5 min read · March 22, 2023
As an investor, one of the most important tickets to success is having an investor-friendly, real estate agent working on your behalf. As you scale your operation, having someone on the ground that you can trust to meet with prospective clients, check out potential homes, and write and review purchase agreements on your behalf is a must. Though these agents can be hard to find, having someone competent and eager to transact, could set your business’s growth trajectory into the stratosphere.
In this article will discuss 5 signs of an investor-friendly real estate agent you should look for and try to attain.
A real estate agent is an individual who acts on behalf of a buyer or seller to facilitate real estate transactions. These individuals will list properties, market them on the internet or through fliers, postcards, and signs, and help negotiate prices. Then, as compensation for their work, they’ll receive a commission off of the sale price.
There are a number of ways to find an investor-friendly real estate agent.
First, an investor can search investor-friendly resources such as blogs, real estate podcasts, and educational sites that offer forums for professionals to connect with each other and share knowledge and skills. Social media outlets like Twitter, Instagram, LinkedIn, and Youtube could also be great hunting grounds to find the right real estate agent for your business.
Next, an investor could speak with local appraisers, accountants, lawyers, bankers, and insurance brokers to see if they know of any investor-friendly real estate agents that they’ve worked with in the past on various transactions. Many professionals tangentially connected to the real estate market would be happy to assist you in your search.
Another strategy would be the simple cold call strategy. What you’ll do is simply reach out to 10 or 20 different brokers, and set aside some time to chat with them about their goals, the way in which they process transactions, and their overall thoughts on working with an investor with a different approach to buying and selling properties. Although some of these brokers might not be investor-friendly, many of them will be.
You’ve compiled a list of potential investor-friendly real estate agents. Now, let’s dive in to identify five signs you’ve found someone that’ll truly help your investment business grow.
As an investor, the number one driver of your investment’s success is your ability to identify a market’s trends, its profit potential, and its desirable areas. Finding a real estate agent that knows a real estate market and can help you determine which sub-markets and neighborhoods will drive price appreciation over your investment’s holding period can be extremely helpful.
Once you’ve found a real estate agent that knows your desired market very well, you’ll want to rely on them to analyze a deal and determine a price point for you when sifting through potential opportunities. By working with an investor-friendly real estate agent who knows how to crunch the numbers, you’ll be able to more quickly determine if a property is feasible for your desired investment strategy.
Your investor-friendly real estate agent should also have first-hand investing experience. Though it’s not always a must, if you find an agent that knows how to fix and flip houses, understands the basics of rental properties, and knows how to calculate a properties ROI (return on investment) or ARV (after repair value) you’ll be much better off. These agents will know the key pain points and important calculations that drive your decision making. If they have real investment experience, they’ll know exactly the types of properties you will want to transact on.
Generally, investor-friendly real estate agents have access to a broad network of other like-minded investors. When you transact on a property, there might be certain instances where you’ll want to connect with other investors to either co-invest alongside you or potentially buy your contract in a wholesale transaction. Since you’re working with an investor-friendly real estate agent, you’ll be able to tap into their network with ease. This could not only save you time, but it could help you avoid headaches and other costly errors.
Another key aspect to look out for when sifting through potential investor-friendly real estate agents is determining if they share your core values. As an investor, your value system will largely be determined by your ability to profit off of a transaction, your ability to care for your tenants and ensure their satisfaction with you as a manager, and your ability to satisfy your investors, if applicable. Working with an investor-friendly real estate agent with these values at the forefront of their mind is crucial. They’ll be able to negotiate with sellers, crunch the numbers, and facilitate a process that is always in-line with your values.
As an investor, you don’t always have to work with investor-friendly real estate agents, however, if you elect to do so, you’ll be in great shape. Investor-friendly real estate agents have extensive knowledge of the real estate market you are working in and have the ability to analyze deals to ensure you are only looking at properties that meet your investment criteria. They also can leverage their first-hand investing experience and exposure to a large network of investors to help drive your investment’s profit potential. By introducing you to other like-minded investors, these agents can help you generate more leads and – eventually – more cash flow.
The article is written by Ryan Zomorodi, the Co-Founder and COO of RealEstateSkills.com, a real estate investing education platform that has trained thousands of students across the nation to start and grow real estate investing businesses.
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