Who Runs the Initial Numbers

Question

Hi All,

Curious about your process when working with an agent. Does your agent typically run preliminary numbers for you and determine if a property is/could be a good deal and send it to you or do they send you many properties that fit your range and let you do the rest.

I feel like I've heard people on the BiggerPodcasts say their agent will send them a specific property, outline repair costs, provide rent estimates, etc. Then the investor fact checks the numbers on their own and decides if s/he wants to make an offer.

Joe Norman · Answer

As with all other professions, the level of service you receive will vary greatly from agent to agent.  I generally identify 5-10 properties a week that could be good flips and send them out, along with comps to support my ARV estimate, to my Baltimore area investor clients.  What I don't do is bird dog properties for any one specific client, although I will certainly help with running comps/etc. if they have a deal they are interested in.

Bottom line is that if you're not satisfied with the service you're receiving then go back and have an expectations conversation with your agent.  If you're still not getting what you want then find someone who will provide it (or reconsider whether or not your expectations are realistic).  Good luck!

Anthony Wick · Answer

@Bret Habura

If your agent has time to run all those numbers on each potential property perhaps they aren’t busy enough actually selling and finding houses. I always give my agent a price range and some criteria such as multi family, number of beds, area, a rough “1% rents to purchase price” thing, etc. I run all my own numbers.

Ozzy Sirimsi · Answer

The thing is typical agents would sell or buy a residential home and many of them either would not know the specifics of what I am looking for or they don't want to get into details to be safe. You are looking for an investor/ agent who know investing, who knows repirs etc... and they are not going to be cheap or free.

Why would anybody go in bunch of houses, check them out, give you repairs etc.. hoping that you might buy that house, I would not. If you are willing to create that relationship and may be even pay them a little, you would find an agent who can do all that.

Frank Wong · Answer

@Ozzy Sirimsi

Bam Ozzy nailed it. Read his post. I would add.  Why would you trust someone with your money to analyze the most important parts of investing?  I get it, its the easy road but if you truly want to make money in this game and take your investing to the next level you gotta do all the important things yourself.

Theresa Harris · Answer

Unless you are doing high volume, I would not expect my realtor to run the numbers.  They can look at places to do a quick check as to what it would rent for and mortgage payments, but that's about it.  And even then, if they know your price range, it is pretty quick for them to do that.  Repairs and all the other stuff, nope.

Account Closed · Answer

My realtor sets up the searches and if she gets a deal off market that she comes along she will pass it on to me.  But she doesn’t run numbers for me at all.  That’s my job. Honestly surprised any realtor has time to do that for people.

I run about 3-5 numbers on properties daily, some for practice and mostly to find a deal.  It’s slim pickings in my area right now.  No reason to have them do work when only 1% of the properties are actually deals

Solomon Morris · Answer

Don't think at this point in my investing career I'd trust anyone outside myself (I own 2 units) even through there are plenty others with more experience than myself.  I'd have no problem asking someone to verify my assessment but confidence in my own due diligence builds stronger as I run the numbers and  continually evaluate myself.

Michael Noto · Answer

@Bret Habura Show the agent how you plan on paying for a property and have some sort of criteria you are looking for in an investment. These are little things that will show them you are serious about purchasing.

Sam Shueh · Answer

I ran the number for clients only initially. However, if I find a good deal cap rate of >6% in Silicon Valley where it is typ 1-2% and investor does not move. I write contracts for others who are more qualified and ready. Rent, cash flow etc is in buyers department. Also if they expect 1% rent I tell them it was way higher many years ago.

In all cases if they can not produce proof of funds or preapproval letter I do not show them as viewing inside often requires these documents.

Bjorik Mutize · Answer

Only a select few residential agents that will physical run numbers and returns for you. Their job is to bring you consistent stream of leads where you do your research based on your own criteria, to figure out if it is a good deal or not

Who Runs the Initial Numbers

Most Popular Reply