Finding Realtors For My Team

I would just like to hear each of your "spills" you say to a prospective realtor....

Thank you!

I've gotten the same reactions from Realtors I've spoken to here in AZ. So I don't think it's just Arkansas. They're just not taught this in RE school and think it's illegal. You need to find a Realtor/Investor who IS familiar with assignments, double closings and whatever else you need them to know. They're on YOUR team and need to fit in completely with what YOU want. They're out there just keep looking until you find one. In the meantime don't let that stop you from making offers. You can do that without a Realtor too!! Give them Dean's book to read, that might help.

It seems as if I have already answered this question several times in other posts and there is no way I will find my answers as big as this site has gotten. Here is what I recommend. These 2 books helped me beyond belief. Read these two books and let me know what you think. Your life will be changed forever. "How I raised myself from failure to success in selling" and "How to have confidence and power in dealing with people". You won't be able to put either of these books down. Enjoy.

Elena
So far I have spoke to more than 60 realtors and not a one of them like the idea of assigning. Most of them claim to work with investors too. They tell me double closing are now illegal which I know they aren't. I tell them my title company does doubles everyday. I tell them I want a realtor who will place 20 to 30 bids per week on REO's, pre foreclosures and short sales. They always respond that they will have to talk to their brokers.
I always stay positive and always stay right with them when they start with all the legal stuff of it being wrong. But I am also always kind and leave on a positive note with them.

CBR
I don't know where the post is you made before either. If I order the books and wait for them to arrive then take time to read them....the housing crisis will be over. LOL!
What would be a quick sales pitch I could use on a realtor pointing out the benefits for them if they join my team?
I have tried every positive approach. Maybe you can give me some pointers I have not used? I want my next approach to a realtor to be THE ONE!

Sissy

PS. I will search for those 2 books you mentioned.

hey guys I'm new in here just registered yesterday, after reading several real estate books and of course Dean´s book I decided to take action. I visited a RE agent and explained what I wanted to do, so far he seems to understand everything I told him and he told me he is an investor as well, but he told me he will be willing to work with me if I just signed the buyer´s broker agreement, Im just wondering if any of you have signed one of this and if its a good idea to do it?

Igor

60 realtors? Well, no wonder you're discouraged, that's a lot of realtors! I spoke to maybe 10 and decided I didn't need one... LOL! So I did the deal myself and it turned out beautifully (no offense to realtors).
Well, pointing out some of the benefits to them is a great idea. They would make more money if they were willing to do deals this way as opposed to doing them the same way, and in today's market that is a valuable tool. You have to be versatile and change with the market to continue making money. CBR would know what the benefits are better since he uses a Realtor on all his transactions.

God bless you,

Hey Elena
That is sad that so many have turned down such a great opportunity. I keep a sheet on the ones I have called. I recounted and it is only 59 realtors. LOL!
It doesn't discourage me a bit. I just keep on working by myself and I am happy. I just know how much more I could get done and how much money we could both make if one would join me.
I point out to them about how much the market has changed in the past year alone. I tell them how great the money is for those who are working with investors. Investors are buying up everything right now because of the market being in the condition it is in.
I really want more than one realtor working with me on all these deals.

I speak to them with passion and belief in what I am doing. They just don't get it. Thank you for the advice.
Sissy

Hi Igor
Welcome to the site and glad you are here! You know....I think Al could answer better as to what that broker agrement is. To me it sounds like a paper making you commit to just one realtor. What do you think Al?
Sissy

hey thanks Sissy Im just glad I could join this great supporting family, the advantages of having experienced investors on my corner are amazing...
Well yeah, he told me that basically its an agreement that I can not talk to any other agents and that I have to place offers through him, the only thing that I can do by myself are FSBOs and pre-foreclosures, it sounds good because he will be presenting me many REO and other deals depending on my range, but Im just wondering if that will affect me in the future.

