Successfully Working w/ Realtor?

Hi Mike,

I too just recently got a really good Realtor to work with me. You can't be nervous about working with him/her because it's you who'll be employing them(not the other way around). They're going to make money when you close on your deals(not before). Just get your Realtor to send you MLS listings with the criteria that you specify and once you've decided on the properties that you want to bid on, just let them know and have them send your offers to the different parties. Now if I'm not mistaken, once you get an offer accepted then you can put in the contingencies of your contract(s) that gives you a certain amount of time to come up with the funds/buyer for the property. It's all in Deans book as to how to go about wording it(the contract). As far as getting your buyers list built up, just run ghost ads on craigslist. Make signs and stick them alongside of roadways "I BUY HOUSES", or "HOMES FOR PENNIES ON THE DOLLAR!(That one should attract buyers). Dean gives us lots of probable ads to use in his book "Profit from Real Estate Now!" If you feel that none of that's for you, then do the next obvious thing....call the numbers on those signs where they say "I Buy HOMES". They're potential buyers for whatever property you may end up getting under contract. Well that's about all I can tell you, except to read through the posts on here from other members. Alot of us here are pretty new to REI and we too have lots of questions, even for the older DG member that have become successful from this wealth of knowledge that Dean has so graciously shared with us.

Well Good luck

Bryant, aka(Maximilionalpha)

Thank you for your input!

As far as being nervous, that isn't really the problem. I think I did a pretty good job handling myself w/ professionalism, I'm confident that he would not have to decided to work w/ me otherwise. I am pretty young (almost 23) and I know how important a 1st impression can be.

I am really wondering when/how the Realtor/Agent gets payed. If there is a contract that I personally have w/ my Realtor for each deal, or, if he makes his commission from the seller..?

I would really like a brief explanation of who's hands the money travels thru, and what (if any) contracts are involved between myself and my Realtor.

Thanks again for your time and advice Bryant! Much appreciated!

Good luck!
-Mike

Hey Guys,

I was reading this post and I too have the same question about how my realtor gets paid on deals i involve him in. Any advice is appreciated.

Thanks.

Gunnar

Hey Guys,

I was reading this post and I too have the same question about how my realtor gets paid on deals i involve him in. Any advice is appreciated.

Thanks.

Gunnar

Great question, I think you pay the realtor after the deal is done, whatever percent they charge. Can someone experienced clarify this for us?

Check back from time to time, I'll do what I can to keep this post active until all questions are answered.

Thanks and good luck!
-Mike

Thanks for your input. As I said, I will be working to keep this post active until getting more response.

Thanks and good luck!
-Mike

When a property is listed, it is usually listed by a real estate broker. The real estate broker, or a real estate agent in a broker's office, will list a property. Any other broker or real estate agent can present the offer to the listing agent to present to the Seller. The Seller of the property pays the commission to the real estate agents on the sale of the property. The seller and listing agent agree on a commission when they first list the property and the commission is paid whe nthe property is sold. The commission can vary depending on the price of the home and area of the country it is located in. For example, lets say the commission is 6%. The commission is usually split between the Listing agent and the Selling agent (usually 3% to each party).

Thus, if John was a broker and listed a property and you went to Sally to submit an offer and the deal closed. John would probably make 3% of the commission and Sally would make 3% of the commission which would be paid by the seller. Thus, the real estate agents get paid at closing when the property transaction is compelted. If you assign the deal and the property closing the agent will be paid then.

The incentive to the agent is the volume of deals you may start doing. You may even buy and flip homes or buy and hold. So an agent may make even more as you progress as an investor. I hope this helps. Believe and Achieve! - Joe

Thank you for clarifying this subject, I really appreciate it. I know there are alot of us who have been wondering about this. As always, you give great information and an excellent, easy-to-follow description.

Thanks for your time and input. Good luck!
-Mike