Working With Real Estate Agents

Most likely, you already know that I advocate working with Realtors® in my BuyersFirstProgram. It's the best way to achieve investment success. Of course, you should work with Realtors® who know what they're doing; otherwise, you're wasting your time as an investor (not to mention that of the buyers and sellers).

In this article, I'll give you some guidelines for choosing the best Realtors® to work with in any investment situation. If you're already an experienced investor, this information may seem very basic, but it's also good to practice fundamental principles on a daily basis. Ask any professional athlete!

Guideline #1: Choose a Full-Time Professional Realtor®. This may seem very obvious, but remember there are always part-time real estate agents out there wanting commissions. Most are either mediocrities or amateurs who check in when the market is hot and check out when it slows. So, weed these individuals out by asking for their experience, qualifications, sales, etc. Then, go with the Realtors® who have a demonstrated record of excellence over time.

Guideline #2: Choose a Specialist. Ideally, you want a Realtor® who specializes in your particular area of investment. So, if you specialize in the single-family home market, look for an agent who has considerable experience and expertise in that area. Do the same for multi-unit, commercial, retail, and industrial markets. By the way, don't just accept a Realtor®'s word that he or she is an expert in a particular market. Ask for proof in terms of sales within your target market.

Guideline #3: Verify Realtor® Credentials. Check with your state online database to make sure the agent is fully licensed and has no citations, disciplinary actions, etc. on his or her record. If a Realtor® has ethics problems, you definitely don't want them staining your reputation, even if it's only by association.

Guideline #4: Ask For and Check References. As with any business, the best proof of success lies in satisfied customers. So, ask the Realtor® for references from customers within your target market and geographical area. Contact those references to get a rounded picture of the Realtor®'s reputation and business practices. Naturally, you'll want to develop a relationship with Realtors® with good to excellent reputations for honesty, fair dealing and patience. It'll make the entire investment process a much smoother and more profitable one since you'll be dealing with satisfied customers, not irate ones. Guideline #5: Look For Good Communication Skills. Straight-forward and clear communication is the key to success in any investment deal. So, look for Realtors® who listen well to you (and everyone else) and who keep you informed and up-to-date on every transaction. Also, remember that clear communication is your responsibility as well. Make sure the Realtors® you choose clearly understand what your investment goals are so they don't waste time bringing properties to you that have nothing to do with those goals.

Guideline #6: Look For Realtors® with Strong People and Negotiating Skills. A Realtor® can have all the experience in the world, but if he or she doesn't relate well to people, they're no help to your investment deals; they're positively a hindrance! So, seek out agents who are great at making everyone happy while moving them toward a deal with sound negotiating skills. To find out about a Realtor®'s negotiating skills, ask former clients about how effectively the agent conducted bargaining sessions.

Guideline #7: Remember Your Responsibilities! Once you find a great Realtor®, do your part to keep him or her on your team. Bring them good deals, not "ghost" deals that never materialize. After all, your reputation is on the line too, and you want it be a good one since it can help you build a long-term investing career. A Realtor® who considers you a reliable and honest investor will bring you deals that never show up on the MLS listings or in the newspapers!

Key Point: Choose full-time Realtors® with great reputations and great experience in order to maximize your investment career.