When it comes to real estate investing, some investors choose to obtain their real estate license to broker their own transactions. While this is a good idea for some, it may not be for everyone. There are investors who just want to focus on the investment itself and leave the transactional paperwork to a real estate agent. If you’re this type of investor, here are some questions you should ask your potential agent partners.
How Do You Find Deals?
Some agents may simply create a set of buying criteria for you, and then lean on MLS to notify you when properties fitting your criteria come onto the market. While there’s absolutely nothing wrong with this automation…you’ll definitely want to know if this is all they will be doing. Other agents may scout for off-market deals, potential FSBO (for sale by owner) transactions, and wholesale properties. If an agent works with other investors…they may even have clients who are looking to sell a property that meets your criteria. While there’s probably not a right or wrong answer to this question, it does help to be on the same page with your real estate partner when starting your investment search.
How Do You Prefer To Communicate?
You could argue that the best answer here would be: “However you’d like to!” In all seriousness though, finding an agent who shares the same communication preferences as you is a big deal. Some folks prefer calling, some send a quick text or email, and some will even use Skype or FaceTime for a more personal interaction. Whatever the method of choice, it helps if both you and your agent partner are on the same page as there will be a lot of communication before, during, and after transactions.
Are You An Investor Yourself?
This is an important question as it’s helpful to know if your real estate agent may also be your competition. You may not want to have the same investment criteria as the person charged with finding your investments. A real estate agent that has personal investing experience can be a great asset for you, but you certainly don’t want to be battling them for deals.
Are You Full-Time Or Part-Time?
You’d think this answer could be taken for granted, but it’s better to be safe than sorry. It could be that a real estate agent is closing in on retirement or just became licensed and still has another work obligation. Neither one of those scenarios is a conversation-ender by any means…it just helps to know upfront.
As we’ve mentioned, there are technically no right or wrong answers here…it all has to do with finding a real estate agent that you prefer to work with. The goal with these questions, and any other screening dialogue you have with potential real estate partners, is to align expectations so you can close real estate transactions efficiently and profitably!
Do You Have the Financing that You Need?
Here at CIVIC, we specialize in non-owner occupied residential properties. Whether you’re an investor or real estate agent, our team of experts is here to support your (or your clients’) real estate investing financing needs.
Give us a call at 877-472-4842 if you’re new to real estate investing, or a seasoned professional interviewing new business partners. We’d love the opportunity to earn your business!
Also Check Out: A Guide to Investing in Real Estate in your 20s and 30s