REALTORS ARE DRIVING ME CRAZY

How are things going? Or do I need to even ask? I've been there and done that with realtors too. That's why I recommended looking for FSBOs. Deal with the owner directly, it's more personal and you get better results. I'm not knocking all realtors, there are good ones out there, but my experience with them has NOT been good, so I prefer to go it on my own. You can too. Don't give up, there's a ton of houses out there, keep looking you'll find them.

My intent is not to make excuses for those Realtors. Let me tell you my story. When I first started as an agent, I worked with several investors. I drove all over the West Vally showing homes and writing offers. I never had one offer accepted. In fact, I got some nasty letters from other agents about my "low ball offers". At that time, it was not necessary to show proof of funding when presenting an offer. With all the problems in the lending industry, sellers, especially REO's, are requiring that buyers are pre-approved, and that they include paperwork to show pre-approval with their offer. Also because of the price of gas today, agents want to know that they have a qualified buyer before driving to multiple homes. I suggest that you get a pre-qualification letter from a lender to show a RE agent that you are serious. Because of past dealings with uneducated investers, you will probably need to talk to a few agents, before you find one that wants to do the amount of work necessary to successfully work with an investor. Let the agent know what you need from them, and how much buisness you expect to give them. Real Estate is slow right now and agents are hungry, I am sure that you can find one to work with you.

Good Luck,
Al

I forgot to mention that I am a Realtor in Phoenix.

Al

Been there done that, so you're not alone. I've experience the same thing. I've had another deal that i've been working on for the last two weeks. The property is a repo and the realtor who handles the property won't even talk to me until i get a letter from the bank stating that i have enough $$ or approval for financing.

That's the thing that ****es me off is after i went through all that, then the agent called you and said that my offer has been refused. I would make a counter offer and they would counter, and then go back and forth until it finally ****es me off. So, i finally told her that i don't see the point of wanted to see if i have the $$ or the financing if they don't want to sell the darn house.

I've just experience that today and i finally told them they can keep their darn house. This particular house was sold at the sheriff sale five months ago, and somehow it never went through the new owner. Fast forward another five months and now trying to sell it again. My originally plan for the property was to purchase the house, fix it and flip it, but after counter offer and more counter offers, I've changed my plan from fix and flip it and turn into a rental property, but after going back and forth with the agent exchanging offers and counter offers, i finally told her she can have the house. So don't feel bad Joe. I don't like dealing with them either but i just have to be professional and deal with them the best way i can possibly can.

I do know that i made a very good offer which was $3,500 less than what they were asking for, but i bet after another month or two without any offers, they had wished they would have accpted mine. Good luck and happy investing!

lloyd

I honestly think some of the realtors out there are inexperienced. Now I'm not saying all of them, I'm sure Al and the others on here aren't like that, but they're also investors too, so they think a little differently. The ones that are fresh out of real estate school think they know it all and go out and do the same thing every other one does and then they wonder why they're not doing deals. The ones that think a little differently are though... LOL! Now there are a few that will send you listings of homes with whatever criteria you ask for, that doesn't cost them a thing. No gas, or time to do that, why they don't is beyond me. The realtor I bought my house from has been sending me listings for over a year and a half now. If I ask to change the criteria she still does, she knows the value of a referal. When I do decide to use one, or want to recommend one who do you think it will be? A little extra effort, time and courtesy goes a long way!

I've been there with the realtors also...All I can say is keep trying till you find one that will work with you. About the pre-APPROVAL letter get it! it just makes life that much easier....even if you are planning on a seller finance offer or private lender.....submitt the letter with your offer anyway!

Realtors are a "necessary evil" in the investment buisness. They not only screen listings for you, they also can give you comps and will list your sales for you. Most agents will discount their fees to an investor, because they will do multiple deals with them. Realtors are self employed. A portion of their income goes to the broker. They usually pay for all their advertising, and their buisness fees. If they don't believe that an investor is serious, or knows what they are doing, the Realtor will not commit their time or resources. You need to talk to them, show them where your purchase money is comming from, and get them to believe in you. If an agent finds that they can make some money working with you, I am sure you will find them to be well worth the trouble. I know some agents who have made a career of working only with investors. If the RE agent is making a good living, you know how well the investor is doing.

I find that investors are often uncomfortable with RE agents, and that RE agents struggle with investors. You can imagine MY inner struggle. If you can find the right agent, your investing career will be much easier.

Best of Luck, Al

Your realtor will only be as confident as YOU are. Case in point, when I was so unsure about that deal a couple weeks ago, my realtor could sense it and that made her nervous, too, and not so sure I would follow through.
I guess we need to "fake it 'til we make it". lol It puts everyone else at ease, too.

