Most brokers aren’t willing or able to assist real estate investors in finding suitable properties that will give a good return on their investment. This is because it takes a fair amount of knowledge and effort that can’t be obtained from simple residential real estate dealings.
If you’re looking to take your investment business to the next level, however, it’s smart to find an investment-minded broker for the best chance of success. Investment brokers are few and far between, with there being three different types.
Types of Investment-Minded Brokers
The beginner – This broker has just gotten his license and is ready to be your go-to agent. That said, what he lacks in experience, he makes up for in drive.
The Professional – When a broker gets good at what he does, he begins to do it solely for himself and stops brokering for other people.
The Investment-Minded Broker – This just-right broker builds his career around helping investors find and buy investment properties. He has a network that allows him to be a one-stop-shop for his clients. In most cases, the investment-minded agent also has his own extensive investment portfolio and has done more than 50 real estate deals in his career.
What Your Investment-Minded Broker Should Know
It’s very difficult to find a broker with the knowledge and experience necessary to help real estate investors succeed. A good one knows:
The Numbers – Real estate investing is all about the numbers. A good investment broker, because he invests in the market himself, knows the numbers, and is able to spot an opportunity rather than just another listing.
Furthermore, the right investment broker will also be able to calculate the amount of rehab a property might need, and since he sees the listings before you, can determine if it’s even work telling you about it.
The Market – Most investment opportunities are local, which means your broker should know the local market inside and out. For example, some neighborhoods are better to invest in than others. This could be due to price, job availability, the renter base, schools, or government regulations, but a good investment-minded broker can guide you to these neighborhoods based on his knowledge of the market.
Things to Look for in an Investment Broker
If you’re looking for an investment-minded broker, look for the following qualities.
- The broker is an investor himself.
- He works with other investors.
- He has access to off-market properties, and
- He has an extensive network.
If you’re currently working with a broker that doesn’t seem to be cutting it for you, finding an investment-minded broker can greatly change the game for you. Don’t be afraid of hurting anyone’s feelings, as your current broker probably already knows he isn’t doing the job you need him to do. Use the information above to find yourself an investment-minded broker that can help you successfully grow your investment portfolio.