Look for good realtor to work with for income property

[vnwind]

Hi everyone

I am facing quite a bit of dilemma so I hope someone can shed me some lights. I currently look for income property and got my financial in place for around 350K, I am working with a realtor who was recommended to me by the mortgage broker, he is a nice guy but does not have income property and doesn't have a good experience about income property. He does put effort to look up different zones and provide me answers. However, he can't emphasize on what area I should look for or give me advice of what to look for. I understand that I need to do my own research but i was hoping he can help me along the way. I understand that a multi-family with legal suite for this price range is impossible in Calgary. I want some feedbacks of what area to search or type of dwelling or increase my mortgage loan from my realtor and this is what I am not getting from my realtor. Should I find another realtor who specializes in income property? I think I should but is it really make a big difference as everyone is using the same MLS system? Also, any one know a good realtor who specializes in income property? I watched Income Property show and Scott seems to know price for rent and what to expect out of each property. Is it just for show or is there really a realtor who can give you great potential income number and ideas so you can take it home and think / research about it?



Thanks for any helps



Tyler

 

[MatPiche]

Hey vnwind,



I DEFINITELY recommend that you use a realtor that specializes in investment properties!



I'm a realtor specializing with investors here in KW/Cambridge and I provide my clients with the exact rents they can expect, so no, it's not just 'for show.' That's the benefit of using someone who specializes.



There are a number of realtors in REIN who specialize in Calgary. Ask around or search in Google.



For some tips on asking some key questions when meeting realtors to make sure they're 'real', check out my quick video - HERE



Best of luck to you!

 

[vnwind]

Thanks Mat for your inputs, I will google to see if i can find a new realtor. Any realtor in REIN who would like to work with me, please contact me. Now I am not sure what to say to my current realtor that I am not using him any more, any one has tips?



Thanks

 

[MatPiche]

Hey Vnwind,



No problem!



As for working with your current realtor, that's up to you. But I think you already know the answer

 

[vnwind]

Hi guys

I still have not found a right investment property to buy yet. I currently work with with a REIN realtor. However I am curious of how does this work? So he sent me all listing from MLS and area that I am am interested in. Then I go through them and tell him what I want to see. How is it any difference from any other realtor? Maybe my expectation is a little bit high but I thought he will do his research and present to me potential properties rather me go through each MLS listing and do my own market analysis for each property. Please share me your thought or what I can do to make this works?



Thanks

 

[3rd]

VNWIND,

When I was buying my first and second houses I was disappointed with my realtors for the same reason.

I expected more involvement from their side, thinking they would suggest something to me. Never happened.

Later I found out they don't do it as they are afraid to get sued by you if something doesn't work out (you couldn't rent it out for that much, or it's not really good location). Those were regular realtors though, I don't know about realtors, which emphasize they work with RE investors.

I think you still have to do most of the research yourself, that's what I learned anyways...

 

[vnwind]

Thanks 3rd for sharing your experience. So there is no differences between a regular and RE realtor then because they all provide you with listing from MLS system? From reading book, i thought they would help you by providing great advice and present investment deals that regular realtor could not do. What advantage can i get from RE realtor then?

 

[Thomas Beyer]

The realtor is secondary. Primary is that YOU do research in one area of town that has upside and that fits your criteria, for example



A) - NEIGHBORHOOD

a) within 1 km of yet-to-opened LRT

b) homes from 300-700,000

c) within 1km of an elementary school

d) within 500 m of a park

e) within 1 km of shopping

f) older homes being renovated or replaced with new ones

g) mix of American cars and German/Japanese imports (and not just junkers)

h) ...



B) HOUSE

a) not more than $350,000

b) 3 BR minimum

c) not on a busy throughfare

d) rents over $1500

e) over 1200 sq ft

f) min 2 bathrooms

g) veranda facing S or W

h) ...





With well over 10,000 homes trading in Calgary annually you have to narrow down the area AND the house type.



$350,000 is likely either a 1/2 duplex, a townhouse or a condo. Let's say you rule out condos (too many uncontrollable variables) and 1/2 duplexes (not too much choice) but specialize in townhouses. You must then understand ALL townhouses in a certain areas with upside, for example RockyRidge or Bowness or CastleRidge over a period of a year. That is when the realtor comes in. You ask him to give you all townhouse listings that sold, that expired and that are for sale, say in Bowness. Then maybe you get 10-20 you can analyze, and write offers on 3, but only after you thoroughly understand if the 3BR TH with southfacing backyard on ABC street at $345,000 is a good deal while the one facing north with only 1.5 bathrooms on XYZ street for $323,000 is not. Some patience and much thorough research will allow you to arrive at this conclusion eventually.



Related post on how to get started: http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html

 

[3rd]

THOMASBEYER,

oh wow, thanks for this kind of guide



VNWIND,

I cannot answer the question about any differences in between them, as I don't know myself

 

[Tony Miller]

There are differences between "regular" realtors and investor focused realtors. Your investor focused realtor or IFR should be a successful real estate investor and understand RE investing language. You shouldn't have to teach your realtor about real estate investing!



