What's Your Hesitation?

Question

Since one thing on that list of goals in 2011 was to work with more investors (hence my recent increase in activity here on BP), I thought it would be good to figure out what investors are looking for, and also what they are not looking for.

More specifically, what are you looking for in an agent that will make you want to work with them on a consistent basis, and what would be a major turn-off that would make you want to not work with them at all?

Or I suppose a better question is "do you see any value in working with an agent"?  If the answer to that is "less than the 3% commission I'll save", then this will be a pretty short thread.

However, if there are some of you out there that want to share what the perfect "investor-friendly" agent prototype would be, I'd like advice on how to mold myself to that description as closely as possible.

Thanks in advance.

Mathew Hill · Answer

Personally I think a good agent is a must for a serious career investor. If you are just looking to do a few deals now and then then save the commissions and find the deals, but for a full-time investor like myself, I could not function without a good agent.

HOWEVER, all agents are not created equal. I want an agent that is ready to work, and I mean it. As stated above in other posts, to be my agent you must PAY ATTENTION to my requirements. I do not hold my properties, so I have to tailor my offers to ensure that there is a margin for me to make a profit.

Once I give my criteria I stick to it, so I don't want to be bothered with deals that are only going to get rejected.

BE and proficient and skilled negotiator, I have scored several deals with my new agent that other simply said were not possible or kept getting dragged out for weeks with no response from the seller.

Understand that I don't just want you to do a blanket search of the MLS and spit homes that look like they meet my criteria. Do some homework and maybe even go look at the home and take pictures for me when you go.

Have a GOOD camera or work with someone who does. I invest primarily out of state, so this is a must for me.

Be ambitious, don't be afraid to go after a seller with a quick close line. Many sellers in this market are trying to get close to market rates. If they don't want to wait for 6 to 12 months then help them see a lower offer for a quick close will be a good way to go.

Above, all, listen to my needs and help me meet them, don't make me do your job for you!

Mitch Kronowit · Answer

Hey Jake,

Not directed at you personally, but here are my thoughts:

"Dear RE Agent, please listen to, understand, and find me properties that meet my criteria. Don't send me crap that 1) Has already been sent to 5 million other clients, and 2) Doesn't meet my requirements."

"It's OK if you go 2 weeks or more without finding me anything interesting, just contact me when you do. Don't fill my inbox with junk just to show me you're doing something."

"When you do find something that meets my criteria, be ready to show it as soon as I can make myself available. Call ahead, make sure you know where the lockbox is and the code to open it. If I'm a flipper, have a current market comparable analysis complete for the area with similar properties. Find out what kind of work it needs. If I like to buy & hold, find out what comparable rents are in the area and see if there's any restrictions to rentals in the area, e.g., some HOA's won't allow them for a year."

"Don't expect me to make an offer if the numbers don't work. This house isn't for me, it's for my customer. If the numbers do work, be ready to make an offer, quickly."

I could go on for hours, but I'll allow other to chime in here with their 2 bits.

Thanks for asking.

Jake Kucheck · Answer

So here are my thoughts on the sharing of responsibilities in the agent/investor relationship:

Investor Responsibilities

1) Define your criteria.  Are you a buy and hold guy?  Are you a flip guy?  Both?  What's your budget?  Are you cash or financed?  Are there any areas you won't touch?  Are there areas you'll pay a premium for?

2) If I send you a property, and you don't like it, tell me why.  I wouldn't have sent it to you if I didn't think it would be a good fit, so just telling me "pass" isn't constructive.  Telling me precisely what about it you don't like will help me avoid properties like that in the future, and save both of us time.

3) Be able to close.  Whether you are cash or financed, bailing on an escrow is going to suck for everyone.  If you legitimately get new info during inspections and want to back out, that's totally acceptable.  But if you just want to back out because you got cold feet or you couldn't find the money in time, that's not really a good use of anyone's time.

Agent Responsibilities:

1) Be discerning.  A 4 bedroom SFR is not a 3 bedroom townhome no matter how much you want it to be.  Nor is a neighborhood necessarily similar to surrounding areas.  Don't twist an investors desires to meet current market inventory.

2) Be innovative.  Anybody can access the MLS, but calling canceled listings, withdrawns, expireds, and sourcing pocket listings in your own ways are vital to finding deals ripe for the picking.  Having good relationships with REO brokers helps here too.

3) Understand your client's schedule and motivations.  If he can't be there to see the property and you think it will go quickly, then YOU be there and bring a video camera.

4) Don't make your client wait on you, but don't flood him with information either.  Be in touch with your client precisely as often as he wants to hear from you, but not more than that.

5) Don't forget that women invest in real estate too.  Using solely male pronouns in a list of responsibilities is a surefire way to piss a lot of female investors off.  Whoops...

Steve Babiak · Answer

Topic has been tossed around previously (from both sides); here are links:

http://www.biggerpockets.com/forums/21/topics/57518-what-do-you-look-for-in-a-re-agent-

http://www.biggerpockets.com/forums/48/topics/54301-what-does-a-realtor-look-for-in-an-investor-

Mike G. · Answer

Seems reasonable.  And for me, if you send a property slightly outside of my defined criteria every once in a while, that's fine as long as it's a really good deal.

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