Real estate is a people business. Novice investors often struggle with finding the right people to do business with. The right real estate agent brings deals to an investor and helps investors determine if a property is a fit from an investment objective perspective. Similarly, strong realtors can recommend other professionals to round out a real estate investment team. Here are some tips and tricks for connecting with the right realtor.
Connecting With The Right Realtor: The Lynchpin
Sourcing great investments starts with a good real estate agent. A good realtor is the most connected person an investor needs in the world of commercial real estate. Not only will they have their ears to the ground when it comes to market pricing and investment opportunities, but they can also provide important connections to contractors, lawyers, accountants, title companies, etc.
Finding a good realtor starts with recommendations. Investors should consider attending a local real estate investment club meeting, a local real estate trade show or simply speaking with a local mortgage broker. Starting with an investment professional assures an investor that he/she will be getting a trusted recommendation. This also assures that the realtors an investor speaks with will have experience working with investors.
After compiling a list of three or four local brokers that work with investment professionals, call each of these professionals in for an interview. The interview should help an investor find a real estate professional that meets their needs. It will be important for an investor to have a very clear idea of their investment objectives and their investment potential. There is no point in interviewing a realtor that specializes in 10-20 unit multifamily buildings if an investor only plans to purchase single family rental homes.
Connecting With The Right Realtor: Interviewing Real Estate Professionals
The goal of interviewing real estate professionals is to ensure that their style fits the investment needs of the investor. Not only should they be very familiar with the property type, but they should also be familiar with the investor’s investment style. Novice investors should be cautious about working with realtors that traditionally only work with veteran real estate investors. The agents might assume the novice investor is familiar with the area and the way business is done and omit critical details around a potential investment.
Investors should also be very clear in what they expect from a realtor. If an investor knows nothing about the market, they should seek to understand the market fundamentals from their realtor, as well as be connected to other important real estate professionals. Good realtors can provide these connections. Importantly, the quality of the referral also reflects the quality of the realtor. Before signing any exclusive engagements speak with the mortgage broker, lawyer and accountant that the agent recommends. If these are not a fit, the realtor is probably not a fit either.
Don’t overlook this process. Connecting with the right realtor will increase the chance of finding a successful investment.