The most common way of finding houses to flip is through non-MLS listings but real estate agents can also be a valuable resource.
Most of the house flips that I have done especially in markets I am not familiar with have been through real estate agents. A good real estate agent who knows their market can help you snag a really good deal but first, you have to know how to work with them.
How To Work With Real Estate Agents
REO Agents And Short Sale Agents
Real estate agents who have direct links with asset managers from banks and they are REO brokers, they will know before anybody else when deals become available.
Therefore, if a property for an investor is listed at $100, 000 but itâ€™s listed at $150, 000, a good broker will comprehend this. If this is the case, thereâ€™s no need to put in your offer because the bank wonâ€™t accept anything thatâ€™s pricier than what they are willing to sell it for.
Make it a priority to meet with these kinds of real estate agents and create a professional relationship with them.
Real Estate Agents Can Get Deals Outside Of MLS
Most real estate agents will source deals for you from properties listed on MLS but they can also get deals outside of it. Some of them have resources where they can get properties that are currently â€œoff marketâ€.
Donâ€™t wait around for property to be listed on MLS at a convenient price for you. Most of the properties listed will be overpriced and real estate agents know that. However, in most instances, your real estate agent will know about an upcoming sale even before it is listed.
Understand And Build A Rapport With Them
The relationship you have with your real estate agent is very important. Make sure you understand how they operate their business and what motivates them. Do not make everything to be about you. You need to understand each other and build a trustworthy relationship in order to work well together.
Explain To Them How You Approach Your Deals
When you start building business relationships with real estate agents, make sure you are clear about how you approach your deals and what you do. If they have to show you several properties before you can pick one then make it clear. If you have to put in more than ten offers to get one accepted, make sure they know that.
It takes a lot of legwork to find houses to flip so if you talk to a real estate agent and they sound less than enthusiastic during your initial consultation, then they may not be a good match for your business. An ambitious and motivated real estate agent will make it easy to work with you because they will be excited about the prospect of working with you and the potential deals you could bring in.
Donâ€™t Exclude Those That Donâ€™t Understand Your Business
Most real estate agents are not used to dealing with the real estate investing sector. They are used to the retail sector so you might need to explain to them how your business model works. All it takes is to train them on what you do and they will hunt down properties for you and you can both make good money.
Once you establish a close relationship with them, you can get them to understand how you conduct business. They can sell your property for you or they can sell it to you. Either way, it will be a win-win situation for the both of you.
Donâ€™t Make Them Feel Like You Are Wasting Their Time
Real estate agents are business people also and are in it to make money. They will always put themselves first when doing business and very few of them will look out for you. If you find a real estate agent who helps themselves while helping you is a smart one and you should establish a close relationship with them. Thatâ€™s how business is done.
Donâ€™t Rely On Just One Real Estate Agent
You should work with as many real estate agents as you possibly can while weeding out the bad ones. Not all real estate agents that you come across will be competent. Out of the ten real estate agents that you interact with, perhaps only two of them will be easy to work with and will show as much enthusiasm and ambition.
If you utilize the above information, you will find that it is much easier to work with real estate agents and source for more and better deals.