The right Realtor
OH · Member since 2008 · 25 posts · 1 vote
OK,
How do you find a good Realtor?
1. Trial and error
2. Call
3. ???
I have ran through several Realtors and man is it hard to find one that isn't an idiot. Possibly it is my fault (patience, explaining what I need, etc.), but sheesh. They talk to me as if I am stupid and try to give me all kinds of dumb advice. I am no expert and am always willing to listen, but if I have to listen to one more 20 minute lecture on how a property will cash flow because it will cover the mortgage payments I am going to scream. :shoot:
I like the last added line David. It is very true. Just the same as You do not want Your time wasted, neither does an experienced Realtor.
Here is the deal. You pre-screen the Realtors by asking some simple questions.
1). Do they work with investors currently? (Answer should be Yes)
2) How many investors are they working with and how many investments in total have they closed on for investors? (Should be at least 10 annually)
3) Do they invest in RE (other than their own residence or vacation homes)? Answer should be Yes. Find out how many and check it out via Title or have them prove it.
4) Do they work closely with any managemnt companies and if so, get the contact info and interview them as well. If you like the PM company, chances are the realtor is a good one.
5) Do they have a team of pros (title company, handyman, contractors, other repair related services) and get their information and interview them. - Qualify them all and if the realtor's contacts are good, then so should the realtor.
6) Ask them if they would like you to provide any information on you and your company. (If they do not, skip them, they will waste your time).
Lastly, your personalities should mix nicely. Building a relationship with them over time is a necessity. It is very important that they understand that "burning you" will end up costing them dearly in the future.
Tell them exactly what you want. Be very clear and upfront with him/her. If they start into an education lesson, cut him/her off and tell him to save those efforts for finding you X, Y, or Z.
Train the right one into how you want them to work for you. Remember, most Realtors work for homeowners, not investors. And most Realtors don't like working for investors.
Hey, I feel for you. I have had trouble myself. I had one agent that didn't even know how to send a link for comps!!
I think it's just trial and error, unless you luck out and get a good referal from someone. I have found that the ones that work for larger companies I.E. remax or one of the big names in the industry, they have it together a little more than some one man show.
I am looking for a realtor now too! Its no easy task.
Sounds like I'm going to be kissing a lot of frogs.
I have tried emailing them ahead of time explaining my needs for creative financing and ugly properties. Of course they say - "no problem." Then the personal introduction and then...uhg! I find out real quick they have no idea what I am talking about, of course I may not, but they don't know the difference.
:crazed:
Be completely honest about what you must have and make it clear not to waste your time with anything but what you stated. If they call you about something that does not fit your business model, tell them in no uncertain terms not to waste your time. Happens again tell them in no uncertain terms to never ever call you again.
Many agents are only used to the retail side of the business and do not have the experience with investors you need.
Investors,
I feel your pain. There are a ton of bad agents out there. Only limited educational requirements are necessary to become a realtor and formalized training is very minimal.
However, the requirements for someone calling themselves an "investor" aren't much higher. I suggest you do a lot of homework and when you find a good agent, hang on.
And most Realtors don't like working for investors.
I agree with most of that sentence. But, I would follow it up with this sentence:
Really good agents don't like working with "investors" that won't or can't buy anything.
I like the last added line David. It is very true. Just the same as You do not want Your time wasted, neither does an experienced Realtor.
Here is the deal. You pre-screen the Realtors by asking some simple questions.
1). Do they work with investors currently? (Answer should be Yes)
2) How many investors are they working with and how many investments in total have they closed on for investors? (Should be at least 10 annually)
3) Do they invest in RE (other than their own residence or vacation homes)? Answer should be Yes. Find out how many and check it out via Title or have them prove it.
4) Do they work closely with any managemnt companies and if so, get the contact info and interview them as well. If you like the PM company, chances are the realtor is a good one.
5) Do they have a team of pros (title company, handyman, contractors, other repair related services) and get their information and interview them. - Qualify them all and if the realtor's contacts are good, then so should the realtor.
6) Ask them if they would like you to provide any information on you and your company. (If they do not, skip them, they will waste your time).
Lastly, your personalities should mix nicely. Building a relationship with them over time is a necessity. It is very important that they understand that "burning you" will end up costing them dearly in the future.
Jim Smith, contact me.
Brian , where are you in Ohio? I may be able to reffer someone to you.
The biggest thing is to determine what YOUR goals are in real estate investment, then find a agent who works that specific market segment.
The unfortunate thing about real estate is we have FAR too many real estate soccer moms that only sell to first time buyers and retirees. Very few agents deal with commercial, reo or investor segments as a primary area.
I have a RE blog concerning REO properties, and get a unbelivable volume of questions from Realtors that they should know after working with properties for a month (These are people who have been in the business for 15+ years).
I'd call a local BROKER and ask for an agent in the offiice who handles investments, commercial, or whatever you like. Most of the time, a good broker or manager will know what agents in the office work with what types of properties.
The last thing you want is a agent that doesn't know a thing about how things work with investments.
A good Realtor should:
Listen to the client's needs.
Provide the client effective tools and resources.
Fully represent the client's interests.
Follow through with what they say they will do.
Present facts, not BS.
Be there when the client needs them and not get in thier way when they don't.
Should be up on the latest technology and trends.
Good knowledge of the local marketplace.
Now, where you find them is another story. :-)
Here is a point of view from the other side. Hypothetical example:
I am an agent who has just met an investor that wants to purchase discounted REO properties (say 65-70% ARV) He/she asks me for lists of REO listings and wants to drive around and see them. Since I could lose my license for giving him combo codes or access information, I meet him at all properties he has driven past that look interesting to him and write up offers on the ones he is interested in. We do this for 4-6 weeks. I write 39 offers before finally getting one in escrow. He changes his mind and backs out of the escrow. Repeat house showing and offer writing another few weeks. Now, his offer price of $85,000 actually pays a full 3% commission (getting rarer lately as 2.5% is getting as common as “commission paid on net price only†listings.) So as an agent my commission is $2,550. Of course I have a split with my broker of, say, 70/30. So the final cut is $1,785. I have gas and other expenses to deduct from that. Then the investor asks me for a kickback on the commission when the deal closes to help with his hard money closing costs. Just a hypothetical example, you understand.
There are lots of agents that I know that would be very happy just to close a deal now and then, but they aren’t going to be the ones that have much investor knowledge. The agents that are extremely savvy in investing are probably writing their own offers on property. So assuming the 80/20 rule and of the 20% assume only a small portion of those are investor savvy, it really narrows the agents who could be helpful to an investor looking for the next deal. Understand that an investor is possibly the most time demanding client who is usually looking at very low priced inventory. That is the meat behind what Mark said “And most Realtors don't like working for investors.†Unless an agent REALLY understands RE investing, why wouldn’t they just take that first time home buyer out, show them 8-10 homes and write up a full price offer for the same money?