Working with a real estate professional can provide you with the experience and expertise needed to successfully build your real estate investment portfolio.
It’s important to find a realtor who understands your needs and desired outcomes. As an investor, you want your real estate agent to identify properties that will give you the best return on your investment, whether you’re looking to flip a home or turn it into a rental property.
Here are some tips for finding the best realtor to help you meet your investment goals.
Working with an experienced agent can be especially comforting for a new real estate investor. They’ll likely have thoughtful answers to your questions and be able to provide you context from their years of experience.
Look for agents with a long history of working with other real estate investors. You can seek them out by word of mouth or by taking note of agents who frequently list fixer uppers.
A word of caution: There is such a thing as too much experience. If an agent is also an investor, you should probably work with someone else. Otherwise, they may end up being your competition rather than your partner.
If you are looking to make deals quickly, look for ambitious realtors. These realtors are energetic, hungry, and willing to go the extra mile to speed up your investment process.
While an ambitious agent may not have as many years of experience as others, they will fight hard to get you the best deal possible. They are also more likely to be available at a moment’s notice and after hours, which helps if real estate investment is your side hustle.
An ambitious agent is particularly helpful when you are looking to buy, flip, and sell homes on a short timeline.
Choosing the right realtor is a lot like having a job interview, so be prepared to ask them tough questions. Test them on their knowledge of the local market with special attention to terms important as an investor, such as return on investment and cash flow.
Also, ask potential realtors if they can give you a case study rather than a review. While reviews are nice as a starting point, a case study will give you a better idea of how similar deals or situations have been handled in the past.
While your friends and family can recommend realtors that helped them buy or sell their homes, you may need to do your own research to find a realtor that excels with investment properties. Few agents will describe themselves as “investor friendly,” so it pays to network with other investors and business owners as a way to meet potential agents.
Join Facebook groups for real estate investors and agents and get to know the people there. Attend luncheons at your chamber of commerce, find a community that best suits your needs and comfort level, and find out which agents are best for investors.
When you find investment properties, it pays to have an agent who is equally invested in achieving your goals. By establishing a partnership with an agent, you can build a mutually beneficial relationship that will pay off.
As a house flipper, you can save time and — in the long run — money by working with an agent who will give you a heads up on properties hitting the market. In a best-case scenario, they may even be able to arrange for you to have a first look. In exchange for their help, you can offer to pay a larger realtor fee or promise to work exclusively with them for buying and selling, ensuring future fees.
A relationship with a realtor can also help for rental properties. In exchange for a fee, a realtor can do research for you and provide you with comparable rental rates in the area and tips for giving your property an edge over competitors.