Throw out the books, tapes and the methods we relied on when purchasing investment properties a year ago. Everything has changed. Real estate investors are reinventing themselves and adjusting to the current market. Working with a Realtor is an important piece of the puzzle to create a profitable deal. Here are a few suggestions to consider when creating a power partnership with your Realtor that will put you on the road to success.
1. Investor Background. Most Realtors are trained to be sales people. They are excellent at listing properties and also showing properties to potential buyers. The difference comes into to play when you are actively searching for investment grade real estate. Realtors who have a background in investment property purchasing, rehabbing, selling and even landlording will understand your purchasing criteria, exit strategies and also any creative financing you may have to put into place. Always ask about the Realtor’s background when working with someone new. Your Realtor will be constantly searching for the best investment properties for you and can often alert you to new listings that may fit your criteria.
2. Providing vital information. Your Realtor will assist you in providing the vital information you need to do your due diligence and to make a decision on purchasing a property. Realtors can provide comps of properties sold in the past six months, the number of homes currently on the market in a similar price range, values of current listings and their professional opinion of what the property will conservatively list for once it has been remodeled. This information will be sufficient for you to determine if the numbers work. A Realtor’s opinion, however will never replace a certified appraisal.
3. Knowledge of financing. Financing investment properties in today’s market can be very challenging. Your Realtor should be informed on the various government, conventional and owner financing options available for buyers. They also need to be knowledgeable of the various methods of financing investors may use to put together in constructing a deal, whether you are purchasing an investment property from an owner, bank owned property or short sale.
4. Marketing skills. Marketing properties in the current real estate climate needs to be fresh and new in its approach. Marketing starts with the renovation of the property and continues through placing the property on the market for sale. The Realtor that is your listing agent should be an active partner in your marketing approach and incorporate your plan in the listing information. Photos and descriptions should create an environment that invites the buyer to see themselves and their family living in the house even before they have called to schedule a viewing. Your realtor should make every attempt to market your property in a way that sets it aside from other similar listings on the market.
Successful real estate investing always works best when you have excellent relationships with other professionals who assist you in acquiring the best property available at the best purchase price…and also in marketing your home to sell as quickly as possible for the best sales price.
Create a power partnership with a Realtor and work together to be successful in today’s real estate market.