Realtors and starting out

Realtors and starting out

Tacoma, WA · Member since 2017 · 14 posts · 11 votes
Hello BP regulars! I am starting out in REI and would like a few opinions on Realtors for starting out. I am hoping to buy a few properties to begin with (buy/rent/hold), and I need to meet a minimum cashflow (more specifically, a cash on cash roi). So, for a newbie starting out, how do you feel about putting your realtor in the drivers seat with selecting the neighborhood/market and analyzing the deals? I have a concern that a potential realtor, which has no social/referral connection to me and my social circle, may make favorable assumptions regarding vacancy, capex, location, etc. (or any other assumptions that require experience) in order to meet the ROI numbers I require, and bag the commission. Or put into other words, to make the deal look better on paper that it actually is. Is this a valid concern? I am worried that if I do not get the first couple deals right it could seriously de-rail my long term plans. Any advice on how to mitigate these concerns/risks?
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  • Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes
    9y

    I would caution you that because you are the one signing for the properties, then you need to be the one with the information and analysis to make the decisions.  I can do a lot to help you, including educating, researching, negotiating, and acting as a second set of eyes on your analysis, but I don't feel it's appropriate to be the one driving the decisions that are at the heart of your business.  

    In my experience, the better you know your business and can set parameters for me, the better shot I have of helping you get what you want.  If we communicate well and have a good system, we'll be able to help each other.  There's no long-term upside to trying to "sell" you a property that won't work for you.  (Doesn't mean someone won't try, but it won't be me.)  In the end, if you understand and stick to your business formula, no one is going to derail you from your goals.

  • Tacoma, WA · Member since 2017 · 14 posts · 11 votes
    9y

    Thank you for the great insight Aaron. That all makes makes total sense to me, and I'm sticking to my goals and formula as they are right now, but since I am new to this game, I feel like it is also imperative to lean on other's advice to fine tune my plans/formula as I learn. Particularly with investors and Realtors in my locale/market. I fully understand there are people out there that will try to sell me something wont work for me (as in every industry), and it helps to see your perspective. Thank you!

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