Some realtors are better at their jobs than others. As an investor, you can’t take the chance of working with a low-quality realtor. An experienced, professional realtor is your key to buying low so that you can sell high.
It’s also important to choose a realtor that specializes in investments. An experience residential attorney will help you find a home that you’ll love living in, but a seasoned investment realtor will help you pinpoint properties that are well-priced and low-risk.
They’ll also know where to look for properties that aren’t listed on the typical MLS platform. They’ll sniff out bargains on your behalf and help you close deals quickly. To land such a qualified realtor, look for someone with the following qualities:
You can work with a realtor who does investments and residential homes, but you’ll have better luck with a realtor who has experience and deals exclusively with investment properties.
Before entering the field of investment properties only, most realtors will dabble with investments on the side of a residential or commercial real estate career. They’ll help a few investors close deals and learn a little more about what savvy investors are looking for. Once they’ve built up a solid reputation for working with investment properties, they might begin dealing exclusively with other investors.
Ideally, investment realtors should have investment properties on their own. They’ll have made a little side income through renting or fix and flips. This first-hand experience is the best possible teacher.
Experience in real estate is best demonstrated through case studies and references from former clients. You might find a good realtor’s contact information on a local forum of local investors or through Google reviews. They might also show you the end results of properties they’ve worked on themselves.
The best thing to do is ask a realtor if they have investment property experience. If you doubt their answer, or they can’t prove their experience, ask a few pointed questions about investments in the area. It won’t take you long to learn if they’re experienced.
2. Knowledge of the Area
Your realtor must be very familiar with the area. If you’re in the Houston metropolis, be wary of realtors who claim to know every nook and cranny of the metropolis and surrounding areas. You need a realtor who can tell you the different areas of Houston by name and point out details of each area, from Katy to Sugarland.
Additionally, they should be able to pull up a ready list of valuations for the area. As you’re looking at properties, a realtor should be able to provide a reasonable ballpark of what the existing property is worth, the amount of work that needs to be done, and how much you can sell it for in the current market.
Ultimately, they should understand the return on investment in your chosen neighborhood. When they show you properties, it should always be accompanied with a brief rundown on the initial investment and a potential return.
3. Investment Listings
When screening realtors, look through listings posted by individual agents. A realtor designed for investments will have listings of renovated properties, as-is, wholesale, or auction properties. They may have a few residential pieces mixed in, but their listings will be primarily composed of investment opportunities.
Most residential realtors dabble sparingly in the rental market because there’s not much money in it. However, investment realtors are more likely to post rental properties because they know it will create more investment leads. They may even own a few of the properties so they can make a nice side income.
You should be satisfied with the quality of the listings on their site before calling them. If the realtor does not seem to take pride in their online listings, they may not have the necessary dedication and customer service to be your realtor.
Never underestimate your realtor’s character. A reliable, trustworthy realtor will have your best interests in mind, despite their opportunity for financial gain. They’ll also be available and willing to meet with you around your schedule. Otherwise, you could miss out on great opportunities.
It’s often difficult to judge a person’s true character after a single interview, but you can usually tell a lot about someone based on the perceptions of others. Read reviews, ask around town, and see if there’s any juicy gossip at the office.
You can also look back on past deals with both investors and residential buyers. Does it look like they got the best deal for their clients? Or does it appear that they pushed for the highest price? Realtors need to make a good commission to thrive, but you can’t afford to have a greedy realtor guiding your investments.
5. Networking Abilities
Finding great investment properties is a matter of connecting and networking. Many great deals are dealt under the table, and you’ll miss these whisper listings if your realtor isn’t tuned into the “black market” of real estate sales.
When screening potential realtors for investing, ask about their connections. Ideally, they’ll mention wholesalers, mortgage lenders, successful realtors, brokers, and others who have successfully navigated the current real estate market.
To be a good networker, your realtor should have strong people skills. They must be charismatic, friendly, confident, outgoing, and able to get information. If you feel comfortable and confident in their presence, they probably have the characteristics necessary to help you succeed in your investments.
Let Green Residential Be Your Real Estate Agency
At Green Residential, we work with many real estate investors. Houston and the surrounding areas hold very promising opportunities, and we offer a unique advantage to our area investors through our flat-rate fee. Rather than losing money on a high commission percentage, investors can pay a single, flat fee to help them save on large investments.
We also offer unparalleled knowledge and experience in Houston proper and its many surrounding suburbs. We have a network of professionals in the industry that will support you in your endeavors, and you can be confident that our services are reliable and trustworthy.
If you’d like to learn more about all the options available to you when you use Green Residential as your realty company, contact us today!