What services should a real-estate investor expect from a Realtor?

I recently answered some questions on a forum from a beginning real-estate investor. He was wondering if he should try to find an experienced agent (possibly unwilling to cut commissions or even work with an investor) or someone new and "hungry." I thought my opinion might be interesting to other agents and investors, so here it is...

...after the obligatory photo* of the San Antonio River Walk's cypress trees and bridges all lit up for Christmas. On Saturday night, I went to dinner at Biga on the Banks, in what used to be the San Antonio public library across from the Granada apartments. My grandmother lived there for 20 years and that was "our" library. For a few years, she was the official Mrs. Santa Claus and rode on a river float every Christmas, throwing candy to the kids on the River Walk. God bless Granny Mary.

If you're a new real-estate investor, I believe you need an experienced Realtor, not one who is also new and "hungry."

I would look for a Realtor, not just an agent--someone who has subscribed to the code of ethics of the NAR and more importantly can afford to pay the dues to belong to that organization, as well as the local MLS dues. In addition, I'd look for someone who has some certifications, those acronyms after their name that indicate they have invested in some extra education beyond the mandatory courses they have to take every year to keep their license.

Depending on the size of the market--try to find someone who is full-time and has a few years of experience. All agents make mistakes in their first year or two; hopefully, they work with a broker who can correct or prevent the mistakes. Don't let them make their mistakes on you when you're just learning, too.

And it would be nice to work with a Realtor who is familiar with investment properties and who can call on contractors and property managers to help come up with the numbers you need to make good decisions.

As far as the services the Realtor should perform for you, they should include giving you information about the neighborhoods and properties that would work best for your investment goals. This includes bad news as well as good news. If they know what they're doing, you should listen to them. You may want to rehab and flip a $100,000 house in a run-down neighborhood, but you may be better off renting it for a while. The market doesn't care what you want, so you need to work with the market or find another one.

Many Realtors don't like to work with investors because they think it involves a lot of running around showing cheap little fixer-uppers that the investor will be too hesitant to buy in the end. (And sometimes, it does. I have been there a few times.) So try to be efficient and only pick out the properties you really think you'd be interested in and schedule a viewing trip in one day.

Other services a good Realtor will provide besides market research/knowledge and driving you around (not insignificant considering the price of gas!) include helping you evaluate properties, preparing an offer with terms that are beneficial to you, negotiating the contract, dealing with inspections and due diligence, obtaining rent rolls and leases, and following up with all the details and tasks during the transaction to make sure it closes. The Realtor should give you a list of recommended service providers you can contact for inspections, repairs, insurance, and property management so you don't have to go through the phone book.

It goes without saying to have your financing strategy in place before you start looking to invest. It will make your life simpler, and will make a Realtor happy to work with you!

*Photo from About.com, City-data, and Travel-Watch websites, among others