Multiple Real Estate Agents?

Question

Hi everyone! I have been researching real estate investing for the past year and I'm ready to make the jump. I am looking to purchase a buy and hold Multi family in the Florida area. I am looking to target the Tampa to Orlando area. I'm single with no roots and I work remotely so the idea is to house hack the first year so get the 3% down and use the remainder of my savings to pick up other properties after building out a team. My goal is to be flexible so I can move to whatever area makes sense with the market in the future.

My question...I am not finding a lot of decent MFR that cash flow 150 a door and have at least an 8% cash on cash rate just targeting the Orlando area. As a result, I'm looking to cast a wider net for areas surrounding Orlando, Tampa and Lakeland. This is a large area of land. This may be a silly question as I don't find it posted anywhere else. How much of an area will an agent typically cover? Is it acceptable to be working with multiple agents for different areas? I seen some comments about having to sign a contract...is that common?

Any help would be appreciated!

Patricia Steiner · Answer

Kristofor, please do yourself a favor and find a (one) realtor who works with investors to not only find you contender properties but to assist you in completing the property analysis, determining market rent, and rental demand in what is known as the "Greater Tampa Bay Market." Lakeland is a challenged market where 40% of homeowners are underwater on their mortgages due to the builder glut prior to the downturn. If you buy there, plan on holding it long-term as the appreciation won't be there right away. But rents in that market have increased 6.5% year over year. Bedroom communities outside of Tampa proper will be more in keeping with your price point. Bottom line: you don't need more realtors. You need more market knowledge and an investor-focused realtor. Keep in mind, you're not looking over "a large area of land." You're looking for a specific property, with specific parameters, in multiple markets. It's what an investor realtor does every day. Hope this helps...

Patricia Steiner · Answer

Just to clarify about finding a "realtor who works with investors:" I would not recommend working with someone who is actively/currently investing in your chosen market. There are too many horror stories here on BP and elsewhere where conflict of interest has been claimed. Whether true or not, it is damaging to the reputation of realtors and keeps investors who truly need representation from seeking it. I also recommend investing in your backyard so you can better oversee and manage your properties. And, about signing a contract: some firms require it. As you know, realtors do not get paid until closing - and a lot of time, energy, and expertise has been expended long before then on their clients' behalf. The contract is a "loyalty pledge" if you will - that you realize their investment in your search and you will provide them with your full representation. While my firm does not use the buyer contract, we have the same expectation.

Matt Leber · Answer

@Kristofor Rahmas just be honest with the agent you are working with. We have found from experience that some agents are OK with showing properties in other counties, but they will have a much greater time commitment if they constantly have to drive over an hour+ at the drop of a hat to show you tons of properties. They also may not have the same expertise or access to the MLS in other counties. I’d say to just be speak with your local agent to tell them that you are an investor looking in other counties as well and see what they recommend. Hopefully your agent has worked with other investors and will have helpful advice. Most importantly, try to be respectful of their time as much as possible.

Emory Keen · Answer

I work in the Lakeland and surrounding areas as an agent and investor. One of my partners here in Lakeland is a buy and hold investor with 26 doors and I have an agent that specializes in Tampa

Twana Rasoul · Answer

@Kristofor Rahmas signing an exclusive agreement with an agent will depend on a lot of factors and the type of investor you are. I work with many realtors and brokers and will give the sale to whoever brings me the deal, on or off market. I’m ok with exclusivity based on specific deals but not a blanket one.

Dwayne Byrd · Answer

@Kristofor Rahmas I work in Brevard County and have helped several BP members pick up multi families (hour or so from Orlando with good returns)

Quito Keutla · Answer

@Kristofor Rahmas like @Cassi Justiz mention most agents usually work within their metro area or have a restriction to how far they will travel, for me I usually don't do more than 30 miles or an hour of travel time, traffic is congested in my area. Happy Investing!

Cassi Justiz · Answer

Most agents only specialize in one city or metro area. A lot of agents will generally make you sign an exclusive agreement when you start looking at properties. But as long as you are honest with them about your intentions, it should be fine either way. Just let them know that you are looking in these specific areas and will be moving to whichever area you find a property in. If you start your search one area, the agent that you start with may have a partner in the other metro areas that they can refer you to.