Investors!! What is your biggest frustration with Realtors?

Question

Investors! What is your biggest frustration with Realtors? I find that many investors I've spoken with, get frustrated when their realtor sends them properties that will not make a profit. Often times, they wish their realtor could do a quick "numbers run" on a property prior to sending it to them. Is this true for you? How do you go about fixing it?

Jay Hinrichs · Answer

its not the agents job to do the investors job. the agent is to present what is on the open market the investors job is to figure out if it works for them.. its unrealistic to expect the agent to do your homework for you.

Any investor should be able to within 3 to 5 minutes figure out if a property works for them on the up front info.. then once in contract and inspections etc they can do a deep dive.

Nathan Gesner · Answer

I'm a REALTOR, Property Manager, and investor. My opinion is based on what I've heard over the last 12 years on Biggerpockets, not necessarily on my personal experience.

Most REALTORS have no clue what a good rental looks like. They can't calculate cashflow, they see things as a sales agent and not a Landlord, they don't know the rental market, etc. Investors must do their research and find a REALTOR that understands investments, landlording, Property Management, etc.

Unfortunately, the qualified agents don't want to waste their time on amateur investors. There are far too many people that watch a few YouTube videos from 2014 or attend a seminar from some guru and think they can low-ball everything just because the bathtub need new caulk.

Mike Reynolds · Answer

I have to agree with Jay. I consider myself a relative newbie even though I have a lot of property. I don't want someone else running my numbers anyway. My numbers may not be your numbers.

I have a few great realtors. They email/text me stuff every week. I'll text them back if I want more info on one. I don't want them wasting their time on me. I want them making money so I don't have to find another one.

Had one property they wouldn't let a buyers agent in the deal. He says he would do it for free but no way would I let him go without if he found the deal for me.

You build relationships. You don't count pennies.

Kerri Shaffer · Answer

Lol'd at the "bathtub needs new caulk" sentiment! Hahaha so true.

When I was looking at places to buy before I was an agent/PM myself, I got frustrated with agents not understanding that I was looking for a good deal, not just a nice place. Something where the numbers made sense and I wasn't overspending, while being able to successfully rent it out in the future and have it serve as a nice income property. I probably didn't do a great job myself expressing this though being young and an amateur.

I think as an agent, if you want to work with investors, you need to practice analyzing properties for both purchase price and market rent. You also need to communicate with the investor on what their goals are for cash flow, cap rate, long-term appreciation, etc. to really hone in on what they are looking for. It takes time and effort, but should be worth it if you establish a good relationship with an investor doing multiple deals!

Caleb Brown · Answer

As an agent what matters to investors that I find..... Not being stuck in a buyer agency for a whole area, they want it per property and 1-3 month time period. Realtors setting them up on auto emails and a majority not fitting their needs. They need an agent to write many offers a day or week. They need an agent to video and walkthrough property for them give them feedback. They need a boots on the ground and someone who can get deals done for them. As an agent that works with investors you have to have systems and be able to send them deals to fit their needs while also being able to handle high volume. Personally I enjoy investors and think it's fun, it's not for everyone though. It's a different client than a home buyer.

Jonathan Greene · Answer

Less than 1% of realtors in the country understand how to work with investors so it's not really that the investors aren't getting what they want, they are hiring people that can't get them what they want and not doing the due diligence on them before. I understand the complaints of investors when it comes to realtors, but I will also say that there is a whole reverse perspective to it for the thousands of calls we get every week as investor-friendly realtors from "investors" (never done a deal) who have "cash" (not their own) and will "invest anywhere the numbers work" (aka a waste of time).

Chris Pasternak · Answer

Add value, solve problems, make them money.

"You're doing quite a bit of flips, you should talk with your accountant about an SCorp." - saved them tens of thousands over many years

"There's another investor that will pay you twice what you just paid without having to lift a finger." - made them tens of thousands

"Why didn't the last agent photograph the garage that holds an RV, this is Colorado" - property sold

Investors!! What is your biggest frustration with Realtors?

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