Investor Friendly Real Estate Agent Near Me
An investor – friendly real estate agent is an agent that can help investors find properties that fit their business model and goals well. And that means that not the best choice for investors is the typical run – of – the – mill agent that deals primarily with residential home sales. Moreover, demand for qualified investment agents is far outstripping supply at present. So here’s what you need to know about selecting a Dallas Texas investor – friendly real estate agent.
The Difference Between Homebuyers and Investors
Understanding the difference between homebuyers and property investors is a good first step towards understanding exactly what makes a Dallas Texas investor-friendly real estate agent. “Homebuyers want location and a home in which they personally enjoy living. It seems clear enough that investors want a return on their money.
However, confusion arises because home buyers often think of themselves as “investors” because they are looking to buy a home to live in as an investment. However, “the properties will be purchased by primary home buyers and the property investors (should) purchase are completely different.” And that’s what makes an investor-friendly real estate agent to have a good handle.
Many real estate agents simply do not fully understand the need for investment. They need to be investors themselves or have a long experience working directly with investors in order to do that.
Understanding of Both Investing Strategies and Models
To be a real investor-friendly real estate agent in Dallas Texas, an agent needs to understand and experience both of the two major investment strategies–fixing and flipping and purchasing and holding (usually for rental purposes). There are some hybrid models, but these are the two major real estate investment business models.
For both models, choosing an investor – friendly agent means finding someone who has demonstrable experience in handling properties. You need to ensure that your agent is able to handle both knowledge and skill sets.
Critical Areas of Knowledge
If your agent knows the following critical areas, she is probably an investor – friendly agent:
A good investment agent will have comprehensive market knowledge and micro-markets in particular–those smaller, more specific areas and/or neighborhoods within larger markets. Knowledge of the market and micro-market will mean that your agent knows the areas with properties that better serve one or the other strategy.
Some areas “will be extremely advantageous for flipping properties, for example, but not for holding rental properties. Some areas will be great, but not flipping, to hold rental properties. Some areas won’t be good for either”. For either or both strategies, your agent simply has to possess this knowledge and understand the market advantages.
NUMBERS AND CALCULATIONS
Furthermore, an investor-friendly real estate agent in Dallas Texas needs to have a good handle on the numbers regarding property evaluation for their investment potential. A good agent knows exactly what a cap rate is and how it can be calculated. That is, your agent should know exactly how the potential return on investment can be calculated.
Of course, the whole purpose of buying an investment property is to achieve a significant return on invested money. Therefore, an investor – friendly agent should be able to tell you what the expected return on a potential property is and how it came to that figure. For instance, your agent should be able to figure cash flow for rental properties, and after – repair value for flipping properties. If this can be done by your agent, you’ll know that you’ve found an investor – friendly real estate agent.
In this critical component of lead generation, a good investor – friendly agent should also be skilled. Because without many leads in quality, market knowledge and expertise in numbers wind up being futile. “One of the foundations of any real estate business is the generation of leaders. The most important aspect of any deal can be to find a real estate investment property. If you don’t do anything to generate leads every day, you’re likely to fall behind the competition. Without a system in place to keep up with top marketing and lead generation, things can get out of hand quickly.
Finding an Investor-Friendly Real Estate Agent in Dallas Texas
Knowing what an investor – friendly real estate agent is one thing, but when it comes to finding one, it’s completely another thing. A good way to find such an agent is through referrals, but, as we said, demand is higher than supply right now, so you ca n’t always rely on referrals. Another issue is that some markets may be harder and more demanding than others, so you may have to train your agent. However, wouldn’t it be great if you could easily and quickly find a qualified investor – friendly agent?