Selling to investors is completely different than selling to a home buyer. It’s natural to assume that any agent would be able to help you in your search for a rental property, but it’s just not the same. If you’re in the market to buy an investment property, you want to make sure you have a realtor who knows what you need.
When you buy a personal home, emotions play a major role. How you feel in the house and what you see in your future determines which house is the right house.
However, when you buy an investment property, emotions leave the building. You base your decision strictly on financial goals and number logic.
You need an agent that understands investments. You need to be able to rely on them for accurate projections and realistic comps. To see if your agent is up to the task, start by asking these questions.
Does the Agent Own Any Rental Properties?
When a realtor owns their own investment property, they understand what you’re up against. They know what gets a return and what doesn’t. Then they can help you find a property with high ROI potential.
What’s the Agent’s Goal in Helping You?
We all know realtors work on commission, but make sure they’re prioritizing your goals during the search. Are they trying to find you any house or narrowing the search to your criteria? Make your investment goals clear so they can search accordingly.
The most common mistake is that agents give their clients inflated rental comps. It’s not usually intentional, but it can derail a buyer’s projections. When an owner comes to us expecting 20-30% more rent than they can realistically collect, it costs them. It takes time to adjust their expectations and rework their budget. Then they lose rent during the time it sits on the market and collect less than they hoped when it finally leases.
Working with LEAP
At LEAP DFW, we work alongside several realtors that specialize in the investment market. These agents tailor their searches to your specific investment goals and have proven successful in doing so. Also, they’ll pull realistic comps so you know what to expect for your return.
If you’re working with your own realtor, LEAP can still help you during your purchase. Sometimes you need a second opinion. You don’t want to buy a property based on inflated numbers.
At LEAP, we welcome future clients sending us the properties they’re considering to get a realistic picture of rental rates. We’re not looking for commission. Rather, we just want you to enter the rental market with reasonable expectations. When you list at the right rate, you find a tenant quickly and gain ROI ASAP.
The right realtor can find you the right investment property – as long as they know your criteria, understand your goals, and comp it realistically.
Not sure how to get started buying investment properties? Give us a call!