Finding a Realtor is Like Finding a Doctor

By Randy Dyck

If you have ever had a serious health issue, you more than likely have spent countless hours in doctors’ offices. Your first visit would have been with your family doctor, followed by a referral to one or more specialists. The health care industry runs and functions on referrals and specialists. The purpose of the referral is to put you in the hands of an expert of a particular field of medicine. In the end, these specialists help heal you or diagnose the health issue, whether it be the cardiologist, pediatrician, orthopedic surgeon, or numerous other specialists.

Your Parent’s REALTOR ® May Not be Your Best Choice as an Investor

The real estate industry is really no different. Real estate professionals or REALTORs ® are specialists in various fields of real estate and just like any other industry, the landscape is always changing. You should not ignore how easy it is to access a real estate agent and how much easier it is to tackle the industry with one on your side. The way realtors operate is much different to 20, 10, even 5 years ago! This is why you need to make sure you’re keeping track of the latest methods they are using. You need to know how online estate agents operate, what the market is doing, any new tactics, etc. This way, you’ll know where the best place to go for an agent is. REALTORs ® can specialize in residential, commercial, industrial, business, and investment properties. Within each of the following fields, there are further specializations. For example, within the specialization of cash flow investment property, there is RTO (rent-to-own), multifamily, agreement for sale, sourcing the property, financing, and cash flow analysis.

My first family doctor, Dr. Collins, was the doctor that delivered me; essentially a direct referral from my parents. However, once I moved away from home I found myself going to drop in clinics and the ER for my health needs.

The same pattern of selecting occurs when choosing a realtor. For example, a friend of mine in the States has used the same Rhode Island Realtor their parents did, after they moved twice in a couple of years – they had great success with them without needing to re-establish too much in terms of details before the move. The realtor you are debating using could have been the family realtor from years gone by and has proven to be a solid professional. He or she is knowledgeable and understands the market, go-to neighborhoods, sell through rate, list to sell price ratio, and is an excellent negotiator. Perhaps you’re relocating to a different state altogether and have gone with a particular realtor like this Greensboro real estate agent, as they have resources available to make this process as smooth as possible. This realtor is much like your family doctor or General Practitioner. They both have a great understanding of their profession and the needs of their clients/patients. They do a superb job in helping clients buy or sell the common residential property or solving the common health ailment.

However, when the health concern is significant or complex, the GP will refer the patient to a specific specialist. This should be the same approach for the real estate investor. Seek referrals for a specialist; seek referrals from other real estate investors. They will be an excellent and reliable source for finding and engaging the right realtor. Next, interview the agent or agents that have been referred to you.

Meet them at their office:

– do they have a bricks and mortar office,
– do they conduct a successful and professional business,
– and are they serious about their craft?

Form a Relationship with Your Realtor Like you Would Any Other Business Partner

When meeting with the realtor, convey and express that you are a business person that investors in real estate. Explain that you are interviewing realtors and looking for the right agent to build a long term business relationship with regards to your real estate business. Be prepared. If you are serious about your business, you should treat this meeting as if it is a partnership meeting. Bring questions to ask the realtor.

Here are few:
– Tell me about your experience with investment properties and the market.
– What is the current state of the market? Can you back it up with knowledgeable/informative data?
– Do you personally invest in real estate? What type and why?
– Is there a type of real estate that you would not invest in? Why?
– What is your philosophy on investing?
– Why do you choose to work with investors?
– What relationships or contacts do you have that would be beneficial to building my investment business? Who do you know that I should know?
– Describe a creative deal that you have done?
– How many investment listings do you typically carry?
– Do you have access to exclusive or pocket listings?
– What is the best investment property deal you know of today?
– Do you have any game changers that you incorporate into helping investment buyers or sellers? (i.e. pre-certified investment properties, reverse offers, agreement for sale, investor approved management, RTO, forward sale, etc.)
– Do you have any guarantees or warranties? (i.e. communication guarantee, commitment guarantee).
– Do I need to sign a Buyers Agreement with you and your brokerage? How long is the agreement for?

These are a few questions that will distinguish the right realtor from the wrong realtor, and help you understand the quality of specialist with whom you are engaging.

Does your REALTOR ® have TRUST?

TRUST is the final piece when searching for a realtor. TRUST can be defined as:

? Timely – with information
? Reliable – can you count on your REALTOR ®?
? Useful – provide you with useful information
? Story teller – can the REALTOR ® sell your investment story to others
? Tenacious – in getting the right deal negotiated

If the trust factor is low, so is the chance of a long-term business partnership. However, if there is a high level of trust, the chances of a long-term successful relationship are high. Even more importantly, the chance of sourcing, negotiating, and building an incredible portfolio of investment properties is great. As an investor, trust is essential. The REALTOR ® needs to build this same level of trust with his or her other clients, the other agents, and the trust in the community that you are investing in.

Relationships are essential in any business. Working with an agent that is connected in the investment community and has powerful people and presentation skills will certainly open doors to investment opportunities. This also applies to the investor. Should an investor build a relationship with more than one REALTOR ®? I believe that the answer is yes, but yes with caution. Remember, you want your REALTOR ®/investor relationship to be a partnership. Partners are trustworthy, committed to one another, have each other’s back, and are loyal.

However, as an investor, you need the specialist to succeed to the fullest, whether that specialty is geographical, type of property, type of transaction, type of investment, or lack of experience. As an investor, if you choose to have more than one REALTOR ®, be open about it; let your REALTOR ® know. After all, they are a partner in your business.

Professionally, things can change as well? You may outgrow your REALTOR ®. You started investing in individual condos and over time you have built your portfolio to the place where you are ready to invest in multi-family properties. It is maybe time to surround yourself with a new group of specialists. The stakes and opportunities are greater.

Research, seek out referrals, and start interviewing for your new REALTOR ®/business partner. The REALTOR ® you work with must give you the confidence that will help you accomplish your ever-growing goals. Always be asking your REALTOR ® deep and curious questions about their ability to perform for you when investing in real estate and, in return, be ready to answer his or her deep and curious questions about your ability to perform as well.

Randy Dyck has been a top producing realtor in the Fraser Valley since 1992. He and the Eximus Real Estate Team have sold over 3000 properties in the past twenty years. Randy and the six agents of the Eximus Team serve investors in Chilliwack, Abbotsford, Mission, Maple Ridge, Langley, and Surrey. Randy personally invests in Multi-family, Commercial, and Development properties. For more information, visit www.eximus.com. You can contact Randy at randy@eximus.com