How I think finding boots on the ground is not that easy.

Question

Hello BP.

The reason I said that in the title is I really think it's been tougher than I thought, I live in NYC and have a full time job, I'm looking to invest outside my hometown, In Orlando I have a brother there, he's my eyes and ears so that i'm not complaining, we both are looking for fsbo's,vacant,  etc, It's a market like Pittsburgh that I want to be investing in, and some of the realtors I've contacted do not want to look at properties I might have found on their site, unless there's something in it for them, and I tell them that they can have both sides of the commission, me buying, and reselling working with them. But the real reason I would prefer someone else is I'm hoping to get an objective opinion of what the house might look like, neighborhood, is it safe, etc. and whether the property scout I'm using would they live there?, is it livable?, does it need repairs,? and so on.. Not sure what I can do?!???!!

Daniel Fraenkel · Answer

@William

@William Morales @Eric Garcia the way I do it in the Cleveland Ohio area, is have a first consultation call in order to understand the investment goals (Appreciation vs. Cashflow) and risk/reward ratio the investor is looking for. With that information I can then proceed to narrow down the areas that would make sense to look at. The next step would be to regularly scan these areas for anything that looks interesting.....and I have seen so many properties before that I can tell if it is worth while or not. After that, I always call the listing agent in order to ask them a bunch of questions and only then do I decide if it is worth while driving out to that property and shooting a detailed video for the investor. That process has served me well, so I am more time efficient, effective and always happy when working with investors.

Matthew Irish-Jones · Answer

@William Morales you will probably need to change your strategy.  In a fast moving industry where agents have multiple clients going to look at FSBO homes is almost always a time waster.

You need a company or an agent that specifically caters to investors.  Companies that have property management, construction, and investor focused agents will go look at all kinds of properties because they can get the commission, property management business, and construction/Rehab business.

Random agents on the internet usually don’t have specify investors knowledge, and very few have the back end operation set up to do it all.   A lot of them  will shy away from investors because they don’t speak the same language, can’t estimate rehab costs, and see no value in spending a lot of time finding good deals.

Joshua Janus · Answer

@Daniel Fraenkel I really like your method for handling out of state investors. It's definitely important to get as much information out of the listing agent as possible that way you avoid showing places that won't even work.

Shawn Mcenteer · Answer

Hi @William Morales  chat with @Shawn McCormick he is bright guy that really knows the Orlando market.  I would dive deeper with Shawn he really knows his stuff.

Marc Rice · Answer

You should find a good buyers agent who is going to work with you through the buy process and the eventual sell process. Find someone who is hungry and likes the investment side of real estate, bonus if they own rental property.

Eric Garcia · Answer

It’s a tough sell to have a realtor physically look at the properties. The first one or two homes maybe. More than that is a lot to ask for. We have to value their time. My realtor in Orlando helped me shop online and when a home within a neighborhood I was interested in fell within my budget, she jumped on it. We put in an offer and did an inspection as soon as it was accepted. You have the advantage of having your brother there and there is nearly an unlimited amount of information available online. My advice is to make some offers and use your brother and the due diligence period to make your final decision.

Drew Sygit · Answer

Why would anyone expect a licensed professional to work for free?

EVERY investor tells the same story, that if you help them out they will buy from you. Well, there's a reason agents all know the saying, "buyers are liars"!

If you are SERIOUS, put your money where your mouth is and offer an agent an upfront retainer fee that is credited to any purchase you make in the next 90 days.

What? That won't work for you? Then I guess you're not serious and what you're really looking for is someone to spend countless hours educating you for free on their local market - only to have you not buy because they can't find you that unicorn property all the online gurus are telling you to hold out for.

Account Closed · Answer

Would you ever Use the "Buyer's agent" hooked up to you by Realtor.com? I just did that last night using their service. Alls I did was click on the "Video Tour" button, but calls came over the next couple of days and I finally answered last night While Working and I had to stay on the line to be connected to a "Buyer's agent." Of course, they were very Selling Personalities on the phone. She seems to be working with me now on the property I'm interested in the most and pulled the deed last night to see if there are any restrictions. I'm concerned about just a few things: being able to keep the zoning for low taxes (there's currently horses on it), no liens/back-taxes etc, and maintenance required. I'm not paying several hundred dollars a month for mowing. It's rural.

Eric Morel · Answer

I found an agent on bigger pockets.  She is an investor herself and she is willing to help me with my vision.  I tried working with other agents and it was more on their terms.  With the ability to do a video tour, get an inspection, and to then counter if more repairs then you thought.   You need the team, but the team needs to see $$$ to work with you.  I have given my realtor my parameters.  I have not closed a deal yet due to I have todo sellers finance right now.   I am 6 mos away from using other finance sources.  I am hearing more Nos, but just need one yes to get my 1st deal.  Breaking into real estate is not easy, but if you have a good why it is worth it.

Mine is to help with the affordable housing issue.  I look in D and C neighborhoods for 1% houses that are in good shape.  I am brand new, so not ready to manage an out of state BRRRR as of yet.    Set your boundaries and find a hungry realtor.  That realtor will know people in the area.  They may be able to help you find contractors, inspectors, finance companies, and possibly tax/legal help.  If they are investor friendly, they are probably investors themselves. Mine is a House flipper.  She may flip a home she can sell to me to meet my needs as well.

Gary Swank · Answer

@William Morales Interesting take. I've been in Pittsburgh my whole life and have toured literally thousands of properties. But of course Realtors want to establish a working relationship where they invest their time looking, evaluating and commenting on properties for investors in the hopes that investor will buy through them. It's like any other business relationship, Full of WIFM's. It's just how the world works. Anyway, every want to talk more about the Pittsburgh area, feel free to contact me.....Gary

How I think finding boots on the ground is not that easy.

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