Just starting looking into real estate investing.

Joliet, Illinois
Starting Out
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Just starting looking into real estate investing.

Aurelio Benavidez
Member since 2026 · 10 posts · 5 votes

I’m not even sure what question(s) I should start with.  Do I need a real estate agent or a broker when looking for my first property to purchase?  If not how does that work?

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Diana KhanPro Member
Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 555 posts · 195 votes
1mo

@Aurelio Benavidez, I remember how confusing all of these titles can sound when you are first starting.

You do not need to have everything figured out before you start looking. I would focus less on whether someone calls themselves an agent or broker and more on whether they actually understand investment property.

When I’m looking at real estate, I want someone who can talk through the rent, neighborhood, recent sales, repairs, and what the property may look like as an investment. That is very different from someone who mainly helps people buy a home to live in.

I would also talk to a few people before choosing anyone. Ask them what types of investors they work with and how they help someone analyze a deal.

You are asking the right kind of question for where you are right now. Start simple and learn one step at a time.

Since you’re in Illinois, the exact licensing titles and rules can be different from Maryland, so I’d make sure you work with someone licensed in your state.

[email protected]240-266-0291
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  • Tim KirkPro Member
    Member since 2026 · 88 posts · 53 votes
    1mo
    1) listen to the BP podcasts…listen to as many as possible. 2) look at Zillow listings and start using the the BP calculator to analyze deals
    3Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 957 votes
    1mo
    Quote from @Aurelio Benavidez:

    I’m not even sure what question(s) I should start with.  Do I need a real estate agent or a broker when looking for my first property to purchase?  If not how does that work?

    You don’t have to use an agent, but for your first purchase, I’d strongly recommend having an investor-friendly agent in your corner. A good one can help you find deals, understand the neighborhood, negotiate, and spot issues you may not know to look for yet. I’d also compare a few Midwest markets if you’re open to investing outside Joliet, since the numbers can be much easier to make work.

    [email protected]614-418-6081
    2Reply
  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 555 posts · 195 votes
    1mo

    @Aurelio Benavidez, I remember how confusing all of these titles can sound when you are first starting.

    You do not need to have everything figured out before you start looking. I would focus less on whether someone calls themselves an agent or broker and more on whether they actually understand investment property.

    When I’m looking at real estate, I want someone who can talk through the rent, neighborhood, recent sales, repairs, and what the property may look like as an investment. That is very different from someone who mainly helps people buy a home to live in.

    I would also talk to a few people before choosing anyone. Ask them what types of investors they work with and how they help someone analyze a deal.

    You are asking the right kind of question for where you are right now. Start simple and learn one step at a time.

    Since you’re in Illinois, the exact licensing titles and rules can be different from Maryland, so I’d make sure you work with someone licensed in your state.

    [email protected]240-266-0291
    3Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1mo
    Quote from @Aurelio Benavidez:

    I’m not even sure what question(s) I should start with.  Do I need a real estate agent or a broker when looking for my first property to purchase?  If not how does that work?

    Glad you found this forum, Aurelio! For your first purchase, you don’t technically have to use a real estate agent, but having a good buyer’s agent can be really helpful, especially if you’re new to the process. A broker generally oversees agents and may also work directly with buyers, but you don’t need to hire both. The bigger thing is finding someone who understands the type of property you want to buy. If you’re buying an investment property, I’d look for an agent who actually understands rental comps, cash flow, inspections, financing, and how investors evaluate deals rather than someone who mainly works with traditional homebuyers. Before you even start looking at properties, I’d figure out your budget, financing, investment strategy, and what kind of return you’re targeting. That will make the property search a lot easier and keep you from chasing deals that don’t fit your goals. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
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    1Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
    1mo

    I'd slow it down.  I think 3 months of educating yourself first will do you lots of good.  If you know absolutely nothing, you will consider anyone you come across as an expert and essentially be easily led down any path.

    This isn't easy and it is not a guarantee. In the short-term people lose their shirts all the time in REI.

    There's people on here all the time asking if an 80% project cost to ARV is good, no, it isn't.

    You'll find sourcing is a major hurdle.  Sourcing projects.  Theyre not just out there laying around.  And someone with deep pockets can take short term losses and ride the longevity train to profit.  Can you?

    You have to work with real numbers. Real ARVs, real rehab numbers, real holding costs. Just because an agent or wholesaler can pull a comp, you'll see that won't mean you'll get that number. So if you shrink the ARV, pad the rehab, and extend the holding costs is it still a deal? Those are the "deals" you want.

