Why should I hire an agent?
The first problem you will encounter is that the majority of listing agents have their hair on fire and don’t have time to hold someone’s hand. The second problem is that listing agents will often “steer” you to their listings to double end their commissions. More importantly, even experienced investors have found us extremely informative in deciding which neighborhoods and types of investments to choose from.
Why should I research an agent?
Believe it or not, there are different skill levels and different skill sets among agents. Most agents in Las Vegas for example have no clue what properties rent for or how much it costs to make basic repairs. Do you really have time to fly to Las Vegas to spend time with an agent who has no property management experience or no reputation for handling investors?
How do I get references?
Ask. You would be amazed at the number of agents who cannot supply a list of customers. If an agent cannot supply you with more than a dozen contacts, there is something wrong. This page lists our references. Feel free to contact them.
Should I sign a “Buyer’s Agreement”?
Many agents will make a buyer sign an agreement that forces the buyer to use them for a set period of time. We don’t recommend that you sign a buyer’s agreement and our philosophy is, “if you don’t like us, peace be with you.” The relationship between an agent and an investor lasts at least several years. If we don’t get off on the right foot, it’s best everyone parts company.
How does a buyer’s agent get compensated?
Buyer agents are compensated by the seller. This payment is distributed at time of closing by the title company.
Do you charge fees up front?
No. If you don’t buy anything, we don’t make any money.
What kind of fees are associated with a transaction?
Initial Transaction
Commission: The seller (aka bank) usually pays us about 3% of the purchase price. You are not paying our commissions.
Minimum: You pay the difference for any commission that falls below $2000. Generally, properties under $65k.
$350: Transaction Fee – This covers the cost of running a licensed brokerage and property management company. This also includes document storage and the transaction related activities.
HUD or Vendee Properties
$300 – These are a pain because we are wrestling with multiple bureaucracies.
$100 – If you want us to manage your utilities.
Closing Costs – These are not our charges but you should be aware of these.
$500 +/- $100 – Title Fees
$400 +/- $200 – Misc Fees
$800 +/- $200 – Prorated Taxes
Do your homework before making flight arrangements.
You want to research your agent before flying out to Las Vegas. Facebook, Google, references and all those hidden pieces of information are now at your fingertips. Yes, it is important that you like their personality but it’s more important that you get someone competent to handle your investment. This is no time for amatuer hour.
Check for complaints against the agent or brokerage.
This page allows you to see the status of an agent’s license. Search by name or license number. If their license is suspended or revoked, run as fast as you can.
Ask for references including email addresses and phone numbers.
If an agent cannot supply references, you need to keep looking. If an agent states he can’t provide that due to confidentiality, that means he hasn’t done his homework of asking clients if it’s ok. This page lists our references. Feel free to contact them.
Check the agent’s level of activity.
This is no place for a part time agent. You want an agent who only works with investors and knows the entire process of finding properties and tenant placement.