Finding an Investor Friendly Agent in Your Market

You’ve read the books, listened to the podcasts, researched the market you want to invest in and now you’re finally ready to shop for your first investment property. Congratulations!

Now what? Taking that next step in actually finding your ideal investment property can sometimes seem intimidating. But it doesn’t have to be if you can find an experienced, investor-focused real estate agent to help you navigate the process and find a property that suits your investing goals.

What is an “Investor Friendly” agent and why do you need one?

Chances are, you may already know some real estate agents who buy and sell homes. A quick Google search of “Realtors Near Me” is likely to yield dozens of brokerages and real estate agents in your area. While there is often no shortage of agents to choose from, keep in mind that the vast majority of home sales are sold to owner occupants, meaning that there’s a decent chance that even some of the most tenured real estate agents may not have had much experience working with investment properties.

While all real estate agents are responsible to buy and sell properties for their clients, an experienced investor’s agent can offer tremendous value through their unique expertise:

• They understand how to perform basic underwriting/analysis of investment properties and can help determine if a potential property is likely to meet an investor client’s goals.

• Has knowledge of local rent rates and demand for particular areas to help investors anticipate potential cash flow.

• Often have knowledge of basic remodeling and construction costs to help investors estimate rehab costs.

• Sometimes have connections to sources of “off-market” deals that aren’t widely advertised to the general public.

• Often provide or have connections to property management services for rental properties.

• Understand alternative financing options like hard money or bridge loans.

How do I find an “investor-friendly” agent?

As a key member of your investment team, a great real estate agent can be invaluable. But how do you find the right one in a sea of Realtors? Below are some suggestions for finding a great agent to partner with:

1. Ask for referrals from other investors - networking amongst investors in your market is a great way to learn more about your market and get references on service providers you’re considering working with.

2. Attend investor-focused events like REIA meetings - Getting involved in local investor organizations will often yield valuable connections with real estate agents and other investor-focused service providers.

3. Join online forums like Facebook groups or BiggerPockets - These online communities are a great place to seek recommendations from local investors and/or seek out “Featured Agents” through the platforms.

4. Consider Property Management companies. Many property management companies are managed by agents who work primarily with investors like yourself and have firsthand experience with acquiring investment properties.

What To Look For In An Investor’s Agent?

As you begin to consider different agents, you’ll want to interview them to understand if their background is a fit for what you’re looking for. Some suggestions of what to ask include:

1. Look for agents that are also investors themselves. Ask if the agent has personal investment properties and if so, what type/where. Having an agent with firsthand knowledge of the benefits and challenges of owning investment real estate can be very helpful as they help you to identify the right properties for your own portfolio.

2. Ask about a potential agent’s expertise in the specific area you’re looking to invest. The investment landscape can vary widely even within a single city so make sure the agent you’re considering has previous experience in the geographic area and type of property you’re looking to invest in (single family, multi-family, etc.).

3. Does the agent inquire about your specific goals? Not all investor’s goals are the same so it’s important that your agent understands and care what you are looking to accomplish through your investing so they can target the right properties to suit your needs.

4. Is the agent asking questions about your preferences? Your agent should consider a variety of factors that are unique to you when presenting potential properties. Factors such as: risk tolerance, preference for turnkey vs. value add rehabs, do you plan to self-manage or hire full service property management, etc. If your agent isn’t asking you questions to help narrow down the type of investment property you’re willing or able to manage, there’s a high likelihood that you’ll be sifting through a lot of listings that don’t fit your criteria, which isn’t the best use of your time.

Spending a little time finding the right agent to partner with at the beginning of your search may involve a little effort on the front end but it can ultimately save you time in helping you to zero in on the right property much sooner that endless scrolling through Zillow or wading through untargeted drip campaigns from an inexperienced agent.