Ethics Regarding Agents

[Quentin Thiery]

Hi BP,

I am a new investor who is currently taking the RE license course in NY and looking to house hack my first property soon (getting the reserves up at the moment). I've been speaking to a couple of agents in the area i'm looking to invest in but before I really start to dive into questions for these agents, what is the "protocol" or maybe unsaid rule in the real estate community about how much you can ask a real estate agent before it's unethical? For example, asking questions about the market and getting feeds from the MLS and so on can be great to maintain connections and get a tap onto the market, but I certainly don't want to appear to be trying to take up people's time - and multiple agents too - by "asking too many questions" or overall just taking up a certain amount of someone else's time with no indication that I would work with 1 specific realtor over another. Does this make sense? realizing the wording is kind of tricky to write out so apologies if this seems to be a ramble. I am eventually going to become an agent so this can be helpful for me to know but overall just trying to gauge what is considered good business practice when it comes to multiple agents offering you advice, leads, answers, etc.

[Bruce Lynn]

@Quentin Thiery  One thing you might do is attend investor meetings, local REIAs or meetup groups vs pounding agents with questions.  Typically there are plenty of agents at these meetings and they're designed to network.   Plus you'll meet other people too.

If you find an agent you like and you're asking for a lot of their time and expertise, add them to your team, especially for that first transaction.   Don't be your own first client.  Real estate school gives you the bare basics, not the expertise you want on your side for your first transaction.   Let them walk you thru in and earn their commission.   Over and Over I see both people who just want to get their license to try to save the commission on their primary home, and also new investors who want to try to save/earn that commission and from what I see they are often their own worst enemies and rarely get the deal they're expecting.   They know just enough to be dangerous to themselves.  So don't be that guy.

Another idea is to have them walk you thru the transaction if you get your license and split the commission with them.  Pay them for their knowledge and expertise.  I appreciate your thoughtfulness.  Seems like lots of people are not doing free work any more, like contractors giving bids.  Several of my contractors charge for the bid, and give a credit if they get the job.  Too many times the good contractors give a bid, then that bid is used to go out and hire cheap contractors for less money.  Things like that.  Kind of like the plumber and electricians that now have minimum service call fees.  Many lawyers in my area also now doing the same.  No more free 30 minute initial consultation....up front fee of $300-$500/hour and maybe some kind of credit if you give them the case/work.   Appraisers do that now, collect the fee up front.   Some lenders want fees up front.   Realtors I don't see it yet, but maybe one day.   I see you are interior designer.....do you do any free work up front for clients?   If so, what kind of time limits or information will you give before giving up or wanting a fee.   Not really fair for me to spend a few hours of your time, get all your ideas and concepts, then dump you and go buy everything on my own. (Not like I could ever do that, as I have no design expertise and would mess it all up....it would never come out the way you envisioned....I'm sure there are people that try though.)

Best wishes on the house hack.....still a great way to get started.