Igor

Igor, The "Buyer-Broker Exclusive Employment Agreement" does state that you are only to work with that one Agent. Suggest that you work together for a couple months, to see if the working relationship will support your needs. If everything works well, you will sign the agreement. Some Brokers require that their Agents get this form signed. How many Agents are in your area. If there is a limited number of Agents available, and this Agent is willing to work with you, doing the things that legally benifit you as an investor, you should consider signing the agreement. There is an expiration date on the agreement. Explain that you will use him/her exclusivly for a short period of time, say one month, to see how they work out. Also on the form, is a section for additional terms. You could list what responsibilites the Agent would have to you. If they do not fulfill these responsibilties, they have broken the contract and have no basis for action against you. This would allow you to go find another Agent.

Good Luck, Al

I used this method once to find deals and what happened was I ended up not only finding deals but I also had a lot of realtors call and want to represent me. (By the way, once you start having success the best realtors in your area will hunt you down).

Here is what you do:

Build a fax sheet that says everything that you are looking for. For example:

PROFESSIONAL REAL ESTATE INVESTOR LOOKING FOR PROPERTIES

Hi my name is Mr. Superman (your name) and I am a investor in the local area. Due to the current economic conditions I have decided to ramp up my existing operations. I not only represent myself but I also have several investors in and out of the area that I help find, rehab, rent out, and manage properties. Because of the money backing me, I have set the goal to buy 100 hundred properties within the next 12-18 months. Some of these properties I will buy and hold myself, some of them I will sell to other investors and some I will buy, fix up and flip for myself. Regardless of the stategy I use on each property I need to be very aggresive on the price I pay for the property, especially in the current market. I have not chosen a real estate agent to represent me yet. The agent that I choose can not be affraid to offend other agents with low offers. The agent I choose also will have to be available at all times. I use several stategies to buy and sell properties quickly including making verbal offers when permitted. I will also look at a lot of properties and buy only a few. So an aggresive work schedule will be required. The upside for the agent that gets accepted will be lots of commission. We will close on properties every month. I will pull in the agent on fore sale by owner deals. At times I will write additional commision into the contract when we ramp up to full speed. All that aside, I am a professional and I expect to work with a professional. I want to make money and I want the agent to make money. Here are the type of properties I am looking to buy:

Single family homes 3-4 berooms, 1-2 baths at least 1000 sq. feet.
No mobile homes at this time
No home built before 1950
No vacant ground
Loacted in zip codes 12345,54321,43434,23231, only in low crime neighborhoods

If you have properties that fit this description or would like to represent me please call me at 555-555-5555.

Thanks for your time

Mr. Superman (your name)

Now you can just make adjustments to this sheet to fit what you are looking to do. Then fax it to every single real estate office in your area. Your phone will ring.

I actually did this exact thing about 6 months ago and I still have agents calling me with deals and I still have agents calling me asking me if they can represent me but, now it is too late. I already have the agents that I want. Good luck.

CBR,

What length of contract period do you sign with your agents? And how do you work the commission into the FSBOs?

Al,

How long do you ask for from your buyers/sellers (is it the same for both)?

I signed an agreement for 6 months. It will expire in December. I'm planning to renew the agreement, unless there is some reason I shouldn't. I've been very happy with my agent, and she puts her all into it, knowing she's the one I call for every deal.

Rina

P.S. Sissy, I'm praying that you find a good one soon!

For me I have had my share of wannba realtors. When I talk to a new one, the first time they say something I dont belive in or tell me something doesnt work. I simply smile and say well thank you for your time....and I leave or hangup. I am not going to waste my time TRING to convience a realtor to do thier job and make some money. Their loss....

Move on to the next one!!

As an Agent, I don't use this agreement. I expect that my service and performance will keep clients. If I don't do a satisfactory job for them, the commitment agreement becomes a negitive issue in the relationship. If I do a good job, I don't need a signed agreement. My Broker does not require that I get the form signed (some do). My clients come back to me and refer me to friends, so I figure I am doing a good job.

I like the letter that CBR offers. It explains his position and plans, lets the Agents' decide if this is the type of client they want to work with, and I can see how it would get a great response. (I would love to receive a letter like this). If the Agent prefers not to work with investors (some don't), this letter will save the investor the time and aggravation of dealing directly with the Agent.

