What to look for in an RE Agent?

Question

Hi everyone.  I've been enjoying reading the forum for a week or so and appreciate everone's great help here.

I'm new to investing.  I do own my own office building that I bought with seller financing and split into 3 suites.  We did this without any agents.  It is a true asset now and I'm ready to do another project.

I found a 4-plex that I am very interested in.  I'm actually ready to make an offer.  I need a Real Estate Agent.  What should I look for when selecting one?

Thanks, 
Mark

Account Closed · Answer

To be successful in real estate, you need to be detail oriented, a quick learner, and have excellent interpersonal skills.

Tony Severino · Answer

Mark
When interviewing an agent, I would ask them if they have any income property themselves. In my experience, there is a big difference in the way agents that are investors and non investors think.

Tony Severino

Ross Hair · Answer

Hi Mark,

Out of 10 agents, 5 will hurt your business, not help it, 3 will add no value, 1 will be helpful and 1 will actually be of benefit to your business.

I highly recommend that you find a successful investor in your area of investment and find out who that investor uses as an agent.

You'll find that the successful investor uses multiple agents - many for finding deals, one or two for selling deals.

Shubhranshu Agarwal · Answer

You must look at:
Availability of agent
Client list
Kind of property he deals in
Market reputation
Legal status
References of the people to whom you know well

Dwan Twayford · Answer

Good thing you were able to find your agent, good luck for both of you hope you can come out with a great deal to start off officially.

Mark B · Answer

Fredrick,
Thanks for the help.  I found an agent that is also a multi-family investor himself.  This seems to be a good move.  He understands where I am coming from.  
M

Frederic Petit · Answer

Hi Mark B.

Just a precision.

For a residential real estate transaction, real estate agents have in some states some pre-written contracts where they have to fill out the blanks and check some boxes if you choose to use the contingengies on the contract or not. They can also add some extra contingencies that are not on the contract but should probably consult a lawyer to know exactly how to write them.

Real estate agents cannot write a contract from scratch, it would be practicing law and unless an agent is also a lawyer they cannot write anything themselves or could be held liable for it if something happens. In some state, agent don't even have the option to fill out a pre-written contract, the contract has to be written by a lawyer.

In a commercial real estate transaction, there is no pre-written contracts. Anything agreed upon between the buyer and the seller has to be written in the contract and an agent cannot write such a contract. If you are looking for someone to write some custom contracts for you, a real estate lawyer might probably be more what you are looking for.

A real estate agent might be able to help you locate properties and if he is an investor himself or know how investor think, he might be able to bring you some deals that could fit your criterias but you will be the one who has to decide if a deal is good for you or not.

Mark B · Answer

@ J Scott, thanks for the clarification.  I get all that.  I wanted to work directly with an owner on a deal, like island was talking about, but this deal looks good (short sale for about half the value on the street) and I guess my question is, are there buyer's agents that are better than others?  I'm sure the answer is yes.  I'd like to start a relationship with a buyer's agent that understands an Investor's point of view.  So what do you look for in that agent, or better yet, how do you find them? I wish there was a RE Investing Club in my area, but no.  Thanks for all the help.  I'm curious, do you have one agent that you work with, or many?

@ island, sorry for the "dribble" comment that came off more harsh than I intended.  I am the first to admit that I am a newbie and have plenty to learn.  This will be my 4th RE purchase (home, vacation home/rental, office building) and this is the first one that I will not use personally.  I read Rich Dad, and now reading The ABCs of RE Investing.  I know that I can read more and learn more, but in truth, most is learned by "doing".  Where do you suggest I find the non-MLS deals?  Courthouse steps?  I heard it's crowded down there these days.  Other ideas?  Thanks for your insight and help.

It is interesting to see the differences in responses here.  J recommends finding a good agent and island says if an agent is involved, it's probably not a good deal.  I guess I'll have to find my own way.

Looking forward to the ride,
M

Jose R. · Answer

Mark, the â€œphilosophical dribbleâ€ I was referring to was about learning as much as you can.  Based on the fact you are talking to a sellerâ€™s agent, I think itâ€™s safe to say this is a listed property.  (Mistake number 1).

TIP:  The only reason you should use the MLS is to pull your comps. Not look for deals.

You asked if â€œit's normal for an investor to deal directly with a seller's agent?â€  The answer is NO.  You deal directly with the owner.  (Mistake number 2).

If your offer is not full price all cash, most Agents will frown on your â€œcreativeâ€ offer.  Your market may be different, but in my market, the unwritten rule is: â€œIf itâ€™s on the MLS, itâ€™s not a deal,â€ the other rule is:   â€œIf you bought it on the MLS, you paid too much.â€

I have to give credit where credit is due.  The first deal you did was OUTSTANDING!  Iâ€™m willing to bet the ranch, you wouldnâ€™t have gotten such a sweet deal had there been agents involved.

Jose R. · Answer

Mark, shoot me an email at [REMOVED] and I'll send you a contract you can use.