What do Investors value the most in an Investor's Agent?

Question

Hello BP,

I'm looking to start a conversation on what investors value most in the agent they use. I am currently working for one of the largest private investment brokerages in Philadelphia and Delaware County. I have full confidence in the value and assessment that is done for each deal put out.

In the spirit of continual personal development, I'd love to get your thoughts on what sets some agents apart from the rest. What's the x-factor that draws you to work with them?

Spencer Cornelia · Answer

Account Closed

1. Seeing things the investor doesn't see.  Example: My agent notified me that my flip needed to have laundry room capability on the main floor as buyers would probably want to see that functionality (instead of the basement).  He called his contractor and gave me a quote.

2. Having contractors available in the event that one of our properties needs any kind of rehab.

3. Thinking like an investor.  Agents & Investors.  Two different mindsets.  An agent who is not interested in investing is dead weight to investors.  All they know is retail purchasing of your average American citizen and nothing about why investors buy properties.

4. Knowing the market.  Being able to tell an investor that they should/should not buy in a certain area.

5. Knowing where the next wave of development is happening in a city.  Example: hey investor, there is $20mm being invested into this neighborhood, I will send you off-market deals from this area.

I'm an out of state investor doing flips so having an agent that fits the criteria above is crucial.

With that said, I just got my license for a few major reasons. I want to be able to run comps on my time and not theirs. Also, I want to be able to call agents and make offers. Lastly, the 3% sales commission needs to be in my pocket when I go to sell :)

Account Closed · Answer

Communication and responsiveness. I can’t stand it when an agent goes radio silent.

Account Closed · Answer

I couldn't agree more guys. Being responsive and available to my buyers is my number one priority, nice to know I'm headed in the right direction!

Account Closed · Answer

Thank you for your advice @Cassi Justiz, that must have been incredibly frustrating as an investor to have to wait around for a showing. I am a firm believer in valuing peoples time and will certainly make every effort to be available for my investors.

Caleb Heimsoth · Answer

@Mallory Davis I value responsiveness above all else.  If I can be texting you at 10 Pm or later on any given night, or calling you, that’s a plus.

Deals don’t wait for anyone and when I see a deal, I want to be making an offer the day after I see it.

So responsiveness and ability to get stuff done in a fast manner is appreciative.

Joe Splitrock · Answer

Account Closed we value responsiveness. We did a deal where the property hit the market at 10AM, we were doing a walk through by 1PM and had submitted an offer by 5PM. Then at 10PM we are sending a counter offer. The deal was accepted the next morning at 7AM. So another agent may have setup an appointment for "tomorrow" and the property would have been under contract already.

Secondly is having the necessary relationship skills. The agent needs to be well connected with other realtors, bankers and service personnel. This makes it easier for them to get deals closed. Imagine if you get two similar offers from two different agents, but one is an agent you know well and trust. You are going to tell the sellers to go with the trusted source.

Third skill I like to see is someone who is resourceful. Problems come up and you need someone who can find ways to solve them. I have had my agent get a carpet cleaner over to a property on closing day with an hours notice. Same thing for cleaning people and handyman.

To me there is nothing such as "investor friendly". It is a made up term. Good realtors sell to investors, flippers and owner occupied.

Chris Martino · Answer

Hi Account Closed,

Investors really value full transparency as well as accurate property evaluations.

When dealing with investor friendly agents we have always found value when they have run the same numbers we would be looking for to make sure a deal is actually a deal. If a property has potential to be a flip or a great rental property we always use conservative numbers to evaluate them and it really helps when the agents can supply similar numbers in the initial offering of the property.

Account Closed · Answer

@Spencer Cornelia I agree, being able to run comps and knowing the trends that will put the property a step above the rest like finishing the basement or moving the laundry room is so important, I think that goes hand in hand with learning and predicting the next wave of development. I have always had a passion for real estate and I'm a firm believer in continuous learning. It nice to hear what an out of state investor looks for!

Account Closed · Answer

@Bill Plymouth Thank you for your post. We have an entire team dedicated to continually finding and evaluating off-market deals. Having the pipeline you speak of is our main goal, its encouraging to know we're putting our efforts in the right direction!

Cassi Justiz · Answer

Hey Account Closed,

Speaking from my own personal experience as an investor before I became licensed, one of my biggest issues was availability.  As an investor, when a house came on the market that met my criteria I wanted to go see it as soon as it hit the market. Having to wait several days was incredibly stressful.

Luckily we were buying when the market was slower, so none of the houses we were interested in went under contract before we saw them. But now I make every effort to get into showings ASAP for my clients, especially if the house is priced competitively. If I'm not available in a reasonable amount of time, I will pay a showing fee to get another agent over there.

What do Investors value the most in an Investor's Agent?

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