Real Estate Investors – Are You Using a Licensed Agent? Why You Should!
In your quest to become a successful real estate investor you’ve taken the very best first step and completed your education at the OTA Real Estate Academy. Whether studying Wholesale, Fix & Flip, Rental or Commercial Investing, now you’re ready to roll and make your next, or possibly your first, purchase. However, there’s something wrong… something is missing. What could it be? Oh! You haven’t found anything to buy.
Don’t despair, there is one source for finding investment property you may not have tried. Using an investment focused licensed Realtor is often beneficial.
For the record, I have been a licensed Realtor since 2004 and have completed many transactions, bought and sold land, managed agriculture lease property and built and sold luxury homes. As a successful realtor, I’d like to share with you the benefits of using a licensed realtor in your search for investment properties and what to look for when choosing a realtor.
Why Should Real Estate Investors Use a Licensed Realtor?
Working with a professional is always a clever idea and licensed realtors are no exception.
Realtors can be licensed in one or more states and can operate internationally to find buyers and sellers. This gives them great reach in the search for investment properties. Also, realtors do know about great investment deals even before they go on the market. In the business, these are called “Hip Pocket Listings” and could give you first opportunity at a property! A realtor’s access to the Multiple Listing Service “MLS” allows them to search for your target properties with the precision of a surgeon and keep you updated 24/7. All this access along with their experience often leads to deals you wouldn’t have found otherwise.
Peace of Mind
A licensed Realtor is a Fiduciary, meaning they are to be a “faithful servant” to their clients. In fact, all licensed National Association of Realtors are held to a very high code of conduct, practices and duties that are enforceable by law. Briefly stated, this covers everything from accounting, care, confidentiality, disclosure, loyalty and obedience. That’s a great reassurance for all of us that invest in properties.
Investor’s often need quick connections to Hard Money Lenders – Investment Realtors have them on speed dial! You might even profit a few points by sending borrowers to a hard money lender for your clients, too.
Choosing a Licensed Realtor
You most likely will have an opportunity to interview several agents. The real estate agents you decide on should have the time and skills necessary to work with an investor like you. I recommend looking for an agent that specializes in working with investors as most residential agents can’t take the time to satisfy the needs of real estate investors. In fact, many agents shy away from working with investors.
Other realtors, however, realize an important fact most about investors. Investors buy and sell many more properties than their residential clients ever will. That’s a big draw that works in the investor’s favor.
In your search for a realtor, don’t discount newer agents. They often have the time and are working hard to build relationships with buyers and sellers.
Your chosen agent must be ready and available to see, contract and close deals quickly. Buying a great deal or losing one can happen in a matter of hours! Always remember that a good deal to a retail buyer/seller is not the same to an investor.
How to Find a Realtor
Call a few of the major name brokers in your city and ask for a list of 3-5 agents to get the interview process going.
In your search for a realtor, there are several key points to consider:
- A good local realtor knows and understands the property market far better than you will in the beginning, and will know exactly what is or is not needed to make your investment property market ready.
- Realtors should have a deep level of understanding regarding the current market trends on all sorts of properties and on specific areas, too.
- Your agent needs to be familiar with and work with all forms of real estate, computer and communication technology.
- Your agent should know and understand the business of investing in properties; inspections, local regulation and tax rates, ROI, OPEX, cash flow, budgets, after repair value “ARV” and much more.
If you need to familiarize yourself with real estate investing terminology, a solid resource for business terms is Investopedia.
You will discover that a hard-working agent can be a great asset and give you an edge as you grow your business. Build a lasting relationship, be transparent about your financial objectives and budget, and state your goals for the year. Think “Win-Win” as working with an investment focused agent can provide other financial benefits, too! As you work together they will see what you have to offer their clients and come to you for the properties you have available to wholesale, sell or lease.
Have a wonderful day and happy investing!