Top 5 Things You Need to Know Before Picking a Realtor for Your Investment Property
Most realtors are commission based and they will try and sell you a property because quite simply that is their job. If you call a realtor in an area that may not be a good or emerging market, you will not hear that from a local realtor. Their job is to tell the fine qualities of their area and to sell you a property. That the area is not able to sustain a great ROI is of little concern to most local realtors.
2. Know what you want to accomplish from your investment before purchasing any property.
A realtor can only help accomplish the goal that you are trying to achieve. If you do not have perfect clarity of what you want from your investment that is exactly what you will get, lack of clarity of what your investment will actually do for you. Exit strategies need to be communicated with your realtor and clarity needs to be articulated to all parties in order for sound decisions to be made.
3. Find out if the Realtor is a real estate investor themselves.
Out of 1.2 million U.S realtors only 3% actually invest in real estate themselves. This is a sad but true statement. You would not want to buy stocks from someone who does not believe in the product enough to invest in them and similarly you should not want to purchase REAL ESTATE FROM SOMEONE WHO IS NOT A PRODUCT OF THE PRODUCT THEY SELL!
4. Ask if they are a full time real estate investor Realtor or a full time property manager.
Real estate is a full time activity. Selling real estate and being up on the latest and greatest information products and networking to have the best power team affiliates is in important issue and one that can take 50, 60 and even 70 or 80 hours a week. So never work with a realtor that says he or she can manage your property for you. Managing property is a full time job as well and one that can take 40 to 80 hours a week to do. If one realtor does both (sells property and manages property) they are not affective on either of them.
5. Ask appropriate questions to find out their knowledge level of real estate investing terms.
Finally you want to know your terms: Cap rates, cash on cash returns, ROI, exit strategies, cash flow, capital growth, emerging markets, etc, etc. These are terms that real estate investing minded Realtors use every day. If your realtor uses these and can communicate using these, chances are they understand investing and can help you. You may be interested in seeing how many Realtors will not understand these terms at all. Test it out and ask to see what kind of a cap rate you can expect in your market place and see if they can answer that question for you.
If you are looking for property in the US and want a real estate investing based Realtor, give us a call today! 941-718-7761