Real estate agent for first time live in flip.

[Clayton Casey]

I am currently renting in Memphis, TN.  My fiancee and I have saved a sizable amount of cash that would allow us to purchase a 200K property on a conventional loan and have about 25-30K leftover to fix up the house. We have a timeline of about 7-8 months before we need to be moved in.  I've been studying real estate investing for the past 6 months and it's definitely something I want to pursue.  I believe a live-in flip is solid first step on actually putting into practice how to analyze a deal, negotiate, and renovate while mitigating risk regarding holding cost and other factors. If I google realtors near me then I get a huge list obviously and it can be a bit overwhelming.  Is there a way to narrow the search of agents without having to call and ask each one if they have any experience in investing etc?  Should I get an agent that specializes in auction/foreclosures or even just finding houses that require a good amount of sweat equity? Thanks for any help or recommendations.

[Zack Thiesen]

@Clayton Casey Yes, absolutely, that is their job to guide you through that process and tells you what you must review and sign. If you are indeed set on foreclosures, any agent will be able to make an offer on it for you. Try asking local RE group or on Facebook classifieds locally if anyone or the community has recommendations for agents that have a great track record. It does help if they have experience with the foreclosure paperwork, and some agents are not able to offer on HUD properties.

 People who choose not to use agents typically have a thorough understanding already or have a real estate lawyer draft or review the contracts. The agent will often have relationships with inspectors and lenders that they like to work with, or you can find your own and they will help you with that too. I would advise not to get totally comfortable with the "one-stop-shop" feeling at that point and be open to shopping around for better terms or rates with other lenders if you can get them. You won't hurt their feelings.  

Agents can answer the questions you have about contracts and what things mean as you read them. They are basically there to escort you through the process as easily as possible. I bought my home in a buyer's market so I paid nothing for the services of the agent, the buyer did. Although in today's market sometimes the seller stipulates that the buyer pays closing costs. Sometimes it comes down to what is customarily agreed upon where you live.