Al

I am a Realtor in the South Florida area in the process of requesting Dean's book. From what I understand so far, I do not know why any Realtor would not be interested in participating as long as there is a commission that will eventually be earned (especially in this market where we, as Realtors, are challenged to think "outside the box"). Thnking "inside the box" suppresses dreams. On the other hand, I do have some ideas why Realtors limit themselves, but that's their problem. All for the best, Kim.

Ahhh haaa...Matt I knew if you looked real hard in your treasure chest of real estate letters you have created you would find something in there for me! You are a genius! I am going to use this letter and see how many realtors I can get to work with me. Thank you Matt!!!

I know Darren. They just seem to think that investors are trying to play the role of a realtor and need a license. They are just uneducated in investing and feel we are doing something illegal. I just chat with them for a few minutes about the business and make a friend and go on to the next one.

I don't sign anything tying me to one agent. It is my agents job to impress me every single week. I run my business like a professional and everyone around gets paid well. It isn't an easy job for my agents but, it pays very, very well. For example, on my commercial deal that I will be closing in December, my agent will make a commission of $90,000 on that one deal!

Great info from all of you!! I will use that letter as well CBR......great idea! I'm so happy to be in the DG family!

Jeff(Eagle Invt Props Inc.) "SOAR TO THE HEIGHTS OF SUCCESS"

Thanks for clarifying. I guess I was just always under that impression. 1 for each state.
BUT, they hold your loyalty by doing a great job. Got it. (I know you wouldn't just switch on a whim).

BTW, congrats on the commercial deal!

Rina

Thank you for the info. Like you said, the job you do keeps people coming back. It's what sets you apart. As a realtor AND a person.

Rina

When I find a for sale by owner I do the initial negotiations myself and get the sale price set. Then I go back to the owner and explain to them that I am very busy and that I like to use my agent to help close the deal. I tell them that her commission will have to come off the sale price. If they get mad or cause problems for me I simply tell them I don't want the house anymore and there are way too many deals out there for me to buy and I can't be involved in transactions that may cause me stress. After I say that things magically get fixed and we proceed. (Man I love a buyers market)

Thanks for answering my other question. That makes sense.

Rina

Hey Matt...do you use your contract or does the realtor have to use hers when she is involved on a deal?

Thats a good question, Sissy, how would that work? SULLY

Thanks for the advice, very useful, I think Im gonna go ahead and sign it for a short period of time to see how it works and after that I´ll decide if stick with him or search for several agents, I´m also adopting the aggressiveness of CBR great thinking man.

Igor

(This is my first post on this site, and I've read nearly all of the answers/posts on this string. I've been too scared to do my first deal, but I have read nearly every legitimate book and course on REI, but ONLY Dean's stuff has given me the courage to get started! Keeping that in mind, here's my answer, for whatever's it worth... NO OFFENSE TO AGENTS/BROKERS)

There is only three things I remember at 1 in the morning that an Agent/Broker can do that an educated, experienced RE investor cannot:

1) List properties on/remove properties from the MLS.
2) Represent themselves as an Agent/Broker.
3) Have a professional license in the sale of real property.

Is there anything I might have missed? (I'm tired, and it's late, so it's possible, lol). Is there anything in that list above that can increase your bottom line? You must boil their position down to the essentials. They are sales professionals, they are paid to represent clients, and make money off the final sales price for their time/efforts.

They make a new client, grab their hand, and lead them through the entire sales process, from browsing to closing. If you tell them "their role," you will make them mad (they feel insulted). Ever see "Scent of a Woman?" When Chris O'Donnell takes Al Pacino's hand, and he starts screaming at him? ("are YOU blind?!!! Are YOU BLIND?!!! I take... YOUR hand!!"). It's alot like that, but it's going on inside their head, while you're politely explaining who you are and what you need.

If you say something that might cost them money or kick them out of the process ("assignment," "double closing," "less than full retail offers," "discounted commissions," etc.), they will get defensive and tell you it's impossible/illegal and refuse to work with you. They were either told to say that by someone who can fire them, or they hope you won't catch them lying and sue them for it. They feel you're taking the money out of their kids' mouths before they even have a chance to earn it!

