Are you working with an investor friendly real estate agent? Forbes writes, “Finding an investor-friendly real estate agent can be tough, but it helps when you know what to look for. What you think would make an agent great for investors may not actually be the traits to look out for.
Simply put, an investor-friendly agent is one who understands the ins-and-outs of investing in real estate, including the tax implications, the return on investment (ROI) calculations, and, most importantly—how to find the right investment properties.
A lot of people look for real estate agents who are investors or have experience investing. As an agent/broker who is also an investor, I can tell you with 100% certainty that you do not want me to be your real estate agent. Why?
Because of these reasons, many investor-brokers do not work with investors or really any clients at all. I refer almost everyone out to other agents in my office.
Consider all the benefits you’ll receive by hiring an investor friendly real estate agent. An investor-friendly agent will:
Help you identify profitable properties – only investor-friendly agents know how to analyze the data for the profitability of the all-important buy.Agents look at the current market analysis and look up what we call ‘after repair value’ properties so that our investors don’t overleverage themselves.
The after repair value (ARV) is the average sales price of nearby homes that were recently upgraded and refurbished before they sold. The difference is, the ARV only looks at the sold data from recently upgraded homes, rather than all recently sold houses.
The ARV allows you to project how much you’ll be able to sell your flip for once it’s fixed up. So when you calculate your potential return, you’ll know how much you can afford to pay for the property and repairs while still making a return on your investment.
Give you access to more properties – An investor-friendly agent not only has insider data that can boost your bottom line, but they can also offer you access to They also work with wholesalers who are knocking on doors looking for homeowners willing to sell their properties to investors for cash.
Assist you in calculating your potential ROI – With the right data, your agent will use a simple calculation to determine the possible return on your investment (ROI). Let’s say you want a 20% return. First, you determine the ARV based on the sold prices of nearby flips, then multiply that amount times 0.8 or 80%. That tells you the price you should pay for an as-is property in the same neighborhood—minus the amountyou’ve budgeted to spend on repairs and upgrades.
By finding the right agent, you will be helping your business and finding more properties that meet your criteria.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577.