Best ways for Agents to help Investors?

Question

Hello BP community,

I am a RE investor as well as a newer RE Agent. I’ve already helped several people purchase homes and I’m now looking to start helping investors in my area. I live in the greater Seattle area and would love some feedback on ways that an Agent such as myself, can help out investors.

Thanks!

Jess Haas · Answer

I think the biggest way you can help other investors is bringing your experience. A lot of agents out there don't know what makes a good investment. They are there to close the deal, make the commission, and move onto the next client. It's a shame when investors use retail real estate agents... To me there are 3 things investor agents should help their investor clients - Know your numbers, share your contractor contacts, and help them move toward getting the units rented.

1. As an investor agent you should focus on making sure their purchase is a GOOD investment. It means running lots of numbers on rental income(not just using pro forma rents) and projected expenses(does the house need a new roof soon?). You need to know Cap rate, GRM, CapEx inside and out for the areas you are looking so that when you see a property that has great numbers getting your client in to see it right away.

2. If you have experience renovating homes and working with investor friendly contractors that is a HUGE asset. Retail contractors can kill cash flow. Right now it is hard to find good contractors because they are so busy!

3. In Seattle, there is a lot of legislation popping up that can leave a landlord dizzy. Staying up to date on where Seattle is at and where it's heading and sharing that info with your clients. Share how you screen tenants and what your criteria are for applicants.

If you do those 3 things you will be able to help them secure an investment property, make necessary repairs(at a decent price), and get the place rented and cash flowing. They won't hesitate to buy their next property with you :)

Jonathan Greene · Answer

You have to be part of the 1 percent to work with investors and it helps if you are also an investor. It's great for any agent to add an investor or two to their client list because investors can do multiple deals per year while regular buyers do one deal every ten years on average. True investors don't want you to waste their time and they want you to find them deals off-market. They know a million realtors and some have access to the MLS so setting them up on a drip is for babies. You also have to know repair costs and know how to spot a gem that's been sitting around. You have to always be networking so you can be a connector for them as well. When their plumber goes AWOL, you need to have one for them. I agree with Jess Haas above that you need be ahead of landlord issues like where Airbnb is going to 30-day mins, etc., as well as ahead of the development trends by going to city planning meetings.

Drew Sygit · Answer

Eveyone has posted great advice, but let's be a bit more basic and flexible:

ADD VALUE

That's it.

This will mean different things to different investors. It's part of your job to extract this information from investors, and since many don't know how to really communicate this, we do mean extract.

Suggest you also NEVER forget to put a price on your time!

Investors will monopolize your time and then buy nothing or buy from someone else that, "found them a better deal". They have no loyalty, nor should they. So, practice your spiel to be efficient and set boundaries for your free advice & work. Tell investors upfront what those boundaries are and that exceeeding them will cost upfront, nonrefundable fees - credited back to them if they purchase a property through you:)

Tell investors who complain that you are so busy you had to put these boundaries in place to only work with serious investors. Most serious investors will respect this as they value their time. Nonserious newbies and penny-pinchers will remove themselves from your circle and you will be more profitable in the long run.

Dan Portka · Answer

@Kobe McDaniel I'm in a similar boat as you. I'm focusing on just making myself available as a resource for anyone and everyone. As an investor yourself, you know how to run numbers, have a network of rockstar lenders/contractors/PMs, know how to negotiate with sellers, know what to look for in an investment property vs retail, know what neighborhoods other investors are active in and have potential upside, and understand the emotional side of investing as opposed to retail.

Share what you've learned.

Brandon Vukelich · Answer

Here are a few tips I keep in mind.

1. Find them off-market opportunities.

2. Connect them with opportunities outside your service area (i.e. Eastern WA, other states).

3. Help them look beyond the financials for a deal.  Understand the job, income, population growth and demographics of an area. Also, knowing the anti- or pro-landlord policies in an area/city.

4. Assist them with due diligence and know how to be thorough about it.

5. Align them with solid vendors such as property management, if they are wise enough to hire one.

Also, owning your own portfolio of properties helps show that you have experience.  Best wishes on your journey as an agent!

Joe Norman · Answer

I think the #1 thing you need to do to make yourself invaluable to investors is to source them good quality deals. Network with wholesalers, market to off market distressed properties, and don't sleep on the MLS (be sure to screen what you're sending first, don't just set up serious investors on drip campaigns unless they ask).

Sherief Elbassuoni · Answer

@Kobe McDaniel, being an investor yourself will help you a lot. Most investors need your experience running numbers, rehab cost, expected cash flow, ....

I am an agent here in the Seattle area, and I have 17 transactions in the first half of the year. Till now my clients reach out to me to ask about screening tenants, lease vs Airbnb, handyman or contractor contact info,.....

Aaron Nelson · Answer

As an active agent and investor in the Greater Seattle-Tacoma area, I try to add as much value  as possible and to adjust my approach based on my client’s goals.

Know your numbers and be a resource to help them understand the pro’s and con’s of each area/property/opportunity.

Best ways for Agents to help Investors?

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