Partnering With An Investment Realtor

[Zackarias Aitchison]

Hey! 

I'm curious about what questions you should be asking a realtor who is going to help find you investment properties. 

What questions should I be asking the different investment realtors I'm looking to work with to make sure that they know their stuff and that they can actually help me find the investments I'm looking for. 

I'm curious what specific and detailed questions/strategies I can use to weed out the good from the great,

Let me know, Cheers!

[Jared Hottle]

Depends on what type of investing you are looking at doing. For the BRRR strategy I think the agent having done a BRRR before is important as they will have good connections to property management, contractors, lenders who are familiar with the strategy, etc.

I will say that as an agent it is a breathe of fresh air when you at least have researched and called some of these people beforehand and do not expect your agent to do all your leg work for you. I think they are great resources to ask your opinion on a certain contractor or lender etc from your research. 

Also as an agent I think it is fine to interview agents when you are just starting off but just know you likely are not going to get the keys to the kingdom of the rockstar managers, bankers, contractors if doing so. At least not right away. Agents only get paid when you close so if you can prove you are someone that will pull the trigger when the deal you said you wanted is there, that is when you will start building some great trust and even get more from a rockstar agent. 

[Jared Hottle]

Depends on what type of investing you are looking at doing. For the BRRR strategy I think the agent having done a BRRR before is important as they will have good connections to property management, contractors, lenders who are familiar with the strategy, etc.

I will say that as an agent it is a breathe of fresh air when you at least have researched and called some of these people beforehand and do not expect your agent to do all your leg work for you. I think they are great resources to ask your opinion on a certain contractor or lender etc from your research. 

Also as an agent I think it is fine to interview agents when you are just starting off but just know you likely are not going to get the keys to the kingdom of the rockstar managers, bankers, contractors if doing so. At least not right away. Agents only get paid when you close so if you can prove you are someone that will pull the trigger when the deal you said you wanted is there, that is when you will start building some great trust and even get more from a rockstar agent. 

[Zackarias Aitchison]

@Jared Hottle

I like what you had to say here...

Experience is worth its weight in gold, but the one thing you said that I haven't really been hearing from anyone else is that the relationship with a realtor is a two-way street. 

A rockstar realtor isn't going to be bending over backwards for someone who expects the realtor to do all the work, or for someone who hasn't proved that their serious about investing and pulling the trigger. 

That's a really unique perspective, I appreciate the input Jared, Cheers!

[Dylan Bennett]

Hey @Zackarias Aitchison

Like Jared mentioned, it depends heavily on the type of investments you'll be doing. I would say the best fit for you would be an agent that has had experience in a specific investment strategy. I.E. - If you want to flip, find someone who does flips. I say all of this to also say, do your own research beforehand. Don't expect realtors to answer all of your questions. Realtors are a great resource, but like Jared mentioned, realtors only get payed once a property closes. 

Agents are not able, nor do they have any desire, to do the investing "for" you. Realtors are part of your team. It is important that you find your own team, and if an agent recommends someone then you can interview them. We can be a valuable resource to help you find deals and provide you info to hopefully prevent you from getting into a bad deal.

[Dwayne Poster]

Quote from @Zackarias Aitchison:

Hey! 

I'm curious about what questions you should be asking a realtor who is going to help find you investment properties. 

What questions should I be asking the different investment realtors I'm looking to work with to make sure that they know their stuff and that they can actually help me find the investments I'm looking for. 

I'm curious what specific and detailed questions/strategies I can use to weed out the good from the great,

Let me know, Cheers!

 Asking this indicates you are new to the game. First question to Realtor, are you willing to work with a newbie at the real estate investment game?

You are querying how to know if an agent can help you find the investment you are looking for. The second question. Can you find the investment I am looking for?

You want find the great over the good. Third question, can you recommend a great investment orientated Realtor.

One thing that I always do when conversing with someone new, I ask them for a referral to some related service. Who they associate with is very telling.

[Zackarias Aitchison]

@Dwayne Poster

You got me, I definitely am new to investing, 

But I appreciate your post because it really helps highlight what the relationship between and an investor should be like. 

A realtor is not there to invest for you, they're a team member, someone who can help you make a decision AFTER you've done your own guided research. 

I found your comment really informative, thanks man! 

[Matthew Irish-Jones]

@Zackarias Aitchison if you talk to an investor focused realtor you will know in the first 30 seconds.

They will know cash on cash returns, Cap Rates, Rehab costs, property management law, vacancy rates, strategy, etc…

They will also have an introductory phone presentation ready that answers most of your questions before you ask them.

[Drew Sygit]

Why would an agent with investor experience, connections, etc. give a newbie access to their best deals?

They won't!

They'll give them to their best current clients.

So, logically, you'll be stuck doing one of the following:

1) Begging that agent for stuff no one else on their list wants. These will be "skinny" deals, but will get you on their list for future better deals. Just be prepared that they might throw you something that's not a deal to test you.

2) Working with agents that are used to dealing with owner-occupant buyers/sellers, so they'll have no clue if somethings a good investment. You'll burn through several of these before you either get lucky or figure out it's a big waste of time dealing with these types of agent.

3) Start attending investor networking events and connect with other investors/agents. As you establish creditbility, they will share better deals with you. You'll also accelerate your education!

4) Pay an experienced investor agent. Their time is valuable, so set up a retainer with them that would go towards any purchase you do with them. That will get their attention!

Put yourself in an agent's shoes to better understand their reluctance to spend hours working with a potential buyer - that ends up just wasting their time.

Good luck! 

[Bryan Martin]

Find out who the best in your area are and try to work with their team if they're not available.  If you find a hungry newbie agent that is in a similar position to you on experience that can be worth it's weight in gold.  Having them being under one of the best agents in town is even better because then they'll have access to someone that has seen a lot and can help them with things like negotiation.