Seldom Asked Question #4: Working with agents
By Robert Orfino
As we’ve all been told over and over, building a good team is the corner stone of any business, however, getting agents and brokers to work with you early on can be tricky. Various agents and brokers have different motivational triggers and as a result, many will not venture outside of their comfort zones to work with our type of business.
I have held interviews with agents and some simply do not show up. I have found that out of 100 agents I speak to, only about 3 to 5 truly understand the type of business I run. Finding these agents and brokers are very important for the life blood of your business. A typical agent/broker will bring you what could be a very good retail deal but not a very good investment deal. They need to understand the criteria you are looking for and the ARV or Proforma you need to achieve. A failure to mutually come this understanding will result in a huge waste of time for both parties involved.
Agents and Brokers who understand these numbers also understand the unpaid time that goes into finding these deals and are completely aware that compensation comes later in waves as these scavenger hunts begin to yield fruit. An agent who doesn’t understand this will drop off within the first 90 days of working with you so communicating these expectations is vitally important. Read the Real Estate Agent’s Guide to Working With Investors.
It will take time to find these types of brokers and agents so the sooner you start your search, the better. The first question you’ll ask is “have you ever worked with an investor before”? If the answer is “No” then the following answer will usually be “No” when you ask, “would you like to work with me”? Finding ARV’s between 65% to 70%, specially here in Southern California is tough. Finding a distressed market and an agent in that distressed market who isn’t afraid of making insultingly low offers in an effort to get the lowest possible ARV number is exactly the type of agent/broker you need to succeed as a Real Estate investor.
Robert Orfino, 2017