The Importance of having Agent to Accomplish your Investment Goal
For purposes of transparency I want to disclose I am a licensed real estate agent.
When I was in my infancy of real estate investing and before I was a licensed real estate agent I had a deal fall apart that would have netted over $100,000 in a 4 month period. How do I know this? Because I watched someone else close on the property and sell it 4-months later. I was 21 years old. Let that sink in for a second... 21 years old, new to real estate investing (this would have been my third deal), had the property under contract and then boom! The deal unraveled and someone else purchased it...
I am the last person to pass the blame for lost opportunity, without question my lack of experience resulted in this outcome. However, Looking back with 6 years of experience, it is clear, the real estate agent who was representing me had no business on the deal. I am confident the outcome would have been different if the agent had the experience with investment projects and creativity necessary to get the transaction closed,
Not all real estate agents are created equal. Having the right agent working for you, can be the difference between making $100,000 or watching someone else acquire what you lost. Most real estate agents are likable and generally understand the market. However, only a small number can actually go to bat for you and ensure you come out ahead.
When interviewing agents to represent you, it is important to be upfront about the type of knowledge you need the agent to possess. For example, if you are looking to purchase a multi-unit long term investment property; you need an agent who understand the areas rental market, cap rates, expense multiples, residential rental leases and the list goes on. If an agent lacks experience in any of these areas, you need to find someone more qualified. At the same time you should never lead an agent on. Real estate investing is about building relationships. The key is to find someone who understands what you are looking to accomplish and possesses the skills to make those dreams a reality.
You wouldn't go to a podiatrist if you are having chest pains and you shouldn't use an unqualified agent when purchasing an investment property. Trust me, it can be very costly... I learned the hard way!