To secure your next investment property, you’ll need a realtor with specialized knowledge of rental markets and rehabbing.
Real estate agents are trained to act as negotiators and researchers on behalf of their clients, but not all agents have experience in the investment sphere. To secure your next investment property, you’ll need a realtor with specialized knowledge of rental markets and rehabbing.
Finding an agent that has an extra layer of expertise in investments will really benefit your search for the right property. Here are a few ways the right agent can build your portfolio.
Someone who’s serious about investing in real estate properties will search through the MLS, but they’ll need an agent that knows how to scope out the perfect deal. Sites like Home & Money pair investment buyers with agents who have existing relationships with wholesalers.
Investors who don’t want to compete with other buyers or spend time researching will prefer to use an agent with connections. Plus, investment agents can deliver exclusive properties.
Giving you access to exclusive deals is one thing. Knowing how to analyze them is another. Price is always an important consideration when it comes to buying a property, but an investor agent will see past the market price and consider rental income, renovation costs, and more.
An investor-friendly agent can help you find the investment sweet spot that will enable you to make money off the property. They understand hidden costs that could affect your investment.
Investment agents like to keep their fingers on the pulse, so they always know what’s happening in the market. Without an agent, you won’t know who your biggest competition is or when another investor is liquidating their portfolio. That can leave you at a big disadvantage.
Not only that, but you’ll miss out on your agent’s network of already vetted contractors and professionals. With an agent, you’ll spend less overall on your real estate investment.
Experienced agents will work around the clock to find the best real estate properties in your area, meaning you can sit back and wait. Keep in mind that full-time agents will have more availability to help locate properties and jump on a deal before another investor snatches it.
While part-time agents are cheaper, they won’t have a lot of time to help you. For a true hands-off investment strategy, you’ll want an agent who’s fully committed to their role.
While most general agents specialize in a specific region or city, investment agents will narrow down their focus further to micro-markets. Investment-friendly agents can offer insight on school districts, zoning and building regulations, shopping, computer trends, restaurants, and more.
The more you know about the surrounding area, the better equipped you’ll be to make an informed purchasing decision. When investing in real estate, local knowledge is critical.
Most investment agents are investors themselves, meaning they have first-hand experience in the market. The best agents should know how to make the most out of an investment purchase, so ask if they’re actively investing. If they are, they can offer some great investment advice.
At the same time, your agent can’t be in the same market as you. Agents who use a similar investment strategy may keep the best properties or exclusive deals for themselves.
When using an agent to negotiate prices and draft contracts, it’s necessary that they’re aware of investment lingo. Most new real estate investors aren’t fluent in investment terms, which could lead them to sign off on a bad deal. You’ll want an agent to provide clarity and expertise.
A Certified Investor Agent Specialist (CIAS) is a quality agent who can handle real estate transactions with confidence and authority, so you can waste less time on the process.
Experienced DIYers know that gutting a home and starting from scratch isn’t the best way to make money from a renovation. However, you need to have some experience in contracting, carpentry, plumbing, HVAC, and more to see where you can save the most amount of money.
Agents specializing in fixer-uppers can provide insight into which properties offer the most bang for your buck. They’ll also know which improvements create the most significant value.
At some point, you’ll purchase enough properties to make landlordship a full-time job. Since many investor agents operate property management companies, they can teach you how to make more from your passive investment. Or they can manage the property themselves.
Even if you don’t want to work with your agent’s company, you’ll still be the first to know when other landlords are looking to sell, allowing you to scoop up even more properties.
Whether you’re looking to flip an outdated property for profit or purchase a multi-unit building to generate long-term income, hiring an investment agent will help you find what you need. As more investors use agents to scope out quality finds, you’ll need one to stay competitive.
However, you shouldn’t choose your investing agent hastily. You’ll need to get multiple agents before finding an experienced professional who listens to your investment needs.