How to Find Investor Friendly Real Estate Agents

Most real estate investors debate whether to hire an agent or work on their own when buying a rental property. The truth of the matter is that working with a real estate agent comes with many advantages and disadvantages, and each investor has a unique journey with their agent. To increase the pros and minimize the cons, it’s important to find an investor friendly real estate agent.

In this article, we will define what this means, what makes investor friendly agents different from other realtors, how to find them in any US market, and how to interview your agent before hiring them. We’ll also discuss the benefits and drawbacks you need to keep in mind when making your final decision on how to buy an investment property.

What Investor Friendly Real Estate Agents Are

Investor friendly real estate agents are professionals with a real estate license who have specific experience in working with investors rather than homeowners. They specialize in helping real estate investors buy and sell long-term and short-term rental properties in their market. These can include buyer’s agents, seller’s agents, dual agents, realtors, or brokers.

Being an investor friendly agent requires a unique set of skills and knowledge from working with homebuyers and sellers. To provide real value to investors, an agent needs to understand the benefits and risks of investing in real estate, what makes for a profitable rental property, how to analyze markets and properties, and how to launch and maintain a successful long-term or short-term rental business. They also must have a wide network of other real estate professionals who can support the needs of investors related to financing, insuring, designing, furnishing, and managing an income property.

Why Investor Friendly Real Estate Agents Are Different

To be fully clear, there isn’t anything like an “Investor Friendly Real Estate Agent” title. This is not an official real estate job, like a listing agent or a dual agent. Instead, it is the set of skills and experiences that an agent has that makes them the best match for the needs of rental property investors.

Here are the most important things that this type of agents can do and help with that other agents can’t:

• Analyze the investment potential of markets and properties: Investor friendly real estate agents know the investment jargon and are familiar with all ROI metrics like rental income, occupancy rate, cash flow, cap rate, and cash on cash return. They have the knowledge to help investors find the most profitable local markets for their budget and preferred rental strategy and properties that will perform well in these markets. These agents will support investors with the needed analysis.
• Provide access to profitable on market and off market properties: Investor friendly investors network with other agents and investors in order to be aware of properties for sale that have the potential to turn into profitable investments. These include both official MLS listings and off market opportunities, with the latter coming at discounted prices.
• Give access to real estate investing tools: These agents work daily with technology-based tools to analyze markets and properties and can recommend the right tools to investors. These include things like a cap rate calculator and an Airbnb estimator.
• Help meet local rental regulations: Agents that work with real estate investors are familiar with the local laws related to both long-term and short-term rental properties. For example, they can help a future landlord find a market where rent control is not imposed. They can also introduce Airbnb hosts to short term rental regulations.
• Introduce investors to 1031 exchange professionals: Investor friendly real estate agents’ network includes 1031 exchange companies, and they can present the best ones to investors interested in this strategy. The recommendation will be based on the investor’s specific situation and needs.
• Help investors find the best financing options: Such agents can help investors analyze their financial situation and decide what type of financing will work best for them, including conventional loans like a mortgage or alternative options. They can direct investors to the best loans for rental properties and the best Airbnb loan providers.
• Recommend rental property insurance providers: Agents who work with investors also know what home insurance is needed for running a rental business. They can help investors choose the best local provider of homeowners insurance for Airbnb hosts or landlords.
• Give home renovation insights: Investor friendly real estate agents know what’s trending in the local rental market and can give buyers specific suggestions on what renovations will drive the most demand and generate the highest rental income.
• Introduce investors to interior designers and furnishing companies: Tapping into their networks, these agents can help investors find the best vacation rental furnishing companies in the local market.
• Suggest the best property managers: Last but not least, experienced agents can introduce investors to the top rental property management companies for their specific property type and size.

How to Find Investor Friendly Real Estate Agents

Now that you know how an investor friendly agent can help you start a rental property business, the question becomes: How do you find such an agent?

Here are the 7 best ways to find investor friendly real estate agents in any US market:

Awning Investor-Friendly Real Estate Agents

The best way to find an investor friendly real estate agent in all 50 US states is to work with Awning. There are two different ways in which Awning can help investors buy long-term and short-term rental properties.

First, Awning has a Partner Agent program which gives it access to the top agents and brokers in any US market with specific knowledge in working with investors. These are not random realtors but real professionals who have extensive experience with investors and investment properties.

In order to join the Awning network, agents need to apply and undergo a vetting process which proves that they are indeed investor-friendly agents. If you’d like to work with an Awning agents, a client advisor will connect with you to discuss your particular situation and understand your individual needs to match you with the most appropriate agent from our Partner Agent program. They will support you along the way of finding and buying an income property, whether you are interested in a short-term or long-term rental.

Alternatively, investors can work with the Awning in-house brokerage that focuses exclusively on investment properties. It has access to proprietary real estate analysis technology and data that helps us identify the top markets for Airbnb and other rentals and the top deals in your chosen market.

Awning can do all the things that set investor-friendly real estate agents apart from the rest, including but not limited to finding and analyzing markets and properties for sale, closing deals, and setting up you and your property. The distinction is that Awning agents focus exclusively on investors instead of consumers.

Referrals for Investor-Friendly Real Estate Agents

A second popular way to find a good investor friendly agent is to ask for referrals. As an aspiring real estate investor, you need to build a network of fellow investors and other professionals so you can benefit from their knowledge and expertise when needed. Looking for an agent to work with is an excellent opportunity to tap into this network.

