Finding a Investor friendly Real Estate Agent - Utah County

Finding a Investor friendly Real Estate Agent - Utah County

Riverton, UT · Member since 2015 · 8 posts · 4 votes

I am a new Real Estate investor and I am currently looking for an investor friendly Real Estate Agent to help with generating leads in my target neighborhoods. I am concerned about finding an experienced Real Estate investor friendly agent who understands the mentality of an investor.  One where we can create a win/win situation where both the Investor and Agent profit and our goals are aligned.

Ideally it would be in the Real Estate Agents best interest for the investor to purchase a property at the lowest price possible because this would enable the investor to build up cash reserves more quickly and in turn purchase more properties which would lead to more business for the agent.

It makes sense that a Real Estate Agents loyalty would lie with the seller because they may have a good reputation around the neighborhood for getting houses sold at a good price and they also earn a commission which increases the higher sale price goes. 

On the flip side reasons I can think of which could incentivize a Real Estate agent to work for, instead of against an Investor are firstly the potential for continued business e.g. multiple houses purchased by the real estate investor through the agent over time.  The investor could also offer the agent a finders commission when a lead generated by the agent results in an acquired investment property.  

In your experience how easy is it to find a Real Estate Agent who is on the side of the investor?  What kind of incentives do you offer to the Agent?  And how do you find an Agent that is experienced enough to identify potential investment properties that fit your criteria?

How willing is such an agent to work with beginner investors?  Have you ever had any problems with agents losing incentive to work with you?  For example lets say the average home buyer buys a house after looking at 8-12 properties, whereas an investor might look at 80-100 properties before finding a deal that meets his/her investment criteria.  Have you ever had Real Estate Agents get frustrated when the leads they send you don't pan out?  How do you keep them willing to send you new leads?

As a new investor, I am currently looking to buy one investment property, but then plan on saving up another 20-25% downpayment for the next investment. Which could take a year and a half or so to be financially ready for my next investment property.  Is this something that would deter a Real Estate agent from building a long term relationship with me knowing that in the short term future business transactions would likely be two years in between?  Or is that incentive enough?

I would appreciate hearing from those of you who have had success and experience working with Investor friendly Real Estate Agents.  What does it take to get an Agent on your side one who is motivated to find you the best investment deals?

And also for you experienced Investor Friendly Real Estate agents, what is it that you look for in a good Investor partnership?  What is it that motivates you to find the best deals for your investors?  What turns you off from investors?  And what is the best way to find you?

Thank you

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Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
11y

A few thoughts:

What do you mean by generating leads?  Typically this is your job as an investor.  The real estate agent performs certain functions, but marketing on behalf of a buyer client is generally not one of them.

We have clients that we submit many offers for (numbers game investors), but they purchase over 75% of the accepted offers.  Also, they do not visit properties unless an offer is accepted.

I hope you are not talking about 80-100 showings/offer.  I don't know any good agent that would have much patience for that.

As a newbie, you are competing with other clients who may be able to offer more to an agent (tons of cash, back side listing agreements on flips, etc).

But there's no reason you couldn't establish a relationship with a good agent who can send you lists of everything on the MLS, has experience in short sales & REO's and truly wants you to succeed understanding that it's a long-term, repeat business relationship.

Our relationship with our clients is symbiotic.  We partner with clients, borrow from them, and get deals and other valuable information from them as well.  

So think about what your personal investment strategy is and what specific role an agent plays in that strategy. If you simply want to buy an occasional duplex off the MLS, you don't need much sophistication in an agent and really anyone will do. If you want them to do all the heavy lifting for you and give you the best deals, you probably need to bring more to the table. For example, we love working with newbies who are willing to knock on 100 doors/month.

I recommend you go to one of the REIA's in your area (SLREIA and UVREIA).  There are many agents there of all levels of experience who, by definition, are looking to work with investors and are often investors themselves.

Finally, if you're serious about investing, consider getting a license yourself.

Good luck!

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  • Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
    11y

    Did you just get off from a really expensive seminar?

  • Riverton, UT · Member since 2015 · 8 posts · 4 votes
    11y
    Originally posted by @Manolo D.:

    Did you just get off from a really expensive seminar?

     No sir, 

    What are you getting at with your comment?

  • Investor · Eagle Mountain, UT · Member since 2014 · 38 posts · 7 votes
    11y

    Hey Trevor,

    Welcome to Bigger Pockets and investing in Utah. There are a number of investor friendly agents that you can meet at the Salt Lake REIA. (www.slreia.com) The meetings are on the second Wednesday of the month and your first time is free.

  • Realtor · Sandy, UT · Member since 2015 · 23 posts · 3 votes
    11y

    @R Trevor Dowdle, nice to see another Utah member! I'll have my Real Estate license by the end of March. I know you asked for an experienced investment agent but I'll be happy to help you when I officially have my license! What will be your target areas? I'll be on the hunt for properties myself, being that I am new to the game,  I'll help in any way I can. I bet I come across properties that I can pass your way. I completely understand if you need someone with more experience.  Had to at least extend my future services.  :) 

  • Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
    11y

    A few thoughts:

    What do you mean by generating leads?  Typically this is your job as an investor.  The real estate agent performs certain functions, but marketing on behalf of a buyer client is generally not one of them.

    We have clients that we submit many offers for (numbers game investors), but they purchase over 75% of the accepted offers.  Also, they do not visit properties unless an offer is accepted.

