finding a RE agent when looking at multiple states?

Question

New at this, looking to purchase my first investment rental. Normally when purchasing a home to live in, I'd have a specific area in mind which would make finding an RE agent easy. But what do you all do when you're not looking in a specific place? I have my eyes on several cities and states. Do I just contact the sellers agent and deal directly with them? Don't I eventually need an agent to represent me in the purchase?

Jason Knight · Answer

Exciting news that you're getting started Craig. Here's my recommended order for starting out:

1. Find a city that has a great ROI without too many headaches/1.5 Choose your strategy.

2. Find an agent in that city who is also and investor. Ask for an MLS feed.

3. Find a cash flowing property/build the rest of your team.

4. Get more cash and repeat.

I definitely recommend one agent per city due to greater potential for wholesaler's deals. You need an agent to properly/legally complete a real estate sale.

Craig Dieterich · Answer

Thanks David. Good advice! The reason I'm looking out of state is because I live in CA and I don't see "great" opportunities for investment rentals here. Housing prices are too high for rental income to cover the costs, let alone cash flow. I have about $50k to put down and am looking at the $100-200k price range for a rental property, preferably a multiplex

David M. · Answer

@Craig Dieterich

Well, something made you decide to invest out of State.  Not necessarily why, but what is your plan to do it?

To your question:  "But if I want to pull the trigger, do I just contact the sellers agent, or what?"  Yeah, you could contact the seller's agent and go dual agency (if allowed in that State).  Many of us will tell you its not necessarily in your best interest to go dual agency, but there are plenty of investors who go that way.  Yet, you said it yourself that you "...should have someone in my corner who knows the area, can look at the property, etc..."  Well, that could be a real estate agent, good friend, maybe even the pending property manager (I don't know if they would do this as I don't use them).

Either way, you need some sort of reliable "boots on the ground" to support your investment.  You can get that any number of ways, e.g. phone calls, networking, finding investors and or real estate agents here on BP, etc.Good to know that you are just starting out.  It seems like you have a bunch of topics to work out for your out of State investment plans.  Good luck.

Craig Dieterich · Answer

I look on my own and do the math to see if it makes sense. But if I want to pull the trigger, do I just contact the sellers agent, or what? I feel like I should have someone in my corner who knows the area, can look at the property, etc. That was what my initial question was. However, looking at multiple locations would require building multiple realtor relationships in each of the areas. And how do I find good agents for my needs in areas I don't know very well? I don't mean to sound ignorant. I'm just starting out.

David M. · Answer

@Craig Dieterich

Well, like anything else --- good help is hard to find...

I'm just a bit confused.  So are you "jumping over" the search phase?  Or, is that what you are asking in this thread?  Your OP starts about agents and whether just to work with the listing agent.  Then, you respond to me about wanting the agent to look at the property for you.

I suppose I don't have much to add.  I don't see how you can expect "some person" that you haven't built up a rapport to report back to you a property condition to your liking.  But, I guess you must have your own system for doing out of State investing.

Good luck.

Craig Dieterich · Answer

@dave m. I figured once I found the deal that makes sense, I'd have a property management company in the area handle it. Is this wishful thinking?

David M. · Answer

@Craig Dieterich

Well, unless it was a pretty small State, I think it'd be tough to find a single agent for the whole State...  Let's face it, you have a tall order.  Besides, how else were you going to find people to help you manage your long distance investments?  What are you really asking for assistance here?

Craig Dieterich · Answer

find an agent for an entire state? Wouldn't I want the agent to be able to go look at the property for me? What methods do you use to find a "great" agent out of state? Thanks

Jason Crittenden · Answer

Find a great agent in each state and have them send you listings until you find one that works for you.

David M. · Answer

@Craig Dieterich

Sounds like you need to go looking for multiple agents...  agents are licensed by state anyway.  So unless you are looking in an area right in the border where it’s possible/likely to have dual licensed agents..  you are going to need to find multiple good agents, one for each area