How to attract investor friendly real estate agents.
Whether you are buying an investment property, selling an asset or looking for a property manager, it is important to find the right real estate agent for the job.
But as Nathan reveals, this may not be a matter of ‘attracting’ the right person. As is usually the case with property investing, finding an investor friendly real estate agent starts with a solid understanding of the game board – as well as being ready and willing to make your move.
There’s more than one type of real estate agent.
Head of Binvested, Nathan Birch, has been part of more than 10,000 real estate transactions over the last 15 years.
As a result, he has dealt with a lot of real estate agents.
“There are a few types of real estate agents out there,” he says.
Some are good for buying cheapies from, whereas others are good for selling with.
Depending on whether you are looking for an agent to manage a rental property, an agent to sell an investment property, or an agent to buy from, there are many different factors that come into play.
But before you can choose the best person for the job, you need to know what you are trying to achieve.
What are your goals?
If you want to sell one of your properties, your goal is probably to get the highest sales figure possible.
However, if you are buying an investment, you probably want to negotiate a property below market value.
And, if you want someone to manage your properties – well, then it’s a whole different kettle of fish.
Finding a good property manager.
According to Nathan, there are a lot of property managers out there who act in the best interest of the tenants.
“Most real estate agents out there aren’t worth the money that you’re paying for them,” he says.
If you want to find a good property manager, you need to look at who the person is, what the business is and what they are trying to achieve. You also need to consider the value of the business and whether they are getting the best return for their investors.
At Blink, the property managers understand that the tenant isn’t the client – the investor is.
Instead, Blink sees a tenant as the consumer who pays for the client’s product; the rental property.
With this kind of mentality, the property managers are able to focus on maximising returns for their investors.
“Each ten dollars per week rental increase equals $520 dollars per year,” says Nathan.
“If I have ten properties, that’s $5,000 per year.”
While a small tweak such as this makes a big difference in an investor’s cashflow, many property managers wouldn’t go out of their way to make it happen. After all, it’s not like they are going to earn any extra income from it.
Nathan sees things differently. If 1,000 of his clients raised the rent by $10 per week on their rental properties, the business would earn about $770 extra each week through commissions.
In this way, he manages Blink like a hedge fund. He focuses on clients achieving the best possible returns by maximising cashflow and dealing with vacancies in a proactive way.
What to look for:
- Proactive attitude
- Good communication skills
- Someone who treats your investing like a business
- Someone who will align to your goals
Buying from an investor friendly real estate agent.
Nathan has knocked quite a few agents over the head in his years as an investor – not literally of course, but he has negotiated some serious bargains.
He says there are real estate agents out there who are willing to sell for cheap if it means they will get the deal done.
You can find agents like this by getting out there and making offers. Not everyone you deal with will budge on price, but you won’t know unless you try.
By learning to read body language and understanding what drives people to act the way they do, it is possible to cut through the crap of what a selling agent may be saying.
After a while, any seasoned investor should be able to decipher the sales pitches thrown at them . But, someone who knows how to read body language and character will have the advantage.
Nathan says it has taken many years of doing deals with agents and understanding how they operate in order to build a good network.
What to look for:
- Agents who don’t have an impressive track record
- Agents who are willing to do anything to secure the deal – even if it means dropping the price
Getting the max come sales time.
Throughout Nathan’s career as an investor, he has come across agents who have refused to sell him a property for cheap.
These are the sort of agents he has chosen to sell his properties with.
Not too long ago, he decided to create a service to help his clients come sales time.
“I created Get the Max in order to put people into contact with the right real estate agents,” he says.
The free service helps vendors find good selling agents without having to go through the 15 years of property transactions that Nathan went through to build his network.
He says, when it comes time to sell, it is important to choose someone who will help you get the best return possible on your investment. Just as a good property manager can optimise your cashflow, a good selling agent can maximise your capital gains.
“A good real estate agent will work on behalf of the owner,” says Nathan.
“They will do everything possible to create urgency and momentum and competition amongst buyers in order to get the highest sales price.”
He says when you are in the process of buying a property, pay particular attention to agents who are sharp and responsive. You never have to chase a good agent, he says, because they will be proactive in calling you in order to create urgency and competition. These are the sorts of agents who are good to sell with.
Checking the recent sales of agents as well as the number of days their properties have been on the market will also give an indication of how proactive they are in their approach.
What to look for:
- Those with an aura of success
- Excellent sales results
- The ones who won’t budge on price
- Those who convince you to offer a higher price