An important benefit of an agent being a Realtor is that they have access to the local Multiple Listing Service, or MLS. This is vital to you, the investor, because you need information from the MLS to help determine the market value of properties you are considering. The Realtor will also be able to show you listed properties that you are interested in seeing.

All Realtors are not equal. It’s important to understand this so you don’t waste a lot of time with the wrong agent. You don’t want to find out that they don’t like to or know how to work with investors. Investors need a Realtor that is willing to submit low and multiple offers and are willing to bid on multiple properties with a relatively low chance of the bid succeeding. Finding the right Realtor for your Power Team is integral to your success as a real estate investor.

So what would I look for in a Realtor? I want one who knows the territory or is willing to learn. I want one who returns my calls promptly and calls me when they have found a property that I might be interested in. I want an agent who will make multiple low offers on properties because that is the only way I can buy and make a profit. I want an agent who can introduce me to new sources for financing, hard-money lenders, title officers, inspectors, and insurance brokers. I would like an agent who is or has been an investor themselves; that way, I won’t have to teach them as much.

So how do we find such a Realtor? I would get the names of agents used by your family, friends, and neighbors. Ask them if they were satisfied with their agent. Did they return phone calls promptly? Were they really interested in serving your needs? If no referrals come from your network, then it’s time to pick up the phone and call some real estate offices or get names and numbers from for-sale signs. You could even try attending a local real estate investors club meeting.

I like to use scripts, and this is one I would use in my first phone contact with an agent: “Hi ____, my name is ____ and I’m a real estate investor. Your name was given to me by _____. I am looking for a good Realtor to represent me on the properties that I buy and sell. Have you worked with real estate investors before? I buy single family homes, duplexes, and fourplexes. Some I will hold and rent out, and others I will fix up and sell. I buy all my properties at wholesale prices so I will be making a lot of offers. Will you be okay with that?” This last question is very important because if they are not okay with that type of bargaining, then it is better to find out now than down the road a few weeks.

If this phone conversation goes well, I would meet with them, not for lunch, but at their office. At the meeting I would say, among other things, “I’m going to look for owner financing or owner carry-back. Are you okay with this strategy? Are you open minded and willing to learn? I’m looking for a long-term relationship with my agent.” The following is a list of questions that you may want to ask:

1. How long have you been an agent?
2. Do you specialize in any type of real estate?
3. Do you specialize in a particular area of town?
4. Do you depend on real estate for a living?
5. Are you willing to and do you have the time to put in to help me find properties?
6. Do you have any banking connections in town?
7. Can you recommend a good closing agent?
8. In your opinion, which way is the market headed?
9. Is this a good time to buy? Why?
10. Do you own any real estate in town?
11. How many properties do you have listed?
12. How many properties did you sell last year?
13. Does your broker give you flexibility in how you work?

If the feeling at the end of the meeting is good, offer to begin a working relationship. If you get a bad or unsure feeling, then move on to the next Realtor.

Remember, it’s your business and you have to manage it. A good agent is a great asset. Nurture the relationship. Recognize an agent who is not helping you and make a change in a timely manner.