Real Estate Team Building: How To Choose An Agent
What should real estate investors look for in an agent when building their team?
All real estate investors need a team. Despite some historic frictions between Realtors and real estate investors, agents do have a place on these teams. The big question is; how do investors find the right match, and work together effectively?
How to Work with Real Estate Agents
Investors and agents can sometimes perceive each other as the competition, or even the enemy. Wise and experienced professionals on each side look at this relationship differently. There are huge potential benefits of working together. In many ways both sides need each other.
Realtors can be of benefit via:
- Bringing in potential house deals
- Transaction management
- Acting as a liability buffer
- Being a buffer in real estate negotiations
- Protecting privacy
- Sourcing buyers and renters
- Accessing the MLS and real estate data
- Being a source of industry news and regulatory changes
- Marketing and property management help
When you add up everything a great Realtor or real estate team does or can do, they actually work insanely inexpensively. You may not want or need an agent for all of these roles, but they can be very valuable to have on call. At least have a handful of them on your speed dial list, and presenting deals for you.
It is also worth noting that while some are arguing that Realtors are on their way to extinction due to emerging technology, at least for now they are still very much in control of a large percentage of the market, and its buyers and sellers. Even the wealthiest and most experienced billion dollar investors commonly use agents as a shield in transactions, and that’s worth remembering.
Of course, there are hundreds of thousands of agents out there who are not so good. So, how do you find the best?
Investor Friendly Real Estate Agents
Just as many investors are wary of working with agents, many agents veer away from working with investors. Don’t try to force it. It’s normally not worth your time to educate them and try to sell them on a relationship. Perhaps you can change their minds over time. But, one of the best ways to accomplish that is to just show them what they were missing out on by giving someone else the business. So, firstly; look for an investor friendly agent who is excited about working with you, and will appreciate your business.
Hustle
Hustle is actually far more important than years of experience, fancy letters after their name, or how many signs they have in a neighborhood. You need an agent who has the time to devote to your needs, is motivated enough to put in the hustle, and who will work hard for you. This is a very small percentage of agents.
Experience
Experience does count for something. However, look beyond boasts about numbers and awards, or how long they’ve had a license. Look for an agent that is up to date on the current market, and who knows how to write investment deals. It’s no good have someone with 50 years’ experience if you are trying to wholesale or flip, and they’ve never heard of 100% financing, buying sight unseen property, or transactional funding.
Flexible
Choose an agent who is flexible. You can do it all yourself. So, if you give them the benefit of making money with you they should do it on your terms. Providing those terms are fair and legal. That means negotiating the price, features, and terms you want on deals. That means discounting commission in relation to the volume of business you give and how easy you are to work with, and presenting all offers. Be clear on these items up front.
Trustworthy
Last, but not least; choose a real estate agent who is trustworthy. Choose one who puts values and ethics first. If they don’t do that with others, you can’t expect them to be honest with you. Eventually a bad apple will cost you a whole bunch. They should operate honestly, be transparent in presenting all offers, be straightforward with buyers and sellers, and do business cleanly so they keep your reputation clean too.
