What is an "investor friendly" Real Estate Agent?

Question

I've seen many posts asking for "investor friendly" real estate agents.  What entails an agent to be "investor friendly"?

Are they suppose to know the investor lingo (ARV, CoC, ROI, etc) and present all these numbers with a potential property?  I would assume that all investors would run their own numbers to make sure they are comfortable with the risks.

If you're an investor looking for an "investor friendly" agent, what exactly are you expecting them to do that a regular agent cannot?

Michael Noto · Answer

To me, an investor friendly real estate agent can mean many things and they can wear different hats. Keep in mind I am an investor friendly real estate agent in CT and I know other markets differ.  These are the basics as I see them:

• have some background investing themselves (flipping, rentals, etc)
• know the areas they serve well so they can counsel clients on which areas best suit their investment goals
• understand that it may take an investor several offers to get one excepted, but since they have invested themselves they understand that this is apart of the game
• along with standard MLS updates, also provide your clients with the most up to the minute deals as they become available
• serve as a sounding board and give advice when asked, but at the same time respecting the investor and not overstepping your bounds.  This is very important.
• how to calculate numbers for your client when evaluating deals. Eventually you want to get to a point where you can hear certain key specifics about properties and let your client know what the numbers look like.

Nick Patterson · Answer

As a Real Estate agent and broker I can say there is no such thing as an "investor friendly" Realtor that will help you purchase a property.  Here is why...

1) The top "investor friendly" Realtors list properties they dont' work with buyers.  Typically, if its a good deal it never makes the open market.  They do a closed marketing campaign to investors they know can close.

2) Realtors only make money when they close a deal.  If a Realtor has a chance to work with a family that "NEEDS" a roof over their head compared to an investor who  just wants a "deal" there is no question they will work with the family

3) Investors are flakes, they never know what they want and the expect too much out of Realtors to help them find a "deal"

4) Most new investors want to buy cheap.  $20K homes for example, the commission for the Realtor is less than  $1000 and thats before a spit with the house.  There is no money in it vs the time.

5) Investors are flakes again - in the rare case they do buy - There is always something that goes wrong in inspection and the deal falls apart.  Again, since they don't "NEED" the property they walk away.

6) Investors are not loyal to one Realtor.  Typically they are working with many Realtors to find them "deals"  Why should a Realtor be loyal to an investor

I always tell my agents to be very careful of investors unless...

1) They are experienced and have bought and CLOSED on property before2) They are very clear in what they want and don't want to see 100 properties

Solution for investors

If you are serious about making money in Real Estate, get your own license. Be your own Realtor.  earn that commission, look at 100 properties without being dependent on one person who is going to seriously hate you. Plus you can be as flake y as you want to be.

Huy N. · Answer

An investor friendly agent is the one who actually invest in real estate - Period. If you don't invest, you have no clue what will it feel like being landlord or flipper. no matter if you have a master degree in RE or how many investment class you took.

They have to live for what they preach. I can't imagine myself trying to sell or buy property for someone without actually living through that same experience.

Neil Aggarwal · Answer

To me, it is someone that is more focused on finding good rentals.  The objectives are different for an investor than a homeowner.  They may also be a good resource to get referrals to rehabbers, insurance geared towards landlords, etc.

Doris Szczepkowski · Answer

Furthermore, investor-friendly agents usually (should have) a great team to support new investors - attorneys that specialize in REO's for example. When the bank seemingly controls every aspect of the transaction, having a good REO attorney can prevent some major mistakes.  Contractor contacts, investment insurance agent contacts and the like are also helpful to a new investor. Having the experience and ability to quickly rent your investment property for you is also something a single-family-home agent may not have.

Bryan N. · Answer

They don't set you up on the auto MLS.  Instead they email you one property to look at, because they know it fits your numbers.

Jesse T. · Answer

I think these are all great criteria.

One thing I think an investor friendly real estate agent has to know is the rental market - even it is plan B on a flip.  If all an agent can give you is the rent zestimate and wants to make sure your asking rent is above you mortgage, you have the wrong agent.

I think for pricing and offers it is important for an agent to get the investor into a reasonable price range.  If a place is owner occupied and I price too high, it means delaying moving.  For an investor, I am losing money and opportunities.  If I try to buy a home with a low ball offer, maybe I make a couple agents mad.  An investor using the wrong approach on too many offers has the possibility of being blacklisted by brokerages.

Simply it mainly boils down to looking at the numbers of an investment vs. trying to find a home you will love.

Tuan Le · Answer

I agree! I've met a few agents that are so called investor friendly but they really don't know much about real estate investing or the psychology of an investor.

Joseph Catalano · Answer

That is simple.  Someone who will listen to you and is an investor themselves.

Account Closed · Answer

I want an agent who invests in the market constantly. If you don't, sorry I am not interested.

What is an "investor friendly" Real Estate Agent?

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