This is how you get a rock star agent to work with you

This is how you get a rock star agent to work with you

Rental Property Investor · Perry Hall, MD · Member since 2016 · 588 posts · 600 votes

Pay them! Or rather, get them paid. Okay, stay with me here... You see this question get asked over and over in the forums, especially from newer investors but it's always from the buyer's perspective. What about the seller side?

True story, I took on my first flip this year. And despite buying rentals for years (mostly off market), I have never sold a house. Ever. And while I'm good friends and even family with several agents who I would be happy to give my business to I had a thought. Why not reach out to the agent that recently sold one of the high end flips in the same neighborhood that I used as a comp? Surely they'll have plenty of insight into how that sale went, the types of offers they got, feedback on their listing, maybe some advice etc. And it never hurts to network.

So that's what I did. And she is fantastic! As you can imagine she was happy to receive my call and more than willing to share her knowledge and insight to help me run the flip in exchange for being the listing agent when it was done. Turns out she's a flipper herself and I learned a ton from her from this project. I can't overemphasize the trouble she saved me or the knowledge I gained from her.

So... a few months later I got another off market deal under contract that works best as a flip so what did I do? Repeat. Struck absolute gold again. Rockstar #2 with their own amazing network of contractors, investors, and knowledge.

I'm a huge believer in networking because I have experienced first-hand time and again how big of a return on investment you get on your time doing so. And if you have integrity in business and reciprocate, it just keeps getting paid back.

If you already have something under contract that you're going to flip, even if it's your first one, it shouldn't surprise you to know that a good agent is willing to give you their time because they know they will (should) get paid for it. The knowledge and network that they bring is so much more valuable than the fee they collect. It's fantastic. Just food for thought.

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  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    4y

    Great post and very insightful.

  • Investor · Clifton Park, NY · Member since 2021 · 12 posts · 8 votes
    4y

    @Jon K. Great Job, Thanks for the encouragement and ideas

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    4y

    @Jon K. well done and thanks for sharing! 

    Most people are just too lazy to put the effort in to find a great agent; or the don't understand how big the difference in skill, experience and professionalism is. Probably both. Over 70% work with the first agent they talk to; thats how we keep the standard in this industry low.

    When people complain about how terrible their experience with their agent was and you ask, you usually find out that there was zero time and efford investing into finding and interviewing a great agent. This is the equivalent of hiring the first contractor of craigs list!

    Finding the right agent is a game changer! I know how difficult it is, the first 6 years of my investing career I have struggled with that question. Today I am licensed and own a team, I am even more keenly aware of the range of qualities of my peers.

    A great agent (CPA, attorney, contractor, home inspector etc) will make you more money than they cost! Takes time to find them, but so worth it!

  • Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    4y

    @Jon K., couldn't agree more.  Very, very few people work for altruistic reasons.  Most people work to make money.  The one potential issue I see is: you just showed agent 1 that you are not loyal to them as you used agent 2 on your next deal (unless I am misreading your post).  And you are showing agent 2 that you won't be loyal to them since they are your second agent in two deals.  

    I don't mean to imply that you need to be loyal to any given agent, and if you aren't needing access to their deal flow then you are likely fine to not be loyal.  But if you are wanting agents to let you know about deals before they hit market, or the occasional off-market deals that agents occasionally know about, loyalty tends to be the most common way to get that info.

  • Rental Property Investor · Perry Hall, MD · Member since 2016 · 588 posts · 600 votes
    4y
    Originally posted by @Evan Polaski:

    @Jon K., couldn't agree more.  Very, very few people work for altruistic reasons.  Most people work to make money.  The one potential issue I see is: you just showed agent 1 that you are not loyal to them as you used agent 2 on your next deal (unless I am misreading your post).  And you are showing agent 2 that you won't be loyal to them since they are your second agent in two deals.  

    I don't mean to imply that you need to be loyal to any given agent, and if you aren't needing access to their deal flow then you are likely fine to not be loyal.  But if you are wanting agents to let you know about deals before they hit market, or the occasional off-market deals that agents occasionally know about, loyalty tends to be the most common way to get that info.

    That is an excellent point that I'm glad you brought up because I thought about that as well. This is subjective but for me personally what is appropriate in terms of doing business moving forward after the initial flip is sold? Even if we never work together again, they were definitely well compensated for their time.

    That being said I also made it clear to both that any deal they bring to me through their network they would also be compensated for. If it's a flip they'd of course be the listing agent on the back end. If it's something on the MLS or from a wholesaler they'd get the buyer's agent fee or a JV assignment fee on the front. And as leads come in through my marketing from sellers who will only accept retail and would be better off listing with an agent they are both getting referrals. I've also talked to one of them about JV'ing some wholesale deals with me.

    Also, I'm not necessarily going to find a new agent on every new flip from my own marketing because when you find great people you do want to keep working with them. So as leads come in from my own marketing if I need help running comps, whichever one has the time to help me with a CMA or even walk through the property with me would get the listing.

    So far everyone seems thrilled with the arrangement and both have welcomed me into their networks with open arms. And I of course know people as well so have been connecting them with my contacts too.

    I realize this long answer is essentially agreeing with you but felt it important to elaborate for those reading.

  • Rental Property Investor · Perry Hall, MD · Member since 2016 · 588 posts · 600 votes
    4y
    Originally posted by @Marcus Auerbach:

    @Jon K. well done and thanks for sharing! 

