I remember thinking this when we were first starting out. Back then, there was only one Realtor in our area that really catered to investors in single family real estate. We met him a few times but really, we were way too under-confident to approach him to do business with him, for a couple of reasons:
- We thought he was so established with the big players that we’d get left by the way side
- We didn’t want to waste his time and then have him not want to deal with us again.
So instead, we struggled our way through trying to teach our Realtors….which cost us a lot of money in the end, and a lot of wasted time in the beginning.
Another common fear is that there are only so many ‘deals’ to go around….let me tell you right now, this is a complete misconception. Every investor is different. It never ceases to amaze me that no matter what kind of pre analyzed property we send out, whether it be new, old, ugly, beautiful, big, little, dirty, clean, lots of cash-flow, no cash-flow, in town or out of town…there are always reasons why some investors love them, and other investors hate them. No two investors are alike in what they want in a property. There are plenty of properties to go around for everyone. There are no big fish or small fish, we’re all swimming in the same pond, yes, but we’re all needing different things.
When you use a Realtor we refer to you, you can be assured that they know what they are doing in investment real estate. Our very first must have filter is that they must be an investor themselves. And not a new investor, someone’s who has been kicked in the teeth a time or two. If you are ready to buy, they’ll often even hand them to you all pre analyzed, pre viewed, market rents pre determined and often, pre rented. Rest assured, they’ll help you find what works for you and brings you closer to your personal goals. One final note – they can only do this if you are open with them. If there’s something you aren’t telling them, it doesn’t allow them to do their best job. If you don’t trust them with your story, you may need to find another Realtor that you do feel you can be honest with so you can get the best help possible.
Often the most successful investors, are the ones that don’t live in the city they invest in. Let me tell you why; investing is supposed to be unemotional, right? Tell me, which way would it be easiest to be unemotional about a property, when we’ve seen it or not seen it? Or about a neighbourhood, when we’ve grown up in it in or barely heard of it? Or when we’re given a spreadsheet with a few pictures, or walk around in it with all our senses going full throttle. It is much easier to buy as an investor when you are forced to be unemotional and being far away, you have no choice but to make decisions based on numbers and facts. Hands down this forces you to make better decisions. If you have a good Realtor in an area, they will have the property managers, contractors, service companies and any other resource you will need, to make owning away from home, a non issue.
We leave property management recommendations up to the Realtor in the area. Being investors themselves, and working day in and day out with investors as their main business, they know who are the best managers, from hands on, in the trenches experience.
YES! Our Realtors sell properties for investors across Canada. The fact that we have a lot of buyers (not to mention a lot of buyers who like to buy in bulk) can be very advantageous in selling your property. All of our Realtors have access not only to normal MLS but to Investor Life Properties Website – a site dedicated to pre analyzed investment properties . It is visited by thousands of investors a year – looking for just the right property.
Buyer Brokerage Agreements
ALL Realtors should have an agreement in place with you BEFORE you start looking at properties. This is to protect both the investor and the Realtor.
These agreements with buyers serve three primary purposes.
- The role and responsibilities of the Realtor are clearly articulated so there is no misunderstanding. The service(s) to be provided are clearly understood and agreed to in writing.
- The responsibilities of the buyer are clearly understood and agreed to in writing.
Yes, it is now part of Real Estate law and required by a Realtors Brokerage, in order to broker the deal for you.
Buyer brokerage agreements are not intended as a tool to force a consumer’s hand; rather, the opposite is true. Buyer brokerage agreements provide clarity. The consumer knows exactly what to expect from their Realtor representative and because of that, there is an enhanced level of trust and confidence that the Realtor will promote and protect the buyer’s interests. In the absence of a written service agreement, there is a degree of risk in that required disclosures may not be made, and the role of the Realtor and the service(s) being provided may not be clear in the buyer’s mind.
If a Realtor does something to your dissatisfaction, the proper thing to do is to discuss it with your Realtor, looking for a solution that works for both of you. Give them a chance to correct the problem. If however, you can’t come to an agreement, a Realtor will let you out of a contract you do not want to be in. Your obligations to the brokerage then end.
Yes, in most cases it does. And in the rare case, if the seller wasn’t willing to pay or no commissions were offered, you will know that up front. You can then choose to proceed or not.
Yes. That is one of the main purposes of this agreement becoming law – to make sure Realtors are not just showing you properties based on commissions. Of course, if you tell them that you are NOT interested in looking at properties where you have to pay commissions out of pocket, then they won’t show them to you, however, a Realtor is happy to show you everything available. Ultimately, you are agreeing to hire them to find you a property that fits your criteria, so they can and will then be able to show you EVERYTHING that fits that criteria, without worrying about the brokerages commissions.
Yes, for sure, we will let you know if it is a FSBO or a discount brokerage offering below our listed commissions up front. That way, you see every property and can make an informed decision as to whether it interests you or not.