What they do | How to find an agent | Pros | Cons | What to look for | Questions to ask
An investment real estate agent is a realtor who helps investors find promising opportunities in their desired market. Investors who are feeling bogged down by the double-whammy of short home supplies and rising prices might do well to team up with a specialized agent.
That said, investment real estate agents aren’t as common as traditional agents. To find an experienced investment real estate agent in your area, you might want to use a free agent matching service, like Clever Real Estate. Otherwise, you’ll have to rely on your network to find one or seek out an REI-certified agent near you.
» TRY CLEVER: Get matched with top local agents who know how to spot high-potential investment deals in your market. Whether you're flipping, buying to rent, or building a portfolio, Clever connects you with experienced pros who understand real estate investing.
What's an investment real estate agent?
An investment real estate agent specializes in properties like distressed homes, foreclosures, fixer-uppers, or rentals.
While traditional realtors help buyers and sellers as needed, investment agents are always hunting for potential opportunities to bring their clients. An investment real estate agent’s goal is to find properties that their clients can renovate and flip or rent out for a strong return on investment (ROI).
Real estate agents who specialize in investment properties may assist clients with:
- Finding and evaluating investment properties
- Market analysis and research
- Understanding local market trends
- Deal structuring
- Contract management and negotiations
- Property management
- Tax and legal insights
These agents typically hold speciality certifications to demonstrate their expertise in investment real estate. Some common certifications include Real Estate Investing certification (REI-certified) and Certified Commercial Investment Member (CCIM).
Many investment agents are also investors themselves. As a result, the agent’s firsthand experience can lead to practical insights and unique perspectives, especially for the local market. These agents may have built a strong network of contacts and will know how to successfully evaluate a property's metrics to find promising opportunities, including:
- After-repair value
- Estimated cap rates
- Net operating costs
How do you find an investment real estate agent?
Agent-matching services
An agent-matching service is the best way to find an investment real estate agent. These services connect you with experienced pre-screened agents who understand real estate investment.
Once you provide some information — like your ZIP code and types of properties you’re interested in — the service will pair you with a batch of investment agents almost instantly. You can scan the list, read each agent’s "about me" section, and choose two to three to interview.
A few agent matching services you might want to try:
- Clever Real Estate is a free service that can connect you with top investment agents in your desired markets. You can also get up to 0.5% of your investment back when you buy with a partner Clever agent.
- Bigger Pockets connects you with investor-friendly agents, but without a cash-back option.
- Pellogo has around 75% of its agents specialized in investment (note: most agents live in California, Florida, and Washington).
Conduct a Google search
You can also do a Google search. If you conduct your own search, be sure to look for investment real estate agents in your area or the area where you’re searching. You’ll want an agent who is familiar with the local market.
If conducting your own search, carefully screen all potential agents. Be sure to explore reviews and interview multiple agents before moving forward.
This approach can work but can also be time-consuming, especially compared to using a free agent-matching service, which pre-screens all the agents in its network.
Find an REI-certified realtor
A realtor (a member of the National Association of Realtors) with a Real Estate Investing (REI) certificate has completed 14 hours of coursework on real estate investing. This certificate is designed to help educate agents who want to specialize in working with investors.
The REI certificate can give realtors insight into the real estate investing world. The agents learn critical skills to help clients make informed decisions, such as how to measure ROI, analyze cash flow, and understand property management essentials.
To find an REI-certified realtor, you can:
- Search the National Association of Realtors (NAR) directory
- Contact your local Real Estate Investor Association (REIA) or Real Estate Investment Council (REIC) to explore member pages
- Look for local REIA or REIC events open to investors to help meet and network
Keep in mind, REI-certified realtors are not all that common, and you’ll almost certainly want an investment real estate agent who has some experience. Without hands-on experience or knowledge of your local market, REI realtors may not see properties like an investor does.
Networking and referrals from other investors
See if someone in your own network knows an investor-friendly realtor. Other investors can often be a good source or leads for agents in your area. Take time to make genuine connections.
You can increase your chances of meeting other investors and agents by joining vocational organizations, such as:
- Real Estate Investment Association (REIA) attracts investor-friendly agents, investors, and sometimes even sellers. Many cities and major real estate markets have at least one REIA.
- Real Estate Investing Club (REIC) events are a hotbed for meeting like-minded investors and agents. Many REICs have online forums to help you connect with other investors faster.
Explore multiple options
Don’t be afraid to use multiple methods to find an investment agent that works best for you. Whether you’re new to investment real estate, new to a particular area, or an experienced investor in your market, a free agent-matching service can be a great place to start. This can allow you to connect with multiple experienced agents quickly.
Joining REIA or REIC, attending local events, and networking with other investors can also help you stay up-to-date with your local area and market trends. However, more rural areas may not have as many options or events.
What should you look for in a good investment real estate agent?
Below are some of the most telling signs that your agent is an expert at investment properties.
👍 Hands-on investing experience
Investment agents who buy or manage their own investment properties will likely know how to look for property deals. They’ll also know the special challenges you face and help you navigate common investing pitfalls.
