So, you’ve made the decision to get into real estate investing. Welcome to the club! This exciting and lucrative club proudly includes members like Donald Bren (the wealthiest real estate billionaire in the U.S. with over $16 billion in net worth), Stephen Ross (founder of Related Companies, a real estate firm with over $60 billion in assets owned or under development), and just about every single millionaire on the planet.
There are a few things that every real estate investor should have in their real estate investing toolkit:
- A business plan outlining the types of real estate investments you plan to pursue and approximate timelines.
- A financial planner who is knowledgeable about your whole financial picture and how your real estate investment goals will help support that picture.
- A roster of go-to tradespeople who can be accessed as needed.
And, finally, finding an investor-friendly real estate agent will be a game-changer as far as real estate investing goes. As an investor, the last thing you want to do is waste time or money, so having the right investor-friendly real estate agent is crucial.
Why is finding an investor-friendly real estate agent important?
So, why is it critical to find an investor-friendly real estate agent when embarking on real estate investing? For starters, real estate investors have very different requirements and goals than other types of buyers, such as a newlywed couple looking for their first home, a retiree looking to downsize, or a tech start-up founder looking for a party pad.
When you hire the right investor-friendly agent, you gain benefits such as insider information and market know-how that can dramatically increase your investment returns.
With a knowledgeable agent, you may gain access to pocket listings or off-market properties owned by other real estate investors, thanks to investor-friendly agents partnering with other local investors. In addition to finding a good broker who knows how to work with investors, you’ll also have access to resources, education, and networking opportunities to help you build your real estate investing business.
What to look for in an investor-friendly real estate agent
A good investment-savvy real estate agent is one who not only has experience representing real estate buyers and sellers but also focuses on partnering with investors, not just homeowners. Partnering with a real estate agency that understands market trends and has well-established connections in the industry can save you a lot of time and money and greatly accelerate your growth.
Ideally, you’ll want to seek out a real estate agent who owns investment properties themselves because they will have firsthand experience. That can translate to fewer mistakes, less guesswork, and deeper market insights. A truly investment-friendly real estate agent will have the knowledge and experience to help you make the right choices.
Confidence is a desirable trait in any real estate agent, given that negotiating is such a key skill in the realtor role—as are honesty and transparency.
Furthermore, your real estate agent needs to be lightning-fast in order to close profitable deals, so it’s very important to confirm that they are not only dedicated to investors but also have the time to give when needed.
Strategies for finding an investor-friendly real estate agent
Here are five strategies for finding an investor-friendly real estate agent to help you along your investment journey.
1. Tap into your real estate investment network
Real estate investors typically have all sorts of real estate professionals within their network. This could include lenders, contractors, property managers, interior design specialists, home inspectors, joint venturers, real estate lawyers and attorneys, and more. Even family and friends can be a fantastic source of good potential investor-friendly real estate agent leads.
2. Ask for referrals from other real estate investors
Hey, there are enough real estate investing opportunities to go around, so rather than treating your fellow real estate investors like competitors, the smarter strategy is to cultivate a network of real estate investor allies. A cohort of like-minded real estate investors you can go to with questions and issues—and a cohort you can ask for referrals to investor-friendly real estate agents they have had success with in the past. Build that cohort and put it to use—you won’t regret doing so.
3. Seek out an agent who specializes in select areas
One way to narrow down your search is to look for real estate agents who specialize in certain areas. Niche areas of specialization could include rural properties, luxury high-end homes, fixer-uppers, equestrian properties, new construction, retail, or commercial. Furthermore, there are realtor regulatory bodies that offer a wide range of different credentials that agents can earn, each of which signifies a high level of professionalism and expertise. These credentials also demonstrate a willingness on your agent’s behalf to keep themselves current and relevant.
4. Check out online reviews
When it comes to finding a great real estate agent, online reviews can be a valuable resource. By reading through reviews, you can get a sense of an agent’s strengths and weaknesses, as well as experiences other clients have had. This can be particularly helpful if you’re looking for an agent who is investor-friendly. Look for reviews that mention an agent’s negotiation skills, ability to find good deals, and knowledge of the market. These are all qualities that can be helpful when working with an investor. And, of course, take any negative reviews with a grain of salt—there are two sides to every story.
5. Interview, interview, interview
Finally, you’ll want to do your due diligence by conducting a thorough interview with any prospective investor-friendly real estate agent. Even better, take the time to interview multiple real estate agents. If you plan to work closely alongside this individual for the foreseeable future, you’ll want to ensure there is a chemistry fit. You’ll also want to ask the following questions:
- What experience do you have working with real estate investors?
- What trends are you seeing in the local market?
- What types of properties do you typically work with?
- What locations do you work in?
- What areas do you feel would be a good fit for investment purposes?
- What process do you use to find profitable investment properties?
- What is your personal philosophy on real estate investing?
Also, a knowledgeable investor-friendly real estate agent should be able to discuss the following real estate investment terminology without breaking a sweat:
- Return on investment.
- Cash flow.
- Gross rent multiplier.
- Investment strategies.
- Capitalization rates.
- Key calculations.
- Leverage options.
Finding the right investor-friendly real estate agent can be a game-changer for real estate investors. They understand the real estate investment game and can point you in the right direction to help you meet your investment goals.
In addition to having an investor-friendly real estate agent in your investment toolkit, another key tool is fractional real estate investment opportunities. And it’s never been easier to get into the fractional real estate investing game with a cutting-edge real estate investing platform, one that gives investors access to a range of passive income opportunities.