How To Choose A Realtor When Buying Investment Property

I’ve been asked on many different occasions why I choose to work solely with investors. Well first, the truth is that I don’t “solely” work with investors. I do occasionally work with family, friends or someone whom was referred to me to buy or sell a home. But yes, my focus is on helping real estate investors find that perfect income producing property. The reason is pretty simple…. I Love What I Do! I truly have a passion for helping people reach financial freedom. There’s no feeling in the world like remembering that initial consultation with a client and then seeing them reach their goals of becoming financially independent. Another reason is that there's much less competition. Real Estate Agents are a dime-a-dozen, so kinda like a doctor that decides to go into a specialized field of medicine; I've decided to specialize in investment properties.

So how do you find a good agent to work with when you’re looking for investment properties? First, remember that not all agents are created equal. Using the example above; would you go to a podiatrist for a toothache? Would you see a cardiologist if you had back pain? Probably not… Well the same principle applies to real estate. Some agents choose to be a jack-of-all-trades and work with buyers, sellers, investors, renters, vacation homes, sell mortgages, sell insurance etc etc etc. This is kinda like your primary care doctor. Others choose to specialize in a particular sector of real estate such as “Luxury Homes” "Vacation Homes", or in my case “Investment Properties”. To be totally honest, any agent could find you a property to invest in but the question is; “will you regret that purchase down the road”?  Real estate investing is a numbers game. If your agent doesn’t know how to make the necessary calculations to ensure that you’re making a sound investment, then you’re probably going to have some regrets later on.  

In order to make sure that you're choosing the right agent for the job you must first decide what type of investments you want to make: You'll want to work with an agent that does a volume of sales in your chosen investment strategy. So whether you're into flipping houses, mobile homes, or Landlording, ask your potential agent how often they work with investors in this field. It won't hurt to even ask for referrals.

Ideally, you want an agent who has done his or her own real estate investing. It doesn't necessarily have to be substantial, but it is helpful if they have gone through the process on their own. This ensures familiarity with investing on a personal level, not simply as an agent. Agents like this will understand your motivations, and will be easier to work with in general.

There is no substitute for an experienced agent when you are trying to make money buying real estate. You want an agent who has worked with other investors, preferably ten or more. It is not that you cannot hire an eager newcomer, but only do so if you're very familiar with your local investment market, real estate mathematics and due diligence procedures. If you are looking for the fastest path to success, experience is usually the way to go, not just "time on the job", but experience working with investment property acquisitions.

Look for an agent who will give it to you straight. This means that if he or she is not comfortable throwing out ridiculous low-ball offers to sellers, the agent will inform you. Honest agents will explain to you upfront what they are and are not willing to do to help you in the investment process. Some are glad to help with flipping houses, while others may prefer the steadier route of buying and holding. The best agent for you is one that lays everything on the table at the beginning, leaving you to decide if the fit is right. Integrity goes a long way in business, and should be a priority when picking a real estate agent for investing.

Last but certainly not least, the most common mistake of beginning investors is to assume that the agent that listed the property is the best agent to use to buy the property. Remember that this agent has a LEGAL OBLIGATION to get the best price FOR THE SELLER!! Granted, when you sign a "buyer broker agreement" with the agent, they also have an obligation to you, but it's important to know that your level of profitability is probably not a priority.