How to find realtors who know real estate investing?

Question

Hi all, I'm curious how everyone goes about locating realtors who are also knowledgeable about real estate investing? I was originally thinking of using the realtor that I used to purchase my home but then realized that she may not know much about real estate investing. Besides posting on Bigger Pockets for realtors who know real estate investing, would I just contact realtor companies and ask? I have visions of all realtors saying they know real estate investing (when they don't) just to get work.

Thanks for any advice!

Libby

Thanks for any advice!

Libby

Allyssa Compton · Answer

Hi @Libby Baugher

That's a great question and is the exact question I had before I got my license. I went through agent after agent before I decided to get my license and specialize in working with investors.

My advice would be, first, got to REIAs in your area. You can usually find a few agents there who actually have investments of their own. At the very least, you should be able to get references.

I also agree with @Mike Cumbie you have to know what you are looking for. Many new (and some seasoned) investors expect me as their agent to find their deals for them, run their numbers for them, and basically do their jobs for them. An agent's job isn't to analyze and find deals for you. It's to negotiate the best price, manage the transaction, consult on what changes will give you the best ROI, find renters, keep the deal on track, and MAYBE be a second opinion if you really trust their judgement.

Also, Bigger Pockets truly is a great place to find a good agent. I work with many clients who found me through BP. They ask me a lot of questions, which I appreciate, and view me a team member instead of a deal hunter. Those are the best clients I have. Put something out on the forums that you are looking for an agent. I'm sure you will get some response :)

Mike Cumbie · Answer

Hi @Libby Baugher,

My first recommendation would be to know specifically what you are looking for and what your numbers are. Keep in mind they are your numbers and you own them. The same property can be a great investment for me and a horrible one for you. Why? Well I can get electrical done at cost, you can't. But on another property maybe you can get plumbing done for materials. One may be 3 doors down from a 1/2 hour bus trip to DIsney and you go 5 times a year so the hotel savings for your little AirBnB make it worth it. One is on the way home form work, one is 30 minutes the other way and you plan on self managing both.

Now I can tell an investor pretty much what it is going to go for in it's current condition. What it's value would be if you did a full Kitchen/bath/flip (today not tomorrow) , the value if you just got it up to FHA standards and wanted to cash out. I can also give you rents in the area and turn over rates etc. I also often know sellers motivation and can reach out to other agents and get the skinny. You would be surprised how many times that info is allowed to be shared by a seller. I can give you some contractor recommendations and I my ballpark estimate to get it to certain points, but your contractors could and will vary greatly.

The perfect investment for you is going to be the worst investment ever for another client and you are going to have to be a part of that equation. Expecting an agent to just bring you the one for you is most likely not going to work. That is of course until you have bought and sold a couple places with each other. Then it's real easy for me to walk into a place and say "Yup here is another one for Libby"

Patrick Hermans · Answer

Account Closed maybe they don't like your arrogance.

Thomas S. · Answer

In setting up your team you must vet every team member. In choosing my realtor my number one priority was in finding one that was also a investor. I then analysed his properties to insure that his selection criteria was the same as mine in choosing a good investment property.

I also made sure that as my realtor was prepared to put my offers forward without hesitation and to argue in support of my offer. All too often you will run into residential realtors that are more concerned with their reputation among their real estate community and will not adequately embrace a investors business mentality.

Residential realtors are rarely qualified to represent investors to the level that is necessary in negotiating deals. They are too concentrated on closing and earning their commission. They are best suited to home buyers.

Chinmay J. · Answer

What makes you think you are going to get truthful answers?

How about these answers to your questions? Do they help?

A.1 - I am working with enough to keep me busy and at the same time not overwhelmed

A.2 - I am an investor myself, so I am well versed with the rental business

A.3 - I have experience flipping, and can help you achieve your goals.

I would never ask questions that could get deflected... Instead I would much rather ask open ended questions like

Q 1. Tell me how you would help me with flipping properties

Q 2. What is your pulse on rental investing in such and such area at different price points..

Q 3. Tell me a bit about your experience working with investors.. What is your ideal kind of investor to work with..

And when you ask them questions.. LISTEN.... So many people ask questions, but never shut up to listen to answers....

Good luck...

Chris T. · Answer

@Libby Baugher

On top of all the excellent points above, ask the realtor you're interviewing

1. How many investors they currently work with?

2. How many rentals do they have?

3. How many flips have they done?

Keep in mind as well, most agents avoid investors as there are a ton of people who waste their time going around looking at houses, and never pull the trigger.

It goes both ways.

Aaron Lands · Answer

When my wife and I began RE investing 17 years ago we had a difficult time trying to find a realtor who understood RE investing.  Few realtors knew anything about investment properties and the few that had "investment" properties were really just accidental landlords.  A lot of realtors would claim a property was a great investment but when we asked them what made it a great investment or asked about NOI, projected cash on cash return, etc. we were met with blank stares.  This is why my wife decided to get her real estate license.

I would recommend joining your local RE investors association and ask for references.  You are correct - most realtors will claim to know about real estate investing but most don't have a clue.

Tyion Bridgeman · Answer

@Libby Baugher This is counter intuitive because I know rei even though I don't have my CCIM designation, searching for a realtor that has this designation is a sure way to ensure you get one that has a knowledge of real estate investing.

Chang Hee Lee · Answer

Call around with some properties in mind and ask them what they think. Even if you don't have any that you're currently thinking of (hence why you'd contact an agent/broker), still ask if they know of any deals in the area. Note the language they use when they talk to you. Instead of talking about brand spankin' new houses that'd you'd love or the awesome renovations done within select properties, true agents/brokers that understand the investor lango should mention cash flow, return on investment, etc. They should also be pointing you to properties that need some work or else, move on and go on to the next agent/broker.

You'll also find many great agents on here and I'm sure they can refer you to top investor friendly agents/brokers in whatever market you desire. Good luck! :)

Justin Forehand · Answer

What they said.  I typed up a long thing then went back and read theirs and same suggestions.

Ask for agents in a particular area here on BP

Local REIA meetings

Find agents who invest themselves

Find agents who have a track record of serving other investors

How to find realtors who know real estate investing?

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