Should I be an investor-friendly real estate agent?

[Kelly Choate]

Hi everyone,

Ok, here is today's question: I have seen a lot of posts on BP about "investor-friendly" real estate agents. Some people say that agents don't understand investing. Others say that agents won't waste their time working with investors. Still others say they have a great agent that they work with all the time. BP has an ebook about how to be an investor-friendly real estate agent.

So, what's the scoop? I live in Michigan, and am about 40 minutes away from Detroit. I will be able to practice all over the area, and there is a lot going on. Is this a viable avenue as a new agent? Does it/can it work?

[Michael Noto]

The large majority of residential property (1-4 units) "investors" are a complete waste of time for an agent and will never buy anything.  Sorry to be blunt but that is a fact.  They will just waste your time.

To avoid wasting your time make sure the buyers are pre-qualified for financing at the least and if they say they are paying "cash" ask to see a proof of funds from the get go.  Either will need to be submitted with an offer anyway so to go look at properties with someone who has no money, no access to it, or no access to financing does not make a whole lot of sense to me considering the only way you get paid is if they buy something.

Then just take it from there and just make sure what they are looking for in an investment property is even possible.

In other words make sure they are worth your time before you dive in and give them your all as an agent. Someone who is serious should already know you will be asking for a pre qual or POF and will already have a reasonable plan in place.