Why should you use an agent for real estate investing? Starting in real estate investing can be overwhelming and I completely understand. You may be afraid to pull the trigger on projects because you are unsure of all the numbers and pitfalls and don’t want to lose your money.
Hi I’m Sherri Echols, Broker Associate with RE/MAX Bryan – College Station. A real estate agent is a very important member of your team that you
should not overlook. Whether you are a Buy and Hold investor, Flipper or Hard Money Lender, the value of the home is the most critical number. It needs to be accurate in order for the investment to be a success.
Not only can agents pull sold comparable sales, they can also show you the competition which is very important. Working with contacts I have built a relationship with such as title companies, lenders, inspectors and surveyors would also be a benefit of working with me.
Concerning rentals, an area can be oversaturated with rentals and vacancies will be very high.You may not know this on your own.There may appear to be great deals in these areas,
but if you have to have a vacancy for 3 months or lower your rent to compete, your return on your investment could be much lower than anticipated. I myself own rental property and am in tune with the local rental market.
For flippers, I can inform you of the hot areas and what buyers are looking for in the current market environment. Believe it or not, inspection items can be a deal breaker if they are not remedied ahead of time.
I can educate you on the safety and health items that will be scrutinized during an inspection so you can take care of these before they become a deal breaker.
Remember, cosmetic updates get them in the door, but the big systems like roof, plumbing, electrical, and Air conditioning are what keeps them in the contract.If there are too many deficiencies, the buyer will lose faith in the home and back out.
You might even hear the dreaded “the contractor/owner just put lipstick on a pig”.You don’t want to hear that!
Do you know the nuances of the neighborhoods that you are investing in? Is one side of the street more desirable than the other? Are the buyers out in full force or is it slowing down?
Do you know the average days on market or vacancy rates? There are so many factors that you may not think of that a knowledgeable agent will bring to the table. Even if you are mainly dealing with off-market properties, an agent can give you reliable information that will help you evaluate the property.
What you don’t know can be very expensive in real estate. I’m not saying that a realtor should evaluate properties for you but the market knowledge of an educated agent should be considered.
Even if you are wholesaler yourself, an agent can be a great resource for you. If you are ready to start your investment career or just have some more questions please give me a call, let’s talk it over. Happy Investing! I’m your Community Market Leader Sherri Echols, a helping hand for a happy home!
