Finding investments with a real estate agent is a smart move for investors. It simplifies the process of finding profitable properties and provides numerous benefits. A good real estate agent offers a deep knowledge of the local market, allowing them to identify up-and-coming neighborhoods and undervalued properties, providing a strategic advantage. They bring a valuable network of contacts, including contractors, inspectors, and lenders, which is especially beneficial for those new to real estate investing.

Agents are adept at acting quickly in a fast-moving market, ensuring you can make swift decisions when a good deal arises by having your financing in order. Accompanying you to property showings, they can highlight important aspects you might miss, such as repair needs or value-add opportunities. Collaborating with an agent to analyze deals helps you consider renovation costs, potential rental income, and market trends, leading to well-informed investment decisions.

Additionally, their negotiation skills ensure you get the best price while making competitive offers. After a purchase, maintaining a relationship with your agent provides ongoing market insights and support for future investments, making them an invaluable partner in your real estate journey.

Choose the Right Agent

First thing to make clear is that agents get a lot of spam. Their phone numbers are all over the internet and every listing will get spammed with fake offers and scams.

Do not spam agents with text messages or voicemails asking for investments. Of course all agents have access to fixers and “off market properties”. Agents have clients that will get these offers first.

building a relationship with an agent is a two way street. The investor should research the agent that will best serve their needs. The real estate agent will also verify that the investor will make a good client. A good client will have the finances available to purchase and the desire to purchase.

Desire to purchase means that the investor will not be trying to “low ball” all sellers in hopes to get a property for a few thousand less. Investors that “low ball” all sellers very rarely get their offer accepted and the agent representing them will build bad relations with other agents.

Choosing an agent with a background in working with investors can make a significant difference. These agents understand the unique needs of investors, such as finding properties with good ROI, understanding cap rates, and identifying value-add opportunities. Here’s how to find the right one:

1. Check Their Track Record: Ensure the agent has a proven track record of helping clients find profitable properties. Ask for case studies or examples of past transactions.
2. Ask for References: Speak with other investors who have worked with the agent. Their experiences can provide valuable insights into the agent’s capabilities and reliability.
3. Verify Credentials: Check the agent’s credentials and certifications. This includes their licensing status and any specialized training in investment real estate.

How An Agent Qualifies a New Investor Client.

Agents need to ensure that the investor has the financial capability to close deals. They will often ask for proof of funds, a pre-approval letter from a lender, or details about the investor’s financing plans. This step is crucial to establish the investor’s credibility and readiness to purchase.

The agent will inquire about the investor’s specific criteria, including budget, preferred locations, property types, and desired returns. This helps the agent tailor their property search to match the investor’s needs and expectations.

Investing in real estate requires time and effort. Agents will discuss the investor’s availability and willingness to engage in property showings, negotiations, and due diligence. This ensures the investor is committed and can act swiftly when necessary.

Trust is a key component of the agent-investor relationship. Agents will assess the investor’s communication style, honesty, and reliability during initial interactions. This helps build a foundation of mutual trust and respect.

The Fastest Way to Find a Property

Before meeting an agent, define your investment goals. Are you looking for fixers to flip or buy rental properties? Your goals will guide your agent in finding suitable options. The fastest way to get in good communication is by calling the agent and having a phone conversation with them. After the initial communication with an agent, you will be set up with a listing alert. Based on your criteria, you’ll receive notifications of properties you might be interested in. The properties on the listing alert will all be on the MLS.

You will also receive emails and alerts of properties that are not on the MLS. These properties are off market or coming soon homes that I get notified on from other agents and my network. I reach out to the clients that might be interested.

When you see a property you like, you and the agent will revisit the goals you set when starting your search. The agent will pull comparable listings, determine the costs of renovations, and establish the appropriate purchase price. If the price and potential profits align with your investment goals, you will visit the property and make an offer.

Even if the property is sold “as-is,” once the offer is accepted, you will still have a chance to inspect the property. This inspection period is a critical safeguard for investors. It allows you to thoroughly evaluate the property’s condition and identify any issues that may affect its value or the feasibility of your investment plans.

Importance of the Inspection Period

During the inspection period, you can hire a professional inspector to assess the property. They will check for structural issues, plumbing and electrical problems, roof condition, and other potential red flags. This inspection provides a comprehensive understanding of the property’s current state and any necessary repairs or renovations.

Contingencies and Exiting the Transaction

Most real estate contracts include contingencies that protect the buyer if significant problems are discovered during the inspection. A contingency is a condition that must be met for the sale to proceed. Common contingencies include:

1. Inspection Contingency: Allows the buyer to back out of the deal if the inspection reveals major issues that were not previously disclosed or anticipated. You can either negotiate with the seller to address the repairs or reduce the purchase price, or you can exit the transaction without penalty.
2. Financing Contingency: Protects the buyer if they are unable to secure financing for the property. If your loan application is denied, this contingency allows you to cancel the contract without losing your earnest money deposit.
3. Appraisal Contingency: Ensures that the property is valued at or above the agreed purchase price. If the appraisal comes in lower than the purchase price, you can renegotiate or exit the deal.
4. Title Contingency: Ensures that the property has a clear title without any legal issues or liens. If title problems arise, you can terminate the contract.

After you purchase the property the agent will maintain a relationship with you and help with your goals for the property. If you bought a fixer, the agent can put you in touch with contractors and handymen in her network. I can also help with style decisions based on what buyers are looking for and willing to pay more for.

If you purchased a rental property, I provide market information. This is helpful to make sure you are getting the highest rents. I can also help with the sale and possibly a 1031 exchange if your goal is to build a rental portfolio.

Types of Agents and Their Specialties

Different types of properties require different expertise. Here are the main types of agents you might consider:

1. Commercial Real Estate Agents
   • Specialization: Commercial properties, including office buildings, retail spaces, industrial properties, and large multi-family apartment complexes.
   • Skills: Understanding of commercial leases, zoning laws, and market analysis for commercial areas. They often have networks that include business owners and commercial property developers.
   • Value: These agents can help investors looking to diversify into commercial real estate, which can offer stable, long-term returns and higher income potential.
   • often involve more complex transactions and require an agent who understands business needs and commercial market dynamics.
2. Multi-Family Real Estate Agents
   • Specialization: Multi-family properties, such as duplexes, triplexes, and apartment buildings.
   • Skills: Expertise in evaluating rental income potential, tenant management, and understanding financing options specific to multi-family properties.
   • Value: These agents are crucial for investors aiming to build a portfolio of rental properties. They understand how to assess cash flow, occupancy rates, and property management needs.
   • Demand an agent who knows how to evaluate potential rental income and navigate financing options unique to this type of investment.
3. Residential Real Estate Agents
   • Specialization: Single-family homes, townhouses, and condos, primarily for residential use.
   • Skills: In-depth knowledge of residential neighborhoods, school districts, and market trends in the residential sector.
   • Value: Ideal for investors looking to flip houses or rent out single-family homes. These agents know how to spot undervalued properties and provide advice on renovations to increase market value.
   • Need an agent familiar with local housing markets and trends, essential for investors focused on flipping houses or renting out homes.

In summary, finding investments with a real estate agent offers a streamlined and advantageous approach to real estate investing. Agents provide invaluable market knowledge, a robust network of contacts, and the ability to act swiftly in a competitive market. Their expertise in property showings, deal analysis, and negotiation ensures that you secure the best properties at the best prices. By maintaining a relationship with your agent, you gain ongoing support and insights for future investments, making them an essential partner in your journey to financial success.