Canadian Realestate Magazine forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Top 5 ways Realtors let down property investors

Notify me of new replies via email
guest | 23 Apr 2012, 01:53 PM Agree 0
  • Irene Pylypenko | 24 Apr 2012, 07:45 PM Agree 0
    For me, the biggest frustration dealing with realtors is the clauses. Some realtors have their 4 clauses that they always use, and may feel uncomfortable when I'd like to add 10 more.
  • Jeffrey Luciano | 24 Apr 2012, 09:48 PM Agree 0
    As a realtor who specializes in investment property, I am afraid I have to agree that there are a number of realtors out there who don't quite get what makes a good investment property. When I am looking for myself (my family has a portfolio of investment properties) or for clients, I often deal with realtors who don't grasp that just because the seller did well on the property doesn't mean that a buyer will find the same return. I find this is particularly the case in Toronto, where property appreciation over the years means that buying at the price being asked will result (more times than not) in negative cashflow.
  • Karen Kaiser | 25 Apr 2012, 12:18 AM Agree 0
    You are absolutely right about working with a realtor who is also an investor. It takes years of making mistakes as a landlord to figure out what numbers work and it's not a skill you're taught getting your real estate licence.

    Nine times out of ten you cannot buy a property that cash flows (if you do everyone else wants it as well) you need to have the ability to create it. That may mean putting in an additonal unit or 2 on the premises. Or, putting in renos to attract the calibre of renter and rent you need to swing it. Take each property on an individual basis and analyze it.

    The truth is that most realtors have never done it themselves and the ones who have, find it too time consuming, literally days can be spent analyzing one house. The research just starts with finding the property, knowledge of the local rental market is needed, design knowledge, knowledge of the costs of renovation and construction, zoning knowledge, to name a few. You as the buyer have to learn these skills as you will have a hard time finding a realtor willing to do it for you. Hence, they send you the properties and the numbers, so you can work through it.

    By the way, forget the idea of supplementing your income from the profit. If you can manage enough profit to build up a small slush fund for major repairs, you will be doing well. The money to be made on investment properties is the rise in real estate prices when you sell it, not the rent profit.
  • Andrew Brest | 25 Apr 2012, 02:15 PM Agree 0
    In my opinion, I think the main problem is that many Realtors believe they are experts in every area; and they are good at selling it. They might have been referred, or maybe just got a call out of the blue from a previous client but that doesn't mean they are right for the job.
    I think if you are going down the line of investment, you truly should be working with a Realtor who has experience in the area and has been successful with it. You need to explore options and find the best partner and someone who understands your particular situation.
    It doesn't hurt to ask for referrals from friend and family, or even approach the topic with numerous Realtors in advance. But, and it's a big but, you should never make your decision blind. Meet at least 3-5 Realtors to assess their credentials. Remember, you are investing, so investing some time up front to find the right partner is going to be a major component of your success. There are websites out there that help you do it, anonymously, so you never need to feel the pressure of a sales pitch and you can assess and decide on who is an ideal match for you.
  • Jana Koster | 25 Apr 2012, 03:21 PM Agree 0
    As a Realtor and an investor I agree with the article. I don't know how many times I see a property listed as an "Investor special" or some other tag line and it is no where near cash flowing. Realtors also do not seem to be able to educate investors who are selling properties on the true value of their property.
  • Eva OGrady | 25 Apr 2012, 03:37 PM Agree 0
    I agree, Irene. They look at you like you have four eyes and don't know what you are talking about. They don't like their "routine" disrupted.
  • Nick Bachusky | 25 Apr 2012, 08:10 PM Agree 0
    That is a great article, I refer some of my top clients to a couple real estate agents who are heavy into investment properties, it is a good team to work with!
  • Mark Turcotte | 29 Apr 2012, 03:16 PM Agree 0
    I'm a real estate agent in Barrie and have several clients that area investors. Many times comments come my way from clients that have worked with other agents in the past that are not investors. As an investor myself I get it and understand a real estate investors needs. Most times I offer my experience to them when it comes to selecting tenants etc. looking at cash flow, and showing ways to improve their equity positions in properties. For more information visit http://www.newbarrierealestatelistings.com
  • Tickets to Kahului | 23 Aug 2012, 12:47 PM Agree 0
    Quality articles or reviews is the important to be a focus for the people to pay a quick visit the web site, that's what this web page is providing.
Post a reply