    I hope you are not talking about 80-100 showings/offer.  I don't know any good agent that would have much patience for that.

    As a newbie, you are competing with other clients who may be able to offer more to an agent (tons of cash, back side listing agreements on flips, etc).

    But there's no reason you couldn't establish a relationship with a good agent who can send you lists of everything on the MLS, has experience in short sales & REO's and truly wants you to succeed understanding that it's a long-term, repeat business relationship.

    Our relationship with our clients is symbiotic.  We partner with clients, borrow from them, and get deals and other valuable information from them as well.  

    So think about what your personal investment strategy is and what specific role an agent plays in that strategy. If you simply want to buy an occasional duplex off the MLS, you don't need much sophistication in an agent and really anyone will do. If you want them to do all the heavy lifting for you and give you the best deals, you probably need to bring more to the table. For example, we love working with newbies who are willing to knock on 100 doors/month.

    I recommend you go to one of the REIA's in your area (SLREIA and UVREIA).  There are many agents there of all levels of experience who, by definition, are looking to work with investors and are often investors themselves.

    Finally, if you're serious about investing, consider getting a license yourself.

    Good luck!

  • Syracuse, NY · Member since 2013 · 39 posts · 16 votes
    11y

    @R Trevor Dowdle 

    As a real estate agent the biggest thing that stood out to me in your post was first, generating leads for the investors and second, seeing 80-100 houses. My job is to prospect every day for seller leads for listings. Along the way I might run into properties that are totally run down and wouldn't be able to get bank financing  where the owner needs to sell. In those cases I would probably pass it on to an investor as a lead for them to work. 

    Second, seeing 80-100 properties. I agree with what William said, no good agent is going to spend the time going to that many properties. It's another thing if they have you on automatic updates and they just keep sending you properties. But, to go to that many properties just to find one deal makes no sense for a real estate agent. 

  • Riverton, UT · Member since 2015 · 8 posts · 4 votes
    11y

    Thank you everyone for your advice. Finding an investor friendly real estate agent is something I feel strongly about.  @Lync Jones , @William Hochstedler , @Jim Wilson  Thanks the advice and for letting me know about some trusted sources in the area I will definitely check them out.

    @Jenny Gundersen, thank you for offering your services, lets keep in touch.  I am still in the process of vetting out my target areas but i'm sticking pretty close to my current residence. Namely Bluffdale/Riverton/Herriman areas.  I have yet to narrow down my search to neighborhoods but will be working on that.

  • Riverton, UT · Member since 2015 · 8 posts · 4 votes
    11y
    Originally posted by @William Hochstedler:

    What do you mean by generating leads?  Typically this is your job as an investor.  The real estate agent performs certain functions, but marketing on behalf of a buyer client is generally not one of them.

    William, one of the biggest obstacles for me is finding leads, I am currently working a 9-5 job and love my work.  I don't feel like I would be very successful knocking on doors and finding golden opportunities, it just doesn't feel like a great fit for me.

    I am however very interested in investing my money in Real Estate and analyzing deals, As long as I can find a home in my target area and price range (140k -190k) that is 10% below market value and cash flows $100-$200 a month, after accounting for holding costs, repairs, a 5% or so vacancy rate etc.. 

    Lets say I was trying to accomplish this via a 15 year mortgage 20-25% down.  From your experience would it be viable to find such deals through a Investor friendly real estate agent?

    I sure hope I don't have to analyze 80 properties just to find one which meets my criteria, I just don't have the experience to know how likely these deals are to be found through a Real Estate agent.  But I do want to make sure I am working with a Real Estate Agent who will give me the best chance to meet my goals.

    Your business or company sounds interesting and I would like to know more.  Namely you mention that investors make an offer before even visiting the property?  Sounds like they would have to be pretty confident in the leads they are getting.  Do you feel like your company or organization would be a good fit for a newbie like me with my current investment goals?  

  • Investor · Salt Lake City, UT · Member since 2013 · 84 posts · 38 votes
    10y

    I think we have a lot in common. We're both starting out and learning the ropes, and with similar plans. I probably analyzed 100+ properties (all online) after getting serious about finding a realtor and deciding to buy a SFR. We looked at more than 10 houses physically before making an offer on 1 house. This is certainly not the only way to do it but I think until you have analyzed a bunch of properties you really don't know what you're looking for. And until you go see a few in person you still don't know what you're looking for. I was pretty unrealistic until we went to see a bunch and knew what the market was really like rather than just online pictures. And paying someone to analyze for you isn't going to get you what you want in an active investment such as real estate.

    There are plenty of realtors out thereto choose from.  Mine doesn't work solely with investors but she does quite a bit so she know's we're a bit different.  And she has a great investment-centered mortgage team that she works with that might be even more important than what realtor you choose to work with.  If you're interested I can get both the mortgage and realtor info to you.

  • Riverton, UT · Member since 2015 · 8 posts · 4 votes
    10y

    Hey Travis, thanks for reaching out to me, I do have a realtor agent but I wouldn't mind learning more about the investment-centered mortgage team if you don't mind passing me their contact info.

    Thanks Travis!

  • Developer/Broker · Spanish Fork, UT · Member since 2016 · 73 posts · 41 votes
    9y
    Trevor, I'd enjoy connecting with you and answering your questions if you're interested. Let me know your thoughts on a face to face conversation to discuss your goals.
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