Realtors with no Investor Experience

[Nikki Grizzle]

I had a great time meeting some new realtors and lenders from around NC today while we were out. Found some new lenders we never heard of and even connected with another investor who is doing his first flip. However, my husband and I had a quick and hilarious conversation with two realtors from the same company who obviously had no clue about NC Rental Market. They stated they had a property available that literally provided $0.00 in return. Now, I am no pro when it comes to analyzing but I know when a deal is not a good deal. We payed almost 75% less for a property 30-45 mins away for the same exact rent. I stated that we look for at least $100 per $10000. Of course we learned this from the one and only @Brandon Turner and have never purchased a property that gave a return under that amount. For some reason they chuckled and made faces like it was the most absurd thing they ever heard. The thing is we live in NC so I would assume any lender or realtor would know its not impossible. You can buy a property for 20k in excellent condition and rent it out for $750 2 hours away from the Triangle. Or, you can spend 100k and get the same rent because you want to say you bought a home in Raleigh. All our properties cash flow between $350 and $670. Again, you can find that anywhere outside of the Triangle. So how is it possible that a local realtor has no knowledge of the rental market within 45 minutes of where they do business but a realtor across the state can tell you the market trends for the past 6 months in your area? After a year of investing I realized that not all realtors are as knowledgeable as I thought. Just because they are a realtor doesn't mean they know a thing about real estate investing. I have met many that have never even met an investor. How odd when this place is crawling with them. Now that I think about all the advice I received from other investors, I understand why they would tell me to kick certain realtors to the curb. If a realtor thinks $100 per $10000 is absurd, we cannot do business. If a realtor does not know the rental market 30-45 minutes away, we cannot do business. If a realtor doesn't have a list, small or big, of investors they work with, we cannot do business. Do your homework and make sure they know the investment side of real estate. There is a huge difference in selling a home to a homeowner and selling a home to an investor. 

[Jay Hinrichs]

@Nikki Grizzle  I am not offended in the least.. I love real estate... I was simply pointing out that buyers that are new do not understand how the industry works..

and it would benefit them to get educated how it works.. prior to thinking all agents are created equal and should know everything about all different aspects of real estate.

Just like PM in most states you must be licensed to do PM work.. I know owners of PM companies that's all they do they do NO transactional real estate.. but man do they know the landlord laws LOL.

And really good brokers that deal in investment properties usually have their go to buyers.. its tough for the average one off investor or beginner to break into those folks circles.

so you have to find that tweener.... but it helps to understand there are many niches of real estate and frankly the majority of the top producing agents simply do not deal in rental properties .. they sell high end resi.. almost all your 1 million plus earners are in the luxury real estate business or work with developers selling out new tracks of homes.. to homeowners.. My wife sold a little over 15 million last year and only one was a investment property... a off market duplex she sold to a bp member..:)

Investors are tough to work for.. when I owned my retail brokerages I would encourage my agents to pass on all the newbie investors as they are time sucks  can't make a decision unrealistic in what things should sell for etc.. so two sides of the coin.

Folks get into real estate sales for a number of reasons..   1  chance to make above average income

2. freedom of an independent contractor 

3. access to deals before they hit market 

4 .. retirement real estate something to do 

5.. Hubby is successful wife is board but loves HG TV and wants to sell houses.. ( many times these ladies end up your top producer and make a bunch of dough)  I know I certainly support my wifes efforts LOL... But she LOVES selling homes to homeowners.. she has no interest in working with investors... she hands those to me.. and by the time I vette them they run off usually...