Realtor

[Luis Saenz]

Hello Bp, I just have a couple questions about realtors. I recently met up with a realtor and disscussed working with him. He has never worked with any investors before, but has over 6 years of experience in real estate. I myself am still a newbie to this (I haven't completed any deals yet). So my question is, do yall think it would be wise to work with realtors that have no experience with investors? and also what else can I utilize a realtor for beside the MLS? Finally how can I return the favor to them for the help they provide for me beside referral listing? For example say a realtor finds a house that they can't do anything with, but they call an investor and he/she turns it into a deal. Does the investor just pay a referal fee or give a % of their profit?

I apologize for cramming so many questions into one post, but any feedback would  be great.

thanks, Luis Saenz.

[John Dirgo Deweese]

A good real estate agent or broker can be a big help to you and they don't have to be experienced with investors to be useful to you -- and you to them. After all, every agent that is experienced in working with investors had to have a 'first' sometime.

The key is communication.  The agent can't read your mind and you can't read theirs.  So, you can't be vague and expect them to help you locate good investment properties or help you sell your completed projects.  "Find me good deals" isn't enough.  "I'm looking for fixer single-family homes with at least 2 bedrooms in the area between 1st Avenue and the 5th Avenue that would rent for at least $1,000 when fixed up" will help them help you.  

It will be an iterative process.  They may find something that they think you might like but it is not.  You have to be able to say "that's not quite what I want -- I need properties that have more [whatever]".

Be sure to help them out if they come to you with something that could be good for someone but doesn't quite fit your criteria.  They deserve to be compensated for their work, even if its not from you.  Direct them to the Bigger Pockets marketplace to find another investor - or offer to tell some investors you know - so that their work isn't wasted.  That agent will remember that you did that and as long as the communication is there, they will keep bringing their finds to you first. 

Note: the term 'Realtor' is not the same as 'real estate agent'.  Realtor is a trademarked term and can only be used by agents who are members of the National Association of Realtors. I'm not sure what its like in Texas but in some areas I know nearly every agent is a Realtor (Hawaii) and in others its much more common for agents to not be members (Washington). Just remember that the two things are not the same. Technically, the word realtor should be in all-caps and include the registered service mark -- like this: REALTOR®.