Most realtors have a “type-A” personality. They are go-getters, and no challenge is too big. That’s exactly what you want, right? Well, maybe.
If you ask a realtor if they can help you invest, they will always say yes. It’s in their DNA. The next thing that will most likely happen is they will tell you all three statistics they know about investing. Here’s something you may not know: few real estate agents invest in real estate. Crazy, right?
If you’re looking for help buying investments, especially if you’re new to the game, it will be much easier if your realtor knows the ins and outs of the investing you want to get into. Don’t work with someone who doesn’t trust their knowledge enough to invest in it. But I’m sure you already know this.
Here’s what you might not know.
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
The Unique Advantages of an Investor Realtor
An investor realtor can help you find better deals and succeed because of their connections and how they think. Investors naturally seek out other investors to talk about investing. Like minds always find a way to get together and learn from each other. The more connections they have in the investing community, the more they know and the more likely they are to hear about good investments that haven’t hit the market yet. Good deals go fast; you want someone always on the lookout. So how do you find someone who’s always on the lookout? Find a realtor who invests and here’s why.
There’s a piece of the brain called a reticular activator, which is similar to a Google search engine. Whatever you think about often is what it searches for even when you stop thinking about it. Sounds crazy, right? Have you ever bought a car and all of a sudden you see your car everywhere? Have you ever had a bad morning that turned into bad day because you’re now on the lookout for bad things? That’s the reticular activator at work. If you are an investor and think about investing, you train the reticular activator to look for investments even when you’re thinking about other things. If your realtor invests, then they are always on the lookout. It’s how our brain works. So how do you find an investor realtor?
Call a few offices or go online and look for realtors who advertise that they work with investors. Here are a few questions you should ask when interviewing agents.
5 Questions for Finding a Deal-Savvy Realtor Who Understands Investors
1. Do you invest in real estate? What do you invest in and why?
If they’re excelling at a certain type of investment, they can easily teach you to do the same. If they don’t invest in real estate, there are a lot of things they won’t be able to help you with.
2. How many real estate deals do you do in a year?
You want to find someone close to the 10-20 deals a year range. Too low and they might not be that invested in their business; too high and they won’t have time for you. Too many people go with the realtor who does the most deals. The more deals a realtor does, the less time they have for each client. Quantity usually doesn’t mean quality.
3. Do you work with other investors?
Get someone who makes a living in part by working with investors. You want someone who lives and breathes investing. They can help you more.
4. What kind of training do you do to better yourself?
Do they just work, or do they take classes and read about real estate constantly? Do they have certifications? Education is priceless. Find someone who invests in themselves.
5. How do you help investors?
See what they say. You want someone with a system already in place.
- Do they go to weekly office meetings looking for properties that haven’t hit the market that you might be interested in?
- Do they have a trusted network of contractors that can help estimate repairs and give quotes?
- Do they send out mailers to owners of properties that meet your criteria if there isn’t anything on the market?
- Do they pay for software that will help you keep up on market trends and make better decisions?
- Do they pull all comparable sales in the area and even sales history of the selling agent to see what you should expect when bidding?
Any realtor will be able to help you find and buy houses. If you can find someone who is passionate, well connected and invests in themselves, you will have no problem succeeding. One thing to keep in mind, however, is that you get what you give.
A buyer gets to pick their realtor, and a realtor gets to decide if they want to work with a buyer. A good investor realtor won’t work with just anyone. They are picky because it takes more time and money to work with investors.
Just as these questions can help you find a good realtor, they can also help you be a better investor. Do you have the network of people set up to succeed? A realtor is just a piece in this network. Do you have a system for investing? How are you educating yourself to be better? Why invest in real estate, and what do you invest in? What can you do to succeed even in a tough market?
If you want the best realtor, you have to also be the best client.
“Formal education will make you a living; self-education will make you a fortune.” — Jim Rohn
Do you work with a realtor who invests in real estate? What tips would you give for finding a realtor with an eye for the best deals?
Leave a comment below, and let’s talk!