This is a topic I could talk endlessly about. Having been an investor who used realtors for the first six years of business, I have learned a lot. Since I got my real estate license in 2013, I have been able to do many of the tasks myself. So I decided to put together a list of the items that are important for an agent to be on board with that will make them investor friendly.
1. They need to be able to run comps for what you are doing
Many times when I am looking for numbers in a property, I may have to run comparable sales in a different way. I may need to look at a longer time frame. Typically, its 6 months, but by looking further back, you may find another extensive renovation. They also need to know what to look for as far as style and finishes. One more thing, comps will be different if you are looking to resell the house as a flip compared to holding the house as a rental.
2. They need to understand the numbers
Whether it is a rental or a flip, they need to understand and factor for all the numbers. If they don’t, they may unintentionally overestimate the profit and once you own the property, it’s yours.
3. They know repair costs
An agent who works with investors or is an investor themselves will have a good idea of the costs associated with renovations. These numbers are crucial when you are evaluating deals for flips and rentals.
4. They need to know how to offer
When it comes to profit, the offer is key. An investor-friendly agent will know how to offer on properties. They will know what to offer in regards to price and how to structure offers to make them appealing to sellers. They also need to be comfortable writing offers that are low, and writing offers often.
Agents who work with, or are willing to work with investors, will have to do things a bit different when it comes to business. Investors are not like traditional buyers who purchase a home every 7-10 years. Investors need agents who can do the extra research, have additional knowledge, and be willing to write multiple offers. Though it may seem like a large task, the payoff is that if they do these things well, they are establishing a relationship for buying and selling multiple properties, which can be a win for them too.
Want to buy a property and renovate it?
Looking to buy a house to renovate? Check out the fixer upper checklist to help you find the perfect house.
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