How to become an investor-friendly agent

Question

I have had investors contact me recently, but they are new. Some of the jargon is unfamiliar. Their methods of determining whether it's a good value differ (i.e., ARV - I understand this method). Also, some base their offer price on the repair price (i.e., $50/sq ft - seems too low), which makes no sense to me. I'll tell them how many houses we should see, i.e., 4-5 homes, and I'll get a list for over 20 houses! Are there any resources here that can help me create an investor-friendly agent environment so I'm not turning away investors due to misunderstandings on both our parts? Thanks for your responses in advance.

Holly Barrett · Answer

@Tim Jurik it really doesn’t make a lot of sense from the realtors time perspective to gather ALL of those items if the property isn’t of interest to you or it doesn’t fit your parameters from a quick glance. Typically we are moving so fast trying to get your eyes on properties and also you are probably set up on auto searches where we aren’t combing through every detail before the system sends you the listing.

Gathering all of that info before even presenting to you a) could become another full time job with zero return b) could lose you the deal due to not acting faster whilst waiting on rent roll that may never even come! Rent rolls aren’t always relinquished by the seller, some of them don’t have them even prepared. I think your expectations are slightly off respectfully.

Caleb Brown · Answer

As an agent you need to understand deals and how to analyze them.  What I mean by that is learn the different areas and sub markets. Learn what the rents and ARV's are in various areas. Investors hate when agents set them up on auto emails and send junk deals. Also have relationships with a few GC's and PM's. These are vital for investors. I look through listings on or off market and then send them out with #'s. Then I check them out(most of my clients aren't local). During inspections you do due diligence. That could be inspections, getting scope of work, chatting with various PM's, etc. If there are any meetups attend those. As you learn you'll grow and be able to help more clients.

Nathan Harden · Answer

Working with investors is not easy. You think regular leads end up being flakes, there are more "investor" flakes out there than primary residence flakes.

That being said. Just know your stuff. Not every investor is going to be new that calls you so just make sure that you are aware of all the terminology and understand how to find what they are looking for and boom. Winner winner

Cora Gilmore · Answer

Hi @Jacqueline Gonzalez,

I was wondering the same thing, but more on how to get on Bigger Pockets list of Investor Friendly Agents:). I have been a Landlord, Realtor, Flipper, Broker, Entrepreneur for 20+ years now.  But I want to get in front of more investors than just what my RE business brings.  I do honestly think it is listening to what the Investor wants and if you don't understand something diving into how to understand it.  Whether that is bringing someone on that is more experienced and offering some of your commission, "Cheap Education " if you ask me.  Or going to down the online rabbit hole of you tube and google.  If you take the time and ask the questions, ie: of GC's, property managers, flippers.  Most are willing to give good advice if you are willing to do the work in finding out the resources.  There are a lot of different kind of investors out there and your title company has to understand what they are doing as well as the agents on the other side if it's an on market property.  I hope that is helpful.  I am just starting on this platform so I appreciate that everyone here talks the same shop:). Reach out if you have questions on the "jargin":). I feel the more specific you are the easier it is to get to the answer.

David Sigler · Answer

Hey Jacqueline!

I have been a passive investor for several years.  I typically buy or sell from my own portfolio once every two or three years.  I tell you this to illustrate I am not, by any means, an expert on investing.  But I'm comfortable with numbers and dealing with agents.  Echoing some of the sentiment expressed from other investors, I get irritated with agents who don't listen to what I am looking for and simply set up auto lists of houses that don't meet my criteria.  My best advise is to simply listen to your investor and tell him or her if you can provide the level of service being asked for.  If the investor is looking for cash flow, don't send them houses that cost $800,000 and rent for $2,000 per month.....not going to work unless you put 60% down, which most investors don't want to do.  That's my two cents!

Good luck!!!

Jeff Roth · Answer

Hi Jacqueline-

Great questions and I also help investors as an agent in Michigan.

Typically, I work with investors that like a particular area I have written content about and have shared on Facebook real estate investor groups in those areas or posted on my website.

Then, I work with them to define their investing goals and specific buyer criteria so we are only looking at properties that fit that.

It has not been a problem working with investors after defining their buying criteria because only a few properties will meet that criteria.

To your success!

Holly Barrett · Answer

Wow. Anyone else want to chime in? As an investor myself, I'm well aware of "how" to gather the information, I think you seem to have missed my point. But let's end it there.

Eliott Elias · Answer

Number one on your list should be negotiation. Investors pay investor pricing, what that means for you is you’re going to have to negotiate your way into a lot of good deals.