How I hired brokers BEFORE I was a broker...

[Dan Gandee]

Let me be break down some very simple advice..."Don't hire an agent just because they can sell your flip fast or look polished. Hire the agent who owns investment property themselves and/or is or has done what you are trying to accomplish!" 

(ENTER tons of naysayers and argumentative responses) - All feedback welcome. 

Why?

Because they understand how important your cash position, financing, and long term investment journey is to your survival in this industry. 

They have made the same mistakes you have not made yet or are going to make in most cases.

They can show you how to pivot quickly and exit with minimal damage if necessary. 

They have a long list of investors from all different asset classes that can be potential buyers to your finished product or exit. 

They aren't going to "steal your deal" in most cases and they want to have you become a "repeat customer" by having integrity. 

They understand how to underwrite quickly and tell you when a deal is a deal. 

They speak your lingo and know your buying habits. 

They aren't hungry for a commission check because they have their own passive income. 

This is 100% why I try to tell everyone not to hire the first agent that shows them a home or responds to their FB post on a private group.

What happens if you don't?

You are at risk of making the wrong decision at the wrong time, forcing you to hold longer than you need to or sell for a loss.

You are at risk taking advice from someone who hasn't seen the unforeseen circumstances that can occur, creating stress and anxiety. 

You are at risk of partnering with the wrong broker who's going to lead you down a path of minimal profit/cash flow deal flow. 

You are at risk of listing your flips with someone that doesn't have a marketing machine built to create multiple offer bidding wars. 

You are at risk of making bad 1031 decisions and putting yourself in a upside down LTR. 

Ask questions like:

1. How many deals have you done with investors?

2. What is your investment strategy?

3. Do you have any references you could share of investors you work with?

4. What's your experience with commercial and investing lenders? (i.e. Hard Money, DSCR, Bridge)

5. What's your next move in investing? 

6. How do you underwrite your deals?

7. Do you have good contacts to contractors and other referral partners?

8. How can you help me achieve my investment goals?

9. What's the biggest investment mistake you've ever made?

10. What's the largest investment you've done yourself AND worked with a client on?

I was investor for a decade before running a high performance real estate team specializing on investments. This is exactly what I would ask!

If you are an agent just starting off and want to work with investors then my best advice is to find a mentor and find the DEALS. 

Learn every metric possible and know how to underwrite deals like a champ. 

End Rant.