What makes an agent actually useful to investors?

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What makes an agent actually useful to investors?

Matthew MorrowBusiness Member
Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes

A lot of investors have a story about an agent who didn't get it. Sent them a pretty house with no numbers, didn't know what a rent roll was, or pushed a deal that only worked on paper.

When we built our team, we built it around the same things we use to run our own rentals. Treat it like a business. Communicate clearly, even when the news isn't good. Bring value before you ask for anything. When agents do that, their investors grow, and the agents grow right along with them.

A few things that have made the biggest difference for us:

  • Agents who invest themselves. We really encourage it. Nothing teaches you to underwrite a deal like having your own money in one.

  • Knowing the numbers. Rents, expenses, reserves, financing. If you can't run the deal with your client, you're just opening doors.

  • Getting comfortable with commercial. Small multis and mixed-use come up more than people expect, and in a tougher market that knowledge matters even more.

  • Training never stops. We're always working on it, and I'm still learning too.

For the agents here who work with investors, how did you build that skill? And for the investors, what's one thing you wish your agent understood?

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
1d

For an agent to actually make a living working with investors, they have two options:

1) Traditional agent just exposing investors to what's out there and letting investor do all the numbers

2) Go all-in and create systems to ID potential rentals and/or flips and pump them out to thousands of potential investors

  • Around 90% of "investors" never actually buy anything, so BIG time waste if not done at scale

  • We recommend agents charge an upfront, nonrefundable Retainer Fee to:

    • Force out the time wasters

    • Get compensated for some of their time

    • Will also require hard & detailed guardrails to get rid of timewasters that just want something for their money

Newbie investors are the WORST, because they really expect an agent to spend hours of time educating them for free.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2d

    from my point of view I dont see the need for your agent to own rentals.. I mean I have been a top producing agent for many many years started in the mid 70s and own very few rentals.. the time I tried to buy a bunch of rentals I bought 300 plus homes post GFC it was a nightmare I hated it LOL.. I know thats not what everyone on BP strives for they are all striving for door count it seems like.. As an experienced agent when I was at the street level I personally concentrated on how to buy tax sale how to buy foreclosures and pre foreclosures I let my client figure out if it was a good rental.. not every one or agent wants to own rentals and get bogged down in tenant or PM matters when your commission business is making you 500k to 1 mil plus.. what is a few hundred bucks of cash flow going to do for you its a time waster if your a very good top performing agent. Thats what I see with a lot of the agents that have worked for me over the years I have owned 3 small brokerages over the decades.. Agents are busy if they are going to make good money and to me good money is 250k a year minimum.

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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    2d

    I want my agent to know the area specifics and be an active investor.

    1Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 842 posts · 605 votes
    2d

    Matthew, from the buyer's side it is simple: understand my buy box and do not waste either of our time outside it.

    My box is written down: Memphis single-family, purchase under $100K, ARV $180K to $265K on sold comps, 3BR+ renting $1,395 to $1,950, and it has to clear the 1% rule. An agent who sends me a clean house inside those numbers, with real rent and real comps attached, gets a fast yes or a fast no from me — and fast answers are the respect going the other way.

    What I wish more agents understood: deal flow is my number one bottleneck, not properties in general. I do not need 20 listings pulled off the MLS. I need the two houses that actually fit, before they are picked over. Bring me fit, not volume.

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  • Eko Era
    Wholesaler · US, VA · Member since 2026 · 33 posts · 16 votes
    2d

    Really like this approach. As a wholesaler, I believe bringing agents deals with solid numbers, realistic expenses, and genuine investment potential is key to building long-term trust. I’d love to connect and learn more about the types of investment deals your team focuses on. What markets are you currently most active in?

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  • Ryan BrownPro Member
    Real Estate Agent · Louisville, KY · Member since 2022 · 32 posts · 5 votes
    2d

    @Matthew Morrow good thread. I'm kind of on both sides of this one. I'm an agent here in Louisville, and I also own and run rentals, including two rent-by-the-room buildings, and I sold a 10-unit this past August.

