If you’re still new to real estate investing, you most likely haven’t obtained your real estate license yet, which is absolutely fine. In fact, I know several very successful real estate investors who have never bothered to become real estate agents themselves. They’ve found it more profitable to continue to work on new deals and oversee their current rehabs while they let their agents take care of finding and negotiating properties for them.
When you start searching for a real estate agent, everyone will tell you that you will need to find one who has experience working with investors and investment properties. However, after a few years in the real estate investing business, I have a slightly different perspective on the subject.
WHEN NO AGENT IN YOUR AREA HAS EXPERIENCE WITH INVESTORS
First of all, a majority of real estate agents don’t have experience buying and selling investment properties. You might think, “That’s fine, I’ll just search for one who does.” But what if you can’t find anyone in your area who has the experience you’re looking for? You’ll be trapped with trying to figure out whether you should put your house flipping business on hold while you obtain your real estate license or if you should simply choose a realtor who doesn’t have experience with fix and flip houses.
THEY HAVE MORE REAL ESTATE EXPERIENCE THAN YOU
If you find yourself stuck in this situation, which way should you go? In my mind, the choice is obvious. If you put your house flipping business on hold, you put your profits on hold, as well. Instead of making money now, you’re going to have to invest in education and everything else necessary to obtain your real estate license. Once you’re licensed, you still won’t have much (if any) experience with real estate and you certainly won’t be able to call your agent for advice because you’ll be your own agent.
Alternatively, let’s say you find a good agent with a solid track record of helping people buy and/or sell houses, but they don’t have experience buying distressed properties and turning them into flip houses. Can you imagine how much faster they’ll be able to bring their knowledge up to speed on this particular market than you will be at learning the whole industry? The choice is clear. Go with the realtor.
CLEAR COMMUNICATION IS KEY
If you’ve found a good real estate agent, it won’t matter whether you’re looking for a mansion, a condo, or a shack with an outhouse. If you’re clear about the kinds of properties you’re looking for and your intent to sell them quickly and continue to buy and sell properties on a regular basis, your real estate agent will understand. Not only that, but they’ll see that working with you will mean regular commissions, and that type of nearly guaranteed cash is always welcome.
So, does your real estate agent need to have experience with investing? Finding a realtor who knows about house flipping and investment real estate can be a huge benefit, but it isn’t necessary. If you find a realtor you like who you can work with, you’ll be heading down the right path to building a successful real estate investing business. Plus, the longer you work together, the more investing experience your realtor will acquire, and the better they’ll be able to serve you. Keep these things in mind as you build your real estate team for your house flipping business.