Why Do Real Estate Agents Flip with I Mention Flips?

[Jarid S. Johnson]

I have been attempting to create a network of real estate agents and brokers who might feed me potential deals with the intention of providing monetary compensation for their efforts. It seems however, a lot of agents with whom I speak glaze over when I tell them I am an investor looking for undervalued properties to fix and flip.

Common reactions are “isn’t everyone?” or “there are no deals to be had in this market” or “I don’t want to work for free,” or, once I tell them I’m already working with an agent, the conversation stops all together.

I have a broker with whom I am currently working. We have an understanding that he will represent me as my agent on deals. He set me up with an automated listing service that I can customize with keywords to find undervalued and distressed homes in my market. I find a property, drive by and look at them, check the neighborhood etc.; he provides seller’s reports so I can better analyze the deal; if something looks good, I get my contractor involved and we all talk about it.

My agent and I also have an understanding that I need to network with other agents to increase my deal potential, he gets that. What I find is other agents aren’t interested once they know I’m already working an agent.

I see the term “investor friendly real estate agent.” Am I to presume that many agents prefer to work retail only, but others are also interested in working with investors, as is my agent?

What is the proper approach or etiquette for talking to agents about networking with them to find fix and flips?

What kind of monetary incentive will agents expect if they feed me a property? At that point do they want to be my buyers agent, making the offer and receiving the commission, or do they just want a finders fee if the deal goes through? Perhaps it’s different for each agent?

I am interested to better understand the relationship between investor and agent.

Thank you.