want to own rentals, know property values, make cash offers, and close fast. Don't waste their time.

I called a realtor one time about one house. Bought it for cash, and he told me I might like another he was aware of. Bought it for cash. After that any time he seen a property he thought I might be interested in he called me first. He knew that I always paid cash, bought as/is, and was ready for a deal. We have a 16 year relationship. He has made me a lot of money. I have made him a lot of money. I never had him offer stupid amounts. Just low reasonable amounts. But the real deals-he brought to me on a silver platter.

Originally posted by @Ed Emmons :

I would ask questions about him to see if you want to work with him. Does he work with investors? How much does he sell? Does he own rentals or investment property? What is his reputation? Think of his position. He doesn’t want to waste his time. What can you do for him that would make him want to work with you and help you grow in your business? As far as numbers, it doesn’t really matter what you are given, you will verify them before you buy. Normally, the realtor is relying on the seller to provide accurate information.

 Thank you Ed, I appreciate your insight. 

Originally posted by @Arlan Potter :

If I were the realtor, I would ask you if you can close on any of the properties you want to make offers on within a short time. Do you have a proof of funds. Also he should ask you how to determine what a property is worth. Also he would want to know if you ever owned or bought investment properties, or just heard on a crazy website or from a guru tht you need to make a bunch of ridicules low ball offers.

No offense, but know the market where you want to own rentals, know property values, make cash offers, and close fast. Don't waste their time.

I called a realtor one time about one house. Bought it for cash, and he told me I might like another he was aware of. Bought it for cash. After that any time he seen a property he thought I might be interested in he called me first. He knew that I always paid cash, bought as/is, and was ready for a deal. We have a 16 year relationship. He has made me a lot of money. I have made him a lot of money. I never had him offer stupid amounts. Just low reasonable amounts. But the real deals-he brought to me on a silver platter.

Arlan, thank you for your response and no offense taken. I do have proof of funds as I am working with two investors, although I am not buying with cash. I plan on a twenty percent down payment and financing the rest. My Investors are open to the down payment price and splitting profits 50/50 (Overtime for equity gain as well as monthly cash flow).As this will be my first investment property I am buying.Also, I have means of financing. Nothing in paper but I have not been asked for that at all yet. I am currently taking my first steps in to the RE game. This realtor has already set me up with automatic emails for new properties put on the market through his access to the MLS. He is aware I am looking to buy soon and that I am new to investing. I try to buy under market value, obviously if it is something that is available. In my opinion you can always try at least 15 % under market value. Then, offer again over time. Although, I am showing him a few different properties I'm interested in that vary in regards to buying price and what I am looking to offer.

Also, I am not merely jumping into real estate based off of "Gurus". I have been studying and reading various books as well as attending webinars and seminars for several months now on a daily basis. Clearly I am still very new to it, but I figured I need to start somewhere. So I am not looking to waste his time what so ever. Although, I am curious how I can make sure I don't waste his time as well as my time in order to make it a good partnership. That's really all I was looking for.