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Choosing a Realtor with a Niche Specialty — Investment Property

When entering the investment property world, you will likely encounter many learning curves along the way — but with thorough research and plenty of information, it can be a very lucrative means to generate income!

investment property realtor

Don't be fooled into thinking that just because you've become a seasoned pro at buying homes for you and your family that you can handle the purchase of an investment property on your own. Yes, you may be familiar with the buying process, but it will still be very important to work alongside a Real Estate Agent who has specific experience in investment properties. Here is what to look for when hiring a Real Estate Agent to help you through buying an investment property.

Experience is Key

While it's always great to work with an experienced Real Estate Agent when it comes to buying an investment property, you will want to make sure that this isn't your Agent's first rodeo! You can gauge their experience level by asking questions like:

  • How many clients have you helped purchase a successful investment property?
  • What type of profit margins were achieved in the last few investment properties you worked on?
  • What is your strategy/process for finding investment properties that are profitable?
  • Do you have contacts that will help identify off-market potential?
  • What are the current trends in rental costs for the area?
  • Do you own any investment properties yourself?

Do they have a CIAS designation?

The way to think about this is as follows — would you hire a childcare provider that hasn't been trained in CPR? In some cases, maybe. BUT, you are much safer opting for someone who has had training. An Agent with a CIAS designation (Certified Investor Agent Specialist) has gone through extensive training specifically around investment properties and will be better equipped to handle any situation that arises.

Do they own any investment properties?

It's true, not every Real Estate Agent who is great with investment properties will own an investment property themselves. However, an Agent who becomes very good at their job (finding great investment properties), will often begin investing themselves. Owning an investment property of their own shows that they have first-hand experience in the process from beginning to end. Plus, they get what it's like to have your financial livelihood on the line when it comes to a major purchase like an investment property.

investment property realtor

Do they speak investor?

Your Real Estate Agent should be very comfortable with "investor language" and know how to do simple calculations around a potential investment. They should be able to easily:

  • Identify and calculate potential Cap Rate to measure ROI (Return on Investment)
  • Provide information on tax breaks/benefits for investors
  • Give information on a 1099 exchange

They Have the Right Contacts

Having a sphere of the right contacts is especially important when it comes to investment properties. A robust network of relationships with others in the investment world means they will be able to provide you with the inside scoop on opportunities both on and off-market. This potentially will give you a leg up when it comes to purchasing a property. They should also be well connected with lenders, inspectors and contractors savvy to investment properties.

Hiring an experienced and knowledgeable Real Estate Agent is an asset like no other. It becomes even more important when purchasing an investment property. Having an agent on your side who will not only represent your interests throughout the buying process but also knows their way around investments is invaluable. It may take some extra interviewing, but trust us, your investment will thank you!

Want more advice about all things home — including homebuying or selling advice? Nestiny is a great place for homebuyer education and to help you gauge how ready you are to buy a home. Journey Homeward allows you to enter all your wants and needs while the True Affordability Tool will break down your budget, showing what you can comfortably afford. You will also receive a Ready Report that will give you a vital head start in the home buying journey, saving you valuable time and money.

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Ready To Become A Smarter Homebuyer?

By signing up, you agree to Nestiny terms of use .
Whether you need a step-by-step guide, video resource or one of our many helpful tools, Nestiny has your back 24/7 for all things home buying and selling. You choose the pace, material, and when and where to learn. Unlock your free access to Nestiny today!
Are you a real estate professional? Go here .
By clicking this button, you'll enjoy free unlimited access to Nestiny and agree to our terms of use . And don't worry! Nestiny will not share your information with any parties without your consent.