What do I make of what my realtor is telling me? Is it normal?

[Jared G.]

I have been speaking with a realtor for a few weeks now; she was a work colleague's recommendation. We get along well and she is very professional but I'm not exactly sure what's happening here. 

She offered to get together to meet for the first time, we did, we talked for a few hours, and she has forwarded me MLS listings since. She is very familiar and knowledgeable about REI, even recommended neighborhoods that I had already heard great things about. All this is well and good.

However, I'm not sure if she's actually working for me or not, as strange as it sounds. She has been a great mentor, yes, but what constitutes "working" for me? The reason I ask is because she won't straight up tell me cold, hard facts or information. She won't send me properties to consider, just "clues." Is this normal? 

What's happening is I am trying to evaluate deals with the MLS listings (dozens at a time), and then when I send her a property that looks promising, she gives me mysterious replies like, "You're getting closer..." What does this mean? It reminds me of a teacher who wants me to find the answer for myself, rather than simply telling me. But is that what's supposed to happen?

Is this normal? I'm not trying to disrespect her time or make more work for her, I simply don't know. Is it "bad form" to want your realtor to just lead you directly to properties that match what you want (in this case, cash-flowing and in my price range)? 

I have no problem evaluating deals myself but she seems to hold all the information -- she knows what expenses are for that area, what places will rent for, what makes a low but competitive offer, etc, but won't tell me. I'm just wondering why such mystery. What am I expected to do and what portion does she do?

[Jay Hinrichs]

if your going to buy rentals this is very vanilla basic real estate.

you need to not rely on others to give you market rents.. ( call a PM if your curious) or look at the adds in the paper or on line.

then its just all working it backwards you should already be pre approved for a loan.. no reason to even look if you dont have that in hand.. most realtors ( my wife included) wont work with a client without a pre approval form a trusted lender.

do some of your own work and research this simply is not that hard..  the realtors are not your investment advisors.. 

talk to your CPA as well.. so on and so froth educate yourself.

[Gloria Wiekert]

Everyone is giving amazing advice. I’m a realtor on a team in Chicago that specializes in buying/selling 2-4 unit properties, so we dive into analysis with our clients more than most realtors - but I am concerned with her slow response time. I don’t check my phone when I’m with clients but I still make sure I respond to everyone by end of day, or at the very latest within 24 hours. Real estate moves quickly and your realtor should, too. In my experience with buyers, the best cure for “analysis paralysis” is to go see these “maybe” buildings in person - I promise it isn‘t a waste of time, it‘s an important part of learning. I think the numbers you’re running start to become more tangible when you have a building to match them with. Are the numbers so-so but it doesn’t need a lot of work? Does the projected cash flow look great but you get there and find out it needs more rehab than the listing let on? Best of luck!!

[Melissa Gittens]

@Jared G.... weird... Set the expectation with her. I am sure once she has alittle but more direction from you, she will get it together and give you more solid help. I think someone may have already said this. I think its time to set up a meeting and let her know how you are feeling about this process. Get over that hurdle and I am sure you will be smooth sailing from there. If not then, its time to find a new realtor who will get you the answers you are searching for.  

[Dana L. DiPasquale]

@Jared G. What are you expecting her to do? Approve of your investment numbers? She's a Realtor you are an investor. Yshe goves you listings and you tell her to set up showings - she helps you facilitate the contract, negotiate a price- anything above that is going beyond what the average does.

[Aaron Zike]

So, a couple things here.

The comment "you're getting closer" would send me straight into another agent's arms.  It is more likely that (like others have said) she isn't willing to hammer down specifics with you because that really isn't the agent's job.  She finds the properties, you run the numbers, you buy the property.  I don't think she wants to risk giving advice based on hypothetical because one bad tenet completely destroys any number crunching you did before the sale.  

What I ask my agent when looking at potential properties that may cash flow are more like, "can you reach out to this listing agent and get rent rolls and operating expenses for the last year? I see "deferred maintenance" is listed in the ad, can you ask the listing agent exactly what that is?" What I *don't* ask her is how much she thinks the maintenance would cost, or anticipated operating expenses over the next year.

Beyond that, paralysis by analysis is a very real thing. We bought a SFH rental that should be a little over $400/monthly in CF... if the inherited tenets pay rent. Numbers can't always account for human error. They can help you anticipate these so you have reserves (which we do) but on paper this property was a home run. In reality, it isn't. Sometimes you take a leap of faith that works and sometimes it works on a different level.

I hope you find exactly what you're looking for!