Working with a real estate agent for investment property

[Chase Freund]

What kind of expectations do investors have with real estate agents when using one to help them purchase an investment property? 

Vice versa what are the reasons that some investors prefer to not use one when buying investment property?

Personally I take pride in my ability to be available whenever an investor needs a second opinion on a deal and being the boots on the ground for my trusted investors. I can also help them find a loan quickly, contractors for rehab, and title companies for recently purchased properties. Where else do agents add value to the investor?

[Justine Phillipson]

Quote from @Bob Mills:

Chase, correct me if I'm wrong but isn't New Western a wholesaler?  As such, isn't the biggest motivation to flip contracts for the biggest markup possible?  I could be mistaken but as such I think most investors would look at an agent w/ New Western as not being on their side like a typical RE agent who happens to work with investors might be, but really just more someone trying to squeeze the most money out of them possible with no strings attached.  The motivation of your company making money off the upside really removes most of the trust with an agent. From my limited experience with NW it was a situation where you had 24 hours to look at the property, no inspections, show up with cash ready to buy type of situation.  Basically the opposite of a friendly buying experience for a purchaser.  So long way of saying if you're looking to forge good relationships with investors it might be best to move to a different firm with a more client-friendly approach.

 Hi Bob, really interesting points you brought up. Full transparency, I am also a New Western agent, so I am biased in my response. But I just wanted to add my two cents!

- New Western is not a wholesaler, we are a marketplace. Our contracts are non-transferrable and we close on every property. 

- You are correct, we do not represent our clients in transactions. While most other Real Estate Agents do represent their clients in traditional transactions, we still foster amazing relationships with our clients. Most of our clients are repeat buyers, so it's in our best interest to find the best deals possible for our clients. We want them to have a great experience AND make the MOST money possible, so they come back to us for their next deal! You questioned if our business model is in best interest of the clients, so I want to mention that our clients do NOT pay us commission, whereas traditional agents are paid commission.

- You are correct, our deals move FAST and there is not an inspection period. Our properties are sold as-is. This is pretty common for investment properties, especially for investors using hard money loans. We always encourage our investors to bring their contractors onsite when viewing our properties to have a realistic understanding of what will be needed.

All in all, it's going to depend on the client on what business model works best for their goals and needs. If someone wants to do a traditional mortgage, with traditional closing processes then you're correct- New Western might not be the best fit. But if a client want's to build a relationship with an agent who specializes in off-market investment properties & is using non-traditional financing to maximize their return, then New Western could be a great fit for them! 

Lastly, I purchased both of my rentals before I became a Real Estate Agent. One of my properties I bought from a marketplace (similar to New Western), and the other property I bought off the MLS with a traditional Real Estate Agent and traditional closing process. Both properties are doing great, and have been awesome investments :)