Tips for an agent working with investors

5 Replies

Hello,

Does anyone have tips for real estate agents working with house flippers/other investors? What makes for a good experience in relation to buying and selling homes? What can an agent do to make your life easier? TIA

@James Roche , know the difference between a deal and a property for sale.  A deal has profit available either through the flip or as a rental.  A property for sale is just that, and in no way implies I can make money off it.  

More detailed list: know my investment criteria and send me opportunities in that area with any other thresholds. Know ballpark how much renovation is going to cost. Know ARV. Know rental rates for the market. Know whether a property you bring me can get by with a basic renovation or a needs a full rehab.

Every investor will look at a project with their own eyes, but if you can continue to prove your budgets align with investors, your ARVs are accurate, and most importantly, you can dig up properties that are unlisted, soon to be listed, have a motivated seller, know the seller's motivations, etc and can share that, you could quickly build your way to the top of my list.

Originally posted by @Evan Polaski :

@James Roche , know the difference between a deal and a property for sale.  A deal has profit available either through the flip or as a rental.  A property for sale is just that, and in no way implies I can make money off it.  

More detailed list: know my investment criteria and send me opportunities in that area with any other thresholds. Know ballpark how much renovation is going to cost. Know ARV. Know rental rates for the market. Know whether a property you bring me can get by with a basic renovation or a needs a full rehab.

Every investor will look at a project with their own eyes, but if you can continue to prove your budgets align with investors, your ARVs are accurate, and most importantly, you can dig up properties that are unlisted, soon to be listed, have a motivated seller, know the seller's motivations, etc and can share that, you could quickly build your way to the top of my list.

+1 to everything Evan said here. To be a good investor's agent, you really need to understand your client's criteria. That usually takes some time working with them, sitting down with them to get a feel for their investing strategy. I'm an agent, but I also have an agent - we've worked together for 6+ years and he knows what kind of properties will strike my interest and which ones I won't bother with. But he also knows that when we get a property under contract it closes. As an agent, be wary of working with flaky people - ones that won't close, don't know what they want, don't have financing, etc. You should be as picky who you work with as an investor should be selecting you as an agent.

You have to be an asset to them and most agents are not, which is why they have gone through so many agents. It's because most agents are working a job so they think one deal at a time or one commission at a time. Investors like to work with agents who run a business and treat finding deals like a business. Understanding the criteria and going to work to find it instead of just searching the MLS like Bob and Sally at 123-Realtors. If you don't have investment experience, it's very hard to help an investor, but you can find ways to assist and learn to get there.

Good answers above. Knowing criteria and finding real deals are at the top of the list. The agent should have a long term goal with the investor knowing he/she will be getting multiple commissions from one client per year and the opportunity to rep on the acquisition and disposition for the flip investor. Agents who can find deals off market will be much more valuable to the investor.