Newbie: Trying to avoid wasting a realtor's time

13 Replies

I like the mind set that I am the 1st person on my team. I feel that the next person I want on my team should be a real estate broker/agent. (if you suggest I start with someone else please let me know)

When I walk into a real estate office empty handed am I going to be able to walk away with a new team member or is that real estate agent going to expect something of me? 

What does a real estate agent look for in a new investor? 

@Michael Manger We look for people who can close deals.  So, the next person you should talk to is the lender unless you are paying cash.  Once you are well-qualified, you'll find agents are more willing to spend their time with you.

We also look for people who are willing to make reasonable offers on homes.  Low balling in certain markets is a total waste of time for the agent.  

@Michael Manger Hi Michael, 

And yes, you should be very proactive in attaining a pre qualification for a loan. If you are serious about buying wouldn't you want to know what you can afford to buy before you speak to an agent. 

Of course a good agent can help you find your way to a bank or a lender, but you have to show initiative or be motivated to make those calls or gather the paper work necessary, to get pre approved.  

If you are looking to invest in Central Florida I would be more than happy to show some guidance. 

Best regards, 

Dan. 

@Michael Manger   Cash talks the rest are tire kickers and time wasters..

NOOB agents will fall for this in the beginning but then soon figure it out.. experienced agents like Dawn above will expect you to be ready willing and ABLE to buy. Waste of time for an agent to anything more than put you on their Top Producer daily e mails .

Which if you don't know what top producer e mails are you should start there .. most agents will do this for you over the phone.. it will give you an e mail each morning of new listings that meet your criterion.  

And of course there are probably new types of programs but this will give you a feel with out abusing an agent and let you check things out on your own.

Best deals are bought with CASH,,, next best with quick loans  Next best with traditional snail financing.

We aren't super new to investing, we have cash and yet I STILL feel bad that an agent is wasting their time. But not every showing is going to be a home run. I try to do as much of my homework as I can before asking to see a place, ask for realtors comps to compare with my own, and make a reasonable (yet sometimes it is considerably less) offer.

If you are not a cash buyer though that would for sure be my first step. Talk to the realtor about what you are looking for (and be reasonable), show how you are qualified to buy the property and go from there. I've found we've had to go through a lot of realtors though to find what we were looking for.

Just imagine you are looking to buy a car You know certain things beforehand.

I want a

1) Four door

2) If can put down x amount

3) I can afford x amount month

4) I talked to my bank and am approved for this amount etc etc,

Meeting a real estate agent without at least doing some research on what you want and how you are going to pay for it would never leave you a feeling of wasting an agents time. If you have no plan or clue of what you need ,want and what you can buy would be a waste of time for most agents expect as @Jay Hinrichs noted the "Noobs"

Michael, BP is a great place to learn a ton of information. 

Your real estate agent / Realtor® should be too. 

Yes, you can do a lot of your own research and preparation, and you should, as much as possible. However, the right agent will also take the time to help you grow. Likewise, you should be willing to help them grow too.

My first meeting as a licensed agent was with an investor. He was looking for flips, had some money and a little experience. The deal we were initially discussing wouldn't net me a commission that would pay for my coffee. He had never heard of 1031 exchange or contract assignment. In the time it took me to drink my coffee, he had learned the basics of wholesaling and how to use 1031 to his advantage.

Why did I do that? Because I know he'll call me if he needs anything.  I can call him if I happen across a deal that meets his criteria.  He will also call me if he finds a deal that doesn't, but that I could list. We both win, our customers win.

I'd keep looking until you find an agent who works with beginning / intermediate investors. It may take quite a while, but it's worth it for both of you.

Originally posted by @Dawn Brenengen :

@Michael Manger We look for people who can close deals.  So, the next person you should talk to is the lender unless you are paying cash.  Once you are well-qualified, you'll find agents are more willing to spend their time with you.

We also look for people who are willing to make reasonable offers on homes.  Low balling in certain markets is a total waste of time for the agent.  

 Right on Sister!!!!

As Dawn said, line up your money first. I won't spend a second in MLS, much less show you a house until I know you can pay for it.

Dawn is right again... Low balling is dead folks - sorry. The last few REO properties I sold went for OVER list price. The key is to make intelligent offers based on what is happening in THAT neighborhood's market THAT day.

And thanks for be professional and considerate enough to ask the question. It shows you are a team player and I think you have the right attitude to go far.

One of the quotes that I try to live by:

"I don't pay my attorneys to tell me what I can or can't do. 

I pay them to tell me how to do what it is that  I want to do."

Find that kind of agent in your area.

In a normal conventional residential sale, yes, I normally recommend hitting the bank first. 

With investors, you might not know about hard money lenders (for example), but (locally) I know about it, can help guide you, advise you if it is an option worth considering, and can connect you with some hard money lenders if appropriate. 

You need someone who can help you find the best solutions to your problems. That's not a waste of my time.

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