As you start your fix and flip business, you’ll need to identify a network of one or more real estate agents who can help you locate properties, determine prices, and submit paperwork on your behalf. Finding the right agent is an important step, and you should spend time interviewing agents until you find the one who understands and will help you achieve your goals. Here are some tips for finding the right agent:
Find an agent who actively works with investors. The needs of property investors are very different from those of traditional homebuyers, and you need an agent who understands this. Rather than driving you around looking for that “perfect” house for your family to live in, your agent will be presenting you with deals based on projected returns and investment parameters – and many agents are simply not experienced in this approach. Additionally, once you start bidding on properties, you’ll likely be submitting offers on many properties at a time, so be sure you find any agent who is willing and able to submit your offers quickly and reliably.
Find someone who has a solid knowledge of property values. In order to bid on a property, you’ll need to quickly and accurately estimate both its current and renovated values. A good agent should understand the local market and be able to give you reliable estimates of these values. While your agent’s estimates should never replace your own research, it’s important to have someone who can independently confirm your conclusions.
Find a full-time agent with consistent production. The world is full of part-time agents, to whom real estate is little more than a hobby. Don’t let these inexperienced agents jeopardize your success – find an agent who devotes their full time to their profession and consistently closes several deals each month.
- Don’t limit yourself to one agent. A common mistake is limiting your network to only one agent. Each agent has his or her own area of specialized knowledge – such as a neighborhood or a specific area of your town. If you want to move outside of that area, don’t necessarily rely on your existing agent to help; finding a specialist in each are you want to target will greatly increase your chances of success.