Do Investors Use Realtors?
What is the relationship between real estate investors and real estate agents? Does one need the other to be successful?
On the surface, it seems like an investor doesn’t necessarily need an agent to help them make purchases. That would be like having another person help you buy a car or a boat. You can do that on your own, right?
Although that may be the case, using a real estate agent can often be the most sensible and straightforward way to buy or sell a property. To see why it helps to understand the distinction between a real estate agent and an investor.
A real estate agent’s primary job is to assist clients in purchasing or selling real estate. They achieve this by finding homes that suit their client’s needs, assisting them in obtaining financing, negotiating the purchase price, and managing the paperwork. Additionally, they assist sellers in pricing their properties appropriately, marketing them successfully, and operating any agreements after a property has been sold.
A real estate investor, on the other hand, purchases, sells, or rents properties to make money. They purchase investment properties with the intention of either reselling them for a profit, renting them out for monthly rent, or flipping them on the open market. Real estate investors could be either individuals or businesses that invest in real estate, and each has a distinctive strategy for making money in the real estate industry that they can choose from.
Real estate agents can also be investors in real estate. It’s crucial to remember, though, that working as a real estate agent often doesn’t require a deep understanding of investing. Instead, the majority of agents focus on buying and selling real estate.
Still, having a skilled, experienced realtor can significantly advantage an investor.
Generally, if a buyer is merely looking to purchase a house as an investment, they might not require a realtor’s assistance. However, to avoid paying commission fees, many investors opt to buy property on their own.
That said, real estate agents can greatly help investors establish a continuous cash flow for their real estate investments.
Having a realtor who has worked with investors or invested in real estate is helpful. You know they have gone through the process and can handle common challenges. In addition, experienced agents make offers more efficiently and learn how to create realistic offers that will more likely be accepted without cutting into profit.
If your agent has partnered successfully with investors before, they will likely have a good reputation among other investors, as well as contractors, legal representatives, and lenders. But, again, this can help if you’re new to the market.
Finding an agent with local knowledge is especially important if you are investing in a property located in another state or an area with which you need more familiarity. In addition, local agents will know specific locations where flipping a home will be particularly lucrative.
For instance, imagine you’re an investor looking to tap into the North or South Carolina real estate markets. An experienced real estate agent will be able to direct you to the neighborhood—and perhaps even the name of the particular street—that is the best choice for investment. Attempting to pinpoint profitable communities will be more complicated without the assistance of an agent.
A good real estate agent can calculate your cash flow, estimate repair costs, and compute your return on investment. Some of these numbers may be tricky for investors, but a good realtor will be familiar with these numbers enough to be an asset to you.
Real estate agents know how to close rehab, wholesale, or rental deals and know who pays for what. Often, they can find ways to cut your costs.
Working with a real estate agent that is experienced with investors will make finding more transactions and selling more homes easier. In addition, the ideal agent should be knowledgeable about various exit methods and basic investment jargon.
Finding the ideal real estate agent for investors may take some time, but doing so can be very beneficial and well worth the effort.
You can find investor-friendly real estate agents through fellow investors or by connecting with lenders, title companies, real estate lawyers, and local real estate associations.
Investing in real estate can be a terrific method to make money, whether for resale profit or monthly rental income. Although the entire process necessitates careful planning, real estate investment can have significant advantages.
That’s when an experienced rental investment advisory service can greatly assist. To learn more, contact the Henderson Investment Group today. 704.535.1122 X256