    @Jay Hinrichs I agree an agent doesn't need a big door count to be good, and I'd never tell someone to buy rentals just to have the credential. But owning them changed how I read a listing. The pro forma on a small multi almost never shows what actually eats your returns: turnover, the deferred maintenance the seller painted over, the water bill when a unit has a leak nobody reported. I didn't really get that until it was my own money.

    @James Jones nailed the other half. A lot of the time the most useful thing I can do for an investor is say no for them. A lot of the investors I work with are out of state, so they're counting on me for the stuff you can't see online, like which blocks are different from the next one over, or that a "rent-ready" unit really isn't. If I send something, it should come with real rents and comps. If it doesn't fit, I'd rather tell them that than waste their time.

    The other thing that's mattered more than I expected is knowing which local lenders will actually do out-of-state loans and small commercial. A good deal doesn't help anybody if the financing falls apart three weeks in.

    For the investors here, how do you figure out whether an agent really knows the numbers before you start working with them?

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    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      2d

      I get it if your specializing in selling small plex's I know agents that do that.. they don't sell anything but 2 to 4 units that can be financed without DSCR or commercial loans. And then you have OREO agents they are selling mainly to flippers.. but again they dont need to understand all the intricacies of rehab that's up to the buyer.

      Agents should pick a lane though.

      1. commercial broker sell apartments and commercial buildings do leasing etc.

      2. The aforementioned small plex specialist

      3. Work with mom and pop investors ( time suck generally speaking)

      4. New construction

      5. owner occupied

      ETC.

      I mean just talk to anyone who gets hit up on BP from buyers many to most say they are time waster and dreamers.. So agents have to focus because they need to deal with real investors. And qualify investors is part of the job.. when I did have my brokerages and the latest guru would come through town one of my newer agents would be all excited they just got a call and a meeting from someone who is going to buy 20 homes LOL.. I would say OK you bring them here and I want to talk to them and 95% all hat NO Cattle.

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  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 116 posts · 33 votes
    2d

    Great thread — and a fair challenge to agents. From the buyer's-agent side, the thing that changed everything for me was learning to look at a property through an investor's numbers first: realistic rents, real rehab costs, and whether the deal actually pencils out. I spend more time on sold comps than on list prices, and I'm just as quick to talk a client out of a bad deal as I am to write up a good one.

    Communication matters as much as the numbers. Investors need bad news fast — inspection problems, appraisal gaps, repair realities — not after a deadline has already passed. An agent who's honest when the numbers don't work earns the trust for the deals that do.

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  • Aiden AvtgisBusiness Member
    Real Estate Agent · Cleveland, OH · Member since 2024 · 42 posts · 28 votes
    1d

    That first story is one I hear a lot from new investor clients: a nice house, but the agent couldn’t say what it would rent for.

    As an investor myself, I try to approach my investor clients with the same attention to detail that I also want to know when considering a property. I run a quick underwrite on every listing before it goes to a client: rent, expenses, DSCR, cash to close. On a Cleveland duplex, taxes, insurance, water/sewer, and a realistic CapEx reserve can change the picture fast. If it doesn't pencil with conservative assumptions, I say so right away. A quick "this one doesn't work" builds more trust than a deal that falls apart in week three.

    Also worth learning: how DSCR loans and seller credits affect cash to close, and what to watch for in pre-1950 housing stock (wiring, plumbing, roofs).

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  • Sarah Vann
    Real Estate Consultant · Charleston, SC · Member since 2024 · 38 posts · 9 votes
    1d

    I just wrote a post about one aspect of this.. High quality and reliable contacts for every aspect of out of state investing will go a long way and relationships are one thing AI cannot replace. See article for my initial "Little Black Book" for STR focused agents and let me know if there is anyone I left out! https://www.revnest.com/articles/little-black-book

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  • Matthew MorrowBusiness Member
    OP
    Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
    1d

    @Ryan Brown that's exactly the point I was getting at. You don't need a big door count, but once it's your own money you read a pro forma differently. The leak nobody reported is a good example. On your question, the simplest test I've seen is to hand an agent a listing and ask them to walk you through it. Not the price, the rent, the expenses, and what they think the seller painted over. If they can tell you why they'd pass on it, that says more than any list of closings. Our team was built around that same idea. Our agents train on the investing and commercial side constantly, and we encourage them to buy their own, because that's how it actually sinks in. Curious what the investors here say too.