I'm an investor focused realtor and one of the first things I do with my clients (especially clients who are buying their first investment properties) is to find out "why" they want to invest in real estate. We then talk about your goals and develop a strategy to help them reach their goals.



I don't set my clients up for automatic delivery of new listings unless they specifically ask for it. I only send my clients properties that I think are worthwhile pursuing or warrant further research. This means that I analyze the properties before I send them to my clients and I also view them first as much as possible (sometimes this isn't possible because of distance or there is competition). Sometimes I will submit an offer for a property and try to lock it up before anyone else gets it.



My clients also have access to my real estate investing team: lawyer, accountant, home inspectors, mortgage brokers, bankers, home stagers, contractors, property management companies etc etc.



Your realtor should also understand that it could take weeks and possibly months before you find a property and not bail on you if you don't buy the first property you look at.



Your realtor should have a good network of colleagues and know how to draft offers that involve investment properties especially larger multi family ones.



Of course, it takes two to tango and you should be actively searching for properties, conducting research, getting your financing in order, meeting with an accountant....



Tony

 

[vnwind]

Thanks Thomas and supercharge for you inputs. These are great to help me understand more and check what I am still missing to do.



Cheers

 

[MatPiche]

I agree with everything Tony just said. It's the exact same service I provide my clients and JV partners here in Kitchener-Waterloo and Cambridge.



There is a HUGE difference between investment focused realtors and 'realtors' who only sell pretty homes with white picket fences to 'normal' buyers and sellers.



Vnwind, unfortunately, just because a realtor is with REIN, doesn't always mean that they're top notch (they should be!). I'm not sure who you're using in Calgary, but there a number of good realtors in REIN that service that area.



If you're not happy with something, just let you're realtor know what you need and expect. Best of luck!!

 

[vnwind]

Thanks Matt and Tony,



I am on the fence of joining REIN so I can have more access to REIN Realtors to help me out but my financial is tied up toward 20% down payment so it is a much tougher decision to make...



Thomas, I understand you are giving example of what to look for for 350K range but do you have an example of what to look for in 400K-450 K range?



Thanks

Vnwind

 

[Cory Sperle]

You can only rely on yourself to find good investment properties. I have worked with many agents and bought and sold many properties over the years, but every single property I found on my own.


Anyone well known, specializing in investment properties already has 100 clients so you will be on the bottom of the list when anything good comes up and gets scooped up by someone else. My advice stick with your guy and educate him on what you want, not the other way around. If he is good and you bring him referrals, you will be on the top of his list!


Price is simply a reflection of the risk you take in a certain area and/or cash flow. Start with the 10% rule to filter out all but a few properties. Find out what rents are for the area you want to invest in. In Calgary I don't know if you can cash flow anything with 20% down, but search hard enough and you will find it. Anything is possible.

 

[durhamhome]

Tyler


I see that you are in the Alberta area, but did you mention where you are looking to invest? The REIN group has a bunch of quality realtors. Perhaps in the next REIN meeting, ask around, outside of the meeting in the lobby. Ask who are the best investment realtors in that region. I'll bet you don't get any more then 2-3 names.


At least one of those people will be likely at the meeting. But, if you prefer cyber stalk them and see what their website is like, if they own any properties themselves,etc. If you like what you see, reach out to them and maybe have lunch with him / her and see if you want this person as a key member of your team.


Good luck. Michael

 

[chrisc]

Hi Tyler, there are good realtors out there they are just perhaps far few and in between. I am located in Central Alberta and am a Realtor. If you have any questions, i would be happy to assist. Its actually no that difficult once you know what to look for in an income property. i would love to chat with you when you have some time, you can reach me at 403 872-8879 any time.



Kind regards



chrisc

 

[Matt Crowley]

[quote user=3rd]Later I found out they don't do it as they are afraid to get sued by you if something doesn't work out (you couldn't rent it out for that much, or it's not really good location).



@3rd - absolutely. You must be responsible and 100% accountable for the neighborhood, rents, housing type, and price you are willing to pay. Choosing to hire a Realtor doesn't relieve you of any of these duties.



I once asked one of the most successful Realtors in Edmonton how to find cash flow properties. His response was, "Everything cash flows. Just throw more cash at it."



Of course he is right.



That being said, our Realtor, Andy Barrett in Edmonton has been great for us. He invests in the same neighborhoods we do. He has a similar target tenant demographic. He is very frank in his assessment of properties, which we appreciate.

 

[swlivermore]

Hi Vnwind, I have been buying in Calgary for the last 2 years and have found some success in doing so. I would be happy to chat with you on what I have learned over that time. I have picked up 5 properties there and I do most of my work from Barrie, Ontario.



You can contact me at [email protected]



Susan

 

[vinodrealtors]

where re you looking ?