How do you find realtors and management companies in another market?

Question

Hi Everyone,

From those of you who have invested in markets other than your hometown, I'd very much like to hear how you went about finding:

1. The realtor with whom you worked (if applicable), and
2. The management company for your property.

When I determine the market in which I want to invest, I'd like to interview and vet 5 realtors and 5 management companies, so I'm looking for credible sources for referrals.

Needless to say, personal references from someone you trust would be best, but how do you handle this process if you don't have such an option?

Thanks,

Scott...

Brian Levredge · Answer

I operate in several out of town markets. I found the people I work with through talking to others who are local and seeing who they would recommend. Often times, you'll hear the same names get repeated back to you several times. That is usually a good indication. Keep in mind you will have trial and error. Just because someone comes recommended does not mean you will work well together. To me, relationship is almost as important as their ability to deliver.

Jackie Patterson · Answer

For a realtor, give them a property address and ask them to prepare a market analysis for you with comps, and point out the deficiencies and positives regarding the property. Then ask them for a marketing plan. You can also find out from the local board of realtors the number of listings / sales they had over a period, the average price, etc. Finally, talk to them over the phone as Bryan suggests. All of this information can help you make a good decision.

Scott Sutton · Answer

Thanks for the responses, everyone. It certainly sounds like there's no substitute for networking with other investors in the area. I'll see what I can do to get connected.

Bill Gulley · Answer

Missed the point, If I'm looking for a listing agent, I doubt I will look to those in the MLS that have been selected by owners, as they usually don't turn alot of properties, they are just selling their house, so they might get their next door neighbor's brother-in-law. Banks deal in properties daily, they usually select the better agents that can do a good job. It's not about listing for a SS or an REO, it's about finding a listing agent, sorry for the confusion.

Edwin Brown · Answer

Scott, For property managers my best bet has always been to get with local investors. They tend to know who is actually doing a good job with property management. I know it's out of town, but it may be worth it to go to the market and visit a local REIA. Just talk to other investors there and you should have a good feel for who to use.

Steve Babiak · Answer

Hey Bill, I think you've gotten confused with Short Sales (SS) and REO agents. Asset managers DO pick the REO agents, but I highly doubt they do much at all in the selection of a Short Sale agent since the HOMEOWNER chooses the agent.

Dale Osborn · Answer

With the advent of the internet the whole purpose and usefulness of having a realtor in the middle of your transaction is really being phased out. As for management companies - it will be difficult to find a good one. We have always done or own management and have come in behind some bad companies. Our terms for the professionals are "mismanagement companies". If you feel you really must use one - when checking out your property - drive around town and look at properties that are managed by management companies - usually they are pretty run down and the better properties are being managed by the Mom & Pop operators who take pride in the ownership of their property. Find the best you can and then contact that company to see if you can work under their one-sided contract and all the terms and conditions they place on "YOUR Property"! Good luck in your search for finding a good management company!

Bryan Hancock · Answer

I always looked on the net and tried to see who had the most professional site. I pinged several of them, interviewed them via phone, and asked to see their marketing plan. You can do a lot over the phone if you have the right set of questions and know what to look for.

Bill Gulley · Answer

Scott, finding referrences for a Realtor is pretty easy, management companies, that might be harder. If you want a good SS Realtor, listing agent just go trhough the MLS listings in the area of interest. Who do the banks pick? Who do the asset managers choose? That's a good indicator. But there are politics involved and busy listing agent may not work very hard for you. No matter what method you select, there will be draw back, IMO. Mgt Co.- Call the local housing authority and tell them you might be interested in leasing under Sec 8. Strike up a conversation and pick their brain. Who are the good companies that they work with...that might help. Good luck, Bill

Ibrahim Hughes · Answer

I'm in the process of investing in FL while I live in NJ. I found a great Realtor on Trulia.com