I am working late hours, 7 days a week until April 15th. I am seriously considering using a realtor in helping me find deals since I want to get started buying properties to flip and also hold long-term before it gets consistently warm here in Chicago, which could be May or June depending on the weather.
I know of a realtor that started a real estate group and he is young and really knows and pushes one area here in Chicago that is an older neighborhood not necessarily near my house, but that is experiencing new investor interest. I also know an older more experienced realtor that spoke at one of the investor meetings. The more experienced realtor is closer to my house and I think that she might be more familiar with the area that I would want to invest in initially. I haven’t approached either one yet, because I already started sending out mailings from a foreclosure listing service to directly market to the residents of these houses.
You need one that understands investors and willing to place low bids. Some realtors will get frustrated becuase the bids are low and most of the time will be rejected.
Make sure to explain to the realtor you want to use that you will be placing low bids because you are only looking for good deals, but on the upside, you would be a repeat customer since you are investing and looking for more than once house.
You can use as many realtors as you like as long as you do not sign exclusive relationship with them. Some of them won’t mind and others will refuse. I currently have 2 realtors who I deal with. One has automated notifications of rehab properties that hit the market and the other I use exclusively for HUD homes. I had a 3rd realtor, but I have not heard from her in a while. she usually dispears till she finds a good property but I have a feeling she walked away
If the marketplace is slow (and it hasn’t been here for years)…I might be willing to make low offers for investors.
However, if it’s hot…I rather spend my time working with higher probability clients–higher probability their offers will be accepted (I’ve typically 8-12 sales in the pipeline at any given time).
It all depends on the expertise, and niche’ the Agent has chosen. Some work strictly, or primarily w/rehab Investors (those are the Agents you want to deal with). Others are new home specialist, or have chosen to specialize in equestrian properties, etc.
Keep in mind…there are different kinds of Agents, just are there are different kinds of Investors.
Also, I wouldn’t advertise that I work with more than one Agent, or say things like, “whoever brings me the deals gets my business.” Most Agents see these kinds of prospects as lower probability clients as well. Remember, Agents are business people, and if they’ve survived this business for any amount of time…they’ll be able to sniff out which clients hold the highest probability of a payday for them. It’s not that they have a bad attitude…it’s just smart business.
It all depends on the expertise, and niche’ the Agent has chosen. Some work strictly, or primarily w/rehab Investors (those are the Agents you want to deal with). Others are new home specialist, or have chosen to specialize in equestrian properties, etc.
Keep in mind…there are different kinds of Agents, just are there are different kinds of Investors.
Also, I wouldn’t advertise that I work with more than one Agent, or say things like, “whoever brings me the deals gets my business.” Most Agents see these kinds of prospects as lower probability clients as well. Remember, Agents are business people, and if they’ve survived this business for any amount of time…they’ll be able to sniff out which clients hold the highest probability of a payday for them. It’s not that they have a bad attitude…it’s just smart business.
-Infowell
I agree with Infowell’s statements. I was getting frustrated so I went to working with a buyers broker for awhile. I was thinking he would be working more for me as a buyer since that is what he does, he invests/ works in a bigger city that I am not familiar with. Good for me though because now I am looking in that area where there is more opportunity for me, and he knows that market. I also work with another realtor in a smaller town (and my buyers broker knows it) because that realtor knows that area well and he deals in foreclosures. I felt like I was wasting my buyers broker’s time looking in an area he was unfamiliar with and I told him so and he was fine with me working with another realtor. I also have a realtor working in another town close by that is looking for rehabs for me. He knows that area very well. I do agree though that you do not want to advertise that you use more than one realtor to everyone. It really is your business.
The services that I provide are market knowledge, networking to find good deals and MLS access. My two main investors are experienced rebabbers, so I help them pick finish outs and determine ARV. I also determine who the buyer will be in that particular area and explain what our marketing strategy will be when we sell. Both of my rehabbers can work with other agents if the other agents bring them deals.
I’ve decided to work with only a few investors, especially beginners, because of the amount of time it takes to train someone with zero experience. Every new investor thinks there are motivated sellers around every cornner and you can find them in MLS. They don’t realize that they have to do marketing and follow up on leads. The agent can’t do it all for you.
Worse, new investors often don’t know their numbers, so want to look at houses that don’t meet the 70% ARV standard. It’s pretty easy math, but their fees and repairs are often calculated way too low to be realistic. When I try to tell them their numbers are off, they think they can make the deal happen anyway (adding two rooms and doing a complete slab/roof/electrical/remodel for 20k?..right).
The agent has to be devoted to working with investors and you’ll find that experienced investor agents may not even accept you as a client. If you find a good one who is willing to partner with you, you need to be fair and open to them about working with others. Set very clear guidelines.