Any referrals that you receive will come with the added benefit of connecting you with tested and proven agents. Before you interview any agent recommended to you, ask the person who suggests them about their specific experience with the agent.

• What property did they buy?
• In which market?
• Did the property generate positive cash flow and good ROI?
• Would they work with the same agent again?

These are some questions you can ask the referrer to better understand if the recommended agent will be a good fit for your needs.

Browse Real Estate Investing Forums

Another strategy for finding investor-friendly real estate agents is resorting to forums dedicated to property investors. A good example is the BiggerPockets forums where investors ask many questions and provide recommendations.

As a first step, you can browse through the forum to see if anyone has already asked about agent referrals. Most real estate forums have a search bar that you can use to target your search to your specific market and needs.

If you cannot find threads on this topic, you can simply post a new question to ask fellow investors for recommendations. Most rental property investors are extremely happy to help beginners, so they will probably provide you with suggestions within a couple of hours. You can ask as many follow-up questions as needed to learn everything you want about the referred agents.

The great thing about forums is that other members will also jump into the discussion and contribute by sharing their experience with a particular agent or giving general recommendations on how to find an agent who specializes in investment properties.

Real Estate Investment Meetups

Yet another place where you can search for a real estate agent to work with is property investor meetups. These are like forums but also different as they are a group of investors who actually hold meetings together. These meetings can happen in-person or online.

There are many benefits to joining a real estate meetup, so that’s something you should start working on early in your investment career. Then you can easily ask other group members about recommendations for investor friendly agents. As you actually meet these other investors, you can discuss the agents in detail and understand the strengths and weaknesses of every proposed agent.

Contact Property Management Companies

If you already own a rental property, you can talk to the company that manages your second home. The best long-term and short-term rental management companies have a wide network of real estate professionals including agents.

Due to the nature of the business, these agents will specialize in working with investors rather than homeowners.

On the other hand, if you don’t own income properties yet, you can still contact a property management company that operates in your market. They will be more than happy to provide you with recommendations and referrals to the best investor friendly real estate agents in the area. After all, it is in their best interest that you buy a good rental property and ask them to manage it for you.

Indeed, many property managers like Vacasa and AvantStay have their own agent partner programs, so they have multiple agents who work only with investors that are ready to jump in when needed.

Networking

You can also find an investor friendly agent by asking around your network. This doesn’t have to be your real estate network but can be more general - like your relatives, friends, neighbors, or coworkers.

Word of mouth marketing is a big thing in real estate as you never know who might have heard of someone who worked with a great agent. So, it’s worth asking around for recommendations. Then you can use your best judgment to decide how reliable the referrals are.

Online Investor Friendly Agent Reviews

A final method you can use to find investor friendly real estate agents is to read online reviews on dedicated websites. Realtor.com, Zillow, Redfin, and other real estate websites have searchable directories with agent profiles where verified clients can write reviews of the real estate agents.

You can search for agents who work with investors on Google and then check their online reviews on these websites to confirm if they are a good match for your needs. Besides checking the total number of reviews and the overall rating of agents, read through individual reviews. Look for reviews from other investors and see how they rated their experience with the agent.

How to Interview Investor Friendly Real Estate Agents

Once you’ve identified a few agents who look like a good match for your investor needs, it’s time to meet them and interview them. You can do the interview in-person or over the internet if you are investing remotely. In this case, we recommend a video call rather than a phone call.

Here are the must-ask questions when interviewing investor friendly agent candidates:

• How many years of experience do you have working with real estate investors?
• How many investors have you helped so far?
• Do you have repeat customers?
• What markets/areas do you specialize in?
• Is your market a good location for investing in rental properties right now? Why yes or why not?
• How frequently do good investment opportunities become available in your market?
• What property types do you focus on?
• Do you work with short-term or long-term rentals?
• How many clients do you work with at a time?
• How do you find properties for your clients? Are these MLS listings or off market properties?
• What technology do you use for analysis?
• Where do you get real estate and rental data from?
• How long does it take you to find a property and close a deal?
• Is all the work done online or do you hold property viewings, open houses, and in-person meetings?
• Can you recommend other real estate professionals in the area, such as lenders, attorneys, 1031 exchange professionals, insurance companies, interior designers, and property managers?
• Do you invest in real estate yourself? If no, why not?
• What fees do you charge?
• Can I speak to some of your past investor clients?

Pros and Cons of Working With Investor-Friendly Agents

There are many important benefits to hiring a real estate agent to help you find and buy investment properties, but there are also some drawbacks that you should consider.

The most significant advantages include:

• Getting access to off market properties, pocket listings, and other types of homes that you might not find on your own
• Benefiting from expert local market knowledge and investment property analysis
• Obtaining access to real estate investment tools and data analytics
• Gaining access to a wide network of professionals, including financiers, insurers, lawyers, contractors, property managers, and others
• Negotiating lower property prices and better deal terms
• Closing deals faster
• Running an overall smoother process

The main disadvantages are:

• Losing some control over your investment deals
• Competing with other clients for the time and focus of the agent
• Paying commission and fees (especially when selling a property)

Takeaway

Working with an agent when buying and selling rental properties is a potentially great way for investors to get access to the best deals on the market and close on them faster than on their own. However, they can benefit from all the advantages of hiring an agent and avoid the disadvantages of it only if they find the right professional. Awning is the best source of investor friendly real estate agents in any US market who can help investors find lucrative short term and long term rental property opportunities and buy them at the best terms.