By Russell Westcott
Finding cash flowing properties is the cornerstone to long-term success as a real estate investor. It’s also instrumental in creating successful Joint Venture relationships. Recently I was coaching some serious real estate investors and they asked me the following question:
“How do we find cash flow properties? We have been searching for 6 months and having trouble finding ‘good’ properties that cash flow”
This is a great question, and it’s true that there are hundreds of different, creative and out of the box strategies to locating good solid performing cash flowing properties. For the purposes of leveraging your time and getting to one of the best sources we will cover just one strategy: Building a strong relationship with a quality investment focused REALTOR® specialist.
A good investment focused realtor is just one source of properties. They can be your main source since they have access to the MLS system which has the largest inventory of properties. Realtors can save your time, freeing you up to close more deals, and manage more relationships. They can also help you to secure the best financing and give you more time to line-up additional investment capital.
Sometimes finding the perfect agent can take a bit of time, but when you find one, they will be worth their weight in gold.
What qualities define a good investment focused realtor? How do you find one? How do you maximize that relationship?
When searching for an agent, look for one that has, or is:
- Local market knowledge
- “Hungry” but not starving
- Willing to learn and try new strategies
- An appealing personality
- Proactive and will follow-up in a timely manner
- Tactfully aggressive
- An understanding of the unique needs of investors
- Excited to work with investors
How to Find a Good Quality Realtor
- Referrals from people buying properties: Real estate investment clubs can be a fantastic place to meet the players.
- Interview several people: Find out how interested they are in the long-term relationship. Are they relationship focused or transactional focused only? Meet these individuals face to face and ask them to show you their best investment properties, and ask them to explain to you why they are good investments
- Meet agents out of their office: Good agents spend very little time at their desks, and are always working deals.
- Find out if they own investment properties personally: Realtors who are also owners will understand your needs better.
- Check out their track record of closing deals…not just listing properties
- Look at their online presence: Make sure your agent is online and has a good web presence.
How to maximize the relationship:
- Don’t waste their time
- Let them know what you are looking for by clearly filtering your criteria
- Don’t ask them to cut their commissions
- Be on time and always say please and thank-you
- Communicate, communicate, communicate
- Follow through on your commitments
- Have fun!
Good luck on your journey to find a quality investment focused realtor or two that understands what you are trying to accomplish and will fit with your personality. Don’t be discouraged if you have to meet with MANY different realtors before finding a keeper. The reward is worth the effort, and once you find this person nurture and grow this relationship. This relationship may prove to be your best source of investment properties, and can potentially make both of you wealthy.
Russell Westcott is a Canadian Real Estate Investor, Educator, Researcher, Best-Selling Author and member of the Management Team with the Real Estate Investment Network (REIN). He uses his personal experience to present his Advanced Buying Strategies™, and Joint Venture Secrets™ that have helped Real Estate Investors think creatively and raise investment capital to buy their next piece of real estate.