Selecting an Investment Realtor
It takes a lot of skills and resources to be successful in investment real estate. Either provide all these skills yourself (you can't) or work with an investment team that already has the skills. The place to start is by finding an investment Realtor. An investment Realtor already has all the skills and relationships you need along with proven processes. See the image below.
Residential Realtor vs. Investment Realtor
What is the difference between a Residential Realtor and an Investment Realtor? I will start Residential Realtors.
Residential Realtors enable people to buy or sell homes. The process is simple. Homebuyers select properties, and the Residential Realtor provides access. Once selected, the Residential Realtor facilitates the offer and the closing process.
Some Residential Realtors do sell real estate that will become rental properties. However, the client selects the properties and provides all the investment skills. The Residential Realtor usually provides no services beyond those needed for home buyers.
While there are usually thousands of Residential Realtors in a city, there are usually only one or two Investment Realtors. Investment Realtors must understand finance, market trends, ROI, tenant pools, and more. Investment Realtors provide a wide range of services, including property selection and evaluation. Plus, Investment Realtors are always part of a team. Only a team can provide all the skills and resources required for successful real estate investing.
Finding an Investment Realtor
"You have to kiss a lot of toads before you find a prince." - Paraphrased from The Frog Prince by the Brothers Grimm.
Finding an Investment Realtor may not be easy. Start by building a list of candidates. Talk to property managers, cruise real estate investing sites, and seek out local investors. Once you have a list, now comes the hard part, finding one that knows investing. To simplify the search, I put together the diagram below. Start at the top and ask each question, noting their answers. If they are unable to provide a satisfactory answer to any question, go to the next candidate.
If a candidate passes all of the above, you can be assured they know what they are doing.
Summary
Real estate investing is a business, not a hobby. You need the best team you can find. This article provides a process for evaluating potential investor Realtors. As to residential Realtors, the odds of any Residential Realtor providing the skills you need are little better than winning the lottery.
