How Real Estate Investors can Work Successfully with Realtors
It may seem like real estate agents and real estate investors should be a natural fit, but this isn’t always the case. In many ways investing is a niche market that not every realtor understands or is equipped to deal with. In turn, investors don’t always know how to find the right realtor, or how best to work with the right one when they do find them.
Fortunately for both sides, it’s perfectly possible for you as an investor to work (and work well) with a realtor if:
The fit is right
Investment real estate is a fast-paced, high-energy, potentially high-stress endeavor, where each party must rely on the other to get things done. You are relying on the realtor to understand your needs, stay on the ball, find you properties at the right prices, and keep the offers rolling. The realtor is relying on you to make solid decisions quickly under pressure, and to bring the cash when needed. You will be working closely together, possibly for the long haul, so you should ideally work with someone you feel is as committed and motivated as you are, someone who can keep pace with you, and someone with whom you can communicate well.
Your realtor understands what to expect
Investing isn’t anything like retail, and your realtor needs to understand this. You aren’t looking for the right countertops or the perfect layout. You’re looking for the property that will give you the best ROI, whether it’s a ramshackle flip or a tenant-ready condo. It’s best to work with someone who has personal experience investing, or professional experience working with investors, as they’ll understand your experience and make the most of your time. However, an eager, ready-to-learn novice can be a great fit, too, provided you have experience yourself and you’re willing to walk them through the process at first.
You, as an investor, have your ducks in a row
Before you ask a realtor to invest their valuable time in your endeavors, you need to make sure you’re ready to jump into real estate with both feet. You have to have a workable game plan with realistic goals, a solid understanding of the market, a knowledge of what type of properties you’re planning to invest in, and a good exit strategy. You also need to be serious, focused, and ready to pull the trigger when you find a good deal. And most of all, you need to have the funds to back your investments.
You can both cope with a learning curve
It will take some back-and-forth to find a good working rhythm with any real estate agent you choose to work with. If you are a novice investor, or he or she is new to working with investors, the learning curve can be even longer and steeper. But over time, if you both give each other some space and some leeway, and take time to communicate and help build each other’s knowledge and skills, you’ll find can be a win win situation.