Realtors who work with Investors

[Anthony Wood]

Good evening to those with biggerpockets,

Does anyone who invests in the Baltimore area know of any realtors that are willing to work with investors? 

[Account Closed]

Realtors who work with Investors:

How to select and train:

"What do your want the Realtor to do for your?" I suppose the conventional Realtor can show you and attempt to sell you listed properties on the MLS.

Your most profitable transaction may come directly form sellers directly and owners of properties that have not sold, also known as expired listings.

I would suggest you develop a relationship with an agent to be your "Fiduciary Buyer's Broker". This means that the agent represent you and on unlisted properties that he will be paid by you, a commission that you both agree on. Sometimes a new agent in the business will be more open to your proposal.

This is what, as an investors, I'd want my Fiduciary Buyer's Agent to do for me:

• To supply me with expired listings on a daily basis in certain zip codes
• To assist in locating the owners of those properties
• Or, to make an offer through the expired listing agent
• To present contracts and to open negotiations on leads received
•  To search for FSBO's in a prescribed area, to notify me and to make offers on those properties
• To keep me informed of any new laws, regulations or news about the area I want to invest in.
• To run ads in local newspapers and internet sites;   "Wanted, all real estate, houses and commercial properties in the following zip codes 21234, 21236, 21214 and 21304. My clients can pay all cash.  No commissions or settlement costs. John Brown, agent representing client, Broker Protected."

What you need to do:

• Create a contract for your agent to represent you and agree on the commission that you willing to pay.
• Have contract offers and deposit ready for your agent
• Be available to preview properties and to negotiate with the sellers
• Treat your agent well, give him cash for gas, buy lunch, stay in touch with the agent on a daily basis offer bonuses
• Later, if you work well with the agent, offer an equity position
• To be open to learning and using creative financing terms and clauses
• Aware of how to establish seller financing
• Knowledge of Hybrid offers, delayed settlements, study periods and possession clauses

I believe it is important to work with an agent who has your interest before his or a seller.

A good buyer's agent can be a tremendous assets to an investor, a good agent can make you many thousands of dollars in cash flow and equity.

Most agents are not trained to represent buyers, they realize that commissions come from sellers that have their property listed. It is your job to change that concepts.  You may need to talk to the agent's broker so they also understand what a Buyer's Agent is expect to do for you. 

Your buyer's agent should be trained to understand certain concepts that you as an invest are motivated by:

• Understand what a "CAP" rate is and how to determine the CAP rate on investment properties.
• How to complete an APOD (Annual Property Operating Data form)
• How to get to the NOI and to apply the CAP Rate formula
• How to make offers on commercial and residential properties based on the return expected
• Knowledge of negotiating with sellers, making trial offers and setting up settlement 
• Skilled in comparable sales analysis

Charles