If you are looking for an investment property, it is important to hire a real estate agent who has experience working with investors. They will know how to navigate the process and can provide you with all of the guidance you need to make your first purchase.
It is also important to choose an agent who has a strong local market knowledge. They can help you find properties in areas that are in high demand and that will have the greatest profit potential.
You can also ask other real estate investors to refer you to their agents. They may have a great portfolio and will be happy to put you in touch with their favorite investment properties.
Once you have found a few agents, you can meet with each of them to see how they work. This is an excellent opportunity to get a sense of their work ethic and the level of support they provide.
Many agents specialize in a specific area, city or even state. These experts are especially helpful if you are new to investing and need to focus your search on smaller micro-markets.
In these smaller markets, you can find more specialized types of deals and often more affordable prices. You’ll also be able to make offers quickly, which is essential for securing the best price possible.
The right agent will also understand the value of finding off-market deals and will be willing to take a chance on you when you are looking for properties that have been undervalued. This can increase your returns on investments and allow you to build a larger portfolio.
This is a critical skill for any real estate investor, but it’s particularly crucial for those who are interested in flipping homes. They need an agent who knows how to calculate the numbers for their profit margins and can identify those properties that have a great potential for increasing the ROI on their next deal.
A good real estate agent will be a financial consultant, which means they will be able to help you calculate key metrics like net operating income (NOI), cap rates, gross rent multipliers and other vital indicators that will help you determine the profitability of a deal. They will be able to use their first-hand experience with thousands of investors to guide you through the process and save you time and money by not sending you properties that don’t meet your investment goals.
They’ll also be able to negotiate price and terms for you on behalf of your investment property. This can help you get the best possible deal and reduce your risks, including costly repairs or re-doing a project that was not executed correctly.
You’ll want an agent who is familiar with the term “negative cash flow” as it is used by most investors to describe a negative return on their investment. This is an issue that can cause a lot of confusion and frustration between an investor and their real estate agent, which will only lead to more wasted time and effort on both parties’ parts.