It is incredibly important to surround yourself with a quality real estate team in today’s business landscape. Perhaps the most important member, for that matter, is your real estate agent. From start to finish, they have their hand in almost every aspect of the transaction. Not only will they answer any questions you may have, but will also strive to keep your deal moving forward. There are many great real estate agents in every market, but it is important to find someone that is a good fit for your personality and your business. Here is a list of all the things that your real estate agent can do for you:
1. Provide A Second Opinion: What you want to do and what you are able to do are often two different things in the real estate industry. After researching all of your financing options, the next thing you should do is talk to your real estate agent. You may have grandiose plans of house flipping, but reality can quickly become an obstacle. Once you have an idea of what you want to do, talk to your real estate agent and see just how realistic your plans are. They may not be able to tell you about rehab costs and expenses, but they can tell you the market. Your target market may be properties in the $100,000 range and they can tell you if that inventory exists or not. A second opinion on your plan can only help.
2. Find Properties: A good real estate agent often has access to properties that others don’t. Real estate owned properties, short sales and foreclosures are just some of the deals that come their way. If they are established in the community, they probably have a database of fellow investors, attorneys, accountants and mortgage brokers that all give them leads from time to time. Once you close a few deals together, some of these opportunities may come your way.
3. Offers & Protection: One of the main functions of a real estate agent is to submit offers. Even though this may appear easy enough, the best real estate agents make sure everything is done right. When dealing with short sales and bank owned properties, it is critical that all items are included in the initial submission. Failure to include one or more of these items can cause your deal to be put at the bottom of the pile. They also serve to protect you during the transaction. They have a responsibility to inform you of any deficiencies in the property as soon as they become available. If something comes up with the inspection, they will walk you through it and give advice every step of the way. Once you enter into a legal contract, it can be difficult, and at times impossible, to get out. Here is where a good real estate agent can help you navigate sticky situations.
4. Close Deals: There are many instances where deals get close to closing, but for one reason or another never quite get there. Between your real estate agent and your attorney, you know that your team will do everything possible to make things happen. If there are issues with the walk-through, they will work to get the items fixed, or get you a comparable credit. If the closing figures or fees don’t match, they will work to get everything corrected. Your real estate agent only gets paid if the deal closes; you can believe that they will work as hard as they can to ensure this happens.
5. Sell The Property: If you want to focus on rehabbing and flipping, you need to work with your Realtor. For starters, they will give you an idea of what you can sell your property for. Knowing the numbers before you make an offer can help save you time and money down the road. What you think you can get for a property is often over inflated, and not in line with reality. A real estate agent will help put these numbers into perspective. On top of that, they can sell your property.
6. Comparable Sales: Having a strong relationship with a real estate agent means they will work a little harder for you. If you are interested in a new property, they can quickly send you comparable sales and listings. This information allows you to make quick decisions, and gives you an idea of what your offer price should be. Without looking at comps you are basically guessing which way the market will go. This leaves you open to getting involved in deals that have minimal to no upside.
7. Lead Generation: You may be surprised to know just how many people your local real estate agent knows. They work with an attorney, a buyer or seller on every deal, and have established relationships with dozens of other agents in the area. This makes them a great source for new leads. By holding up your end of the bargain and closing the deals that come your way, they will refer you to others in their network. A deal here and there can change the course of your business.
A good real estate agent will make your business much more efficient. There are many people on your investing team, but they just may be the most important.