    Most people are just too lazy to put the effort in to find a great agent; or the don't understand how big the difference in skill, experience and professionalism is. Probably both. Over 70% work with the first agent they talk to; thats how we keep the standard in this industry low.

    When people complain about how terrible their experience with their agent was and you ask, you usually find out that there was zero time and efford investing into finding and interviewing a great agent. This is the equivalent of hiring the first contractor of craigs list!

    Finding the right agent is a game changer! I know how difficult it is, the first 6 years of my investing career I have struggled with that question. Today I am licensed and own a team, I am even more keenly aware of the range of qualities of my peers.

    A great agent (CPA, attorney, contractor, home inspector etc) will make you more money than they cost! Takes time to find them, but so worth it!

    That last sentence is crucial for people to understand. Very much the point of this book from which I got a lot of value:

    Who Not How

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Originally posted by @Marcus Auerbach:

    @Jon K. well done and thanks for sharing! 

    Most people are just too lazy to put the effort in to find a great agent; or the don't understand how big the difference in skill, experience and professionalism is. Probably both. Over 70% work with the first agent they talk to; thats how we keep the standard in this industry low.

    When people complain about how terrible their experience with their agent was and you ask, you usually find out that there was zero time and efford investing into finding and interviewing a great agent. This is the equivalent of hiring the first contractor of craigs list!

    Finding the right agent is a game changer! I know how difficult it is, the first 6 years of my investing career I have struggled with that question. Today I am licensed and own a team, I am even more keenly aware of the range of qualities of my peers.

    A great agent (CPA, attorney, contractor, home inspector etc) will make you more money than they cost! Takes time to find them, but so worth it!

     my wife brokered a big ole mansion here in Oregon this summer.. the buyers family sold the business for over a billion a few years ago so lots of dough.. But even so.. the buyer wanted the house painted inside and out  14k sq ft  all sorts of flooring changed out  plumbing electrial you name it.. my wife brought in all our new construction subs and even at that I suspect her client spent 500 to 700k  refreshing this mansion.  I think if this buyer went to the open market would have easily been north of 1 mil for the same work.

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    4y

    @Jay Hinrichs your wife is an angel! I got burnt a few times referring my top contractors to luxury clients - and I know exactly why: my best guys are great trades people and excellent in their craft, great rates too, but they are not top with people, sales or communication. And of course any issue comes right back at me as a referee. I have done some GC work years ago and peoples utter lack of understanding of normal construction issues were the reason I got out of that quickly before I got into it too deep!

    Whar really sucks, clients don't even realize how much money you safed them (in your case 300k!) and you get no to very little credit for that, but all the blame if something goes wrong. 

    And remodeling is basically the management of things going wrong all the time LOL

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Originally posted by @Marcus Auerbach:

    @Jay Hinrichs your wife is an angel! I got burnt a few times referring my top contractors to luxury clients - and I know exactly why: my best guys are great trades people and excellent in their craft, great rates too, but they are not top with people, sales or communication. And of course any issue comes right back at me as a referee. I have done some GC work years ago and peoples utter lack of understanding of normal construction issues were the reason I got out of that quickly before I got into it too deep!

    Whar really sucks, clients don't even realize how much money you safed them (in your case 300k!) and you get no to very little credit for that, but all the blame if something goes wrong. 

    And remodeling is basically the management of things going wrong all the time LOL

     YUP that definitely happened the recipient of the family wealth is only 30 ish and he bought a 6.5-million-dollar home for cash LOL. 

    On top of that my wife made the seller leave the 180k BMW for her buyer at no additional cost and negotiated almost a million off the asking price. The seller of the house a Chinese family bought the home from an NBA star and their 19-year-old son lived there alone while going to college you talk about wealth there is wealth and then there is wealth. 

    But yes, the buyer would call Lori and complain a little bit about the subs and the subs would call Lori and say hey this guy is not realistic. 

    Although for Lori she hangs in there because her buyer has his current home that she will list its about 3 million. but its trashed so she is in the process of guiding him on what needs to be done to market it for best price.  We used live in the same neighborhood a few doors down from this house we just never knew him then. 

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    4y

    @Jay Hinrichs and young agents dream about 3M listings and wonder how she does that - a lot of hard work, going above and beyond, leveraging ressources built over a lifetime and sometimes beeing just very, very good in dealing with unrealistic and entitled clients! 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Originally posted by @Marcus Auerbach:

    @Jay Hinrichs and young agents dream about 3M listings and wonder how she does that - a lot of hard work, going above and beyond, leveraging ressources built over a lifetime and sometimes beeing just very, very good in dealing with unrealistic and entitled clients! 

    really proud of our Daughter in Vegas she has been at it 8 years now and has moved into the lux market she has a 3.4 closing first week of Jan .. and has done multiple multiple 1 mil plus sales in the last 2 years..  But I remember her starting she was doing leases's for 1k commissions.

     IN the Portland Market there are not nearly as many 1.t5 to 2 mil plus homes as Vegas.. fair share but nothing like Vegas.. What Portland has is a very robust 500k to 750k market..  And no real war zones so you dont have any areas where the same very nicely built Craftsmen bungalow will in one neighborhood sell for 750k but in another just over a 100k  there can be swings of price based on area but its not as pronounced as what i see back east 

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