I'm new to investing-How do I find an investor friendly agent?
I'm new to investing-How do I find an investor friendly agent?
This is a question I see continually. The term "investor friendly." drives me nuts. Matter of fact I wrote an article for the BP blog about it.
Despite my frustration with the term investor friendly, I can see that it is not going away. It's also important that new investors can identify an agent that will be able to lead them to the best possible outcome in all transactions.
So here is my answer to the question "I'm new to investing, how do I find an investor friendly real estate agent."
1. The investor friendly real estate agent understands investing and is a perpetual student of it.
You have no idea how many agents I have come across that have no idea that a property can be bought and sold off the MLS. I have talked with agents that do not believe a property can be purchased at a significant discount. The list of crazy things I have seen and heard goes on, and on, and on!
If you do not know how to sift through the pile of real estate agents in your area, you will probably sign a contract with one of these agents I describe above.
Find a real estate agent who is regularly active in the online, and local investment communities. Ask them how many real estate and business books they have read in the last 12 months. Deep knowledge comes from constant education and being immersed in real estate. As a new investor, this knowledge will rub off on you just by being around this type of agent.
2. An investor friendly agent understands the precise product you desire and has a comprehensive network of local investors he can call on to find it.
Your investing goals are important. So no matter what you are looking for in a deal, your investor friendly agent should have many local investors he/she can call to find it.
I see so many new investors talking about how the agent representing them will not write low ball offers to multiple properties, and they ask "should I find a new agent."
Yes! You should find an agent who knows where to find what you want. If you want a depressed property at a discount they should have people to call, they shouldn't run to the MLS to show you pristine retail properties. Of course, it's a waste of time to write offers that will not get accepted. They are showing the wrong product, and blame the new investor most of the time!
That's the equivalent of going to Wal-mart looking for second-hand clothes, and complaining that Wal-mart will not take $2.00 for the pants they have on the rack.
Understand the product you want- Go to goodwill! (I am laughing as I type this)
3. The investor friendly agent knows it's important to be patient with you.
An investor friendly agent will not want to rush you through the process. A new investors first few deals will set the tone for what their future in investing will look like. It takes time.
Some real estate agents talk about how they hate working with new investors, but I believe in building relationships for life.
The only reason I see that an agent would not want to work with new investors is they are looking for a quick check, and that is the wrong way to operate in my opinion.
Helping someone else reach their goals builds mutually beneficial relationships for life. It may take a little longer to help develop a new investor, but with patience, two people will succeed in the long term, instead of just one getting a check.
With that, I will wrap this up. If you have any further questions, do not hesitate to reach out and connect with me.
Comments (31)
One point you may have missed: an investor friendly agent will forward a lead to you only if they don’t want it themselves 😉🤗
Tushar P., over 4 years ago
Hey Brandon, great post. How would you go about managing expectations with an agent about making offers? I don't want to feel pressured into making offers that I don't think are appropriate for me, just to keep the offers flowing.
Andrew Dixon, over 5 years ago
You should never feel pressured into putting an offer. I think you should be excited and feel positive about your purchase. I’ve placed many offers for my investors and have bought a few and lost a few. Your agent should be patient like you, know yours numbers and send you every property listed in your area the day they become available (auto send emails). By me doing so, my investors have been happy with our purchases in Fairfield and New Haven County CT. My number one saying to my clients, “I don’t work for the check, I work for the long term relationships”. “I work hard for my tenants checks.”
Hyacinth Dolor, over 5 years ago
From experience, though there will be struggles in finding one, it is still possible to find a friendly agent, or just one who is easy to work with. All you need to do is make sure proper expectations. Make him/her understand what you're looking for by giving him/her a list. Try to compromise and meet in the middle and most importantly, honor the contract.
Erika Lim, over 5 years ago
This was exactly what I needed to hear! I have been on this site for a few years and now I have started looking for real estate around winchester, VA and have felt like my agent has been little help. Mainly just someone to book a time for me to see a listing i see on zillow or trulia and hand over to them. If you are familiar with any agents near front royal, winchester and stephens city, Please send them my way!
Dylan O'Connell, over 5 years ago
Thanks so much. I will shop around with this in mind. Lol, before I go to Goodwill I will just stop at BP to see what some of the experts have to say. Great insight.
Tiffany Milan, over 5 years ago
Great Blog! I also think as an investor you shouldn't rely on the agent to do a lot of the work. If you are not licensed then you should rely on them to help you with the steps you aren't allowed to perform. It then becomes mutually beneficial for both instead of sending the agent on a wild goose chase and wasting each others time.
Seth Hobbs, over 5 years ago
Another great post. This is something I will consider as I continue to educate myself on what we are looking for in an agent. It is a partnership and hopefully one that will last through many deals. Thank you.
Franklin Curry Jr, over 5 years ago
Wish I would have read this before I posted my first time! I don't believe my first meeting with an agent was successful, other than getting automatic emails meeting my criteria. :) Thanks for the article!
Cheyne R Sexsmith, over 5 years ago
I’m a newbie that posted a question about realtors and contracts, I should have read this blog and I would’ve posted that question lol. Thank you for the information.
Lakeisha Baker, over 5 years ago
Great read - I wish there was a easy path to this but dealing with so many agents it's proven difficult to weed them out.
