First Time Investor - When to Speak w/ a Realtor?

[Jeremy Bates]

Hello BP members,

A little about myself.. I am 26 and reside in the greater Houston area. Over the past few months, I have developed an interest in buy-and-hold investment real estate. The reasons for my interest are many- leverage, flexibility, cash flow, possession on hard assets as well as soft, etc. In addition, my career keeps me in tuned with basic, macro knowledge of the Houston real estate market. REI seems like a perfect fit for me.

Now for my question. I possess the capital to put a down payment on my first rental home, but I don't really know what the next step is. I am learning as much about the industry as quickly as I can, but it is still very difficult to go it alone- I don't really have any mentors on the subject. I can look at housing listings, but from what source and what am I specifically looking for anyway? New information constantly contradicts my actions (if I look at listings on one source, I will read that that source is useless). I only know the theories of many important steps. The theory of evaluations, financial pro forma, and the overall process. I have no practical experience yet.

Is it time for me to speak with a realtor. I feel that a realtor, who is an investor themselves, would be an invaluable learning resource for me. In my mind, I am looking for a partnership- someone that will work with me (which would involve a lot of teaching in the beginning), whom will benefit greatly by working numerous deals with me in the future. It's a win-win in my mind, but I just don't know the proper edicate. Would it be improper for me to approach a realtor, looking to them to educate me? I feel like it could greatly accelerate my learning. 

Thanks for all advice!  

[Cindi Hoover]

Hi Jeremy,

As a Realtor I can tell you that most agents are actually teachers at heart, we love to educate. I highly recommend that you talk to at least 3 agents who are investors themselves and discuss you plans. Make sure their personality is a good fit for you and that they are effective communicators. I also recommend that you create a written real estate investment plan to help you and your agent stay on path. You should build a relationship with an agent as early as possible so as soon as a property that matches your criteria comes available you will know about it.

Good luck!