How do you find a realtor exprienced in working with investors?

Question

What are more effective ways of fidning realtors who have experience working with investors? Not sure if this are unreasonable expectations on my part, but to me what this means is that this person has experience findings off-market properties with motivated sellers before these properties end up on MLS, auction.com and other sites that visible to the whole world.

Other than just the word of mouth, the only other thing I've done is I contacted many listing agents that I found browsing Redfin listings in my area asking this: "I am in investor, I have $X of cash that I can bring to a deal. Do you have experience working with investors and finding distressed off-market properties?". I got just a few responses, which is what I expected, and none of these people brought me any good deals. I can certainly wait for them to find those deals, but I also want to expand my network to work with more realtors to increase chances of one.

I also realize that those realtors might be working with more experiences investors who keep them busy and bring them more money than I can, at least initially. So how can I find these folks and then get my foot in their door, so to speak?

Russell Brazil · Answer

Agents are going to list the properties we have. We have a fiduciary duty to those sellers. If you want off market distressed, you need a marketing campaign. Most of the off market stuff agents are dealing with in the current enviorment is highly desireable properties that will draw off market premium pricing. Occasionally Ill see a flippable property in say Petworth in our off market mls system, but again those are drawing premiums and are being traded for all cash.

Taylor L. · Answer

Realtors won't be your best source for off-market distressed properties. Try meeting wholesalers in your area, they'll be a better source.

I meet realtors via referral. Ask other experienced investors in your area which realtors they work with. They'll probably give you a referral.

Lore Postman · Answer

I agree with Taylor. I see many very distressed properties get sold off market simply because they could be dangerous to show to buyers (i.e weak floor boards) using a traditional realtor approach.

I've had luck finding distressed properties by focusing on specific neighborhoods where I'd like to buy. I visit those neighborhoods frequently, including walking them or hitting garage sales, which give you the chance to chat casually with homeowners about what's happening in their neighborhood.

I then watch for signs of transition at homes anywhere along the streets I'm interested in... such as tenants moving out, larger-than-normal amounts of trash appearing at the curb, old carpeting or paint cans on the porch, etc. Then I go out of my way to drive those streets during the normal course of running errands, etc. I'll stop to chat with neighbors and can get contact info or information on what might be prompting the new activity.

Yes, I'm a pretty slow and patient investor. My husband and I are in for the long haul and so far have only bought to hold for long-term investments. Until recently, we didn't have the money or sweat-equity time to buy faster. But also, proceeding slowly and talking with neighbors and owners for months (yes months!) before we're able to get a house under contract, has helped us buy properties for much less than we otherwise could and almost always the seller has carried some of the financing.

Best of luck!

Timothy Lewman · Answer

@Ilya Z. There are realtors at local REIA meet ups.

Ilya Z. · Answer

Thanks @Lore Postman. I like the garage sale idea! At least where I live, it's a lot easier to talk to folks at garage sales than by knocking on doors or by walking up to them on the street. :-) Plus where I live (MD suburb of DC) it seems like everyone and their brother are now driving around looking for distressed properties.

How do you find a realtor exprienced in working with investors?

How do you find a realtor exprienced in working with investors?

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