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Should I really work with a real estate agent?

Nir

0
REIN Member
Joined
Dec 5, 2007
Messages
2,880
Hey ALL,
I have a lot of free time and find potential properties myself using the MLS. My real estate agents use the same tool - MLS to search for relevant properties for me. Should I really send them listings I might be interested in so they can put the offer for me or just proceed alone?? Doesn’t the investor usually get the listing info from the agent, not the other way around? I`m doing a detailed property analysis anyway, no one is or will do that for me. Are real estate agents adding value I just do not see or perhaps since I have a lot of free time as mentioned it actually makes sense to proceed alone and later when I am more busy working with real estate agents will make more sense(?). Thoughts?
THANK YOU..
 
QUOTE (investmart @ May 3 2008, 01:34 PM) Hey ALL,
I have a lot of free time and find potential properties myself using the MLS. My real estate agents use the same tool - MLS to search for relevant properties for me. Should I really send them listings I might be interested in so they can put the offer for me or just proceed alone?? Doesn`t the investor usually get the listing info from the agent, not the other way around? I`m doing a detailed property analysis anyway, no one is or will do that for me. Are real estate agents adding value I just do not see or perhaps since I have a lot of free time as mentioned it actually makes sense to proceed alone and later when I am more busy working with real estate agents will make more sense(?). Thoughts?
THANK YOU..



Good question, can`t wait to hear from the experts. I also have a lot of spare time due to the nature of my job and have thought the very same thing.
 
I think the key is to work with a realtor who works with investors, and understands your needs and what you want to accomplish.

I`ve just obtained my real estate license in Alberta. They don`t teach us how to analyze the market, how to identify good areas, etc (i.e. all the things were are taught in REIN). They spend must of the time teaching us the contract and marketing side of things.

As realtors typically work with the public who don`t understand real estate, and don`t understand sales negotiations (in comparison to real estate investors), realtors spend their time marketing, and less time analyzing the market. Realtors know they don`t have to understand the market, they just need to understand the market better than the public.

I think that most realtors are actually intimidated by investors. As an investor, I have experience buying a house, understand the market, and I know how to negoiate. Therefore, a realtor has to work harder and be smarter when dealing with me. At the same time, I buy a house every year and I know what I`m looking for. The typical person buys a house every 5 years, and they can be much harder to work with (i.e. I don`t worry about the colour of the paint in the living room).

My advice is find a realtor who understands your needs as an investor. Then you`ll see the value they can provide.
 
Hi Investmart,

As a realtor and someone who enjoys asissting investors acheive their financial goals through real estate, my initial reaction to this inquiry was what makes you think that a qualified investment realtor would want to work with you, given that you obviously question the value realtors add to the equation. However, upon further reflection I realized that I may be reacting too pridefully and that you haven`t yet experienced proper service from a good investment realtor yet.

When I take on a client (nearly ALL my clients are investors), my intention is to find them exactly what they are comfortable purchasing...essentially my intention is to become an extension of my clients.

I fail to see how this proposition could ever be detrimental to the buyer as its a "no strings attached" relationship; all my remuneration is paid for by the sellers...other than the time and fuel costs actually looking at property, not a dime comes out of my buyers pocket until they find something they are comfortable purchasing (although I have been known to scavenge a meal here and there...). Ater I have a handle on what my clients are comfortable moving forward with I can then weed out alot of the "chaff" that is in the market and present a healthy handfull (especially in this market!!!) of great prospects for them to analyze. Not too mention the standard realtor perks outlined at Quickstart (ie. area awareness, negotiating prowess, logistical delegations)

It is a situation where you can leverage as much time as you are already spending as I work as hard as any investor I have met yet and my time is paid for by the seller and is already built into market values (ie. FSBO`s, Comfree, etc.)

As in all relationships, business or otherwise, a successful reciprocal relationship (ie. win-win) has to be founded on trust. If there is`nt trust and sincere appreciation for each other (this is starting to get cheesy) success will be elusive. My advice would be to sit down with a few investment realtors and see firsthand how they can make your life easier and your business more successful...Ultimately, both parties have to want to proceed if you expect either to contribute positively.

Great success,

Lucas



QUOTE (investmart @ May 3 2008, 11:34 AM) Hey ALL,
I have a lot of free time and find potential properties myself using the MLS. My real estate agents use the same tool - MLS to search for relevant properties for me. Should I really send them listings I might be interested in so they can put the offer for me or just proceed alone?? Doesn`t the investor usually get the listing info from the agent, not the other way around? I`m doing a detailed property analysis anyway, no one is or will do that for me. Are real estate agents adding value I just do not see or perhaps since I have a lot of free time as mentioned it actually makes sense to proceed alone and later when I am more busy working with real estate agents will make more sense(?). Thoughts?
THANK YOU..
 
Invest in a good realtor who knows the REIN system and knows strategic areas of whatever market you`re planning on investing in. He/She will more than pay for themselves because they will leverage your time and knowledge. I say invest because you want to build and nurture a great relationship. You`ll soon find you`re hearing about properties coming on the market before they ever hit MLS. This alone will save/make you thousands.
Same goes for a mortgage broker. (Although I could be accused of being biased on this front.) Why waste time trying to figure out which bank you should deal with when you can have someone else do the heavy lifting for you.
Same goes for a property manager if you feel you don`t want to manage the property directly. You`re going to make far more money looking for deals (with your realtor), negotiating deals (with your realtor) and finding JV partners (maybe your realtor knows someone who`s eager to invest but doesn`t know how) than what you will save by changing light bulbs, fixing taps and dealing with tenants yourself.
All the best
Jason
 
Hi Nir,
I would have to say that one of my most profitable relationships has been with the realtors that I work with. They are experts in thier specific fields. And after I qualify what I am looking for, I am first in line when my specific deal come on the market. Plus this industry is very regulated so I don`t worry about being taken advantage of during the buying process. But the key to this is know specifically where & what you are looking for and telling your realtor what sorts of conditions and terms you want in your offers. But I would caution you to not waste thier time. This relationship is based on trust and integrety, and you don`t want to be having them working hard for you if you`re not committed to closing your deals.

I hope that helps. Happy Capitalism!
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