What Should An "Investor Friendly" Real Estate Agent Do? Thanks

13 Replies | Chicago, Illinois

Want to first say thanks for all the support provided by this wonderful in getting through this first deal.

I just want to know what should actually be expected from an agent that claims to be investor friendly or while looking to to work with investor friendly agents.  

@Calvin Lipscomb I think the main thing you want out of an investor friendly agent is the ability to run numbers wit you and give you honest feedback on what is a good deal and what is not. I deal primarily with investors in the near southwest suburbs of Chicago, and I like to build relationships with my clients to the point where I can tell them to walk away from a bad deal. It is all about the long term relationship in this business. 

This is still the biggest mystery in the REI universe, at least to me. Honestly I think 'investor-friendly' means nothing more than low-cost & affordable, at least for 90% of the investor population.

Maybe there is a bit more to it.  

I found one, purely by accident, that added serious value by paying for services that she knew I would need, like unlimited professional photography and staging. The staging part especially, because I would have almost certainly blown that off -- she just did it. And we sold the place $15K over the original ARV so it worked. Never even had an open house -- we had multiple offers before the weekend even rolled around.

She offered to cut her commission to 2.5% instead of 3% but I told her she really didn't need to do that.  She did it anyway.  So I am promoting her all over town, so make sure she gets her discount back in spades.

On the buy side, man, that's tough. You can find one that will set up a couple of automated searches for you in the local MLS and keep an eye open, but those are so rare that they eventually just forget about you. And you have be pretty specific as to what you are looking for.

Don't expect them to run comps, find another way to do that on your own, they just don't have time.

Originally posted by @Mark Sewell :

This is still the biggest mystery in the REI universe, at least to me. Honestly I think 'investor-friendly' means nothing more than low-cost & affordable, at least for 90% of the investor population.

Maybe there is a bit more to it.  

I found one, purely by accident, that added serious value by paying for services that she knew I would need, like unlimited professional photography and staging. The staging part especially, because I would have almost certainly blown that off -- she just did it. And we sold the place $15K over the original ARV so it worked. Never even had an open house -- we had multiple offers before the weekend even rolled around.

She offered to cut her commission to 2.5% instead of 3% but I told her she really didn't need to do that.  She did it anyway.  So I am promoting her all over town, so make sure she gets her discount back in spades.

On the buy side, man, that's tough. You can find one that will set up a couple of automated searches for you in the local MLS and keep an eye open, but those are so rare that they eventually just forget about you. And you have be pretty specific as to what you are looking for.

Don't expect them to run comps, find another way to do that on your own, they just don't have time.

 Is she on BP? if not, can you share her contact info?

Thanks 

Originally posted by @John Warren :

@Calvin Lipscomb I think the main thing you want out of an investor friendly agent is the ability to run numbers wit you and give you honest feedback on what is a good deal and what is not. I deal primarily with investors in the near southwest suburbs of Chicago, and I like to build relationships with my clients to the point where I can tell them to walk away from a bad deal. It is all about the long term relationship in this business. 

"build relationships with my clients to the point where I can tell them to walk away from a bad deal." That reveals the true nature of the relationship between you and your clients. Too many service providers do not think about the long term benefits of placing the relationship first over the business transactions that is on the table. I do believe some analysis of why a particular is being presented to me for consideration is important. Everyone's time is valuable and the person providing the service just "looking up" properties in the MLS is not going to cut it for some investors. Also the ability to find off market deals for greater opportunities should happen from time to time if the agent is working with investor buyers.

Originally posted by @Mark Sewell :

This is still the biggest mystery in the REI universe, at least to me. Honestly I think 'investor-friendly' means nothing more than low-cost & affordable, at least for 90% of the investor population.

Maybe there is a bit more to it.  

I found one, purely by accident, that added serious value by paying for services that she knew I would need, like unlimited professional photography and staging. The staging part especially, because I would have almost certainly blown that off -- she just did it. And we sold the place $15K over the original ARV so it worked. Never even had an open house -- we had multiple offers before the weekend even rolled around.

She offered to cut her commission to 2.5% instead of 3% but I told her she really didn't need to do that.  She did it anyway.  So I am promoting her all over town, so make sure she gets her discount back in spades.

On the buy side, man, that's tough. You can find one that will set up a couple of automated searches for you in the local MLS and keep an eye open, but those are so rare that they eventually just forget about you. And you have be pretty specific as to what you are looking for.

Don't expect them to run comps, find another way to do that on your own, they just don't have time.

"they just don't have time." to run comps then I will say they have enough business and really do not need mine.  How can not the run comps when presenting a property for consideration?  An agent that knows their main geographic area would have the comps rolling in their head anyway.  They would be aware of what sold in the area and for how much.  I must say, you say you are promoting her but, I do not see any information about the agent.

