What Skills Are Investors Looking for In Real Estate Agents?

Question

I want to know what skills Investors look for in RE Agents in order for them to work with them.

George Kopp · Answer

Great info Account Closed! As an investor who recently decided to just get my real estate license and be done with it, I look forward to learning from both sides of the coin. I do believe Carlos is an agent, not an investor, and was looking to learn more about the skills investors look for so that he could make sure he has those skills in order to drum up their business. My hunch is the video you sent will be filled with great advice for him. As an investor who decided to make the plunge and just get my license for my own direct access to the MLS, I will tell you that investors need you to be quick because good deals don't sit around. Nothing sits around these days, but even in normal times, investor-worthy deals can get snatched up quickly. A lot of agents hate working with investors because we put in lowball offers, most of which are rejected. If more than 30% of your offers are being accepted (some would say 10%) you are probably offering too much!! So be ready to write a lot of offers quickly! The payoff is that a good investor buys several properties every year as opposed to the one house the average family buys every 7-10 years. So that's the upside. And if they are a flipper, you are getting the purchase and the sale. @Marian Huish brought up some great watch outs for you. A lot of so called investors aren't actually funded or experienced. I imagine your first prescreening calls will be very important. You probably only want to work with investors who have actually done a few deals and already work with some agents but are looking to increase their pipeline of deals, perhaps in a new market. I decided to get my own license because no one was as fast as I wanted them to be. Perhaps my expectations are too high. I haven't yet decided if I'm going to work with other investors myself. I wouldn't mind having my finger on the pulse but there could be a conflict of interest.Good luck!

Marian Huish · Answer

Thanks for your response to @Carlos Morales-Benitez Account Closed. I’m curious whether BP has a similar article on how to get an experienced investor-friendly agent to work with you! I receive requests from many “investors” who are neither experienced nor qualified ($$) and yet want me to find and hand them off-market properties. I often give them my time and energy only to have them go silent when they realize they can’t move forward. It’s got to be a two-way street! My advice would be to find an agent willing to work with you and tell them what you need. Interview them as though you’re applying for a job and see when you find the right fit. It’s a dance! 😉

Marian Huish · Answer

Good insight @George Kopp- looking forward to hearing what you decide to do and how it goes for you working with other investors!

Account Closed · Answer

@George Kopp - You're right, looks like I came at this from the investor angle whereas Carlos was asking about the flip side of the coin...regardless, yes, the webinar is still super relevant and will offer a lot of insight into what investors seek in an agent. Thank you so much for hopping into the conversation and adding helpful content for Carlos and other agents to consider!

Account Closed · Answer

Hi @Marian Huish, Thanks for surfacing this...such a great point and an important aspect of working with an agent! The webinar does have a section dedicated to the homework we should be doing as investors, including 1) what to have clarity on before seeking an agent and 2) why this behooves both parties / makes for a smoother process. I also found this blog post, What It Takes To Build an Out-of-State Real Estate Portfolio and Earn Enough to Quit Your Job. Scroll down to Navigating Relationships With Agents. This is helpful context for those diving into real estate investing, ready to find an agent: "Once you have a good agent, you should, of course, try to keep them. This means setting crystal clear criteria so your agent can confidently find what you need. For example, when Weaver was in New Zealand pursuing a deal in Omaha, she provided her agent with incredibly detailed criteria. “He knew to give me purchase price, current rent, market rent, estimated rehab, taxes, and insurance.” And that information made it easier for Weaver to evaluate the deal. Maintaining your agent’s trust also means putting your money where your mouth is. “One of the quickest ways to be sent to the bottom of an agent’s list is to tell them your crystal clear criteria, the agent sends you that deal, and then you don’t write an offer on it.” It’s important to be respectful of your agent’s reputation and time. If they’re going to reach out to their contacts for you and find off-market deals that meet your criteria, you need to be certain about what you want and willing to write an offer when you find it, or it will reflect poorly on them. Weaver also has different expectations of how her agents spend their time than she would from a residential agent. “I actually don’t make my agents walk a property unless I’m under contract,” she says, because their time is spent hunting deals."

Account Closed · Answer

Hi Carlos, This is a free on-demand webinar called Investor-Friendly Agents: The Hero on Your REI Team hosted by @Anson Young (author of Finding and Funding Great Deals) that talks about the different types of real estate agents and what to look for to ensure you partner with an investor-friendly agent that's right for you and your investment strategy. Anson gives some great tips (like finding someone that aligns with your strategy, has first hand investment experience, etc., and also gives pointers on how to prepare and get the most out of your partnership with an agent).I also recommend using Agent Finder to help you find an investor-friendly agent when you begin your search.Have a great day!

Marian Huish · Answer

Thanks for this Account Closed- much appreciated!

Eliott Elias · Answer

An agent that invests in real estate. A master negotiator, someone who knows construction and has ears on every neighborhood

Carlos Morales-Benitez · Answer

Thank you to everyone for the feedback! I was speaking more from the agent side of things. I read all of the replies and got some really good tips from them. Like qualifying the investor just as much as they qualify an agent.

Lexey Vezzoso · Answer

Thank you for this insight!As an agent who primarily works with investors I will keep this in mind when helping them find deals.