After that happens, I can't think of any words in English or any other language that could convince a realtor/broker how you'll make him/her rich by doing most of their work for the interest of your portfolio, in exchange for an average (or lower, or even, borrowed) commission. It's an impossible sell, at that point.

You must think hard about why you actually need an agent, if you're already doing all your own "homework". If you need help with any part of your investing process, you'd be better served "hiring" a friend or someone interested in doing what you're doing. Teach them what you need them to do, double check ALL their work, and tackle your market!

P.S.: Using "your agent," or "I'm very busy and have alot of houses I'm considering," as a way to help your negotiations is a very effective way to break down ice cold sellers and commission-paid agents. In the end, your due diligence, your double-checked math, and your 2 feet walking away are the best tools to getting to "yes." Go Buyer's Market GO!

P.P.S.: You don't need a RE agent ("boo! hiss! Burn me at the stake!"). Plus, you'll be dealing with so many sellers' agents anyway, you won't even notice not having your own. If you insist on using an agent, make SURE s/he is a veteran ACTIVE investor with a moderate size (or larger) portfolio, who specializes in what you're looking for.

P.P.S.S.: Bottom line - The entire world of sales is a shark tank, and salespeople tell each other, "You're only as good as your last sale." I'm sorry, but it's true, and real estate just happens to be the most valuable product. For every 1 "yes" out there, there are 50 sharks desperate for a next meal, 50 rookies who don't have clue 1 what they're doing, and the 1 "yes" is usually hiding under a rock, sleeping or scared. You must swim fast, watch behind you, look under EVERY rock, and remember that people nice/flexible enough to work with you are out there, but they're surrounded.

The motto of my very long answer, lol: "If they won't join you, beat 'em!"

Keep smiling, keep pushing, don't get bit, and swim your way to your next "yes"! I haven't done it yet, but I know you can do it again.. Go for it!

I wrote this tome in the hopes of educating or motivating someone... If I haven't done both for at least 1 person, I hope I got 1 out of 2...

I call this situation, "The 'Buyer's Agent' Parable." I'm going to bed, so I'll make it quick and simple. You want to work with an agent, right? No agent with an IQ over 90 will "go to bat" for a new investor's interests without a Buyer's Broker Contract... If they commit to you, they want to be the only one (like in love, lol). Everyone knows this so far, yes? Okay...

One of the BEST sources of income for a RE investor is a rock bottom purchase price. We all know this, and we all should price our offers as aggressively as possible every time. We all know this isn't the only way to make a good investment, or even possible to accomplish on every deal. But it is the best, easiest, and smartest way.

Let's say you sign the contract - done and done. Now you have an agent/broker in your corner (like the old man in Rocky saying, "You're a bum, Rock! Get in there and fight!" LOL). Here's the rub, Igor...

The broker/agent is still paid by commission based on the FINAL purchase price! (wheels turning, people gasping) In many cases and many states, it's illegal to pay the broker/agent any extra money any other way, on top of their final price-based commission. Plus if there is a situation where it IS legal to do so, it DOES NOT look like good business at all. (I'm not a lawyer, but I can't think of any time where it WOULD be legal to pay your agent anything extra.) Yet, you signed an agency contract with this professional to represent/consult/defend your business interests, which are all about... buying properties.

Keeping that in mind, any rock bottom offers you make are going to make him/her squirm, because they're entrusted to make them for you. They will see the price you offer, they will figure out in a second what the commission might be, and they will probably have to split their commission with a seller's agent. See the pickle they (and you) are in now? The seller's agent works for the seller, the buyer's agent works for you... But they BOTH get PAID by the SALES PRICE. To keep all things honest, it cannot be any other way...

I think you can still make it work, if you: 1) thoroughly interview who your agent will be, 2) make them aware you will be making multiple and aggressive offers, and 3) let them know what they sacrifice in commission SIZE will be likely made up for in the NUMBER of commissions they make off you.

Follow those steps, and it will be much harder for you to fail going this route. I hope I helped someone tonight.

http://www.deangraziosi.com/node/11608

The contract that I use when I am working with a real estate agent is the standard state approved contract that the realtors use. They are not allowed to use any other contract (because of legal reasons). I just change a couple of things and add in a paragragh to make it fit my needs.