what realtors do

General Real Estate Investing
1

i’ve read alot of stuff on these and other forums about how realtors should be “used” by investors as apart of their team.

that’s all find and dandy, but you’ve really got to find a realtor who works with investors. i think alot of people on here talk about getting a realtor on “their team”, but not every realtor is interested in working with investors, let alone a noob investor.

many realtors, successful ones, have their system in place, and they work their system, period. finding the realtor who specializes, as a part of his system, in working with investors, is the key to not wasting your time. and if you call someone and they say, sure i work with investors…sometimes that doesn’t mean a whole lot.

2

No, just because they say that they work with investors doesn’t mean a whole lot. They have to be able to work with you as an investor for your “team” to work well.

New investors often fall into a catch-22 with finding a good RE agent because the agent that is good and actually DOES work with investors will already have seasoned investors and rarely adds more, especially no green investors. Which leaves them with finding a new agent that they have to ‘train’ to make them into an investor’s agent. If the investor is really green, then it’s practically impossible for them to train an agent.

Raj

3

You try the “search” function?

http://www.reiclub.com/forums/index.php/topic,27247.msg127086.html#msg127086

4

I would guess that 20% of the people showing up to my local REIA meeting are realtors! most appear to be looking for anything real estate related (i.e. networking the group), but some are truely interesting in working with investors.

When I’ve seen a realtor at the meetings more than once, then I know they’re really serious and they have the best advice about local area laws regarding a lot of subjects (like bandit signs and advertising).

5

I guess it’s a matter of what you’re looking for your REALTOR® to do. Different ones are good at different things. One will be good for spotting deals for you, one will be good for marketing your properties and getting them sold quickly, one will be good with providing timely comps and a CMA; really what you’re looking for is not so much a person who “works with investors,” but someone who can do what the heck you ask them to do and well.

6

reason i put this on here was to point out the number one question i would ask any real estate broker/agent -

“How is working with real estate investors apart of your business plan?”

period.

if they don’t have a business plan - "have a nice day. yes i’ll take your card. i’ll call you. "

if they don’t include investors in their business plan specifically - (see above response) - add - “when you’re really focused on working with investors - give me a call.”

if they say something like:
“Well first i’d like to discuss how i form a business relationship and go over an exclusive agency. When i work with investors, i like for them to formally ‘hire’ me so that i can…etc. etc…”

to me, each SUCCESSFUL real estate agent/broker has a strategy and a system and anything that deters them from that - is not something they even consider.

yes, they want to make money - but if working with investors is not something they SPECIFICALLY do - do not waste your time with them.

7

Well T,

I’d have to disagree with that, especially if you’re a new, or fairly new, investor. Here’s why.

New, or fairly new, agents don’t usually have a plan of working with, or for, investors. The concept is new to them. However, they will also be the most likely agents to do what new investors need from agents which is valid comps, searching for properties, running the investor all over God’s green earth looking at props, and writing tons of offers that don’t get accepted.

By contrast, if you do find an agent that says, “Well first i’d like to discuss how i form a business relationship and go over an exclusive agency. When i work with investors, i like for them to formally ‘hire’ me so that i can…etc. etc…” you, as the investor, had better know what you are doing. Agents experienced dealing with investors don’t pull comps on every possible deal, don’t drive you everywhere, and aren’t willing to make tons of lowball offers. They only work with serious investors that actually DO deals (btw, the majority of agents experienced in working with investors wouldn’t require to be ‘formally’ hired as a buyer’s agent either), not simply look at tons of houses and make ‘silly’ offers.

I have NEVER worked with any agent that was experienced working with investors. I trained every one of them to work for ME, and many liked working for an investor, and so found others to work for, too.

Raj

8

“Are you anal retentive” would probably get the same results :stuck_out_tongue:

Seriously though why would a Realtor need a business plan. Its not a business like they are oing out and getting a business loan or hiring employees or something.

Edit: My post sounds snippy, so I will clarify.

Here is how I found my realtor.

“Hey I’m looking for a Realtor to bring me unlistable houses and pull a few comps. I’ll refer everyone I can’t get a deal from to you.”

“Sounds good.” x5

I went from there and looked at their websites and talked to them more. I picked the one that was the least pretentious, cold, and stodgy.

