Do I Have the Right Real Estate Agent

[Rudy Cecere]

So while researching I have heard that the best agents are ones that have investment properties.  I followed this advice and just had a meeting with an agent that I know that has 20 units and owns a bed and breakfast.  During our first meeting moments ago I expressed my game plan: I am for looking for a multifamily in the 100K range and would like to rehab up to 150k.  I would like to be in up and coming area and am looking for a good deal (possibly something that has been on the market for a while so I could submit a lowball offer).  I told him my absolute max is 200k and really only wanted to go there if there was a screaming deal.  

During this meeting it seemed like every time I talked about the two up and coming areas I am interested in he brought up negative stories about those areas, and he seemed to always loop back to this property that is selling for $199,999 but still needed some work. Also when talking about financing I said I wanted an FHA 203k but said they're a huge pain in the *** and I should go conventional if I can. He was also talking about how fast some of the houses on the market are selling and how he overbid on new listing for another client by more than 10%! From my experience of checking the MLS multiple times a day it seems like houses aren't moving as fast as they were a year or two ago and many listings have actually dropped their prices more than once.

Long story short, I would love some feedback on whether this is valuable advice and I am just being naive?  Or, is this agent just better suited for regular buyers and not necessarily investors?  Thank you in advance for any answers, and just so everyone knows this agent is a wonderful person and I would like to work with them, but at the end of the day I am buying this house for an investment.

[Andrew Johnson]

@Rudy Cecere Unless someone here know the area you live in, those two neighborhoods, etc. we won't be able to tell you if the real estate agent is giving you great or bad advice. The irony is that the easier thing for the real estate agent to do would be to say "sounds like a great plan" and then put you on an email drip campaign with MLS listings that meet your match. I can't imagine it's a good time for a realtor to say "Hey, those cheap areas you think are up-and-coming...well...they aren't." And, not for nothing, but anything that's old/stale/etc. is probably sitting on Realtor.com/Trulia/Zillow/etc. You can see the days on market, you can tell the realtor there are 3 properties you want to visit, you can ask for his/her opinion those three properties pre or post-visit.

Now I hate the "properties sell fast" line as much as the next guy, even when it's true.  We all know it's a "hot market" and nobody needs a realtor to beat it into their head.  I roll my eyes when I hear it and, frankly, it's usually comes across condescending.  Conversely, it's a hot market!  That's why *good* realtors won't waste their time with a potential client that wants to make a bunch of low-ball offers in the hope that one will be accepted.  There are better ways to spend their time.  

So here's what I would do in your shoes.  Go on Zillow and look for *SOLD* properties in those neighborhoods in your price point.  Some of those sold properties will have been on the market for 7 days and others for 7 weeks.  Either way, you have a good idea of what the free market is willing to pay for properties.  If you find 3 deals you would have paid what the buyer paid then it's simple, go to the real estate agent and say "I'd love to clone these deals!"  It might take 3 months or 6 months to find something comparable but you have an achievable goal.  If you look at 3 months of sold properties and you think that "everyone overpaid", well, ummmmmmm...start your direct mailing campaign?