Real Estate Agents

What should be the role of an agent or broker when buying a real estate investment? Because properties available on the MLS (which represents a huge majority of the properties for sale) have already had a negotiated rate offered to a buying agent, you should ALWAYS have an agent or broker help you buy an investmentproperty.Itdoesn'tcostyouathing,andwillofferalayerofadditional protection while navigating the real estate contract. After all, the cost of a failed transaction can be high. Not to mention the bird-dogging and showing hoops an agentorbrokercanjumpthroughtomakeiteasierforyou.

Another big benefit a realtor can provide is to set up automated lists for you to notify you immediately if a property hits the market that meets your qualifications.

However, it is very rare to find a real estate agent who can help you look at and evaluate properties to the level of detail needed. They are not trained for that. Remember how they are paid. In other words, don't ask the barber if she thinks you need a haircut, and don't ask the butcher what you should cook for dinner. Youneedtoowntheanalysisofyourinvestmentbeforeyoupullthetrigger.

One unexpected area you may look for an agent or broker that knows the investment business is at a property management company. In nearly every state, managing property requires a real estate license, and those companies have more experience working with rentals. Typically, they will understand more of the true costs of an investment property (maintenance, capital improvements, tenant issues,vacancy,etc.).