While there are a many real estate brokers around the country, very few have the desire and specialized knowledge to work with investors. As a real estate investor, you want to work with brokers who have a wide variety of experience that will help you make good investments.
Three Kinds of Brokers:
- The new broker. While these brokers don’t have a lot of experience, they make up for it with the determination to learn as much as possible.
- The professional. This broker has so much experience that now she is working only on her own investments.
- The middle broker. This broker has experience, but is still eager to work with investors. They have a system, network, and a portfolio that prove they are ready to work with you.
Two Things Brokers Should Know:
There are two important categories that your broker needs to be familiar with: the numbers and the market.
A broker needs to understand all the numbers that are associated with real estate, and be able to translate those numbers into a good deal for you. He needs to be able to look at a property and know whether it would be worthwhile for you to invest in. If a property needs work, a broker should be able to share what type of work needs to get done in order for the property to have greater return. If he doesn’t have the answer, he should have a network to consult with and refer you to.
A broker also needs to understand the market, so that she knows what a good opportunity is for you. Because of her knowledge about the market, she will be able to guide you to the best deals in the area based on a variety of factors. She will also help you realize realistic goals within your local market.
What To Look For:
- A broker who has invested will have the experience to help you. They avoid making mistakes with you because of lessons they have already learned.
- A broker who works with other investors. They have connections that will help them find you deals.
- A broker who has access to properties off the market. They do not need to rely on MLS (multiple listing service) alone.
- A broker who has an excellent network. If they have a large network, they can often help solve problems for you before they even occur.
Make sure your broker is a good fit, and someone you can happily work with. You will reach your goals faster if you are working with the right team!