And how to recognize one when you see them
- An open communication and collaborative spirit create a team atmosphere.
- Investment-savvy agents know what kind of investment will offer the highest value and return.
- Investment-savvy agents are your eyes and ears within the real estate community.
Real estate investors often overlook the role a partnership with a real estate agent can do for them in their quest for investment property transactions. These investors will do their own research, seek out opportunities and then find a real estate agent to help them, never creating a solid working relationship with one person.
But this should not be the case. An investment-savvy real estate agent can be a valuable member of your investment team, who brings industry knowledge and market insight unavailable to the average investor.
So how can you spot a truly investment-Savvy real estate agent when they come along? Every agent’s website talks about how much they love to work with investors. Most do not!
Not only do they complain about wasted time spent writing lowball offers, but they also lack the experience necessary to identify solid investment opportunities. Who are these investment-savvy agents? What makes them different from the average agent? And most importantly — how can they add value to your investment team?
Investment-savvy agents know how to look at properties in an unconventional manner. They search for motivated sellers. Although part of the package does need to include the value of the property to the traditional buyer, the right opportunity for an investor is certainly not going to be priced at retail value.
Investment-savvy agents know how to look at properties in an unconventional manner.
Building a long-term relationship with an investment-savvy agent means having an honest understanding of the investor’s long- and short-term goals. An open communication and collaborative spirit create a team atmosphere wherein each property can be analyzed and decisions made.
An open communication and collaborative spirit create a team atmosphere.
The strategyThe market
Of course, all agents must know their market, but the market is different for investment properties.
For instance, the same house could sell for thousands of dollars higher if marketed as an established vacation rental with history versus a single-family home. Investment-savvy agents know this and can help their client position properties properly.
By reading the market and its trends properly with an eye toward investing, investment-savvy agents know what kind of investment will offer the highest value and return.
Investment-savvy agents know which investment will offer the highest value and ROI.
The biggest difference between traditional real estate agents and investment-savvy agents is the numbers. The agents need to understand how to calculate the cap rate, the pro forma and much more. They must recognize how these numbers affect the viability of an opportunity and how to explain that in terms of the market itself to their clients.
Working with trusted investment-savvy agents can add value to your real estate investing team. Having a resource for the market, the numbers and the opportunity that you can trust will save you time and money.
As your investment-savvy agents learn more about you and your goals, they will be able to research and present opportunities you could never find on your own. They can bring you profitable options that enhance your business.
They are your eyes and ears within the real estate community. The best investment teams include an Investment-Savvy real estate agent who is involved at every stage of the investment process.