How to Partner with an Agent for Real Estate Success

Partnering with a real estate agent can supercharge your investment journey. Why? Because agents are pros at navigating the market, finding deals, and closing them efficiently. Whether you’re a seasoned investor or just getting started, teaming up with an agent can save you time, effort, and money—while boosting your returns. Let’s dive into the many ways you can partner with an agent to maximize your real estate ventures.

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Why Partnering with an Agent is a Game-Changer

Agents aren’t just about listing properties and showing homes. Their skill set goes far beyond that:

• Market Expertise: Agents know local trends, neighborhood values, and how to spot good deals.
• Network Access: With connections to buyers, sellers, contractors, and other agents, they can open doors you didn’t know existed.
• Negotiation Skills: They handle tough conversations and keep emotions out of business deals.
• Paperwork Proficiency: Save yourself the headache of contracts and legal jargon.

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Different Ways to Partner with an Agent

There’s no one-size-fits-all approach to working with an agent. Here are some tried-and-true strategies you can explore:

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1. Property Acquisition Manager

Think of the agent as your deal scout. They find properties that fit your investment criteria—whether it’s single-family homes, multi-units, or fixer-uppers. Here’s how this partnership might work:

• Profit Sharing: You split profits with the agent based on a pre-agreed equity-sharing arrangement.
• Assignment Fees: The agent brings deals to the table, and you pay them a fixed fee for each successful acquisition.

This setup is perfect if you’re busy or live (out of state) and need someone local to find deals on your behalf.

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2. Disposition Manager

If you’re focused on flipping properties or wholesaling, an agent can handle the selling process for you. Their role includes:

• Pricing the property for maximum profit.
• Marketing to their network of buyers.
• Hosting showings and open houses.

You can even structure this partnership as part of an ovation deal, where the agent brings their expertise in return for a share of the profit after the property is sold.

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3. Novation Strategy

A novation agreement allows you to partner with an agent to sell a property you don’t yet own. But here’s the kicker—it also works if you already own the property! Here’s how it plays out:

Novation for Properties You Don’t Own

1. Securing a Contract: You sign a contract with a motivated seller, allowing you to market the property without taking ownership.
2. Agent Expertise: The agent lists the property on the MLS or markets it to their network of buyers.
3. Profit Sharing: Once the property sells, you share the profits based on a pre-agreed split.

Novation for Properties You Already Own

If you own the property outright but want to leverage an agent’s skills to market and sell it, novation can still be a powerful tool:

• Agreement Terms: You and the agent agree to a structure where they bring their resources (MLS listing, marketing, buyers) in exchange for a share of the profits.
• Low-Cost Marketing: Instead of paying upfront listing fees, you only pay after the deal closes, aligning your agent’s efforts with your success.
• Higher Returns: The agent’s ability to market the property effectively can lead to a quicker sale at a better price.

This flexibility makes novation a win-win strategy for both investors and agents, regardless of ownership status.

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4. Joint Venture Partnerships

In this model, you and the agent become equal partners in an investment deal. Both parties bring something to the table:

• You: Funding, strategic vision, and risk-taking.
• Agent: Market insights, transaction management, and deal sourcing.

Profits are split based on your agreement, ensuring both sides benefit.

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5. Property Sharing Agreements

In this innovative model, you co-own a property with an agent. Here’s how it works:

• Ownership Split: You and the agent decide how to divide ownership (e.g., 70/30 or 50/50).
• Responsibility Sharing: You handle financing and renovations, while the agent manages listing, marketing, and selling the property.
• Profit Division: Once the property is sold or rented, profits are split according to ownership shares.

This approach works well for investors who want a hands-on partner but lack time or local expertise.

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6. Exclusive Buyer’s Agent for Your Portfolio

Instead of hiring a full-time acquisitions manager, you can have an agent work exclusively for you in a particular market. Their role is to:

• Constantly monitor the market for properties matching your investment goals.
• Negotiate the best possible prices on your behalf.
• Advise you on potential deals, saving you from costly mistakes.

This partnership often works well with an agent who specializes in investment properties or foreclosures.

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Structuring a Partnership Agreement

Before partnering, you’ll need to iron out the details. Here’s what to include:

1. Roles and Responsibilities: Clearly define who does what. For example, will the agent handle negotiations and due diligence, or just find deals?
2. Profit Splits: Decide how profits will be shared—whether it’s 50/50, a flat fee, or based on performance.
3. Equity Sharing Agreement: For partnerships involving equity, detail how ownership will be divided and what happens in case of disputes.
4. Duration: Specify the timeline of your partnership. Will it be project-based, a one-year agreement, or indefinite?
5. Exit Strategy: Always include a plan for ending the partnership if things don’t work out.

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Tips for Choosing the Right Agent

Not all agents are cut out to work with investors. Here’s what to look for:

1. Investment Experience: Choose someone familiar with investment strategies like BRRRR, flips, or rental properties.
2. Local Knowledge: They should know the neighborhoods you’re targeting inside and out.
3. Creative Thinking: Look for agents who understand off-market deals, novation agreements, and other unconventional approaches.
4. Strong Communication: A good agent is responsive, clear, and proactive.

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Benefits of Agent Partnerships

• Shared Risk: Both you and the agent have skin in the game, aligning your interests.
• Increased Deal Flow: Agents bring deals you might never find on your own.
• Leverage Their Expertise: You gain a professional’s insights without needing to master every detail yourself.

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Real-Life Examples

Case Study: Novation Agreement Success

I partnered with an agent on a property I didn’t own. The agent listed it at market value and found a buyer within three weeks. After the sale closed, we split the profits 60/40. This deal required zero upfront costs on my end and yielded a solid return.

Case Study: Novation with Property Ownership

I owned a rental property in need of a quick sale. Instead of paying high marketing fees, I partnered with an agent under a novation agreement. They marketed the property, managed the buyer negotiations, and helped me secure a 20% higher sale price. Their share of the profits was well worth it, and the property sold faster than I could have imagined.

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Common Pitfalls to Avoid

1. Lack of Clarity: Ambiguity about roles can lead to confusion and conflict.
2. Unrealistic Expectations: Be clear about timelines and outcomes. Don’t expect every deal to be a home run.
3. Not Vetting the Agent: A great residential agent might not excel in investments. Choose wisely.

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Conclusion

Partnering with an agent can be a win-win for both parties. Whether you’re leveraging their market expertise as an acquisitions manager, disposition manager, novation specialist, or property-sharing partner, these collaborations can streamline your investment process and boost profits. The key is to structure your agreements carefully and choose an agent who aligns with your goals.

Keep it consistent, stay patient, stay true—if I did it, so can you! Ready to learn? Let me guide you at propertyprofitacademy.com.

– Jorge Vazquez, CEO of Graystone Investment Group & its subsidiary companies and Coach at Property Profit Academy