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  • Matthew MorrowBusiness Member
    OP
    Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
    1d

    @Ametria Chaney bad news fast is a big one. An appraisal gap or inspection problem is a lot easier to work through on day three than the day before the deadline. Spending your time on sold comps instead of list prices is the habit I wish more agents had. Thanks for adding to it.

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  • Matthew MorrowBusiness Member
    OP
    Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
    1d

    @Aiden Avtgis running the underwrite before it ever goes to the client is the whole thing. And you're right about older housing stock. Here in PA a 100-year-old house is normal, and the wiring, plumbing, and roof are what move the numbers, not the paint. A quick 'this one doesn't work' really does buy you the trust for the next one. Good stuff.

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  • Matthew MorrowBusiness Member
    OP
    Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
    1d

    @Jules Aton short and to the point. Knowing the area block by block is the part you can't get from a listing site, and investing yourself is the fastest way to learn what actually matters to an investor. Appreciate you chiming in.

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  • Matthew MorrowBusiness Member
    OP
    Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
    1d

    @Jay Hinrichs fair pushback, and you've got a lot more years in this than most of us. I agree nobody should buy rentals just to have the credential, and 300 homes post-GFC sounds like a real headache. Picking a lane and qualifying buyers is a great point too. Plenty of the calls agents get are more hat than cattle. Where I land is that it's less about the cash flow and more about the education. Owning even one or two changes how an agent talks to an investor client, because you stop guessing what turnover or a capex surprise actually costs. A top producer doesn't need a door count, but the ones who've been through it themselves tend to talk to investors differently. Appreciate you weighing in.

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1d

    Good question, Matthew. For me the biggest thing is an agent who runs the deal before showing it. That means rent comps backed by real leases rather than listing asks, honest lines for vacancy, repairs, capex, taxes and insurance, and a read on what the property does at a conservative rent, not the best case. You can tell within one conversation whether an agent has underwritten a deal with their own money.

    Second is speed and candor. Investor deals move fast, so returning calls quickly and saying plainly when something doesn't work saves everyone time.

    What I wish more agents understood is that a good investor client wants the pass as much as the yes. Explaining why a property fails the numbers builds more trust than any pitch, and it usually leads to the next deal anyway.

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  • Matthew MorrowBusiness Member
    OP
    Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
    1d

    @Eko Era agreed, solid numbers and realistic expenses are what build trust on any deal, wholesale included. We work across PA, NJ, and NY, mostly eastern PA and the NY Southern Tier. Appreciate the kind words.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1d

    For an agent to actually make a living working with investors, they have two options:

    1) Traditional agent just exposing investors to what's out there and letting investor do all the numbers

    2) Go all-in and create systems to ID potential rentals and/or flips and pump them out to thousands of potential investors

    • Around 90% of "investors" never actually buy anything, so BIG time waste if not done at scale

    • We recommend agents charge an upfront, nonrefundable Retainer Fee to:

      • Force out the time wasters

      • Get compensated for some of their time

      • Will also require hard & detailed guardrails to get rid of timewasters that just want something for their money

    Newbie investors are the WORST, because they really expect an agent to spend hours of time educating them for free.

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
    WebsiteView Page
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    • Matthew MorrowBusiness Member
      OP
      Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
      5h
      Quote from @Drew Sygit:

      For an agent to actually make a living working with investors, they have two options:

      1) Traditional agent just exposing investors to what's out there and letting investor do all the numbers

      2) Go all-in and create systems to ID potential rentals and/or flips and pump them out to thousands of potential investors

      • Around 90% of "investors" never actually buy anything, so BIG time waste if not done at scale

      • We recommend agents charge an upfront, nonrefundable Retainer Fee to:

        • Force out the time wasters

        • Get compensated for some of their time

        • Will also require hard & detailed guardrails to get rid of timewasters that just want something for their money

      Newbie investors are the WORST, because they really expect an agent to spend hours of time educating them for free.

