Working with Real Estate Agents as a Newbie Investor

[Claudio Valdivia]

So first off, I’m a real estate agent that works specifically with real estate investors. I preface this post with that because most agents that work with a majority of retail buyers will not understand the advice that I am about to put out there. 

I’ve had a lot of conversations with newbie real estate investors recently, and the amount of time that these folks have committed to education is amazing! Bigger Pockets obviously plays a huge role in that education. Folks are familiar with a wide range of investing strategies, where to begin and who to reach out to in order to get going on their investing journey. Inevitably these folks pick up the phone and reach out to a real estate agent to express their interest in real estate investing and to see if the person that they are reaching out to is going to be a good fit to add to their team.

This bring me to my topic / advice for newbie investors. The conversation and the agent that you are looking for when it comes to investing, is completely different than that of a traditional real estate transaction. Most retail agents are use to going through an interview process with prospects and selling those folks on why they should work with them. The conversation depending on how good of a sales person that agent is, usually results in a buyer broker agreement which basically states that the prospect agrees to become a client and will work exclusively with the agent that they have signed with. Please listen to me when I tell you this, do not lock yourself into working with just one agent! Don’t do it! This will hold you back from being able to pursue deals as they come along. The more you network with other succesful investors in the area, the more you’ll see that they work with more than one agent. If an agent has a deal that you would like to pursue then you sign a buyer broker for them to represent you on that specific transaction with the understanding that if another agent brings you a deal, you are within your rights to pursue that deal with the other agent.

If the agent(s) that you’re working with now or the ones that you come across in the future do not understand this concept, I would suggest educating them on what you’re trying to accomplish and why you want to keep your options open to work with whoever brings you a deal. If after explaining this they are still unwilling to allow you the flexibility to work with other agents, then I suggest you move on.

This is a people business, and I believe in being loyal to the folks that are loyal to you. If someone takes great care in helping you grow your business, then make sure you do the same for them. But, don’t handcuff yourself or your business to any one person.

I hope you’ve received value from reading this post. I’m happy to chat more about this or any other subject.

Happy Investing y’all!