What makes an investor savvy realtor?

Question

Hello everyone,

I am an aspiring real estate investor specifically looking to rehab/flip or rent. Since I am new to real estate, I acquired my Florida Real Estate Salespersons License in order to earn while I learn.

I have seen many posts suggesting finding an “investor savvy realtor” and stating that there is a difference between realtors who service the general public and those who service investors. So, I ask, what is the difference? Specifically, what are investors looking for in choosing a real estate agent? I would like market towards investors so all input is greatly appreciated.

Thank you,

Kim Phillips

Cynthia DeLuca · Answer

I agree with @Steve Hall I am a 20 year plus investor and Realtor. I would never hire a Realtor who hasn’t done what they are trying to sell me. It’s like buying a car from a salesperson without a drivers license. If they haven’t done this for themselves, they really don’t understand the process. I feel the same way about property managers. I would much prefer to use a property manager that owns their own rental. They are more cautious about spending your money on repairs and tend to shop more for good deals. Maintenance costs can kill your investment.

Good luck on your journey, your investments and your career.

Matt Lefebvre · Answer

@Kim Phillips I'm an investor-friendly Realtor that has never owned a property in my life.  You do NOT have to own properties or do deals yourself to be able to work with other investors.

Investors look for:

• market knowledge (Know your market better than anyone else!  Be an expert!  You can substitute experience for market knowledge by spouting off a bunch of accurate data about absorption rates, comparable sales in a neighborhood, finish levels of renovations, etc.  People respect knowledge.)
• experience (If you have a history of completing deals successfully, either for your clients or yourself, experience is very helpful to share.  Client testimonials are the BEST way to show your skills)
• shooting them straight (Don't tell people a deal is going to work if it won't.  Investors hate being sold to but love buying things that make them money.  I tell my clients 70% of the time a property is a bad deal, 20% of the time its okay, and 10% of the time they should pull the trigger)
• and the ability to bring deals to the table (Opportunities that no one else knows about are the lifeblood of a deal-making investor!  If you can give them a heads-up about properties you're listing or point them in the direction of off-market deals, you're going to stay in that investor's book!)

I'm young enough to look like I'm in high school (just look at my profile picture!), have never owned a house... let alone an investment property, but have sold over 250 units in the last 12 months.  "I'll only work with someone who invests" is just an objection that people throw at you that can easily be overcome by any or all of the items above.  Best of luck being an "investor savvy Realtor"!  It can be a lot of work but is very rewarding!

Kim Phillips · Answer

@Jack Bobeck

Thank you so much, Jack. This was truly helpful. It was wonderful to get another perspective of working with investors. Your input is noted and will be utilized going forward.

Much appreciated,

Kim Phillips

Kim Phillips · Answer

@Cynthia DeLuca

Thank you so much, Cynthia. I never thought about it the way you put it. It does make sense that investors will want an realtor that invests themselves.

@John Thedford

I understand ROI, cap rates, NOI and how to calculate & what they mean. But no, I have not yet put this knowledge into actual practice nor done any deals myself. I will brush up on these calculations so I can do them upside down, sideways, and any which way.  Thank you so much for your input, John.

@Joe Norman

Your points make sense, are duly noted and greatly appreciated, Joe.

Steve Hall · Answer

@Kim Phillips Investor savvy real estate agents own rental properties or flip homes themselves...

Jack Bobeck · Answer

@Kim Phillips As an investor and husband to a fabulous investor realtor, an "investor savvy realtor" needs to know when to fire an investor client. There are too many bad investors who waste the time of a Realtor by asking him or her to submit low-ball offers in the hopes that the "Spray & Pray" method of buying will work. They do this because they bought a "course" or worse went to a "REIA" and got taken for $10,000 and a "boot camp".

Just as all have stated above about the Realtor being savvy about real estate, the Realtor needs to be savvy about their client: 1) How many Realtors have they worked with, 2) over what time frame, 3) how many homes they have purchased, 4) are they patient or do they incist on making 10-20 offers at a time. Ask more questions about them, get to know your client before investing your time into them.

We all have the same amount of time in a day. So if people cannot respect the time and it takes a lot to submit offers, make sure the i's are dotted and t's crossed, so its OK to tell people that you are "Not the right Realtor" for them, fire customers that are giant time-wasters. You live and learn and you move on down the road. Some of these "investors" should go get their licenses and hang it with a broker and then submit all the offers on their own. Let them waste their own time. Find people that value your time and treat you with the respect you deserve as a Professional. Your license hangs at the State of Florida and you have an oath, its a big deal, its a business and run it like one.

Good luck - Jack

Kim Phillips · Answer

@Frank Wong

These are great points. Thank you so much, Frank.

@Matt Lefebvre

Your input is greatly appreciated, Matt. It is great to know that it can be done, from someone actually doing it. Your information will go a long way in helping me to overcome objection. Thank you!!!!!

Frank Wong · Answer

Hi Kim,

Pretty much what everyone else has echoes.  Cant show someone and teach someone if you haven't done it yourself.

1. A good realtor helps a new investor client with deals and educate them on it.

2. A great realtor will help their clients find the deals, analyze, do the ARV for them, give them an estimate and educate them.

3. The top realtor will do all the above and understand their client's skill level and financial situation and break down deals that best fit their client's needs.  Sometimes you have to save the client from themselves.  They may not agree with you but they will always thank you later when they realize you saved them.

And with all of them, add value value value.

Joe Norman · Answer

I would look for a few things:

• Experience - I want to work with realtors who have done deals themselves.
• Integrity - I do NOT want to work with a realtor who I am going to have to compete with for deals.  If I send them a lead that I am working on, or ask for comp help, I expect that they will treat the lead as mine and mine alone.
• Deals - I want a realtor who can provide me deals!  Not just setting up an MLS search for REO properties, but finding individual listings that are undervalued and sending them to me with an ARV estimate (bonus points if they include comps to support the ARV).
• Turn Around Time - I want to work with a Realtor who can get offers written and back to me to sign ASAP.  This probably means s/he will have a team of administrative support.

John Thedford · Answer

An investor savvy realtor also knows the market, and how to spot trends and deals. They understand investing, ROI, cap rates, NOI, etc and how to calculate these and what they mean to an investor.

What makes an investor savvy realtor?

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