Tony talks to us today about the role of the real estate agent when buying properties for investment purposes. As you may know, when it comes to real estate transactions, there is the seller’s agent and there is a buyer’s agent. The agent who is representing the property is obligated to work in the best interests of the seller, whereas the buyer’s agent is obligated to work in the best interest of the buyer. However, most real estate agents are used to dealing with the typical home buyer – in other words, a buyer looking to purchase a home as their own residence. This is a little different than an investment buyer. Whereas a potential homeowner wants things like nice upgrades in kitchen and bath, neighborhood amenities, and the best school district in the area, an investor needs information like what rents go for in the area and how much renovation costs are going to run.
Often, our loan officers are not only working on the best loan for our clients, they are also helping our clients to make the best investment decisions. It takes a certain sort of experience to gauge what shape a house is in, what sort of costs might be involved in a rehab, and what the probable after-repair value will be. These things are of vital importance when it comes to finding the right real estate investment, but often your real estate agent will not be able to provide that information.
Getting aligned with a buyer’s agent who is savvy about investing can be of great value to the investor. Likewise, working with contractors who understand that you are planning keep the property as a rental or sell the property as a flip is a great advantage. Keep this in mind as you build your team of trusted advisors, and find people to work with you will help you make the right investment choices.