What you need to do:
Create a contract for your agent to represent you and agree on the commission that you willing to pay.
Have contract offers and deposit ready for your agent.
Be available to preview properties and to negotiate with the sellers.
Treat your agent well, give him cash for gas, buy lunch, stay in touch with the agent on a daily basis offer bonuses.
Later, if you work well with the agent, offer an equity position
Be open to learning and using creative financing terms and clauses.
Aware of how to establish seller financing.
Knowledge of Hybrid offers, delayed settlements, study periods and possession clauses.
I believe it is critical to work with an agent who has your interest in his or a seller. An excellent buyer’s agent can be a tremendous asset to an investor; a good agent can make you many thousands of dollars in cash flow and equity.
Most agents are not trained to represent buyers; they realize that commissions come from sellers that have their property listed. It is your job to change that concept. You may need to talk to the agent’s broker, so they also understand what a Buyer’s Agent is expected to do for you.
Your buyer’s agent should be trained to understand specific concepts that you as an investment are motivated by:
Understand what a “CAP” rate is and how to determine the CAP rate on investment properties.
How to complete an APOD (Annual Property Operating Data form)
How to get to the NOI and to apply the CAP Rate formula
How to make offers on commercial and residential properties based on the return expected
Knowledge of negotiating with sellers, making trial offers and setting up settlement
Skilled in comparable sales analysis
Charles, CEO Investors United School of Real Estate Investing.