Choosing the right realtor to help you with investment property purchases may be very different than choosing the right realtor for your primary residence. My name is Nick Disney and I am the owner of Sell My San Antonio House and we buy houses in San Antonio, TX.
Let’s take a look at some of the things to consider when choosing a realtor: For starters, experience in this type of unique search and purchase is critical in getting the right deals in front of you. Do they themselves actively invest in real estate? Do they have connections and resources that will help you accomplish your goals?
Now how do you find the “right” agent to support your goals? Referrals you get from other real estate investors can be one of the most reliable sources since you can pre-determine whether or not the agent’s skills match your needs simply by asking someone who has used them.
It’s a great idea to start building your own network through local investment groups and social connections. These are both good places to find an agent to work with.
Often within any brokerage, there are at least a couple of people or teams who specialize in investment properties. You can try contacting a few local brokerages and seeing who they recommend.
Drive through an area where you think you’d like to invest…see what activity is going on….stop by and just ask who is responsible for the project. A lot of times prudent investors are glad to sit down over coffee or a drink to chat through some of your questions or concerns.
Once you begin to set up some meetings, some questions to ask a potential realtor or realtors may include:
1. Are they experienced in working with investors or have they only “dabbled” in this market… If the most experience they have is working with their Uncle Joe….maybe helping him buy a piece of land one time…they are probably not the agent for you.
How many investors have they worked with or are they currently working with? Also, do they have the time and resources to take on additional investors?
2. Are they seasoned investors themselves? It shouldn’t be your role to “teach” your realtor about the different dynamics of this type of purchase or explain common RE investing terms (eg “double close”, “hard money”, “off-market”, etc). Additionally, only another investor may be the best choice in understanding your individual needs and goals.
3. What resources and relationships do they already have? Do they have relationships with investor-friendly title companies? The right realtor will typically work with just a handful of title companies that are more familiar with investment deals, clearing title, etc. Do they have the resources to find off-market properties? The majority of the most appealing and potentially lucrative deals are not from a “for sale” sign or a search on MLS but instead are off-market properties that you can only find by either sourcing the deals yourself or through your network and relationships that have been built over the years.
Finding the “right” realtor is an important step in navigating you through the search, negotiations, and the closing process. Be candid and upfront with your agent when communicating your needs and your investment plans. Let them know if your plan is to buy and flip, wholesale, buy and hold etc.
Don’t tell them you are going to buy 100 homes this year if you really only intend to buy 1 or 2 houses. Trust me, your agent won’t be impressed with hollow words or promises….they’ve probably heard it all before!
There are numerous resources available to help you find and choose the right fit, and it is up to you to do your research and work through the discovery process. It can be wise to “test” several agents after you have initially screened them. Give them a shot at earning your business and see what kind of deals they bring you and if their work style matches yours.
The right realtor will be a key member of your team, helping you become successful deal after deal. Put some real effort and thought into who you want to help you and ask the right questions to make sure you have a realtor who understands your business and your goals.