There are tons of different ways to invest in real estate.
Between houses, rentals, shopping centers, trusts, and funds, you name it, you can invest in it.
But how do you know that you’re making the right choice?
Here’s a foolproof solution to ensure that no matter how you win it, your real estate fortune is where it rightfully belongs: with YOU.
If you’ve ever bought a house or rented an apartment, you know that navigating the real estate market is no easy feat.
Unfortunately, when you reenter that market as an investor, things don’t get any easier.
Thankfully, there are helpful aids in place to get you through all the hoops and nonsense that stand in your way of making a profit.
One of these is a realtor.
You may think that once you put on your investor hat to go scout out properties, you can hire any realtor you see a billboard ad for. Or maybe you call up the realtor who settled you in your own home.
Unless they are a seasoned investment realtor, you should reconsider dialing their number.
A realtor can be talented and knowledgeable about their local market or basic property needs, but if they are unexperienced with helping an investor, chances are you will end up on the wrong side of the cash exchange.
As an investor, you do have a responsibility to know what you’re looking for.
If you call up an experienced investment realtor and ask for vague advice, they’ll probably hang up on you. As they should.
The right realtor won’t have time to narrow your focus or help you choose what market to be in. That’s on you to have decided before you come to them.
Ideally, they help you find the perfect property to either rent or flip, and deftly navigate the contract, purchase, and other tedious tasks (so you don’t have to).
You as an investor pose a desirable professional relationship to legit investment realtors.
If you’ve done everything you need to, you present them with a clear goal that requires less hand-holding than, say, first-time home buyers.
They want to work with you and help you find the best deal to turn a profit.
So, how do you know if the realtor on the park bench ad is up to the job?
Here are 5 things your realtor should offer to investors like you.
1. They should have experience working with investors.
Again, if they’re new to investing or simply don’t specialize in it, you should keep looking.
You have too much at stake to risk mistakes during the negotiation, contract, or due diligence phase.
Ask questions like: “Do you own any investment properties? How many properties have you helped investors buy or sell? What sets you apart from other real estate agents?”
If you’ve never conducted a job interview before, this is your chance. But all jokes aside, they should have experience either with investing themselves or in their work past.
2. They can do more than show a property.
Every licensed realtor can find a property and schedule a showing. You need someone who can do more than that.
They should be a valuable resource to you. That includes knowing the intricacies of investing, having access to off-market listings, and informing you of upcoming deals still under the radar.
All of these things give you an advantage over your competition. And that means more money in your pocket when everything is said and done.
3. They have extensive market knowledge.
Most investors are searching for properties to rent. Because of that, a desirable realtor should know the rental market, inside and out.
Upcoming developments, zoning information, local amenities, etc. should all be talking points.
You can’t rent a property that’s in an area unattractive to renters. Find someone you trust to do their research.
The more up-to-date your realtor is, the more in-the-know you are as an investor.
4. They are comfortable and confident when negotiating.
The contract can make or break any deal you enter.
If your realtor is inexperienced handling contracts pertaining to an investment, this is where it’s going to come back to bite you.
You’re not buying the property to live on, it’s a source of income, so your realtor needs to ensure you get the best possible deal.
5. They have integrity.
This may seem pretty straightforward, but you don’t want someone who is conducting business behind your back.
Your communications should be transparent and frequent because you want to be working with somebody who has your best interests at heart.
With these qualifications, you and your new realtor can take the real estate market by storm.
Enter into a new investment with the confidence and grace befitting the real estate mogul you are.