I see it a bit differently. In my business model, it takes more time to analyze deals than to run comps. I’ll do that all day long for someone, but I ask investors to do their own due diligence. Each investor has their own individual strategy/strategies and numbers they need to hit. Learning each person’s strategy and comfort level intricately, then hunting and analyzing deals that hit that sweet spot is more time-consuming than checking comps. I often wonder why investors complain so much about agents, but I think it could be because they don’t (or can’t) explain the numbers they need to hit, but then agents are expected to deliver the perfect deal on a silver platter at a discount. In my experience so far, investors call me asking about a specific deal, then disappear after I give them the details they want. I can’t be helpful on the buy side if someone isn’t able to communicate to me exactly what they need in a deal, and I’m no longer willing to find and analyze without building a relationship first and knowing the investor is funded and ready to pull the trigger. I do realize that most ‘investors’ who contact me cold are either just out of a get rich seminar or have HGTV on all day, so I get it. And i wish I had time to hold their hand, but i just don’t.
On the sell side, a savvy agent can an investor’s best friend. Professional photos, drone shots, video-and not just a slide show of the still shots, marketing across thousands of websites and platforms, negotiating to meet and hopefully surpass the needed numbers... the list goes on.

Originally posted by @Sharon Powell :

I see it a bit differently. In my business model, it takes more time to analyze deals than to run comps. I’ll do that all day long for someone, but I ask investors to do their own due diligence. Each investor has their own individual strategy/strategies and numbers they need to hit. Learning each person’s strategy and comfort level intricately, then hunting and analyzing deals that hit that sweet spot is more time-consuming than checking comps. I often wonder why investors complain so much about agents, but I think it could be because they don’t (or can’t) explain the numbers they need to hit, but then agents are expected to deliver the perfect deal on a silver platter at a discount. In my experience so far, investors call me asking about a specific deal, then disappear after I give them the details they want. I can’t be helpful on the buy side if someone isn’t able to communicate to me exactly what they need in a deal, and I’m no longer willing to find and analyze without building a relationship first and knowing the investor is funded and ready to pull the trigger. I do realize that most ‘investors’ who contact me cold are either just out of a get rich seminar or have HGTV on all day, so I get it. And i wish I had time to hold their hand, but i just don’t.
On the sell side, a savvy agent can an investor’s best friend. Professional photos, drone shots, video-and not just a slide show of the still shots, marketing across thousands of websites and platforms, negotiating to meet and hopefully surpass the needed numbers... the list goes on.

Well stated!!  And I fully understand that as a person in the financial service industry.  People want all of this heavy analysis, which there are a number of service providers who charge for that, then if there is a not a deal you would receive zero compensation.  Many "investors" who reach out to you really want you to do the due diligence and analysis for them.  Which is not what you are there for.  I was thinking more of the lines of a general ballpark idea of how a property would fit with their investment strategy and how the numbers could work out.   Example; buying a property for $200k and investing $200k with the highest sold property was $300k An active agent does not want waste their time with an "investor" who is really just a window shopper.

"they just don't have time." to run comps then I will say they have enough business and really do not need mine.  How can not the run comps when presenting a property for consideration?  An agent that knows their main geographic area would have the comps rolling in their head anyway.  They would be aware of what sold in the area and for how much.  I must say, you say you are promoting her but, I do not see any information about the agent.

Hey I could be wrong, Calvin, I am here learning just like everybody else, but that is just my very limited experience.  They work for commission and so it is easy to understand that is where their sense of urgency will be -- getting their deals done.  

A few people have asked me to share her (the realtors) contacts, by message, and so I have.  

Originally posted by @Mark Sewell :

"they just don't have time." to run comps then I will say they have enough business and really do not need mine.  How can not the run comps when presenting a property for consideration?  An agent that knows their main geographic area would have the comps rolling in their head anyway.  They would be aware of what sold in the area and for how much.  I must say, you say you are promoting her but, I do not see any information about the agent.

Hey I could be wrong, Calvin, I am here learning just like everybody else, but that is just my very limited experience.  They work for commission and so it is easy to understand that is where their sense of urgency will be -- getting their deals done.  

A few people have asked me to share her (the realtors) contacts, by message, and so I have.  

 We are all sharing and learning on this site.  This is why I enjoy this place a great deal.  Next, your agent is located in Houston, Texas?  I heard there some opportunity out there from a resident.  

@Mark Sewell

I am having an issue with that comprehension; The agent is getting paid as soon as I, a buyer, close on a home. So why wouldn’t they go the extra mile to run comps or analyze properties, based on the criteria I provide about what I need in an investment property? It doesn’t need to be in depth analysis, and I can double check the figures, but they should at least bring me prospective deals, not just set me up with email alerts from mls, right?

@Patrick LaGanke theoretically yes. But they don’t. And here is why:

You need to really make a ton of offers and turn over a lot of rocks, in this market especially, to find anything that might turn into a deal. The realtor knows this. And they also know that 95% of us just give up and quit eventually.

Now what they will do is include you in pocket listings. It won’t be right away. But sure, if they see you doing deals, or in my case, just not giving up, then they will send some your way. And this lady has done that.