Quiiiiiiick Tips for Agents Who are Looking to Get Into Investing

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Quiiiiiiick Tips for Agents Who are Looking to Get Into Investing

Dillon Francis
New to Real Estate · Portland, OR · Member since 2020 · 35 posts · 5 votes

Hi all,

I have a friend who is a real estate agent in Portland, Oregon, and she has expressed her interest in real estate investing. She sees the amazing potential it has to change her life, but she isn't sure how to get started. I have referred her to the BP podcast and the forum, but I don't believe she has made the time to check out either resource. I think she needs a little motivational push, just like I did when I first started.

Does anyone have any tips that I can share with her on how she can get started and use her current profession to her advantage when building her knowledge base, network and portfolio? How about any suggestions on how she can obtain the motivation/confidence to take the first step? I know that everyone has their own unique motivating factor that got them started on this journey, but maybe some of those can apply to her and her life circumstance. 

As always, thank you for your time and wisdom my fellow BP members!

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Moises R Cosme
Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes
6y

Dillon, 

I think the best way for anyone to get involved is to partner with someone that is already doing it. Most new investors fear managing the rehab work or the contractors... It is intimidating to get involved in something that ties up so much money, without knowing what you are doing on a day to day basis as it relates to the project itself.  Encourage her to get involved in a project, by partnering she will be able to leverage her strengths as an Agent while learning with context about investing.   

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  • Moises R Cosme
    Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes
    6y

    Dillon, 

    I think the best way for anyone to get involved is to partner with someone that is already doing it. Most new investors fear managing the rehab work or the contractors... It is intimidating to get involved in something that ties up so much money, without knowing what you are doing on a day to day basis as it relates to the project itself.  Encourage her to get involved in a project, by partnering she will be able to leverage her strengths as an Agent while learning with context about investing.   

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  • Dillon Francis
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 35 posts · 5 votes
    6y

    @Moises R Cosme thank you for the tip! I think that is a great idea, and I know she has a great network and list of clients at her disposal. I am betting she will be a buyer agent for an investor sooner than later, and when that happens, then she can start a relationship with them that goes beyond her just being a buyer agent for them. That initial relationship could open the door to so many more possibilities.

    How would you propose someone, like herself, who doesn't have investing experience approach an investor who is open to such a partnership? What kind of things could she say/offer them to show her value as a partner?

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  • Cory CarlsonBusiness Member
    Real Estate Broker · OR · Member since 2018 · 311 posts · 226 votes
    6y

    Investor friendly agents generally share some of these traits: Great analysis skills, software, and tools with a wide understanding of the market (others too, to add context), investment strategies (able to elaborate and quantify them), well connected and credibility. I agree above, getting with a firm that specializes in investors and has the tools. One of the quickest ways to gain credibility is to have a pipeline of good deals. 

    Its hard for someone who works for a "run of the mill" residential brokerage to sell their investment aptitude. Just my opinion. 

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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    "Does anyone have any tips that I can share with her on how she can get started and use her current profession to her advantage when building her knowledge base, network and portfolio? How about any suggestions on how she can obtain the motivation/confidence to take the first step?"

    Since she has a license, tell her to apply at the big commercial RE houses in Portland.  They'll put her in the puppy mill and teach her how to call.  It'll be a sink-or-swim proposition, but that which doesn't kill you makes you stronger.

    She may find it's not her thing, but being able to talk to a lot of people is critical for getting deals done.

    Math on investment RE is not that hard to learn - Really.  You only have a few metrics and spreadsheets can do those easily.  Worse case you can generate an 86-tab XLS full of metrics and not even be able to make a decision :)

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  • Mathew Wray
    Real Estate Agent · Portland, OR · Member since 2013 · 412 posts · 219 votes
    6y

    Maybe a slightly different take here...if she is just getting started in real estate then maybe she shouldn’t focus on investing first. If she’s going to be advising people on investing she should probably get her feet under her and figure out how to write a contract. 

    If I misread your question and she already is successful in real estate then I’d say the first thing she should do is buy a rental herself. Why practice something on a client and make mistakes with their money when she isn’t willing to do practice and make mistakes with her money first? Owning her own rental will help give her credibility as well...would you take care advise or buy a car from someone who doesn’t drive?


    if you’re talking more inspirational help then realize that you can’t make anyone else love investing...you can only try to help them see the wisdom in it through what you’re already doing. If she really wants to know why she should invest, ask her to talk with agents in her firm who have retirement plans. I see a lot of leased Mercedes and renting from agents who make a ton of money, but save and invest zero. They’re always one closing away from being broke. Don't model those agents! 

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  • Dillon Francis
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 35 posts · 5 votes
    6y

    @Cory Carlson thanks for your feedback! I agree with you and what was said above. I feel like you took it to the next level with your suggestion. She could maybe build up her skillset/knowledge base by initially partnering with an investor on a project, see if she even enjoys investing and partnerships. Then she could take it to that next level, and actually join an investing firm or like @Steve Morris mentioned, a big commercial RE firm that will give her access to the tools, pipelines, and networks. Steve makes a great point in that it will be a sink-or-swim proposition, but if she overcomes that challenge and indeed swims, then I think that is an indicator that she is cut out for that line of work. 

    Very insightful answers gentlemen! Thank you for the contributions.
     

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    She is too new to partner with someone on an investment, not knowing anything. She has to build up her own knowledge of investment, even if she is licensed. If she spent the next six months reading all of the Portland threads on BP and going to virtual Portland-area and other meetups she would develop some relationships to take into the real world. Portland is a good investor market with a lot of players, but she has to want to learn. You can't want it for her.

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  • Dillon Francis
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 35 posts · 5 votes
    6y

    @Mathew Wray I think your first point is a great one! I am curious about writing contracts, now that you mention it. What role do they play in REI and who is usually responsible for creating them? I have heard many wholesalers on the podcast talk about how they got a property under contract, but I have always been curious as to where that contract came from.

    I believe my friend has been an assistant buyer's agent for a bit now, so I think she is experienced in that aspect, but not necessarily from an investing stand point. From our conversation, it didn't sound like too many of her clients were investors, so I think you again make a great point, that she should just dive right in and purchase a rental property herself. I think people who speak from experience have some of the greatest advice and insights to share, and I really liked that analogy you used!

    Thank you again for the words of wisdom Mathew. I look forward to passing on this invaluable information to her!

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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    "she isn't sure how to get started. "

    1) Get as much free cash together as she can for purchases / reserves

    2) Understand the metrics of good/bad deals.  Portland on <5 units is pretty pricey, can't afford your first deal to be a mistake.  Read my book on Buying/Selling Apartments.  Best free doc you'll never pay for :)

    3) For her first deal, get a turnkey.  Rehabs can eat you up if you don't know how to assess when buying.  She''ll spend enough time just learning the tenant side of things and expense management.

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  • Marlen Weber
    Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
    6y

    BiggerPockets is absolutely the place to be for tons of knowledge. I would also recommend she joins a group with likeminded people, even if it's virtual. Perhaps a mastermind group in her area so that she gets to know those in the industry who are around her. 

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