Established investors typically have a good realtor that they can rely on to help find them deals. A good realtor will have an idea of exactly what types of properties you are looking for and in what location. This relationship is usually the byproduct of working many hours together on deals but can also be formed by simple communication. Instead of jumping into a buyer’s agreement because you saw some of their advertising, you should take the time to see if they are a good fit for you. Working with an investor is not the same as working with a traditional buyer. If both parties don’t know what they are getting into, it could lead to a very disappointing relationship. Thus, developing a good relationship with a realtor is one of the best moves you can make as an investor.
As per the nature of the industry, your realtor’s motivation is directly correlated to your productivity. One way to get your productivity up is to concentrate on deals you will wholeheartedly pursue. To get these deals, you need to be on the same page as your realtor. Let them know exactly what it is you are looking for – nothing more, nothing less. The more they know about your desired locations, price ranges, time frames and property condition, the better chance they will find properties you really like. Ideally,this will lead to more offers and subsequent closings. Once you have an established track record and they know you are serious, they will start to work harder for you and will try to find you more deals.
Without a proven track record together, investors will need to let their intentions be known. Accordingly, investors looking to establish a relationship with a realtor need to prove that they are willing to commit to deals. At your initial meeting, you should provide a proof of funds letter or at least a pre-qualification letter. You can lean on your realtor for guidance, but you should have a good idea of what you are looking for. The alternative is to show up at their office with a list of properties you want to see without knowing what you really want. If they drive you around to five different properties with you telling them you don’t like any of them, you can believe they will not be interested in showing you other properties in the future. You don’t have to make an offer on every house you see, but you should show your realtor you are serious if you want to work together in the future.
To ease the transition, you should do some of the legwork yourself. Approach this as a sign of good faith. It will go a long way in letting them know you are serious. There are plenty of real estate websites that you can find preliminary information about a property. You can even drive by the property to get a feel of the neighborhood before you ask to see the interior of the property. If you call your realtor on properties that you have no interest in and waste their time, it will further lessen the chances of them dropping everything for you. Yes, your realtor ultimately works for you and makes money if you close deals. However, they also value their time and don’t want it wasted. The more you can do on your own, the better they will feel towards you.
A good realtor can show you bank owned properties, make quick offers and follow up in expedited fashion. They can open the door to many deals, but you have to do some work on your end as well. A good relationship takes time, but once you establish one, it can change your investing business forever.