    One rule of thumb for you. You add purchase price and rehab and divide by ARV. That gives you the key %. If it is over 70%, you may make a little money, you may lose. It is no guarantee. When you start dropping below 65% then you are in solid deal territory. Under 60% is a great deal, lots of wiggle room. These projects provide extra money at refi or can be priced to sell and still see a massive profit.

    So now you can reverse engineer as long as you have any two numbers of the three. If an ARV is 250k and the rehab is 80k, what is the most you can buy the house for to stay at 70%?

    250,000 x 70% - 80k = 95k.

    2Reply
    • Aurelio Benavidez
      OP
      Member since 2026 · 10 posts · 5 votes
      1mo

      I’ve been “educating” myself for about a year, but I do understand and agree with your advice. I do need to get my ducks in a row like you advised. At the same time it’s to pull the trigger so to speak. As soon as I get my ducks in row.

      0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1mo

    1 - Gather as much knowledge as possible. That can be through YT, podcasts, books or it can be in person. Go to networking events, reach out to local agents, reach out to local investors, reach out to local vendors. Network will grow your contacts and you'll learn a ton.

    2 - Learn the area you are looking. Look at listings, run numbers and drive/walk the block. See what areas are growing vs which areas are flat. Define and understand what areas would be graded (A, B, C, D or war zone). Then decide what area fits what you are looking for and what you can afford.

    3 - Financially have a strong base. Hustle and earn extra money, improve your credit and eliminate consumer debt. Yes there is low money down ways to get in but capital and credit will take you far.

    4 - Be consistent then take the leap.

    1Reply
  • Dan HandfordPro Member
    Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
    1mo

    Aurelio, you can buy without an agent, but a capable investor-focused agent can be useful on a first purchase if that person understands rents, renovation risk, neighborhood differences, and the numbers behind your strategy. The title matters less than the experience and incentives. Before interviewing anyone, define whether you want a house hack, long-term rental, BRRRR, or another approach, plus your available cash and reserve requirement. Then ask candidates to walk through a real deal and explain the downside, not just the potential upside. Which strategy are you currently most interested in learning first?

    0Reply
  • Brian AsaroPro Member
    San Diego, CA · Member since 2022 · 19 posts · 13 votes
    1mo

    I would find an investor friendly agent who specializes in house hacking. Living in San Diego, a high cost of entry city, house hacking is the absolute easiest way to get the snowball rolling. As a new landlord, you can learn by being close to your tenants. Like everyone else has recommended, listen to every BP podcast you can. Buy the BP house hacking book and get started. I scream the virtues of house hacking to anyone who'll listen.

    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1mo
    Quote from @Aurelio Benavidez:

    I’m not even sure what question(s) I should start with.  Do I need a real estate agent or a broker when looking for my first property to purchase?  If not how does that work?

    No, you don't need a real estate agent.

    In 30 years, I haven't used an agent.

    Well, I started out trying to use an agent but they didn't know enough and I learned how to do what they are supposed to do. I am not an agent. But I can teach a monkey to be an agent.

    First thing I'd teach them is to pick up the phone when it rings and always be on the phone when it isn't ringing talking to potential sellers. It's called "dialing for dollars". It can be taught & learned.

    0Reply
  • Michael Eskenasy
    Investor · Pacific Northwest · Member since 2026 · 538 posts · 309 votes
    1mo

    I’d actually start one step before finding an agent.

    Figure out what you’re trying to buy and what would make it a good investment for you.

    For a first pass, answer four things:

    1. How much cash can I realistically put into a deal?

    2. Am I trying to create monthly cash flow, long-term appreciation, or both?

    3. Do I want something simple like a single-family rental, or am I comfortable with a duplex/other small multifamily?

    4. How much work and uncertainty am I willing to take on?

    Once you know that, talk to a lender so you understand what you can actually finance. Then find an agent who regularly works with investors and understands rental economics, not just residential sales.

    Technically, the agent works under a brokerage, so you generally don’t need to go hunting separately for “a broker.”

    The biggest mistake I’d avoid is looking at random properties before defining what qualifies as a good deal. Otherwise every listing starts looking interesting for a different reason and there’s no consistent way to compare them.

    You don’t need to know everything yet. You just need a basic buy box, financing constraints, and a repeatable way to say yes or no to a property.

