Opinions on realtor loyalty or working with several agents

Opinions on realtor loyalty or working with several agents

Wholesaler · Lakewood, CO · Member since 2017 · 20 posts · 7 votes

Hi folks!

I did a search on this subject and it looks like posts are generally from a couple years (or more) back.  I know how quickly markets and thought processes change and wondered about current opinions.

Is it generally a better plan, and accepted practice to work with and receive leads from multiple realtors that are investor friendly, or try to focus on building a single, solid long term relationship?

I can see how it could be a benefit to have contacts in multiple offices around the Denver Metro area sending possible houses, but also that the quality of those leads could be reduced by not having a strong relationship.  Also, having watched a parent spend decades as a real estate agent, I know how fickle some of those relationships could turn out to be.

It would make sense to me to have an agreement in place that any property I buy and rehab would be sold by the same agent.

What have you found to work best as investors?  Are good, investor friendly realtors really understanding that you might work with several agents, just as a smart realtor would probably want to work with several investors?

Thanks for your thoughts!

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y

The answer depends on your experience level. 

Are you flipping 20 houses a year? Then you need to source your deals from a wider array of sources. Multiple agents, multiple wholesalers, direct mail etc.

If you have never flipped, or you are doing just a couple a year, then you will be better off using one agent. If you have no track record, and you are trying to use multiple agents, any good one simply wouldnt waste their time with you.

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  • Investor · Louisville, CO · Member since 2016 · 19 posts · 3 votes
    8y

    I specialize in finding off market deals for buyers - the money is in the list back.  Would not send any deals to a buyer unless I got the list back.  For the right deal, there are a lot of buyers and have to do what is beat for my business. 

  • Chris LopezPro Member
    Real Estate Agent · Denver, CO · Member since 2015 · 1k+ posts · 858 votes
    8y

    @Nathan Hayes there is no right or wrong answer. What do you mean by multiple leads from realtors? Most realtors set up auto alerts on the MLS. Not a great use of time to get 5 emails saying the same thing.

    Yes, probably best to let the person who found you the property also list it.  It gives more incentive and costs you the same. 

    Meet as many realtors as possible to start building relationships. Just be upfront about what you're looking to do, etc.  But if you're new to investing, don't expect a realtor to spend a bunch of time showing you properties, educating you, etc if you're not going to buy with him or her. Now if you find a property from a wholesale deal or off market, that's a different story. But throw the realtor the listing once it's done as a thank you for their time. That's assuming they were instrumental in helping build your foundation to pull the trigger!

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    The answer depends on your experience level. 

    Are you flipping 20 houses a year? Then you need to source your deals from a wider array of sources. Multiple agents, multiple wholesalers, direct mail etc.

    If you have never flipped, or you are doing just a couple a year, then you will be better off using one agent. If you have no track record, and you are trying to use multiple agents, any good one simply wouldnt waste their time with you.

  • Real Estate Consultant · Brighton, MI · Member since 2013 · 607 posts · 251 votes
    8y

    My time and dedication to each of my clients are valuable. There's a lot more researching that's involved with property investors, working out ROI, etc. If I'm going to spend hours finding and researching properties for you, then I would also require the same level of commitment to me in the form of a signed Buyer's Agency agreement.

  • Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
    8y

    Let multiple agents know what you are doing and have them all send you deals. This market is so tight, you'll be waiting a long time if you are just working with one. Just make sure you are upfront about it. 

    If I'm sending you a deal, then I better be getting the listing on the back end, or I won't send you another. I imagine most agents are the same way.

  • Specialist · Englewood, CO · Member since 2017 · 329 posts · 88 votes
    8y

    @Nathan Hayes Working with multiple agents is key to finding a deal but the real secret is finding the deal on your own. In this market most agents working with buyers and sellers don't have time to research properties for you, they're swamped. Teach your self to find the deals on your own and when you find a deal, call one of the agents you work with and have them write the contract for you and give them the deal on the back end. If you build a good working relationship with a couple of agents you will get deals from them. 

    Make sure you find an investor friendly agent. That is the key to successfully finding deals in Denver's tight market.

  • Realtor / Investor · Vienna, VA · Member since 2014 · 133 posts · 114 votes
    8y

    It depends on where you think the deal flow will come from. If for what you want to do, the deals are coming from the MLS, you should only work with one agent.

    If they are off market deals, you MUST have multiple sources.  One agent will not know all of the off market opportunities.

    For me - a Realtor in Northern Virginia - if I am working with a buy and hold Realtor where the majority of the deals come from the MLS, I expect exclusivity with regard to listed properties. I realize they may find an off market deal but if I find out they bought a listed property from another agent, our relationship is over.

    For fix and flips, I assume they will be checking multiple sources.  My only expectation is that if I bring them the deal, I get the listing on the back side. 

    Hope that helps. 

  • Wholesaler · Lakewood, CO · Member since 2017 · 20 posts · 7 votes
    8y

    Thanks everyone for your thoughts.  I appreciate it!

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