Finding an investor friendly agent - This is a huge challange for most investors

[Andrew Holmes]

Finding an investor friendly agent seems like a huge challenge for most investors. I am often asked how do you find an agent that understands an investors needs.

Let me start by first saying that most agents are nice folks that try to help their clients to the best of their ability. A lot of times real estate agents are constantly in the state of putting out fires so in a lot of cases they don't have the time or energy needed to truly understand an investors needs and specially the number that we as professionals investors need to hit. I know this because I have a real estate license since I was 20 years old so about 19 years at this point.

When I was selling a lot of houses as an agent I loved dealing with investors from the stand point of listing their properties for sale but I did not like dealing with them from the stand point of helping them buy properties. Now you will wonder why?

Well the simple answer is that a investor buyer takes a lot more of your time and generally they buy on the lower end of the pricing spectrum. When I was a selling a lot of home I was a very heavy listing agent. The listing required a lot less time and other hand working with buyers specially investors was very time consuming. For an agent all they have is their time if they busy then their time is worth a lot of money.

Today as an investor I understand why agents behave the way they do. Not because they don't want to help you but because most investors will eat up a lot of their time. A lot of good agents will have few investors that they have a good working relationship and they stick by each others side and it work because both have found a fine balance of working with each other without taking up too much of the agents time.

Before I layout some of the rules. Most agents are not investors themselves. They are in sales. Their job is to sell you a property. They are trained in retail pricing structure they do not understand the numbers we need as investors. Even though in some cases they may have done investment properties it is very rare to find an agent that really understands investing. This is not a knock on agents it's just the fact. Understand their mindset so that you have a better working relationship with agents. Of course their are rare exceptions like anything in life.

Here are some simple rules when working with agents if you follow them over time you will find a few great agents to work with.

1. Always be mindful of the amount of time you take

2. Do you research and due diligence before you have an agent take you a lot of house only to decide that you don't like they area.

3. Don't try to work with an agent that has a lot of listings. Try to work with their Buyer's Agent or ask them for a recommendation of who they would suggest you should work with. This will help you specially if you find an listing agent that does a lot of distressed properties. If they recommend someone your offers will magically get higher attention.

4. If you live in a large metro area and looking for properties in a large radius don't make an agent run from one end of the town to the other. You want some one that is local to that area and close.

5. Please make sure your proof of funds are in place or you are prequalified before you make an agent run all over town.

6. Don't work with agent that are really busy or agents that are brand new. The best option is someone who has some experience under their belt.

7. If you are buying condo in high rise building then work with someone that knows high rise condo. Don't pull someone from the suburbs. 

8. You are looking for HUD deals then go with some one that really does a lot of these. Same rule applies for Short Sales or REO deals. (Agents end up becoming specialists in a lot of cases because they have done a lot of specific type of deals this can be a huge advantage for you as an investor)

9. Be loyal - If an agent has done a lot of running around with you make sure you buy or rent through them so that they make money from the deal. In most cases just like you agents are hardworking professionals so be mindful and respectful.

10. If you follow these simple guideline you will come across a few really good agents that will bend over backward to help you. Keep those in your back pocket.