James S., over 5 years ago
Challenge your agent on a property that you know is a horrible deal and see if agent pushes you to go for it. If they do, just drop them. They are all free and you bring the money. Keep in mind not that the agent with the most recent deals may not be your best agent friendly agent because they are too busy closing retail deals. Look for the detailed agent who knows one thing more than you on your goal.
Hyacinth Dolor, over 5 years ago
Great advice, Brandon. I really appreciate that guidance on the subject. After reading your linked blog, it really brings up a great point on being the investor an agent wants as well, put out what you want to receive. What are key questions or items to inquire about when looking for a first agent? How would you recommend someone find their agent?
Reid Morihara, over 5 years ago
Should an agent provide some information on why a particular property might be worth pursuing. My view is in this day and age your really do not need agents just to find MLS properties. I believe a bit more knowledge has to be brought to the deal now saving the investor time.
Calvin Lipscomb, almost 6 years ago
Thanks for making the point Brandon. I love working with investors, because that's where my passion is and I have made good friends this way too. I am always excited to share my experience, consult and make sure they are succesul and able to buy many more deals. However, my first question always is: are you an Agent friendly Investor?
Marcus Auerbach, over 7 years ago
Hey, Marcus thanks so much for taking the time to leave a comment.
I am a real estate agent, and I am friendly with a lot of other real estate agents, so that would be a yes :) but seriously, I think you are referring to new investors who make life hard on some real estate agents who do not understand them, and to that, I say one word.
Education.
Most people reading this do not want to become the next Grant Cardone of real estate; they just want to buy a couple of buy&holds or a couple of rehab properties over a period to build wealth for their family, they do not have the time to learn what we know. We have to understand, they are not the professionals - We are.
Helping them focus in on exactly the product they need to get to the goal they desire, and then educating a new investor during the whole evaluation, and purchase process of a property so they feel confident on closing day will create very successful "Agent Friendly investors"
Hope you have a great day!
Brandon L., over 7 years ago
Great information Brandon. It looks like we found the perfect agent when we started to invest in SFR Rentals. Our agent wrote up and submitted many dozens of offers before we purchased our first Rental in the desert. Since then, we have purchased 4 more and the numbers proved out. We had to make many offers to finally get one accepted. Our agent was even able, on two occasions, to get a lower price after the professional home inspections.
Chris Latham, over 7 years ago
Thanks for sharing your experiences, Chris! I am glad things worked out for the best :)
Brandon L., over 7 years ago
Thank you for sending me the link to your articles.
I have had trouble finding agents that like to or want to work with investors. I have gotten many different responses from "you can't flip in this market" to "you have to put offers in at list price or higher". The funny thing about the last response was that I asked the agent before starting business with her if she understood I would be putting low ball offers in and that my offers are based on my estimated repairs. She said she understood now she is singing a different tone.
Ashley Cast, over 7 years ago
Ashley, I hope you are having a great day. If she is showing you the right product, it will not be a "Low ball" offer. The property will probably need some rehab, and the price will reflect that like you mentioned.
If you are looking to flip, the price will reflect the dilapidated condition and will allow you to make a fair profit. So the term "low ball offer" would be inaccurate because you're offering the fair market value of the property.
Sometimes the wrong terminology will confuse. Hope that helps :)
Thanks for giving me a great idea to write about.
Brandon L., over 7 years ago
Hmm...how about agents who are new to investing? Can I coin a phrase "Agent friendly Investor" - About me, I'm a relatively new agent, licensed since 2014. I'm affiliated with KW in Tacoma WA. I'm working with an investor out of Vegas - I manage her social media, and some deals in WA. For the most part I'm a newbie, very little experience, but I so want to work solely with investors. My lack of experience really hold me back. I would love to get some deals under my belt. Need help, Clarissa your patient agent :)
Clarissa Save, over 7 years ago
Brandon L., over 7 years ago
Saw your comments. It is now a year later. How is it going?
Calvin Lipscomb, almost 6 years ago
Awesome and timely article for me. Just got off the phone with an agent about 5 hours ago that told me there is no way to buy a property for less than 20k below asking (on the MLS) because of how hot today's market is. The property is in foreclosure and has been on the market for over 6 months. Now I need to find an agent to put in an offer for at least 50k below asking, because that's where the numbers make sense!
Julie Ferrier, over 7 years ago
Julie, this happens so much it blows my mind! Some referrals at you local REI meetings should get you in touch with someone that can help you out. If you can't find someone that way feel free to reach out I Know a few people out in your area. Have a great night :)
Brandon L., over 7 years ago
Hey guys, I don't particularly like the term "Investor Friendly" agent because it loops everyone together good or bad. I simply coined myself as - Your favorite "Investors Agent". I've been able to attract more business as well as build a name for myself with great references. I'm in the Baltimore city and surrounding counties as well as Washington, DC.
Renee Pilgrim, over 7 years ago
Hey Renee, I totally agree with you. I do not like that term either. Matter of fact, I wrote about how new investors should stop looking for an "investor friendly agent" for the BP Blog. You can read it here
There are only agents who understand investing, and those that do not, but I do not see the term going away anytime soon :)
Brandon L., over 7 years ago
Very well put. I am still struggling to find the "investor friendly agent".
Pauline Misiak, over 7 years ago
Thanks Pauline :) Good luck on your search, feel free to reach out if you need anything
Brandon L., over 7 years ago
It is year later. Did you ever find an agent to work with?
Calvin Lipscomb, almost 6 years ago
Calvin, I am not looking for one. I am sharing tips on how to find one. :)
Brandon L., over 5 years ago