4 Ways to Find an ‘Investor Friendly’ Real Estate Agent

realtorAnyone who’s been around here for very long knows that I’m a big fan of building an impressive dream team that can help propel you to success as an investor. One of those team members who’ll be very helpful in your business as an investor: friendly real estate agent. And in fact, I get this question fairly often – investors asking how can you find an investor-friendly real estate agent?

I haven’t addressed this subject in a specific blog post, so I thought it’s time to do so.

But first, let’s back up and ask a couple of questions….

What exactly do I mean when I say an investor-friendly real estate agent?

This is an agent for whom real estate investors are their niche market. They see how lucrative that market is and they want to cash in on it.

Or, they may even be an investor themselves, which means they have an inside track on understanding how the business actually works. Either of these situations makes for a cooperative agent for investors.

The next question is: Why would you even need or want an agent who is investor friendly?

Some investors are a little bit anti-agent. They see agents as being on the other side of the fence – they don’t get us and we don’t get them. They don’t have a place in our world. With that mindset, those investors would not see the need of such an agent at all. But I don’t agree. Here’s why…

Agents Are Good for Business

Here are some excellent reasons for you to consider regarding the benefits of having an agent on your team…

Flipping a Rehab

Granted, we don’t typically use a buyer’s agent with most of our deals. But when we rehab a house and want to flip it to a retail buyer, we always use a listing agent to list the property for us. Typically, that will be a market expert for the area where that property is located.

fridayThis is why I say there’s definitely a place, from time to time, for real estate agents – especially the investor-friendly variety – in the real estate investor’s world.

HUD Offers

Another example would be making offers on HUD deals. You’ve got to be a licensed agent, or know a licensed agent, in order to make those offers.

Older MLS Listings

Another example is to have an investor-friendly real estate agent to make low-ball offers for you on anything over six-months, days-on-market in the MLS in your target zip code.

Based on a formula, you could give a hungry agent a deal:

“Here are our six favorite zip codes. Anything in here that’s been listed for more than six months, give an offer of 63% of the list price.”

Or something to that effect.

Now you’re probably thinking, But I could do that myself. Remember the reason for creating a team is so you’ll be more effective in your business. So why not leverage an agent to do those tasks for you?

No Exclusive Contract

One thing to make note of is that most buyer’s agents are taught to try to get a contract in place to have an exclusive relationship with us when representing us to buy a property. I get that; I understand that… they learn that in Realtor school so they can protect their commissions.

But this is not an option for us as investors.

We must explain to the agent that:

“We buy a lot of houses all over the place and most of those are not going to come from any of your marketing efforts or any of your legwork. We’ll be happy to pay a commission for any deals that originate from you, but we cannot give you an exclusive contract to be our buyer’s agent.”

How and Where to Find Them?

The question then is how and where to find an investor-friendly agent. Consider the following:

  • 1 – One place would be at foreclosure auctions. Sometimes agents show up to – bid for their big investor clients.
  • for sale2 – Another place will be at your local REIA meetings. Many investor-friendly agents use these meetings as their watering hole because they truly are investor-friendly. They want to be there rubbing shoulders and shaking hands. When you attend, start asking questions trying to learn who in the room is an agent who works with investors.
  • 3 – One of my favorites is to get warm referrals from other investors. You do this by simply asking lots of questions of lots of other investors. Someone in the group surely knows and works with an investor-friendly real estate agent.
  • 4 – And yet another great way – read on…

The Tactical Approach

JP actually covered this in one of our recent coaching calls for our Strategic Investor Insiders, and I thought it was pretty darn smart. Here’s how it works…

If you have MLS access – and we do – when we’re doing our due diligence on a certain property, we look at the comps. We want to know not only what the ARV is, but also what properties other investors are paying cash for.

In other words, we’re finding out where other cash buyers are buying. It just takes one more click to drill into any of these comps to see who the buyer’s agent was. That agent may very well be an investor-friendly real estate agent. This will be especially true if you see that they are the agent in more than one cash sale. Now you know you’ve found a good investor-friendly agent.

Contact that agent and say:

“Hey, I see that you’re working with so and so over here. I’m doing what he’s doing – would you like to come along and work with me too?”

PatrickWrapping Up

So there you have it – the definition of an investor-friendly real estate agent, why you need one and how to find one. Nothing left now but to get this person on your team ASAP.

Got Something to Add?

Are there any other strategies that you recommend? If you have an investor-friendly real estate agent working with you, where did that agent come from? Chime in and let us know.

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