Is it true if you are looking to buy Investment or Income type pf Properties to NOT use an Agent cause they

Cause 99% of the Residential Agents have no clue and do not understand Investments,Rentals or Income type of Properties?
In Buying Property - Asked by christina n. - Feb 2, 2010
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Answer(s)

Steve I.
Broker/Agent
San Diego, CA

There is an apparent misunderstanding in your question. When you look for residential property, whether it is for investment, or rental or a small 4unit or less apartment investment you can rely on an agent for "finding" the property. However, when you look for investment properties, strip centers, office buildings, commercial buildings, you need to find an agent who is experienced in those property types. Unfortunately the licensing is the same so ask them to list for verification the properties that they have closed on in the past three years. A professional will have that information available, a "poser" will tell you it is an unwarranted request.
Whether you are purchasing residential income property or investment property you should use the services of a CPA and an attorney. There are a lot of hidden legal, tax, and financial implications in not only what your purchase but how you purchase it, how the offer is drawn up, how the closing papers are drawn, and how title is held. Having seen the brokerage business and the paperwork change over the past 28 years the paperwork has become so seemingly simple that any agent can fill it out. While this certainly is true, it doesn't make sense to not use the professionals who can keep you out of hot water and make sure you limit your risks in both the transaction and in the ownership.
Good luck.

Feb 2, 2010
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V.Enterprises S.
Developer
Orlando, FL

For the most part that is true, but there are actaully some qualified brokers that can help you find the right property for you.

Feb 2, 2010
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Trisha B.
Broker/Agent
Clermont, FL

You have to choose an agent that specializes in Investment properites and deals with Investors. It is important to use someone who can represent you and making sure that you get the best deal possible.
Trisha Browne

Feb 2, 2010
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Martha F.
Broker/Agent
Ojai, CA

In my experience, many agents do not understand investment property. Nonetheless, even the ones who only understand residential purchases still protect you more than trying to go alone. The optimal approach is to have a qualified realtor, and a lawyer and CPA who know Real Estate investment. On the other hand, if you are buying something small at the entry level, 1-4 units, most realtors can help you.

Feb 2, 2010
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Joseph C.
Broker/Agent
Braintree, MA

I would rely on a commercial broker to deal with investment properties with 5 or more units and a residential broker for the properties up to 4 units.
I have seen too many residential agents list an apartment building and not know what they actually need to get from the owner to sell the property (i.e. income, expense and rent roll). If you don't have the financials for a property, then it is a waste of everyone's time.

Feb 2, 2010
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Brandi L.
Oak Brook, IL

A couple questions for your consideration. For properties you have inquired on to date, are you primarily speaking to sellers or their representatives? Are you equipped to enter a negotiation to purchase with someone who has an expert representing them? Some folks are perfectly qualified. If not or if you are not sure, find a qualified broker to assist you.

Feb 2, 2010
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Gregory G.
Broker/Agent
San Francisco, CA

use a commercial agent then.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
gregory.garver@gmail.com

Feb 26, 2010
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Cutting Edge R.
Broker/Agent
Decatur, IL

Many regular residential agents do not understand investors- they simply look for what the investor tells them they want. HOWEVER- there are realtor investors. One question to ask any realtor you want to work with is how many properties do they themselves own? If the answer is zero or something under 5 income properties, they probably will not understand what you want. With income properties, no matter the size, there is only the bottom line- the cash flow- what goes into your pocket at the end of the day- AND what will you do with these properties when you are ready to move on in 5-10 years? A realtor who OWNS their own income properties, knows what to ask for, what to look for, and how to get out of them when the time comes. They can not buy everything (unless they are Bill Gates) AND just because they have some training in commercial properties does not mean they have the real working knowledge- they have theory, they understand numbers, and they can be helpful. Work with someone you communicate well with, trust, and who owns income property themselves. They will understand you the best in my personal opinion.

Mar 2, 2010
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