      @Drew Sygit you've been at this a lot longer than most of us, so I get where it comes from. I just see it differently. I wouldn't ask an investor for a nonrefundable retainer before we've even looked at a property together. A real conversation up front about financing and what they actually want to buy has weeded people out for us without treating the serious ones like suspects. I'd rather start there than start out assuming they won't buy.

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    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
      51m

      Why are you wasting time showing newbies possible rental or flip properties?

      That's what the Inspection Period is for!

      Seriously, what are they going to see in person, that is so important, that it can't wait until they've got an accepted offer and are in their Inspection Period?

      Can't remember the last time I looked at a property BEFORE making an offer. It's been at least a decade.

      But, you do what works for you🙃

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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    1d

    If you're an Agent that's good enough at what you do, the 1st question isn't What makes an agent actually useful to investors?  It's What makes an investor useful to me?

    For me, it's making sure I get paid 1st. I ain't your dancing monkey. I've got the knowledge, skills, network, resources etc. All you've got that's useful to me is cash, so if you're not ready to make sure I am the 1st MFr to get paid, you've got no use to me.

    The order of operations is you pay me, then we talk about how I can help you accomplish your goals. Or whether or not your goals even make any sense. Sometimes your goals as just dumb as all hell.

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  • Michael S.
    Huntsville, AL · Member since 2018 · 579 posts · 864 votes
    1d

    @Matthew Morrow - since your question is directed at someone like me, I will hazard a response.

    It's a two way street - I provide value to the agent, and they provide value to me.

    How the agent provides value - knowledge of state rules and regulation, negotiations, handling paperwork and logistics, pointing out findings I may have missed (especially in the late 2010s - not as much now), connections/networking, walking properties and sharing video with me, telling me about off market properties that another agent has yet to list because the seller does not want them in the public domain/MLS (divorce, house is disgusting and they don't want pics posted, privacy, speed of sale, estate situation). They do this while I work my daily W2 job.

    How I provide value to agents - I close in under 30 days (this should be number 1-10 in order of importance), I have financing already in place, I have cash already in place, I write an offer same day on any property that warrants it, I only have them walk properties I'm ready to write an offer, I educate them on the current rental markets, vendor connections, I do not need appraisals or inspection contigencies on most properties.

    And no, this was not AI generated whatsoever. I am going to put that disclaimer on all my posts going forward.

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  • Gladimir Lobo
    Real Estate Broker · Cleveland, OH · Member since 2023 · 236 posts · 84 votes
    14h

    Yep. Working with an investor who's also a licensed agent is important.

    What's funny is watching agents who don't know how to structure the relationship in a way that protects their time while benefiting the investor.

    The agent's ability to protect their time and secure fair compensation is a sign of competency.

    Instead of guiding the investor, they end up getting thrown around like ragged dolls.

    Then you get the investors who think every agent is broke, thirsty for their business, and that their ability to buy means the agent is at their beck and call.

    We're happy to guide you to a successful investment, but your absence will not stop the world from turning.

    A good investor should respect the process. That's how you get guidance instead of chaos.

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    • Matthew MorrowBusiness Member
      OP
      Investor · PA - NY - NJ · Member since 2019 · 774 posts · 264 votes
      5h
      Quote from @Gladimir Lobo:

      Yep. Working with an investor who's also a licensed agent is important.

      What's funny is watching agents who don't know how to structure the relationship in a way that protects their time while benefiting the investor.

      The agent's ability to protect their time and secure fair compensation is a sign of competency.

      Instead of guiding the investor, they end up getting thrown around like ragged dolls.

      Then you get the investors who think every agent is broke, thirsty for their business, and that their ability to buy means the agent is at their beck and call.

      We're happy to guide you to a successful investment, but your absence will not stop the world from turning.

      A good investor should respect the process. That's how you get guidance instead of chaos.

      @Gladimir Lobo yeah, I think every agent who's worked with investors has a version of that story. What's helped me is having the conversation early about what I need from them, mostly a lender lined up and a straight answer when I send something over. The good ones don't mind at all.

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