Choosing the best investment realty company for yourself is a decision that shouldn’t be taken lightly.
Should you go with the biggest firm in town?
Maybe not, for a couple of reasons. First, at the big firm, you’re just another client. You most likely will get passed of to the “newbie”, so that they can get some experience. And if somehow you do get one of the top salespersons, you are low on the pecking order. They have clients that they have sold to for years. You can bet they will get first crack at any hot deals that come up. You are going to be at the end of the line, picking up the scraps.
Maybe a smaller firm?
Your chances of being the biggest fish in the pond increase, if you go to a smaller pond. But then you still need to make sure that the agent that you work with has the depth of experience that you need.
I am a Florida Licensed Real Estate Teacher and Broker. I can assure you that holding a license to sell real estate does not make you a real estate professional. The state requires that agents be “minimally competent “with regards to real estate regulations. The curriculum barely brushes on investments.
Go it alone?
For this reason, many real estate investors choose to “go it alone” when searching for good real estate deals. I commend them for that. No one is more focused on your needs than you are. However, if you are not an old hand at real estate investing, there is a huge learning curve ahead of you. I’ve watched a lot of investors make deals that look good at first blush, but they didn’t have the experience to “see behind the curtain” and lost money.
So, What Should You Do?
If you have the time and desire, learning the ropes yourself is always a good long-term play. If you’re young and just getting started, it will pay big dividends later.
But let’s suppose that you don’t want that. You may have a great career that keeps you extremely busy, and time is money to you. Or you may a seasoned investor that’s working a new area and needs some input from a local agent.
If either of these is the case, I recommend the following.
- Go to a few of the older, medium sized firms.
- Ask for a list of their agents who have been licensed more than a couple of years
- When interviewing each, ask how many properties they own.
- Ask them for specifics, like what kind of return they are getting, and how long they’ve owned
- Ask what kind of returns they expect to get for you.
The downside to dealing with any agent that is also an investor is that they may poach a great deal before it gets to you. That’s just a cost of doing business and should be less likely at the smaller firm. One way to mitigate against it is to offer to partner with the agent on deals. If you can find a real go-getter and play your cards right, they can make you a lot of money.
Disclaimer: I am not an attorney or CPA. The content herein is merely opinion, and should in no way be considered legal or financial advice. Please seek professional legal and financial advice for your specific situation.