How to work with RE Agents for leads

Question

Hey BP, as I talk to investors and attend meetups I often hear experts mention finding leads by working with a Real Estate agent and compensating them when you close on the lead. I just attempted to go for my license and in the process I came to the realization that RE agents don't really know a thing about investing. They are solely focused on the legal aspect of real estate (not getting sued, etc..), NONE of them learn about how to make money in the business. How can an investor acquire the services of an agent forming a win-win situation? What are things one should ask an agent to get them to work with us as investors?

Account Closed · Answer

Here is what you need to know about working with Realtors.  They are in bussiness to make money.  You show them that working with you will make them money, they will roll out the red carpet.  You show them that working with you is not going to make them money, they will eject you through the sunroof with that James Bond ejection seat.  
If you believe that most Realtors don't understand investing, think again.  Most Realtors own rental property.  Most Realtors buy the super bargains that they run across.  
One of the advantages of being a Realtor is you often get to learn expensive lessons on your client's dime.  
If you are finding Realtor's don't want to work with you, show them how it will make them $$$$$. Make an offer on the next house a Realtor shows you.
You are doing the right thing getting your real estate license.  It is a great way to generate cash flow.

Ty Burns · Answer

Marc Cesar- Getting your license will definitely put you a step ahead of other investors. Having access to the MLS alone is worth it. My brother got his license and it has made everything much easier for us. We can submit our own offers, run our own comps, physically look at properties. It's nice not having to rely on someone else to do all these things.

Simon W. · Answer

Agents can get you comps, find you new properties quick, if you tell the agent what you are doing and if he/she is on the same page as you then I am sure you both can create a win-win situation.

George Ghiorse · Answer

Some agents know how to do investment property but in my opinion most do not.  Just "interview" a bunch of agents until you find one that does their own investing on the side besides just helping clients.  Ask them how many investment properties they own, how many flips they've done, how many other investor clients they have, and what sets them apart from other agents when it comes to investment property.  OK, disclosure.  I am an agent that owns both single and multi family with a bunch of investor clients.  Just find someone who practices what they preach.

Jennifer Lee · Answer

Hey 
I am an investor that just got my my license.
You are right about not all agent knowing about the investment part.
That why my investor clients like that I know what they need.
I'm a slow steady buy hold investor, but always looking.
So this is a great way to kill time and learn about how other investor do it.
 This is just a hobby for me, so not making any $$ yet, except from my investor flip that I'm currently listing and got offer on day 1. Reason for license, I did the finding and managing of the rehab and only one not getting paid.

But I can see why not a lot of agent want to work with investor if they need to actually make a living. 
Investors wants everything for nothing. Is the inside joke.

Mark Ferguson · Answer

I just posted an article on working with agents in BP marketplace.  http://www.biggerpockets.com/forums/517/topics/87136-working-with-realtors-pick-one-or-use-multiple-agents

Agents are just like the rest of the population, most do enough to get by.  The best agents know their stuff and can help you a lot if you know how to work with them.

Eric Hettena · Answer

It does have its perks for sure.  There is a higher standar agents have though especially if you are making offers on properties directly to homeowners.  As a licensed agent you have a fiduciary responsibility to the homeowners you are buying from as to make sure you do not have an unfair advantage over the people you are buying from.  You can have more liability if things don’t work out. You will need to disclose that you are a Realtor during your intial contact with a seller.

Marc Cesar · Answer

im still studying to take the school exam where i went for the courses and after that i will be going for the license. A lot of successful investors say that its a waste of time to get it in the beginning where as its best to make raise capital and overtime to get the license for exit strategies such as rehabs, flips, buy and holds, etc

J Scott · Answer

That's generally true...why didn't you get your license?  That way, you don't need to rely on other agents...

How to work with RE Agents for leads

Most Popular Reply