Rina

and i wanted to get it close in less than 14 days. However, when they countered offer my offer and exchanged offers about five times, then i don't want it. Initially, there were about five buyers were interested in the same poperty and the bidding war process started. However, everyone else dropped out of the bidding war one by one, and according to my realtor, i was the one with the highest offer, but yet, they still want to squeeze more $$ out of me. So, i back out too. I respect realtors and is not that i don't like them, but i find it very difficult to accept that when you have a good offer on the table, take it and run with it. My offer was $3,500 less than what they were asking for the house, but they wanted more. My last offer was $15,000 more than my originally offer, but i guess they got greedy. Oh well, i aint mad but, i'm disappointed, but you know what, it makes me hungrier now more than ever.

lloyd

The Realtor is not the one making the final decision. Someone from the bank is doing that. The bank is probably loosing thousands of dollars on your deal, and is trying to squeeze as much as possible out of the deal. You can probably find out how much the bank has into it by checking records to find out how much the bank paid at auction. I have found that writing a letter to explain your offer has alot of influence with the banker. The banker has probably never seen the property. Let them know the condition of the property, what the costs to repair property are and the current market conditions in that area. Give support to your offer. Have the agent present your letter with the offer.

Al

I understand all that i know the process. I've also included a letter with my offer explains the condition of the property and what it would take to make a marketable living condition. My point is, they wanted cash from the begining and they made it clear. They were not interested in financing it or else i would have accepted their listed price and finance it. Anyway, i moved on as i know there's more deal out there.

lloyd

Just movin on is probably a good choice. I wish you Good luck and Much Success!
Al

I was a Realtor myself. first there is a big difference between an agent who is used to finding dream homes for buyers looking for a primary residence and working with an investor. It is opposite ends of the spectrum.
An agent doesn't get paid unless you buy something from her. If you don't it is her family time and her gas she is spending and if you aren't a serious buyer, just using her for practice, financing it can hurt. In the last few years agents have requesting the buyer be in the process of getting financing or have financing to know they are serious and they know what price of a home they can afford to buy. That way neither is wasting their time.

I wish you much success in your real estate investing too!

LL

Just know that i was very serious about this property. I sent her a letter of approval from the bank and a letter explaining the condition of the property. The property is around the corner from my house that i wanted really bad, but they wanted more $$ out of me more so than anything else. She never made one trip to show me the property because she lives 45 min from here, so, she didn't do anything. My local agent showed me the property. I don't think she even knows the condition the property is in.

I was serious enough that i offered more than 5 other buyers who were also interested in the same property. I was not doing this to practice how to make a deal, but i was serious enough that we went back and forth and made countered offers four times because i was a serious buyer, but we never agreed on a price. My offer went up at $15,000 more then what i originally offered, and you're telling me that i was practicing? I've purchased some properties since i've purchased Dean's book and i wasn't doing for practice purposes. I got into real estate investing to provide for me and my family. Thank you though for your obersavation coach!

This forum has brought up the disrespect that many have for Realtors. As has been mentioned there are many Realtors that are not very good. A good Realtor will not require a proof of funding. Why? Because they know that they can get you into a house even if you are not pre-approved. Finding a GOOD investment Realtor can make you a lot of money. I qualify Realtors using four questions. These questions have been brought up before but I feel they should re-introduced again.

1) Have they invested in real estate before?
2) Have they worked with investors before?
- Follow up question the previous two: Will you tell me the specifics of the last two deals you have done?
4) Will you allow me to make 10-15 offers per week at 70% of the value with contingencies?

The last question is used to push all of the Realtors buttons and see if they will work with you. Will they put in the time for low offers that you could walk away from?

I have Realtors that have answered all of my questions positively and they work great. My experience says that about 1 for every 10 - 20 Realtor will answer these questions correctly.

Nstreet,

that was a very good post you just put up and I just wanted say that I agree with you. I lucked out and got a great realtor and he knows me almost as good as I know myself when it comes to finding and locking up deals.

So like with anything in investing, use your due diligence and take your time, the right realtor is out there.

What about realtors who represent the sellers? That's my main cocerns! They are the one that have to answer to the bank. I fired my realtor because he lost me a deal.

LL

Hi Lloyd

First let me strat by saying that I would NEVER use a realtor that represented the seller because they are looking out for the seller and your chances of negotiating a good deal are slim to none, why would they talk owner into lower price when that means less money in their pockets.

You and I have already had the discussion on your realtor, so next time deal directly with the bank or their realtor if you feel yours is not representing you correctly. Dealing with the banks realtor, you still have a lot of room to play with because they are going to make what they are going to make what ever way it turns out.

If you are afraid that the Sellers's Realtor is not presenting your offer as you would like you can request a proof of service. This is signed by the seller stating that the seller has indeed received your contract. If you do not get a proof of service you can notify the Board of Realtors that the Realtor you are dealing with is not following this law / protocol.

Sometimes I feel like I"m stepping onto a battlefield, outnumbered 50 to 1. These are great questions to ask a potential RE Agent. You are looking for a good partner to assist you as an investor. Consider also that the Agent is also looking for a good investor that will give them some return on their time investment. If you are not prequalified, show them that you do have access to funds. If you are planning to assign contracts, make sure the Agent understands how that system works. If you don't understand the process, how can you expect the Agent to have enough confidence in you to enter into a partnership. For this partnership to work, you each need to understand the responsibility and capability of the other.

Now I will duck and run, Al

Thanks for the info! Appreciate it very much!

LL