How many realtors do you work with?

Question

Hello, everyone! I'm just starting my journey and wondering how many agents you guys recommend working with? Is it better to have a team of agents, or build up a great relationship with just one realtor? In my mind it makes more sense to work with a team of realtors, but the challenge I can see is that feelings could be hurt if people spend time showing properties to you and you end up buying one from another realtor. This hasn't happened to me personally, but I could see if being an issue in the future. What's the thought on this?

Chris Armstrong · Answer

The beautiful thing about buying or selling a house is that if you understand contracts well enough and know the process at all you really dont need an agent. Thant being said, 99% of people do not feel comfortable without one. I have used several different agents in the past, but now, I am getting my license to buy my own properties and help investors find the best deals. You would be surprised how many agents have shown me what they thought was a good deal.....only to find out after looking myself, that it was a steaming pile of crap.

Mike Cumbie · Answer

@Nathan Churchill,

Letting many agents know what you are looking for in their area just makes sense. We see items come across our desk many times a day. Many times I see something and say "Oh wait this looks like something (insert investor name) deals in" and I give a call. I don't expect that investor to only be dealing with me, but I do expect that if I present a property and they like it that I get the sale. If not then I can assure you that when things pass through that phone call does not happen again. If some other agent points you at something and you buy it from them I have zero hard feelings.

Contrary to @Doug Pretorius and his views, not everyone considers the same thing a deal. There are areas I know about and areas I do not invest in. I know investors that won't touch a place with a septic and some that own an excavation company, they laugh all the way to the bank when they get the place everyone else passed on. I turn down opportunities quite often, but knowing who to show them to is smart business. There are tons of properties where the investor "does not want to list", but if I bring a buyer I get a commission. If I know you are looking I will happily take you in and use everything I know about that seller to your advantage. They don't want the MLS fees, but will pay a buyers side, that just means less competition for you and me to worry about.

So in short, let everyone you meet know that you are buying XYZ type properties that meet the following criteria....

Just my 2 cents and good luck.

Payton L. · Answer

Hi Nathan! I'm still pretty new to REI, but I thought I would respond. I am currently only using one realtor, and she is amazing. I made sure to give her a detailed description of what I was looking for, my price ranges, as well as a basic idea of what I was hoping to accomplish. I am about to close on my third deal with her, which she found for me in another county over an hour outside of the area we are currently purchasing in. She also got us in the day it hit the market and we made an offer that same day. (it was a great deal) I'm not sure that I would have received that sort of attention if I had used multiple realtors.

As long as we're not expanding our search area too much farther I feel very comfortable depending on her.

Scott Raley · Answer

Great question. I earn a living as both a realtor helping my clients build wealth through investing in real estate and as a flip investor. I do believe its your interest as an investor, to be open to having more than one real estate agent bring you opportunities to invest in. If you embrace that investment plan, its very important you communicate that, up front, to the realtors you want to work with. Let them know you plan on working with more than one realtor. By doing so, your communicating your business plan . If the realtor has a problem with that, you can decide how to proceed. Realtors love investors who reward good behavior. Good behavior means you follow up on presented opportunities promptly and follow through if you decide to purchase. No games...have your financing dialed in and perform if you get into contract. If you plan to flip the property and the agent does a good job on the purchase, you reward that agent with the listing when your ready to sell the property. If your flipping, budget in a fair commission on your exit model so your not squeezing the realtor who brought you a profitable investment.

Happy Investing !

Nathan Churchill · Answer

@Mike Cumbie - great point! Perhaps it would be best to just state up-front that I'm working with multiple realtors depending on the area. Right now I'm only working with 2. One is for in the city and the other is for the more suburb/rural areas.

Nathan Churchill · Answer

@Doug Pretorius thanks for the insight. This is definitely a unique perspective that I hadn't considered. My thoughts towards real-estate agents has always been that it's all a big game and whoever works the hardest to find and secure the deal gets the reward. Granted, I'm new to this, but I think there's some merit to your point and I'll definitely take it into consideration!

Doug Pretorius · Answer

@Nathan Churchill In my opinion, working with agents is only for people who want to play 'investor' at dinner parties, and brag about that one rental they have across town. It's not for serious investors who want to make real money or turn investing into their business.

I've had dealings with over 700 agents over my 20 year career and have never met one who knew what a deal was or how to find one. It's very simple. Agents work in the retail market with sellers who want to sell. Serious investors work in the wholesale market with sellers who need to sell.

The only possible exception is an agent who uses their license for their own investment purposes. These agents don't work with clients unless they're just doing a favor for a friend, or they're listing a property they don't want to buy themselves. It makes no sense for an agent who knows how to find deals to pass those deals on to someone else for a pittance.

Kyle McCorkel · Answer

@Nathan Churchill

I would say so far it's too soon to tell, honestly.  I just got licensed in June and am still working on freeing up some capital before I can go look at properties and make offers.  So far, it is definitely really nice to have access to all of the tools and resources, the MLS obviously being first and foremost.

Nathan Churchill · Answer

@Kyle M., thanks for the information. Have you found that having your realtor's license has been worth it for you?

How many realtors do you work with?

Most Popular Reply