All Forum Posts by: Adam Wright

I recently published a post on multigenerational familiies.  I had five rules I wrote was unbreakable.  Here they are:

1. Don’t leave anybody out of the discussion or decision-making process. When it comes to real estate, your client will be the main bread makers of the home so they will be your primary decision-maker. However, they are not alone. They have two or three other generations lobbying in the background. You would be smart to involve the entire household in the process. If you don’t, the process might take longer as one generation convinces your client that they need to rethink an offer on a house.

2. Don’t forget the old adage: Location, location, location. I know we hear this all the time as real estate agents. Location drives the price of property. When working with multigenerational families, location takes on a different meaning. Your clients will need to see homes located in an area in which each generation can feel at home. Older generations will need to be closer to different institutions like churches, doctors and social clubs (like Kiwanis or Lions), while younger generations will want to be close to their schools and entertainment destinations.

3. Each generation will need their own space. Of course, the floor plan of a home will depend heavily on the budget. However, if possible, find homes where the different generations will have their own unique space. For example, I have an oasis upstairs while my mother-in-law resides downstairs. When I need to be alone, I hide in my bedroom for solitude. If you can find a house with this, you will get an offer much more quickly.

4. Don’t embarrass any of the generations. One mistake you don’t ever want to make is to show a house where one of the generations can’t even function in the space. It embarrasses them and they put up walls immediately. Best example of this are homes where the wiser generation cannot even get into the home because there are too many steps up to the front door.

5. Never underestimate the importance of enough storage. Once again, budget will play heavily in this rule. However, showing a multigenerational family a home with one or two closets is not a good use of your time. Each generation has their own stuff and none of them will be willing to sacrifice. I write this last rule from experience.

What rules do you have when working with a multigenerational family? 

Well, for starters, being a member of Bigger Pockets is a great way to meet investors and get to know them better.  I would spend some time every day reaching out to investors and adding them to your network.  Once they get to know you, they will open up about doing more business with you.   

You bring value to the investor by providing Comparative Market Analysis (CMA) as based on the up to date information in your Multiple Listing Service (MLS). Many investors will not have access to the local MLS data so will need an agent to help them to price their properties for either purchase or sale.

Often, the investors I work with will seek me out to ask my opinion on how to approach a property negotiation.    They will also use me for our promulgated contracts in order to make offers.   

Finally, I have been told by almost every investor I have worked with in the last few months that they like how responsive I am to them.   I respond within thirty minutes on a phone call or email.  I always respond immediately on a text.   Investors are in real estate for the return it brings them. Time is money and you have to be very responsive to them every step of the way.   

I hope this helps.  I will be happy to answer direct questions.   

1.  With my Buyer's Rep agreements, I am always very specific on the market areas I will help the client with...I will usually go down to the community level, but with some investors who have a wide geographic range, I will use counties.    With investors, you don't always get a commission from the seller if you are representing the buyer.  I always discuss this with my client to see where he stands on how I get paid if the seller will not pay the commission.   We even have a clause in our promulgated forms stating that if the seller does not pay a commission, it will be the buyer who pays my commission.  If my client does not like this clause, we revise it to an agreeable terms, usually with what my client feels comfortable paying.    

Always realize that you are not the only client and most real estate agents work long hours with clients and still are obligated to go to office meetings and such.   I respond within thirty minutes to phone calls and emails.  I respond almost instantly to text messages.   This does not mean I will drop everything to run a comp for one investor.  I will work it in as soon as possible.   You might also consider paying your real estate agent for the research, he or she does for you on case by case basis.   This helps with the hours spent in front of the computer.   

2.  As far as milestones, this depends on the client. I would set up expectations with the client to say that we plan on making two to three offers a month, price will be determined together and the investor has to realize that not everyone will accept a low offer on a property.   I would hope to get a contract on at least one property a month to make it worth my time with the expectation that I would be listing the property when it comes time to sell it.   One of the greatest advantages for me as a real estate agent in working with investors is that it is the steady business, but that is only if offers are accepted.    One final thing, if you are serious about investing, get your financing lined up first.  Nothing is more frustrating to a real estate agent to work with a client for a month or two to find out that he didn't have the resources to move on a property.   I only made that mistake once.   

I like working with investors with a strategy in mind.   As long as the investor is willing to be upfront and honest about their intentions,  I will work with them.   Most I have worked with are very open at the beginning about their strategy and we understand that the relationship will end if either of us feel like it is no longer beneficial to continue it.   

For the investors buying properties, I also have most of them sign a Buyer's Representative Agreement so we have a clear cut understanding of terms and how either side can terminate the agreement.   In the end, it protects both of us from misunderstandings, which can lead to hard feelings.   

I would be happy to answer any direct questions about working with an agent.