9

I would have to say that if you think a business plan is what makes a real estate agent valuable to an investor, you’re going to miss some experienced investors. I have a business plan, but most agents don’t because that’s not what they’re strong at.

Some investors have business plans, but that doesn’t mean they’re any more experienced

10

i should have written in here - what realtors do…or SHOULD do (in new york at least).

if you don’t have a buyers agency with a realtor…and they’re working “with” an investor - then there’s a great chance that they’re not following their fiduciary responsibilities.

bottom line - i represent sellers. now if an investor is selling properties, that’s fine.

but if they want me to work with them - then it’s buyers agent all the way.

so rog - i agree with you 100%…to an extent. as long as your agents that you’ve trained are on the up and up about who’s working for who - in whatever state they’re in, that’s great. and if they’re not - well then to each his own.

as for the business plan - any real estate agent is a business owner. unfortunately, most don’t operate like a business, they operate as if they were an employee. the extremely successful agents - that WILL find investors very good deals, WITH NO NEED TO TRAIN or go through the process ups and downs of stupidity on the part of the new agent - definitely have a business plan.

the business plan could simply be a system that they use and implement RELIGOUSLY. with NO DISTRACTIONS.

so, if you’re looking for an agent to work with as an investor - ask at least an open-ended question about how they include investors in their business…

if they don’t - and you want to train them - fine. but realtors are a dime a dozen. if you’ve got the cash, the know-how and are ready, willing and able to close deals - why waste time with a new agent, when all you have to do is find a top producer (who specializes in working with investors).

a top agent specializing in working with investors will save you time, money and energy. all you have to do is show them that you’re qualified to do business with him/her. period.

if you’ve got the cash/credit, business-savvy - they’ll definitely take their time (because they’ll have it to give as part of their overall business operation) to show you properties, pull comps and close deals with you.

i’m not necessarily disagreeing with you rog on your points - you know your business and you’re successful.

dee - i hear what you’re saying. i guess the term “business plan” may not be the best to use.

enj - what ever works for you, that’s great. but i know that any successful business has a business plan of some kind. a direction. any realtor can pull comps and blah blah blah…but MANY, MANY of them don’t do follow ups, make appts, show properties, whatever - very good, because they’re ALL OVER THE PLACE…

they have no direction. you might think that the ones you work with are great and if they are then that’s awesome for you.

11

The only thing about your post TMCG, is that, it does not sound like it comes from real world knowledge (no offense intended).

A top producer that ‘specializes’ working for investors simply would not take the time to include you in their ‘plan,’ especially if you are new to the business. They already have top investors to work for and move plenty of houses. They won’t take the time to ‘help’ a newbie ‘learn the ropes.’ Why? Because they DO have a plan and it’s not making alot of offers, pulling alot of comps, and teaching the how2’s of buying. Agents that work for truly experienced investors don’t do that unless it’s a special deal. That’s actually one of the perks of working with investors. Investors KNOW (or should know) the business. If you’re making an offer, most investors would already know what the property was worth, so why pull comps?

Raj

12

The other thing that people don’t really mention is that top producers probably don’t work with investors, they work with sellers. You can work with a buyer for a couple months or a couple of years or more before they’ll find something they’ll want to buy. Sellers usually want to sell and it’s just a matter of time before it sells. The process there is to take listings where the seller has some motivation.

Investors are really the worst type of buyer for a real estate agent which is why most people have trouble finding good agents willing to work with investors. They typically want the best deal at the best price and there aren’t that many around, most owner occupied will outbid them. Many real estate blogs aimed at new agents will tell you to avoid investors unless you’d like to waste a lot of time.

Your market of course may be different.

13

I’d have to offer a rebuttal. When you say “Top Producers”, you may only be talking about residential agents. Investors aren’t just small dealmakers who buy cheap houses and flip them. Investors buy multi-million dollar complexes, do exchanges, join TICs, flip/build apartments, become developers, etc.

I think you may be thinking of residential “Top Producers”, who are often luxury listing agents. The top producers for investors often start specializing in commercial real estate, but they do start somewhere.

Even beginning investor agents start somewhere and build up.

