One of the people you are going to work the closest with is your real estate agent. They will be a key player. You are looking for an agent that can be groomed, is loyal and likable. In my situation, it is more advantageous for me to establish a relationship with one agent and give that agent all of my business.

A real estate agent should always be interviewed before they are chosen as your golden child. I highly recommend seeking out new agents just starting in the business, spreading the word that you are looking for an agent that is not afraid to go in falling-down, gross properties. By teaming up with a new agent, you can mold them to fit into your system perfectly. They will be loyal because you have the potential to make them a ton of money. Unfortunately, you will probably have to interview several agents (and hire and fire several) before you find a perfect fit.

There are different types of agents. There are “retail agents”. These are the agents that drive clients around to look for properties in which the clients intend to live. They drive 4-door sedans and wear dress shoes. This is NOT the agent you are looking for. Most retail agents will be repulsed by the type of fixer-upper at which you are looking. The other common type of agent is the “REO listing agent” that work with banks and HUD properties. They typically will have a few pocket buyers, which can be good if you are on their list. However, established REO listing agents usually do not have a lot of time to baby sit new investors or to put in the kind of time that you are going to expect out of them. And, unfortunately for the buyer, their job as the listing agent is to get the bank the most money for their property. This means that it is in their best interest to get the highest price for the bank, not the best deal for you.

You definitely want an agent with a type “A” personality, that is a self starter and that can stir up stuff on their own without being told and the ability to keep you informed without being babysat. If you become involved with an agent who is not all these things, find a new one. Previous REO experience is not necessary, just the willingness to learn the banks systems.