WHY YOU SHOULD WORK WITH AN INVESTOR AGENT FOR AN INVESTMENT PROPERTY

WHO IS AN INVESTOR-AGENT?

There is a general misconception when it comes to real estate agents and what their purpose is. One of the most common question that investors have is, why do I need a real estate investment agent? What does a real estate agent do for me? And wouldn’t I save money if I just cut the middleman and sell or buy the house myself? The answers lie in the purpose and efficiency you require from an investor real estate agent.

Like most agents, they’ll have access to “pocket listings“. Those properties are such a good deal, they never become publicly available because an agent can usually sell them to someone they know. But if your agent is used to working with investors, there’s a good chance they’ll know about properties with investment potential.

They don’t emphasize the great yard or play to emotions. Instead, they calculate the cost of repairs and potential rent.

Agents who sell on the current condition or use emotional appeal aren’t compatible with real estate investors. They’re focused on a different goal.

Pitfalls of Using a "Regular" Realtor

A non-specialized realtor may not know about investment properties. If they’ve never owned an investment property, they don’t know how the process works. You're asking someone to help you purchase something they’ve never purchased. They don’t have the knowledge you think they have.

You always want a realtor you trust. It’s not that you can’t use your friend or the person who’s sold you houses before. But understand that you’re asking advice from someone who isn’t an investor. So seek the advice of a property manager too.

Whenever I speak to new investors using another agent, I like to send them rental comps of the houses they’re considering. Then they have a starting place for running the numbers.

That’s the difference. Buying investment properties is a numbers game, not an “I could live here” game. Even the offer process is different. A regular real estate agent recommends an offer based on list price. They might say, “It’s listed at this price. I think they would accept an offer at this amount.”

But the goal is to find the number that makes sense for CAS-FLOW. So, when you make an offer, it’s about how much the mortgage and expenses will be compared to the rental rate.

If an agent doesn’t have that in mind, it’s frustrating for everyone. You’re frustrated because you’re crunching numbers on your own. They’re frustrated because they’re showing you tons of houses, but you’re not making offers because the numbers don’t add up.

Finding the Right Realtor for Your Investment Goals

As you’re looking for an investor-focused realtor, ask them some questions to make sure you find the right fit. Here’s what you want to know.

1. What’s their personal experience with investment properties? If none, have they helped investors? If None, then look for another agent.

2. How many investment properties have they sold?

3. What’s their process for calculating a good deal?

4. How will they know if they’ve found the right property for you?

I call this type of Agent and ON-FIRE Agent. They will make your like easier and same you from costly mistakes.

ON-FIRE Agent mean they are:

O - Organize (The Investor-Agent must be well-organized)

N - Network (The Investor-Agent must be well network with other Real Estate professionals like Lenders, Appraisers, Property Managers, Inspectors, Insurance Agent, Contractors, etc)

F - Focus (The Investor-Agent MUST Focus on YOU)

I - Investor/Investment-Savvy (MUST be INVESTMENT SAVVY)

R - Responsive (Must Be responsive and answer your call/text)

E - Experience (Must be an investor or have experience working with investors)

You can find one under Network ->Real Estate Agent here: https://www.biggerpockets.com/...

Once you know those answers, you’ll have a good idea of their approach. But do your homework beforehand. You need to know your numbers and stick to them.

I always start this process by asking the client, “What’s your goal?” We want to know what they’re trying to do. Some people just like the idea of owning a rental property. We work with them to make their goals more specific. Other people come with full spread sheets and say, “Don’t even show me a house unless it’s this number.” Then we find properties that fit their criteria.

The best investors know their exact numbers. In those cases, we can find something that hits the target and buy it.

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Goodluck.