Working with a Realtor as an Investor

I responded to a forum article about one investor's frustration in his attempts to work with local real estate agents in his community and realized I had a lot of experience, and therefore, a lot to offer on the subject.

Here are some things to do:

1) Have a definite criteria of the type of property that you are looking for. This includes if it is a fixer, how much of a fixer. (cosmetic-paint and flooring) or medium fixer (some structural rehab + above items) or major fixer (roofing and/or foundation work.)

2)Let them know about areas of interest AND be open to suggestions from them. You may be surprised. Experienced agents often think outside of the box…I do.

3) Discuss your level of loyalty to the agent. (Will you be calling other agents…be honest) In exchange for your loyalty, how often would you like to hear from the agent? What I use with investors is a promise from them that if I introduce them to a property that they wish to make an offer on, that they allow me to represent them. You can let them know that they are your first choice agent in certain areas, (your city,or your county) that has worked really well for me and investors that I work with.

4) Provide proof of funds and update it monthly. When a property is HOT, an agent needs to offer on it immediately. They will need a signed Offer from you as well as a current proof of funds statement.

5) Agree that you will respond to them ASAP (even if you are in the middle of a rehab) call them no later than the end of that business day, but hopefully within the hour.

6) Give the agent some idea of how many properties you are interested in acquiring per month. If you have to purchase and complete one transaction at a time, let them know, be honest. If you are telling them you can do several a month, let them know how you plan to finance your acquisitions (so that you are believable.)

These are some starting points. More to come.