Finding A Real Estate Agent
I'm bird dogging for a couple of investors, and I do seem to be finding a lot of good property leads for them. The problem is that my current real estate agent is not good about getting back to me with comps or other property information.
So I guess my question is twofold: first, how do I find a real estate agent that understands my needs as an investor.
Second, what do I have to offer this agent so that he/she will be motivated to work for me? With my current agent, I have been trying to allow her to make all the phone calls for me for any properties listed with an agent, so she can make commission. Of course, my problem is that I'm waiting days for her to do this, when I could just as easily pick up the phone to make the call myself.
I've seen a lot of posts that mention the importance of having a good real estate agent who understands investing, but I haven't seen anything about how to find this type of agent. Suggestions on where to start and questions to ask would be appreciated.
Everybody who buys real estate is an investor, regardless of whether they plan to live in the property. So buyers are entitled to receive good "service" from a agent--getting calls made and returning calls. If you haven't done so already, I think you need to put your cards on the table with this agent and see how motivated she is in keeping your business. If she isn't sufficiently motivated, then I'd suggest your looking at RE publications to get agent names. Contact them and "interview" them--explain what your needs are, what you're prepared to give, and ask them what they are prepared to give in exchange. Hopefully, then you and the agent you choose will be on the same page in terms of expectations.
newcreation,
Glad to meet you.
First what kind of properties are you looking for this will give me an idea in what direction you should go.
John $Cash$ Locke
Hi newcreation,
I'm pretty new at this too and I can definitely relate to what you're going through. I'm on my 2nd agent now and don't really feel like she has my best interests at heart or is even interested in looking at anything remotely outside of the routine. It gets discouraging, but I just try to keep my chin up.
I've also noticed that both times I've walked into a real estate office looking for a buyer's broker, I've been pawned off on a different agent fresh out of school. Now, being new at this myself, I've given both of these agents the benefit of the doubt and the old college try--but, you know, I really could use someone with some years of investing experience behind them to be on my power team!
I've joined an area investors group now and am going to look for other investors in my town and ask if they have any agents they might like to recommend and see how that goes.
I've also read that you should "farm" the neighborhoods you want to purchase in, take down the name of the RE companiy who have the most signs, call and ask to speak to the broker of that company, and then request the name of the most aggressive agent in his/her firm--NOT the "floor" (on duty) agent.
As far as what you can give the agent to motivate them, that's a tough call. I've sent thank you cards and e-mails to my agent after showings. I wanted to get her a $50 gift certificate to a local spa, now that I've finally made my first purchase, (kind of as a bonus--"stick with me kid and you'll go places/thanks for sitting through 2 hours of a nightmare closing with me" deal) but I'm barely squeaking by as it is. It seems the thing they want the most is referrals, referrals, referrals, but honestly, how many people do you know that are buying houses at any one time...and if you do, and this agent isn't even bothering to return YOUR phone calls, why the heck would you want to refer your friends to him...catch-22.
Oh well, sorry this has become a novel. Just know you are not alone out there. Hang in there. Be tenacious. You'll do all right.
I guess the real question is, "Just how much are you paying your RE agent?" I've found most realtors are very money oriented and will not assist you unless it will produce a sizable amount of money. $50 really doesnt cut it! If you want two hours of my time, I want at least $200. I think the bottom line is: if you're using the agent regularly to buy or sell homes, you will be on the top of their happy list. If not, then don't expect your ever desire to be fulfilled in a timely manner. Also, if they believe their time invested is not worth the return, you will probably lose the agent's interest all together.
You could look at agencies that specifically provide realtor services, but do not sell homes. We have a local office that will do comps for $20/\ per address, preforeclosure lists for $40, and even MLS access for $200/month. The down side, as you can see, is the cost will add up quick.
-Chris
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Live long and be profitable![ Edited by c-brainard on Date 06/08/2004 ]
Thank you everybody for the good info. I will definitely try all your suggestions.
John,
It's nice to meet you too. I have really benefitted from your posts.
Iam bird dogging for two investors, one for whom I am looking for small to midsize apartment complexes and one for whom I am looking for SFR's for lease purchase. My investor isn't particular about the SFR's, as long as they're a good deal, rehabs okay.
So basically, I'm looking for just about everything! Eventually, I will be investing myself, and I will be looking for rehabs and also properties for lease purchase. That is my goal.
Hi, I'm new at this. I'm confused with the word that are used. What is birddoging? Is there money in this?
newcreation,
My recommendation would be to actively market on your own for what type of properties you are looking for.
A few reasons why I suggest this, first any good deals an agent runs accross most likely will become a "back pocket listing" meaning they or some serious money investors they know will take the deal before the public even hears about the listing. The agent makes more money this way.
When an agent trys to deal for a buyer, why should they, as the price goes down their commission goes down. No one likes to lose money on a deal.
If you feel that the MLS listing will benefit you, then you can buy this list from an agent and call the owners yourself, this is being done everyday in this business.
Unless you are prepared to get on the serious money list an agent is most likely going to respond just as you have been experiencing.
Less aggrivation find the deals yourself, this is how you will help your investors and yourself.
John $Cash$ Locke
PS: To prove my point further about 3 weeks ago I called two of the top realtors where I am currently located. I gave them all the details of a SFH house I was looking for inclucing a price range, one I told it would be an all cash deal the other that I had 30% to put down. I chose the properties price range that had the most properties listed in, so it would not hear there were no properties available in this price range.
I do this once in a while just to see how realtors in a certain area respond, let's just say check out the would be competition. 3 weeks later no return calls. This is a great area for creative investors as are most areas of the US who are willing to do their own marketing.
DISCLAIMER: I will say there are a few good realtors and agents out there, I just don't want to spend the time finding them when I can do it myself, just like you can.[ Edited by JohnLocke on Date 06/09/2004 ]
marg17051,
Glad to meet you.
A bird dog basically find deals for investors and gets paid for doing it, I call it the No Fear, No Liability, No Money way to start your investing career.
John $Cash$ Locke[ Edited by JohnLocke on Date 06/09/2004 ]
John,
For the most part, I am finding the deals myself. The only reason I want to have a realtor is because I need someone who can pull up comps for me. Is there another way to find comps? I'm kind of new to my area, and I really need to be able to pull up comparable properties to make sure the properties I find are good investments.
Thanks,
newcreation
I have developed a good relationship with Title Companies. They give me comps and are happy to help in any way they can. The Realtor is probably not responding because you said yourself you find your own deals, and they don't see any commissions coming from getting you comps.
Good Luck.
newcreation,
I would recommend you use a service called www.sitexdata.com they were at the TCI convention diplaying their product. I very nice lady by the name of Amiee would be someone to talk with, she can explain the benefits when using this type of service.
You will find what you need and alot more to help you.
John $Cash$ Locke
Title companies! Great idea. I will definitely start giving them a call. I'm going to need to have a title company for when I start investing for myself, anyway. Any suggestions on approaches to take when contacting title companies would be great.
Before you ask them for free stuff build a relationship with them. The managers are good people to get to know. Approach it based on you looking for a title company to handle your transactions. Some of the Title companies have marketing type people. These people's whole job is to develop business by getting to know builders, realtors and investors.
It is just good old-fashioned Networking.
Thank you. I will be looking for a title company to handle my transactions anyway, so this should be a fairly easy approach to take.
John,
I just checked out that sitex site you mentioned, and it looks like it's exactly what I needed. I live way out in the country, and this will save me a lot of gas and time at the courthouse, so thanks a bunch!