By Greg Herlean
As you probably know, Mike’s a licensed real estate agent, and he’s generally the one who finds the deals and flips the houses, while I take care of the financial end of our investments. I was thinking about our partnership the other day and how well it works out for us to use each other’s expertise to get more deals and make better investments.
Not everyone has a business partner they can turn to who has complementary skills like Mike and I do, and most new real estate investors aren’t licensed realtors. This means that, as you grow your business, you need to build a team of people to help you along the way, including a realtor who can find great properties and make the moves to close on them before other investors get to them.
Whether or not you decide to pursue getting your own real estate license in the future, for now your realtor is invaluable to you. However, not all realtors have the knowledge, experience, or skills necessary to work well with an investor like you. Even after you find the best realtor for the job, there are things you can do to help them work better for you.
Communicate Your Goals Clearly
Every time you buy or sell a property through a realtor, they make a commission. If you hire a realtor to help you make a deal, they’ll get a commission on the sale of the house to you. That commission is based on a percentage of the value of the house, which isn’t much in the case of short sales and cash sales of distressed properties.
Your realtor will be happy to make just about any commission, but they’ll be much happier and more willing to work for you if they know that you’re going to use them again when you sell the property and that you’ll be consistently looking for new properties to buy and sell. Make your goals and plans clear to your realtor, and they’ll see that working with you could mean consistent paychecks for them throughout the year, something that a lot of realtors can’t count on.
Ask for Help
Of course, telling your realtor what you want to do and ensuring them that you’ll continue to use their services is great, but it’s not the end of your communication with your agent. When it comes time to sell your properties, talk to your agent about the best marketing strategies to use, which home stagers they prefer, and what else they can do to help sell your flip houses faster.
Listen to Their Advice
If your realtor is skeptical about your asking price for a flip property, listen to them. Ask them if there’s something you could do to bring the property’s market value up or if it would better serve you to take the current market value or a slight cut to sell the house faster. It’s in their best interest to sell the house at a higher price, too, so you know that they aren’t just trying to undercut you on the price.
Your realtor has worked hard to build a career, and this business is entirely based on reputation. They know that if they do good work for you that you’ll recommend them to others and that their work will speak for itself with a growing list of successful, completed transactions. Let them show off their skills and do more for you, and you’ll sell houses faster and at better prices.