Buyers advocates

If you are going to use a professional the result you get will be directly related to the quality of service you receive.

There are many people who offer advocate services however there is a difference in the services offered. To me an advocate is someone who will source the deal for you personally, then provide you with a report based on other sales in the area, inspect the property organizes a building inspection if necessary, then buy the property for the best price.

Sounds easy

However I know a number of groups who will find the properties on line then tell you to fly up and see them, they will try and buy the property over the phone and for that charge you at least 2.5%.

Now I believe that you should always do your due diligence but be careful, if you are going to do the work then save the money and do it yourself. What are you paying 2.5%. Often these groups also charge upfront fees as well.

So when selecting a buyer’s advocate

1 Make sure that the person you are talking to is the one doing the work.
2 What is there experience?
3 Ask for a written proposal on what they will do for you.
4 Are they licensed?
5 Ask for references
Using a professional can save you a lot of time and money however it is important to know who you are dealing with and make sure that your investing experience is a good one
 
If you are going to use a professional the result you get will be directly related to the quality of service you receive.

There are many people who offer advocate services however there is a difference in the services offered. To me an advocate is someone who will source the deal for you personally, then provide you with a report based on other sales in the area, inspect the property organizes a building inspection if necessary, then buy the property for the best price.

Sounds easy

However I know a number of groups who will find the properties on line then tell you to fly up and see them, they will try and buy the property over the phone and for that charge you at least 2.5%.

Now I believe that you should always do your due diligence but be careful, if you are going to do the work then save the money and do it yourself. What are you paying 2.5%. Often these groups also charge upfront fees as well.

So when selecting a buyer’s advocate

1 Make sure that the person you are talking to is the one doing the work.
2 What is there experience?
3 Ask for a written proposal on what they will do for you.
4 Are they licensed?
5 Ask for references
Using a professional can save you a lot of time and money however it is important to know who you are dealing with and make sure that your investing experience is a good one


I think there are a few good buyers' advocates on this forum already. Besides the above five questions, I would also ask:

1. How do they charge?
2. What happens if the properties proposed do not meet your satisfaction?
3. What is the cost of disengaging the advocate?
4. How long have they been a buyer's advocate?
5. How many clients do they have in your particular market place - the advocate cannot be expert in a wide range of markets and sub-markets?
 
All very good points.

I have been an investor for 12 years, 6 years full-time, am from Perth and have previously purchased my own properties in Melbourne and Sydney conducting my own research. These all worked out well, I did not view all the properties prior to purchase, but as I mentioned lots of research.

I am currently using 2 Buyers agents - QLD and for NSW (fellow formite).

I am using BA at present as I need their contacts, this will save me lots of time and I also require their expertise in a particular strategy/area. Anyone can buy a property, but it takes a certain skill set and experience to buy some thing outside the square.

The BA in QLD works in a niche market- mortgagee sales and he works closely with the banks. He has just secured a property which ticks the boxes. About $40K below market value, dual income and 9% net yield. Offer has been accepted and he will tie up the lose ends as there is some work to be completed on the rear property.

The BA in NSW, he puts creative deals together, ie deve sites, build at rear creating cashflow and equity etc.

For me personally I look for a BA who is specific to my needs, has a great deal of experience and has acquired these creative deals for many other clients, in other words has a track record.

Both the BA I am using are investors, with a large portfolio of properties.

Of course it goes without saying that once a property etc has been identified that you also check the information and ensure you have evidence to support this.

Cheers, MTR
http://www.wheredopuppiescomefrom.com.au/
 
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