👍 Large networks at their disposal
The best investment agents have large networks beyond their brokerages: general contractors, architects, other investors, agents, wholesalers, home buyers, and other experts. The strength of their network can help give you insight into how well-connected they are to the local market and area. When researching agents, take a look at some of the companies they use to evaluate whether they might be a good fit for you.
👍 Proficient at metrics analysis
A good investment real estate agent will help you predict potential returns, whether you’re house-flipping or buying a rental. They'll analyze property deals using metrics such as:
- Cap rate
- Gross rent multiplier
- Net operating income
You’ll want an agent with strong analytical capabilities to help you make informed decisions. An experienced agent will be comfortable providing deal analysis, comps, ROI, and discussing cash flow. They can also assist you with evaluating opportunities based on key fundamentals so you explore properties that have a good chance of providing a ROI.
👍 Experience in specific markets
Ideally, you’ll want an agent who has experience in the type of investment properties and opportunities you’re interested in. For instance, if you’re interested in flipping single-family homes, you’ll want to look for local investment agents familiar with these opportunities. They should understand and have experience with assessing renovation ROIs, short sales, and foreclosures.
You’ll also want to look for agents who have deep local market knowledge of the specific areas you want to invest in. This can ensure you have access to opportunities in the area and that the agent understands what renovations, amenities, and more work best for that specific market.
You can get a better understanding of fit by asking about the types of deals they’ve closed, such as rental versus flipping, and what specific areas they work in.
👍 Knowledge of local ordinances and rental regulations
A good investment real estate agent will be up-to-date on local ordinances and rental regulations so they can advise clients on potential investment risks and legal compliance.
Agents don’t have to have specific legal knowledge, but they should be able to explain and understand key regulations and legal issues to consider. For instance, they should be up-to-date on local:
- Zoning laws
- Ordinances related to property maintenance like safety regulations and building codes
- Property tax laws
- Rental regulations like tenant screening and lease agreements
- Short-term rental ordinances
Questions to ask an investment real estate agent
- Are you a full-time agent?
- Are you a Certified Investor Agent Specialist (CIAS)?
- Do you have investment properties right now?
- How much investing experience do you have?
- What markets are you investing in?
- How do you find investment properties? What strategies do you use?
- What’s your strategy for sourcing investment deals?
- How do you estimate renovation and repair costs?
- What are your typical clients’ investment goals?
- Can you provide me with references?
- Do you have a network of professionals you work with or recommend?
- How do you stay up-to-date on local market trends and changes?
- Are you a solo-practicing agent, or do you work on behalf of a brokerage?
- Do you also offer property management services?
Pros of hiring investment real estate agents
✅ Deep knowledge of the local market.
Experienced local agents will have deep neighborhood insights that can help increase the chance of a solid ROI. For instance, they’ll understand local neighborhood dynamics, property values, rental trends, and help you decide if a property is a good investment. They know the types of properties and amenities popular in the local market and that will bring the highest ROI.
✅ Skilled at property analysis.
They know the right metrics to help you predict your ROI so you can make better decisions. Conducting a property analysis can take time. An investment agent familiar with the local market can help ensure you’re looking at the right factors and provide a solid analysis efficiently so you can move forward on deals in a timely manner.
✅ Special access to off-market property deals.
Teaming up with an investor-friendly agent could mean finding new deals faster. These agents often have access to off-market deals that you couldn’t otherwise learn about. As a result, you’ll have access to a wider selection of potential investment properties.
✅ Could connect you with home buyers.
If you’re house-flipping, your agent might be able to market your property to their network of buyers. For example, agents typically have an extensive professional network with reliable, experienced experts that can help ensure you get quality assistance to streamline your process.
Cons of hiring investment real estate agents
❌ Possible competition.
If your agent is also an investor, you might be competing with them for the most promising opportunities. The downside is that investment agents typically see the best deals first. They may choose to act on the opportunity instead of sharing it with their clients. If this is a concern, you can talk to potential investment agents about how they approach this issue. You also could look for an experienced investment real estate agent who isn’t looking for the same type of properties.
❌ Might be difficult to find one nearby.
Investment agents aren’t as widespread as traditional realtors. Try using a free agent-matching service to see what’s in your area, or ask your network for contacts.
FAQ
What makes a good investment real estate agent?
A good investment real estate agent has experience and/or specialized training in investment real estate. They should have deep local market knowledge and strong understanding of local ordinances, be skilled at property analysis and negotiation, and have a solid network of contacts.
How much does an investment real estate agent charge?
Investment real estate agents charge a commission based on the property’s sale price. The national average commission is estimated at 2.5 - 3% for the investment agent. However, the average commission can vary per state.
Is it worth hiring a realtor for real estate investing?
Yes, an investment agent’s specialized skills, experience, and connections can give you a significant advantage on finding the right investment opportunities. Additionally, they can help you make informed decisions and offers and navigate the local market.