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1mo

    I would highly recommend getting an investor friendly agent

    [email protected]
    Brick House CPAs53 Reviews
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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    1mo

    Congrats on jumping in also in IL. You technically do not need a realtor but nearly all succesful investors buying off the MLS use one. Find an investor friendly agent who has good contacts for contractors, etc. and they will be well worth it 10x over. Build good relationship where they can send you pre market listings also, I sell probably half my listings before they even hit MLS to internal trusted contacts. I put all my investor clients on non exclusive agency forms that way no one is forced to work together, be careful of agents who make you sign exclusive contracts as you can get stuck owing them commision even if stop working with them.

    1Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1mo

    Hey Aurelio! Since this is your first purchase, I’d start by figuring out what type of property you want and what your goals are. Once you have that figured out, finding an investor-friendly agent who understands what you’re looking for can make the process a lot easier.

    [email protected]614-412-2912
    Reafco.512 Reviews
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    0Reply
  • Aurelio Benavidez
    OP
    Member since 2026 · 10 posts · 5 votes
    1mo

    Thanks everyone for your advice and taking the time to respond. Sorry for the late response it can be difficult to make time and juggle multiple things. Between my work schedule and fitness schedule.

    0Reply
  • Travis Goodwin
    Wholesaler · Charleston WV · Member since 2026 · 246 posts · 137 votes
    1mo

    Aurelio, you do not have to use a real estate agent to purchase a property, but a good investor friendly agent can be helpful when you are starting, especially if you are looking at properties listed for sale.

    I would not begin by searching for houses, though. First decide what you want the property to do for you. Are you looking for a rental, a flip, a house hack, or something else? Then determine how much money and time you can realistically put into it.

    If you plan to finance the purchase, speak with a lender and understand your budget before looking. If you buy directly from an owner without an agent, you can negotiate with the seller yourself, but you should still use a qualified local closing professional and have the agreement properly reviewed.

    Do not choose an agent simply because they sell houses. Find someone who understands investment properties, rental numbers, repairs, and the neighborhoods you are considering. The right agent can help, but you still need to understand the numbers and make the final decision yourself.

    1Reply
    • Joshua Hicks
      Rental Property Investor · Central PA · Member since 2026 · 20 posts · 11 votes
      1mo

      This is the way.

      0Reply
  • Joshua Hicks
    Rental Property Investor · Central PA · Member since 2026 · 20 posts · 11 votes
    1mo

    You don't need one. An agent works under a broker, and for a first buy you'd be working with an agent either way. Plenty of us bought our first property straight off Zillow or a for-sale-by-owner sign: you call the listing agent or the owner, make the offer, and a title company or attorney handles the closing. Nothing about that requires you to have your own agent.

    That said, for the first one I'd get one. Find an agent who owns rentals themselves, not one who sells houses to families. They'll steer you away from bad deals, they know which lenders actually close on small multifamily, and they've seen a hundred inspections. Their fee is negotiable now and often still comes out of the seller's side, so ask up front what it will cost you. Once you've done one or two, you'll know enough to go without.

    The bigger question is what kind of investor you want to be, because that changes what you buy. I like rentals. The tax breaks are there, but they're work. I'm in the "fix it up right, fix it up nice, attract good renters, screen them well, and collect passive income forever" camp. It's not insta-money. It's not get rich quick the way flipping can be (but often isn't), and it's not a buy low, sell high dice roll. It's slow and steady and it involves work, but it's simple and it doesn't require lightning to strike. Years as an entrepreneur in a few different disciplines, and it's the only thing I've ever done that gets you out more than what you put in without a ton of thought or innovation. YMMV.

    0Reply
  • Aurelio Benavidez
    OP
    Member since 2026 · 10 posts · 5 votes
    1mo
    Kind of off topic, the house I live in was given to my sister and I. It’s a two unit multi family. We’re talking a loss with bills and property taxes. What are some real estate strategies I could look into, so I can turn this home from a financial loss and into cash flow?
    0Reply
  • Ebuka Ojiba
    Investor · OH · Member since 2026 · 4 posts · 1 vote
    1mo

    This forum is a fantastic resource to read and ask questions.

    In my experience buying my first property, finding the right people with my best interest was the biggest hurdle. Getting the pre approval is a good start, I personally prefer loan brokers as they tend to explain and give you options. With a pre approval in hand, your next step would be finding a trustworthy realtor.

    For all things, please contact multiple brokers and realtors for comparison. Try not to take information at face value.

    0Reply
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