14

Hello All! Quick question regarding this topic…

What advantage/disadvantage do ya’ll see in an investor holding a real estate licence? :biggrin

I haven’t done any deals yet, but my goal is to wholesale for quick cash and as I become more experienced (and know what the heck I’m doing!!), I’d like to hold property to lease/option ect. The way I see incorporating my real estate licence (which I’m about a month away from obtaining) is by building strong relationships with investors that I’m wholesaling to to later become their go to real estate agent in order to list their properties with me.

Any thought are appreciated!

15

I’m not sure what you’re rebuttal is referring to. Just wanted to ad an observation. And you’re right, I was referring to residential real estate. Most people on this site seem to start with residential. Most investors probably shouldn’t start with commercial unless they have a large amount to invest. Most people here seem to be chasing no money down deals which make it really hard to find a good investment. In my area, it’s practically impossible. When was the last time we heard of someone getting a really good deal? Just doesn’t happen that often here.

As for getting a real estate license, that’s been mentioned several times, try doing a search for a bunch of old threads. Basically it boils down to “it depends” and your anticipated volume. Anyway in theory your approach seems fine, the question is your execution. Do you really think that there are that many investors in your area and do you currently know of many?

16

That is one way to benefit from having your real estate license; but that isn’t incorporating it into your investing business, that’s simply being an investor as well as being an agent, the two are not connected. Because technically, every agent tries to keep contact with someone they sold a house to, whether or not they actually owned the residence.

Another way that I do see you being able to benefit from having a license is being able to list and market your own properties. This would allow a wholesaler to get a bigger bang for his buck. You are going to sell a property for much more on the MLS, than you would off of it. You figure if you get a property at 60 cents on the dollar, do very very little to it (not rehab), you could list it at say 90 cents, and likely walk away with an offer at no less than 80; when a typical wholesaler might be selling to a rehabber at 65 - 70% depending on what all needed to be done to the property.

17

facey, if you get your real estate license - you better specialize in BUYERS AGENCY. remember, you automatically work for the seller (at least in NY and i think in most states). especially if you’re a realtor®. you have to know who your clients are and your customers.

so you’ll need contracts with investors as their buyers agent or something like this, especially if you’re “wholesaling” real estate - i.e. for the benefit of the buyer - not the seller…monetarily at least.

rog - i think we’re talking the same language. i work with a top producer - part of his business plan is to work with investors - new or experienced - who have CASH to buy.

he doesn’t mess around with anything outside of his business “box”. he lives in the box. anytime anyone mentions anything outside that box, he tells them to FOCUSSSSS.

he works and refines his system. period. so yes, a top pro will not work with a newb with no money for “no money down deals” - joke. that was actually the original point of my post. so many people think “oh i’ll just find a realtor and interview them…blah blah blah.” that’s not how it is. but it is a numbers game - any realtor will play the numbers, talk to anyone and represent their business professionally. that’s why it’s so easy for noobs or just anyone to talk with a real estate agent. we all want business.

“if you’ve got the cash, the know-how and are ready, willing and able to close deals - why waste time with a new agent, when all you have to do is find a top producer (who specializes in working with investors).” this is what i wrote.

i’m guessing that you’ve got cash to move deals Rog, cuz you’ve been in the business a while. you’ve got to be putting some kind of cash together. and if you’ve made a name for yourself amongst the investing community - i think top pro’s (that specialize in working with investors) would gravitate towards you anyhow…cuz you close deals.

and OBVIOUSLY, i’m not talking about top producers…who work with “Donald Trumps” on High Rises and close 25million A QUARTER in volume.

again, i work with a top producer on long island. he moves commercial with his investors and he does residential - preview homes (million and up) and also the 299k’s - mostly sought after by agents like me - the “normal” homes - ranges 250k through 750k. he focuses on his business plan and puts agents, like myself in the best possible spot for us and his business.

if a newb with no money, no credit walks into our office, Paul is NOT going to waste time with it. if i bring a person in to the office that’s like this - he’s going to tell me to FOOCCCUUUSSSSS.

again - each successful agent has a business plan - SUCCESSFUL agent.

if you’ve got cash and can close - seek out people like Paul. they’re expert professionals…oh did i mention i’m on that team???

LOL