The Investor Realtor
In the world of Real Estate Investing there is no other kind. If you are using your neighbor’s son then you are a loser and you will pay a dreadful price. Every real estate agent on the planet will tell you that he or she is the right agent for you and they are the best at helping you. Make sure you ask them how much real estate they own. How many other investors are they working with? If they have so many other investors then how do they have the time to help you? Keep asking questions. Eventually, they will run out of crap to tell you.
I originally got my real estate license because I was sick and tired of realtors who didn’t know what they were doing. The rules of engagement for real estate investing are 180 degrees different from the rules of engagement of the owner occupied real estate business.
My neighbor was my 1st realtor. I had to fire her and it pissed off the whole neighborhood. She wouldn’t or couldn’t learn what she needed me to teach her. So I fired her and got my license. I eventually developed a system to teach other realtors how to work with investors. Trust me. It makes a huge difference. Having a traditional real estate agent try to help you with your real estate investing is like having a motorcycle mechanic work on your airplane.
If you invest in real estate the way I am teaching, you will one day own an airplane. Now imagine yourself getting ready to take your plane down to Florida to play golf and you just found out that your regular mechanic was sick and the airport had a motorcycle mechanic, who happens to be the air traffic controller’s nephew’s neighbor, who just happened to be a recent graduate of the Acme school of motorcycle mechanics because he got laid off from his last job. How does that make you feel? Well, remember a lot of real estate agents are real estate agents because they got laid off from their last job and getting their real estate license took only 60 hours and cost only a few hundred bucks. Does it sound like they are highly qualified to help you invest your precious, hard earned money? I didn’t think so! Don’t be stupid. If you use one of these imbeciles you will end up losing your money, and wishing you were going down in that plane that the bozo motorcycle mechanic worked on! By the way, I have no problem with motorcycle mechanics in general, only the ones who are foolish enough to work on an airplane.
There are a few things you can do to enhance your relationship with your real estate agent. One of them is to sign a Buyers Agency Agreement. I have taken and have seen material from other real estate gurus who say you should have as many real estate agents working for you as possible. Trust me, they don’t understand agencies from the legal point of view, an ethical point of view, or a business point of view. In this business you need real players on your team. A good real estate agent who really understands the rules of engagement when it comes to real estate investing is worth their weight in gold. You wouldn’t have multiple tax accountants prepare your taxes, you wouldn’t have multiple lenders making you the same loan, you wouldn’t have multiple closing companies working on the same file, so, why would you have multiple real estate agents sending you properties from the same pool of properties? They all are pulling properties from the same database and they all have the same tools and access. Using multiple agents is only going to piss them off. They won’t stick around and they certainly won’t give you their best work when they don’t have an exclusive agreement with you. Get real, if you were working for commission and a client was using multiple real estate agents how much energy would you put into that effort with little to no assurance of getting paid?
More importantly, you don’t want traditional real estate agents working for you. You want an investor/agent who is themselves an investor and/or has a proven track record of helping other investors profitably grow their portfolios using the rules of engagement I teach when I teach investors how to invest and real estate agents how to correctly work with investors.
The other important factor in using a buyer’s agency agreement is that the agreement affords you certain rights and requires the real estate agent to assume certain responsibilities that would otherwise not be in place and in the end may be to your disadvantage.
Another important piece of information is having Proof of Funds. This tells your real estate agent that you are qualified and it also gives them leverage and power when working with other real estate agents. Proof of Funds can either be a bank statement showing that you have the available cash to make a purchase or a lender pre-qualification, lender pre-approval for a loan or Line of Credit statement showing that you have the funds ready for you to borrow.
Think profitable business, a good Real Estate Agent is a critical member of your team. I strongly encourage you to treat them that way!