Selecting an investor-friendly realtor
Want greater financial security? Who doesn’t. (OK, we can think of a few billionaires who might not care…) But if you’re like most of us, making smart investments to improve your quality of life and that of your family is a priority.
Investing in properties can help you do just that. But you knew that already didn’t you?
It also increases your credit performance and can generate multiple revenue streams for you. Before purchasing a property, however, you need to obtain deep knowledge of the local investment market.
And the right way to go about that is by hiring an experienced realtor who can help you navigate the challenges and get the most out of an investment. Specifically, a realtor who has experience working with investors.
What is an investor-friendly real estate agent?
So, why do we insist upon finding an investor-friendly realtor? It’s because they know everything there’s to know about real estate investment, for one; these folks are focused on helping you find properties likely to offer you the best return. Second, such agents are skilled at boosting your bottom line by calculating fundamental investor equations and leveraging their expertise for your benefit.
Since real estate investors spend most of their time generating leads and marketing their finished properties, they hardly have any time left to actually close new deals. Pairing up with an investor-friendly realtor can be a boon in this case, especially if you find yourself in an unfamiliar market.
How to find an investor-friendly realtor?
Steal these tactics below:
1. Expand your network
If you’re venturing into a new market, tread carefully. Your established network of professionals, friends, or family might not help you find a suitable realtor here—especially if you’re investing out of state.
In that case, you need to expand your network and connect with:
- Individual investors in the city or region
- Real estate attorneys
- Title companies and banks
- Individual real estate agents and brokerages
2. Search for real estate investment groups
Your ideal investor-friendly agent may be networking with people in local real estate investment groups and clubs to find more clients. It’s worth hanging around the same crowd to find your match.
There are a few ways to find these groups online:
- Directory of Real Estate Investment Clubs
- National REIA (National Real Estate Investors Association)
- National REIC (National Real Estate Investment Club)
3. Ask the right questions
Simply possessing a CIAS (Certified Investor Agent Specialist) certificate and a certain amount of experience doesn’t guarantee that a realtor is right for you, though.
Before committing, ask the right questions:
- Do you have experience investing in properties yourself?
- What was your experience working with investors?
- How do you find profitable properties to invest in?
- Can you tell me the profits earned on the last four property investments you worked on?
- Do you have reliable contractors in your network who can meet deadlines? Can you recommend some of them?
- What’s your strategy for building up a property portfolio of rentals?
- How will the current investment market conditions affect my profit margins if I’m aiming to buy a rental/flip a property?
4. Look for a full-time agent
Think about it: Would you go to a dentist who only works part-time?
Then why risk hundreds of thousands of dollars working with a part-time agent? You want to hire someone who dedicates the bulk of their time to serving real estate investors like you.
Becoming a successful investor: What’s the secret sauce?
Making the trendiest upgrades won’t turn you into a successful investor but purchasing the right property to invest can.
It’s a numbers game, you see. When you’re buying a rental property, you’re hoping to cover the invested capital, monthly mortgage payments, and still make a profit. Similarly, in house-flipping, you’re eyeing a quick profit by selling the renovated property at a price that covers the cost of repairs/remodeling as well as the initial cost of purchase.
How to tip the scales in your favor? Hire the best investor-friendly realtor!