Vetting an Agent for Flips/Value Add

[Calvin Graves]

New investor here, looking to get started on flips and value add projects in the Denver area.

After spending many hours buried in property records searches and financial spreadsheets, I've determined the best way to move forward is to enlist an agent who caters specifically to buyers looking to capture value from rehabbing run down and distressed properties. Confident as I am in my ability to manage the projects, I simply don't have the depth of market knowledge or transaction experience to do my own deal sourcing (yet!). 

I intend to seek referrals at local investment community meetings, as well as my own network, but I want to make sure I find an agent who plays this particular game - rehabs, foreclosures, auctions, etc. 

To that end, does anyone have advice on what questions I should ask prospective agents? Specific experience I should seek out? Red flags to avoid?

Any pointers, or local referrals, are most welcome. Thanks!

[Abel Curiel]

Quote from @Calvin Graves:

New investor here, looking to get started on flips and value add projects in the Denver area.

After spending many hours buried in property records searches and financial spreadsheets, I've determined the best way to move forward is to enlist an agent who caters specifically to buyers looking to capture value from rehabbing run down and distressed properties. Confident as I am in my ability to manage the projects, I simply don't have the depth of market knowledge or transaction experience to do my own deal sourcing (yet!). 

I intend to seek referrals at local investment community meetings, as well as my own network, but I want to make sure I find an agent who plays this particular game - rehabs, foreclosures, auctions, etc. 

To that end, does anyone have advice on what questions I should ask prospective agents? Specific experience I should seek out? Red flags to avoid?

Any pointers, or local referrals, are most welcome. Thanks!

Questions:
- How/where do you source potential deals?
Most successful investor-friendly agents get their deals from multiple sources i.e. lead generation efforts; auctions; past clients; local network; active investors/wholesalers; other brokers; online marketing/advertising efforts; bandit signs; direct mail; etc 

- What do you require in order to take on a new client?
i.e. proof of funds, pre-approval letter, signed disclosures, etc
- What experience do you have working with house-flippers, and other investors?

Red flags:
- An agent who doesn't focus a significant amount of their efforts (active or passive) sourcing deals.
- An agent who will work with you right out of the gate with minimal screening questions. This may mean they "work" with just anyone and won't dedicate much time to your search.

For local referrals, check out BP's Agent Finder tool or contact Craig Curelop!

All the best!

Abel