Hi all,

I've had a lot of people reach out to me privately about investing in Las Vegas and decided this would be a good place to share some tips for building a successful investor/agent relationship. Part of my intention with this post is to create a codified reference to send to clients before working together. This will also be helpful for other investors who are just getting started.

For the sake of providing credentials (not intending to brag), I am a very active agent and investor. I both live and work in Las Vegas. I personally sell about 100 homes a year (15-20% of which are investor clients, thank you BP!) and have acquired multiple single family and townhome rental properties. I also invest in large multifamily properties.

With experience as both an agent and investor, I feel (somewhat) qualified to speak to this important relationship and how to make it synergistic and fruitful. As an investor, I am certainly familiar with the frustration of dealing with “Soccer mom” Realtors who pitch cute kitchens and have no acumen on the investing side of the business. As a Realtor, I am familiar with the frustration of dealing with “time sucker” investors who want me to spend 50hrs/week finding them deals, writing 10 offers a day, while they work with 9 Realtors and then never end up buying. 

Hopefully this short guide will help you in either role.

1 - Finding deals is the primary role/responsibility of the INVESTOR. With very few exceptions, the most difficult part of any business is FINDING NEW CUSTOMERS. Real estate investing is no different. In fact, REI is a quintessential example. Finding deals is the most difficult and rewarding part of the business. It is the highest dollar per hour, high-leverage activity that pays the big bucks. Everything else, to some degree, can be delegated out. Finding deals is what YOU, the investor, get paid to do. This is the entire purpose and primary objective of REI businesses. This is what all of their marketing, advertising, and sales strategies is geared towards. To expect a Realtor to do this part of the job for you is unrealistic and does not make any sense. If a Realtor is spending 20-30 hrs/week knocking on doors to find you a deal, and you are outsourcing all of the contracting work, and using the Realtor to sell the home, what exactly are you getting paid for? What value are you bringing to the transaction? I don't want to sound condescending, this is simply meant to clarify roles and expectations.

2 - The MLS is NOT a rich source of discounted properties. Often times, investors who only have experience purchasing primary residences get confused here. Realtors are a great resource for finding a home to purchase as a residence (so is the internet), but not so much for investment properties. The reason for this is that sellers who list their homes with a Realtor on the local MLS - "traditional sellers" - typically want top dollar for their properties and are not likely to sell at a significant discount. OF COURSE, THERE ARE EXCEPTIONS TO THIS. However, to expect your Realtor to scour the MLS for hours to find a needle in a haystack, and write 10-20 offers a day, is unrealistic and not effective. If you want to use the MLS as a resource, ask your Realtor to set you up on a customized auto-search and do some basic underwriting on your own to narrow the deals down. Drive around town to get an idea of what areas you want to rule out. Or, you can use search engines for this, they are nearly as powerful as the MLS nowadays anyway.

3 - So if my Realtor isn't for finding deals, what do they do? The nature of a Realtor-client relationship is certainly different for investors and owner-occupiers. If you are looking to purchase a home to live in, one of your Realtor’s primary responsibilities is to find a property that fits your needs. If you are looking for an investment property, this becomes your job. Your Realtor’s job is more consultative - to advise you on locations, rentability, tenant profiles/demographics, exit strategies, salability, connect you with vendors, help you underwrite deals, and help you negotiate contracts. The *RIGHT* Realtor will be worth their weight in gold for these roles. 

Tip - Do not underestimate the importance of vendors and resources. A realtor who has a large book of business with vendors (landscapers, painters, plumbers, etc) can save you a lot of time, hassle, and money!

4 - So how do I find deals then, if not with a Realtor? This is the right question to ask. This is where you should focus all of your time and attention. There are plenty of resources on this website on finding deals. You can start by networking with wholesalers (a good investor-friendly Realtor can help you here), browsing auction websites, asking a Realtor to set you up on a customized search, calling/driving for dollars, working your personal database, and sending mailers. 

Keeping these points in mind will help make your Realtor relationship more productive. It will actually make them want to work harder for you and invest more time, energy, and resources in you. A good Realtor will also be able to occasionally send you deal opportunities, but keep in mind this is not their primary role. Personally, I know that my deal opportunities go FIRST to clients who have proven themselves and have a history of closing transactions.

Please reach out with any questions!