To be blunt, for most of my career as a private investor, I thought of Real Estate Agents an obstacle to success. Yet, here I am advocating in this article that you make them partners in your investment team. Why did I change my mind?
Well, one day I woke up. I realized that Real Estate Agents are not only a fact of life, but they’re best way to achieve investment success simply because of their knowledge and important place in the real estate community.
Of course, an absolute requirement for investment success is to work with real estate agents who know what they’re doing; otherwise, you’re wasting your time as an investor (not to mention that of the buyers and sellers).
In this article, I’ll give you seven guidelines for choosing the best real estate agents to work with in any investment situation.
Guideline #1: Choose Full-Time Professional Real Estate Agents Definitely avoid part-time real estate agents out there wanting commissions. Most of them are either mediocrities or amateurs who check in when the market is hot and check out when it slows. An effective way for weeding out these time-wasters is to ask for their experience, qualifications, sales, etc. Then, contact and work with the Real Estate Agents who have a demonstrated record of excellence over time.
Guideline #2: Always Choose Specialists There’s no doubt about it–you want a real estate agent who specializes in your particular area of investment. So, if you specialize in, say, the multi-unit market, seek out an agent who has considerable experience and expertise in that area. Do the same for any market-single family, commercial, retail, or the industrial sectors. A word of advice: don’t just accept a real estate agent’s word that they’re an expert in a particular market. Always ask for proof in terms of sales within your target market!
Guideline #3: Verify Those Credentials Good sources to check are your state online database and other appropriate resources. That way, you can make sure the agents are fully licensed and has no citations, disciplinary actions, etc. on their records. If real estate agents have ethics problems, you definitely don’t want them staining your reputation, even if it’s only by association.
Guideline #4: Ask For and Check References As with any business, the best proof of success lies in satisfied customers. So, ask the real estate agent for references from customers within your target market and geographical area. Contact those references to get a rounded picture of the real estate agent’s reputation and business practices. Naturally, you’ll want to develop a relationship with real estate agents with good to excellent reputations for honesty, fair dealing and patience. It’ll make the entire investment process a much smoother and more profitable one since you’ll be dealing with satisfied customers, not irate ones.
Guideline #5: Require Good Communication Skills Clear communication is the key to success in any investment deal. Seek out Real Estate Agents who listen well to you and everyone else and who keep you informed and up-to-date on all transactions. And, remember that clear communication is your responsibility as well. Make sure the Real Estate Agents you choose clearly understand your investment goals so they don’t waste time bringing properties to you that have little or nothing to do with those goals.
Guideline #6: Look For Real Estate Agents with Strong People and Negotiating Skills A real estate agent can have all the experience in the world, but if he or she doesn’t relate well to people, they’re no help to your investment deals; they’re a hindrance! Make it a point to seek out agents who are great at making everyone happy while moving people toward a deal with sound negotiating skills. To find out about a real estate agent’s negotiating skills, ask former clients about how effectively the agent conducted bargaining sessions.
Guideline #7: Remember Your Responsibilities Once you form a relationship with a great Real Estate Agent, do your bit to keep them on your team. Bring them good deals, not “ghost” deals that never materialize. Remember, your reputation is on the line too, and you want it be a good one because it can help you build a long-term investing career. A Real Estate Agent who considers you a reliable and honest investor will bring you deals that never show up on the MLS listings or in the newspapers!
Key Concept: Find the best real estate agents for your area of investment and cultivate great relationships with them. You’ll both profit!