Realtors - 9 Things to Look For

Most people's experience with Realtors is when they buy their own home. This is typically done in your home town, where you can get in a car with them or go to their office. There is a lot of face-to-face time.

Investing in real estate, however, normally is done in different cities and states throughout the country. Therefore, you will be hiring (and unfortunately firing) a lot of realtors as you start your real estate investing career.

I've assembled the following 9 important things that I look for when I begin working with a realtor, and as we progress through a deal.

#1 Accessibility - Because of the fact that your interactions and transactions with this person will be "at arm's length", you need a real estate agent who is available to you within reason. If I call and leave them a message, I expect a phone call back that same day. If it's over the weekend, then perhaps 24 hours is ok, but more than that and I'm in a holding pattern that could be costing me money.

If they go out of town or on vacation, then they should tell me so I know - that way if we're in the middle of an important deal, they can assign me to someone else while their gone, or I can choose to wait for them to return if it's appropriate. Any realtor who goes underground on you should not be on your team.

#2 Communicative - They must be able to communicate concepts, ideas, facts and customs in a very clear and concise manner. If it is something I have not come across before, then I need them to take the time to explain it to me. They must be patient, and they must not make unilateral decisions on my behalf. Communicating anything to me that may be relative is a must. Also, regular updates are critical during an escrow process - being left in the dark is not acceptable.

#3 Knowledgable - They need to know the market they are in cold! What are the best areas; which ones are poised for a resurgence; where are the good schools; what are the rental and vacancy rates; where would they invest; are there any new proposals in the works that could affect an area either positively or negatively. Having a realtor in the know is vital to making the best purchase possible.

#4 Specialization - What niche do they specialize in? If they can only do single family home sales, then that may be too narrow for you. Do you need someone who does apartment buildings as well, or vacant land? Are they open to finding you creative deals, possibly with seller financing or options, where their commission is still paid. Knowing your criteria as their client, keeping their eyes open, and then bringing you the deals is what will make you a lot of money in the end.

#5 Negotiation - Do they have good negotiation skills, or do they try to push you into writing "safe" contracts, or not asking for everything upfront that you might want to try to get. Are they conservative on the initial offering price? Remember, realtors represent you, so they should be able to negotiate the best possible price and terms on your behalf, and not try to just get the deal the safe way.

#6 Project Management - Once you have an offer accepted, the escrow process begins. This is basically a project, and your realtors must be able to meet deadlines, follow up with others who haven't, and make sure the deal is brought to a close in the most timely manner possible. Letting an escrow drag out will cost you a ton of money.

#7 Technologically Savvy - Do they have a cell phone? Can you reach them by e-mail? Do they know how to use the MLS effectively? Do they own a digital camera to send you pictures with? All of these things are must haves or it will be a very slow and painful process.

#8 Access - To the community that is. They should have contacts for you that can do rehab or repair work. They should have a great title company that runs efficiently. Basically, anything you may need on the ground to help you purchase or flip a home, your realtors should be able to find for you.

#9 Commission - This is something you should be willing to pay for if you hope to find a great realtor. I've seen too many investors shoot themselves in the foot by trying to find the cheapest agent possible while maintaining the highest quality - it's just not gonna happen. You get what you pay for. Pay them what they deserve, and they will jump through hoops for you and make you a lot of money while doing so.

If you spend some time looking for a real estate agent with all of the above criteria, you will be well on your way to a successful investing career.