Can I only have 1 realtor looking for deals?

Question

I read in a couple of real estate investment books that i should have a few REA’s looking out for deals. A REA friend of mine says this is unethical and I cannot reach out to any other agency besides him. What are your thoughts?

Dutch Langley · Answer

@Jackie Grubbs  I guess I will be the one to disagree.  When I decided to get into the flipping business just a few months ago I told a couple of realtors what I was looking for.  One has showed us several properties so far...no bites yet, but they are heavily scouting a few areas.  Another one came through with one...I close on that Tuesday.  Another I got through a wholesaler.  I plan on buying one a month.  For me, whoever brings me a deal makes the money.  I don't like putting all my eggs in one basket.  I also realize that several people might be looking for me, but some get busy, vacation, etc....so I don't get upset if all their focus isn't on me.  Plus different people look at properties differently and someone might pull up a gem that someone else just didn't "see."

Russell Brazil · Answer

The quality of agents who will work with a buyer who is working with multiple agents will be incredibly low. Why would a high quality agent waste time on someone, then have that someone close a deal with someone else?

Kelly DeWinter · Answer

Real Estate agents make their income by successfully  closing on properties with their clients either a Buyer or Seller in the shortest amount of time possible. A bonus is to have a Buyer who closes on Multiple properties in a year. The Triple Crown Buyer for a Realtor is  is a Buyer who buys fast, multiple times and refers them to other Buyers and Sellers. If YOU are that kind of a Buyer and cultivate a relationship with 1 Agent who is treats that kind of a Buyer like GOLD, you only NEED one agent.

Most agents will NOT work diligently for someone who works with multiple Realtors, it's just not worth their time or effort. In real estate loyalty begets loyalty.

Your best bet is to try out an Agent for 2-3 months, If its working out sign an agreement with them, if it's not move on to another agent.

Kris L. · Answer

It might not be illegal, but I really doubt multiple REAs will be willing to work with you like that if they are covering the same territory.

Jackie Grubbs · Answer

I have joined the REIA in my area and am getting mentoring support from some experienced mentors who have said things similar to you. I live in a midsize area but am close to a major city in another state where the REIA group meets. I am starting to look for property there and our friend isn’t licensed in that state which will help me out of the personal dilemma. I posted the original post maybe 2 or 3 weeks ago before joining the REIA. Everyone’s responses made me feel like a very disloyal person. I decided to elaborate on the situation more to explain my predicament. Thank you all for the helpful replies!

Jackie Grubbs · Answer

Thank you for your response. I want to be ethical and care about people. I do not want to be a back stabber to my realtor friend. I just don’t want to have my hands tied behind my back where I am missing out on finding deals.

Gail Dudlicek · Answer

@Jackie Grubbs

I totally agree with @Patricia Steiner.  Your friend is doing you no favors.

And this won’t work unless you and your husband are on the same page in regards to what you want to accomplish.

Patricia Steiner · Answer

@Jackie Grubbs

Jackie, I'm sorry you're in that situation.  Let's get you out of it.  Here's my input which you requested:

You're running a business.  You need and deserve resources/professionals who add bench strength and carry their part of the load.  (That's a period at the end of that sentence).

It's not about giving friends the chance to earn money or "feed" them business.  They need to EARN your business.  Your realtor isn't doing that.  If it's not working for you, he/she should not be working for you.

Here's what I recommend:

I would quietly look for realtors who work with investors; you can find them by looking at recent sales of investment properties and see who listed and sold those.  Then interview them; find out what resources they use to locate properties.  Find out how often they will send you properties to consider and how they will communicate with you.  Choose the one who not only tells you everything you want to hear but also who will tell you the truth (if a property is located in a not so great market, will he/she tell you not to buy it?).

When you find that professional, I recommend telling your friend that you look forward continuing a personal relationship and you will recommend him/her to anyone/everyone  looking to purchase a residential property/home BUT that you are exploring other resources for investment properties.  (And, then you can stop talking - you've been intellectually honest and you're doing what is right for your business).  Your hubby can refer all his buddies to that "friend realtor" while you move forward in running your business in the direction you want to go.

Again, this is business.  If you don't run your business, it will end up running you and your hubby in the ground.  You've got this, Jackie...

Jackie Grubbs · Answer

@Gail Dudlicek

I replied to Russell Brazil but would like your input also if you can look at the reply that I sent to him. Thanks!

Jackie Grubbs · Answer

@Gail

Can I only have 1 realtor looking for deals?

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