Navigating through real estate investing is challenging. You have to spend a lot of energy finding the best property for you to invest in, and you have to thoroughly research the markets. Building your team is another really important part of real estate investing.
This article will describe some tips and tricks on what you need to look for when it comes to finding a realtor. Finding a realtor that understands real estate investing is key.
- Ask the realtor if they have experience.
- Know that your realtor will not run your numbers for you.
- Basic real estate agent due diligence.
- Use the realtor’s resources.
Find An ‘Investment’ Realtor
Getting as much information about the realtor as you can is crucial. Make sure to ask them if they have experience working with real estate investors, because, although you may assume that they all do, not all realtors have that experience.
Realtors who mainly work with homebuyers don’t always have the skill set needed for real estate investors. A real estate investor isn’t looking for a single-family home they want to live in, they are looking for homes they want to lease out and possibly eventually sell.
Some questions you may want to ask include:
- What is your experience working with real estate investors?
- Do you mind working with real estate investors? (some might!)
- Some realtors do not want to show you properties that you’re looking for (value-add, flip properties, etc)
- Can you tell me about some of the recent deals you’ve found for your past investor clients?
Remember that your needs are different than the average homebuyer’s. You may not be looking for the best neighborhood with the best schools or proximity to certain locations. You could be looking for a property you can fix-up, or a property that may have potential in a few years, all of which are goals that are different than a family looking for a home to raise their family.
You’ll Have to Run Your Own Numbers
Do not expect the realtor to run your numbers for you. Your realtor will not calculate if your home purchase is a good deal. You’ll have to be the one evaluating the market and calculating your own costs and profits, and you’ll have to determine yourself if you’re getting a good deal.
You have to do your underwriting yourself. This is not a responsibility that the realtor will take on for you. Additionally, the realtor doesn’t know your investment goals. Are you looking for cash flows? Appreciation? Both?
A realtor doesn’t know these things. If a realtor says that they’re going to do that for you, be skeptical.
Realtor Due Diligence
When picking out a realtor, make sure that you are doing the proper due diligence. Remember that you’re looking for a real estate advocate (someone who wants to help you achieve your goals.) Don’t be afraid to search for agents who specialize in something, especially if it’s related to your goals.
Interview your realtor and make sure that their availability and schedule will match up with yours. It’s a lot of work searching for, and buying, a home, and a well-organized agent with a complementing schedule to yours is preferable.
Don’t be afraid to ask your realtor for references from past clients. If they’re an experienced agent, they should have many past clients that are willing to speak about their experiences.
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Using the Realtor’s Resources
Realtors have access to the MLS, they have connections to other realtors, and they’re definitively in the market. They go to b business meetings and conventions in the area and are well networked in the area.
- MLS (Multiple Listing Services): “MLS’ are private databases that are created, maintained, and paid for by real estate professionals to help their clients buy and sell property.” For more information, the National Association of Realtors released this article on MLS.
If you use all of these resources, you’re able to help yourself track down a better deal. This doesn’t necessarily mean waiting for the realtor to find the deal for you, but using the realtor’s resources for your own benefit.
Asking your realtor questions about their experience when it comes to dealing with investors can really help you out. You might not be able to find the best deals on Zillow or Redfin; this is where your realtor can come into play.
They have access to resources that are not necessarily accessible by the general public. And not only do you have access to those resources, but you also have access to them first.
Is It Worth It To Get A Realtor?
Yes! Use a realtor because it doesn’t make sense not to use a realtor. They have resources and knowledge that can make it way easier for you to find a deal. But the key factor is to find a realtor that matches you and your goals. Follow the tips above to make it easier to work with your real estate agent.
There are ways to get into real estate with no money down. If you want to invest in real estate for no money down, check out our series on this topic:
- How to Get Into Real Estate With No Money Down-Seller Financing
- How to Get Into Real Estate With No Money Down- Hard Money and Gift Money
- How to Buy Real Estate With Credit Cards
Investing in real estate will allow you the opportunity to have the financial freedom you deserve, but there are many barriers and challenges to real estate investment. The Orlando Academy created a “Real Estate for Beginners” course, based and designed around Orlando Miner’s 10+ years of real estate investing experience. With over $500,000,000 in transactions closed, the program has been proven to work over the last 15 years.