"Training" a fresh real estate agent to the ways of investing.

[Aaron Scott]

Hello, this is my first real post. Been following the site for probably a year now but had some down time with a little one's arrival. I still don't have the most time, but trying to start getting things together. I was thinking about the whole getting a team together before you start with your first deal and got to thinking about the agent and how you want someone well versed in investment real estate. I've heard on the podcast here and there and seen people mention that a new agent can be a good thing to have as you can get them to learn what kind of deals to look for (read get them to realize you are looking for low priced deals with smaller commissions, but will be worth it to them in the long run because they will get more deals from you). So the question is, say you are able to get a hold of a new agent, how do you get them going in the right direction and learned to the ways of investment? I would think if I was a veteran investor I could probably answer this question myself, but since I'm just starting out, what would be the best course of going about it? Any tips, advice, or opinions welcomed.

[Karl Krentzel]

Originally posted by @Doug Pretorius:

@Aaron Scott and @Anita Blout

Let me save you a lot of time and aggravation... don't bother.

99% of agents don't know and aren't willing to learn what a deal is. And the 1% who do are buying the deals for themselves.

If you want to buy real estate for asking price and pray for the next 50 years that it appreciates, agents can help you. If you want a DEAL you have to negotiate directly with the owner. It's as simple as that.

 Respectfully disagree. As a Broker, Wholesaling Investor, Rehabber, etc. I find that incredibly short sighted as advice.  

First, a good investing agent will not "do the buying the deals themselves" 100% of the time.  

It is physically impossible for me to do all the deals available in Tucson on a monthly basis.  (we have over 1500 homes that sell per month, of which you could reasonably expect 1% to be "good deals".  As such, I am not going to be doing 15 deals a month, nor would most agents. 

The assertion however that 99% do not know and aren't willing to learn is probably more accurate however.  I doubt that a majority of agents will spend too much time if you feel like you are "training" them.  

May I suggest an ALTERNATIVE?  Instead of "Training" the agent, why not offer out a happy medium?  Their help in exchange for the leads that you generate that you will not do anything with anyway. 

Since a large majority of the prospects that you will generate in your marketing will not want to do business in a "wholesale" capacity or may not be able to do owner financing or other forms of creative financing; you might as well as get SOMETHING for your efforts.

While it is illegal for them to pay you fees (yes I know its done however) for those leads, there is absolutely nothing wrong with them agreeing to help you with exchanging information. i.e. Expired Listings, Comparable information, contracts, addenda, making offers on MLS Property.

For assistance in the actual dialogues you could use with agents, feel free to check out the BP Marketplace for a complimentary script book complete with scripts for Agents, Attorneys and Escrow! 

Again, while the sentiment of the writer is common, it is not as powerful a mindset as you could have.  

Just my two centavos!

Have a powerful sales day!