I have researched plenty of different ways to find deals and one that has been recommended from talking to a few investors is to find investor friendly real estate brokers to send some of there off market or discounted deals they may have in there back pocket. Obviously brokers or agents know peoples situation as of why they are selling in the first place so it's easy to find motivated sellers that way. Does someone recommend anyone in the indiana area or have suggestions on how to go about finding those relationships? I am looking to purchase my first property later this year or beginning of next year preferably in the areas between greenwood and 37 all the way down to bloomington possibly including the camby or mooresville area. A duplex would be preferred to house hack but also a great sfh deal. Any advice would be great. Thank you.
Relationships with agents? You are looking for an agent to refer off market properties?
Just my opinion as a broker investor for many years. Most agents are living from one settlement to another, loyalty is mostly to their commission split and to their already long established clients customers and to their spouse looking for a pay-check!
I think what you want is some inside off market deals with a ton of equity, agents with the ability to ascertain equity and owner motivation have a long list of folks who'll make offers to hijack a profit. Or, just grab it for themselves.
You don't "find" relationships, you need to build them! That takes time.
Lets start with you! What do you bring to the relationship as an investor? You have cash? A credit line? what is your criteria to make an offer? Any of these; must have a ton of equity, seller needs to financing, got to be purchased below market value, must be approved by lenders appraisers or other gate keepers... your wife, your partner, your cpa or mother? How have you figured your profit potential (long term, immediate cash, assignment or JV, or hold and collect rent?
Agents don't want to nurse or education anyone, they are too busy trying to get listings and sell what they have. - THEY ARE all about how much commission is in the deal, what's the split and how fast can we get to settlement!
Your best agent is the one who represents you on a fiduciary basis, that is a BUYERS AGENT. You need an agreement with the Buyers Agent, pay a commission on unlisted properties, you should treat them with respect and be clear on what you want and where you went it, share with the agent the amount of cash you have on hand or can get with in 24 hours, and before you look at a property, look at the numbers first; what's the liens, condition, how long on the market, comparable sales potential equity in the deal. Don't use your agent like a new toy, be ready to make serious offers.
One of the best ways to become market savvy is to look st 50 houses before making even one offer, keep a journal, price per SF, note comments from sellers and agents, copies of listings and all supporting information, do this and you will know the market as well or better than agents..... do this and the only relationship you'll need is with yourself and the market.
Cheers, just my opinion --- Charles
I am jaded and if I state my opinion then I would get hammered by the brokers and agents here. I am jaded as a buyer and a seller. You can do everything you need to do as far as buying and selling without them. You can make more money and go through the process far faster without them. They pitch they can net you more on a sale but that is a total farce. I can go on with more details but I already know I am going to get slammed for that small comment. Be creative and do it on your own.
I appreciate the reply guys. Maybe I'm misunderstood. I am looking into how to find those great deals and brokers have been suggested if I CAN establish a relationship. People go to them in dire situations sometimes and they can have off market deals in there back pocket. I understand agents and splits and how i can buy and sell myself I was just seeing if anyone else agreed that it can be a valuable tool to find SOME deals and it was another tool to scoop up unpriced properties.
A dual agent ultimately represents the seller, so buying from a broker's "back-pocket" leaves you unrepresented. You want representation that is motivated to get your the best deal for the least amount of money, not unload one of their properties. "Off-market" does not mean "good deal".
@Account Closed in Indy/Greenwood/Bloomington it's all the same: this is a steady market and very desirable. As echoed in this thread and before: if you want a better deal than Joe Schmoe, relationships take time. There aren't brokers out there sitting around with a pocket full of deals.
What do you bring to the table? Call brokers, tell them what helps them, and they can market for you. Also you can market for yourself by driving for dollars.
there isn't really a list of "investor friendly" brokers, as most will do any kind of real estate.
Finding good deals off market through brokers is terrific, but it's only one tool in the toolbelt. Market for your own deals through direct mail, networking, partnering, meeting contractors and other real-estate-based servicers, etc etc etc....