Finding a realtor - yikes!

Yes indeed. Sometime ago I posted an add looking for a RE agent who works with investors. About 2 months later I was contacted by an agent and she said she has not work with investors before but wouldn't mind working with me. So the next day she sent me a bunch of listings on an area then within 2 weeks I have all I can devour on all areas I asked her. Most of the listings she sent me were REO's and short sales. To make the story short I send her offers every which way and initially she didn't complain or anything and mind you, since I'm a newbie, I made sure that I'm confortable with my numbers. I'm even offering with an EMD of only $500 (which I learned later on that is also too small to even compete with retail buyers -- this is in Sothern CA). After I've went thru the listings she sent me, I lost contact with her. She stopped sending me anything so I reconnected with her by asking her input on what I should be changing on my offers. That's when she told me that most of the offers are actually with $5000 EMD and she even said she will recommend the offer price. Of course I still stick with my numbers but increased the EMD to $2500. So far she has not send me anything anymore. I found another agent and she said she works with investors. However, everytime I make my offers, she scrutinizes them and would even tell me that it will not go thru and should offer a little higher than asking. Now a days, I still run my numbers but in addtion, I also look at the asking price and see if the chance is good of getting accepted. I'm now also looking for another agent who will be as good as the other lady in sending listings and I think your suggestion of having a newbie agent would be a good one. Hopefully I'll find one who will stay and make money with me.

Thanks,

Dan

Oh yes, we all know the 25 - 1, but somehow that still sounds positive. I think it's because the 25 comes first. 1 out of 25 doesn't sound as good. I did the math and that's a 4% success rate - Ouch!

The first time a submit an offer with a new agent their response is always, they're not going to accept that. I always respond, I realize I only have a 4% chance of this offer being accepted, but to make the deal work for me that's what I have to offer.

Some stick around, some do not. You've got to kiss a lot of frogs before you find your prince (I mean Realtor

Best of Success,
Andrea

That is a different take on it. By far starting with a newbie when I placed calls to real estate agents I was completely nervous but having customer service skills I reminded myself this conversation is simply an exchange of information. But my first go at REI didn't go so well agent wise ( I forgot to use Matt's screening technique and bad business wise (my partner before was not a right fit for me) but my question to the previous posts did you informed the new agent to look on the MLS for the properties with certain descriptions as Matt taught us?

Thanks for posting by the way

Investing in real estate is more art than science. Much of your time is spent dealing with people. Anyone can learn how to analyse numbers and such, but the successful investor is the one who knows how to interact effectively. Therefore, it is probably wiser to sharpen your people skills before anything else.

Thanks for the comments folks! Keep on with the questions - don't be shy.
I absolutely still tell the agent the kinds of properties I want her to select (as per Matt Larson). We want homes that are vacant - Need Work - and have either been on the market longer than average (right now that may just mean 30 days, but it varies by market) and/or have had a price reduction. When we qualify our properties this was, we have a better chance (as in 1 in 25) of our offer getting excepted. When you are walking through a property with your agent have this conversation:
So, what do you think this house will sell for when I fix it all up?
Agent - I'll have to check comps, but probably around 225,000
OK - I have to update the kitchen, that's 7000, and the baths - that's 2000, new interior paint 3000, new flooring 4000, new furnace and hot water tank, that's 5000 - so at least 21000 in renovations - agree?
Agent - yeah, I can see that
Now when I re list the house with you, it costs me about 10% to sell it which is 20000. Plus some holding costs of a few thousand, I'll figure 3000.
And I need at least a 10% profit, I'm gonna plan for 25000 (that can include your wholesale fee, which she doesn't need to understand)
So let's see my offer is going to be about (225000-21000-20000-3000-25000) 150000
Agent - hmmm, ya

When you let them in on how you figure your numbers, it makes more sense! Notice I didn't mention asking price anywhere!

This is a great new take on the old "Right" agent issue. Not every agent is the right one for an investor. Getting an agent is a new concept for most newbie investors and not always so easy even for us not so newbie investors. I've tried to bring my late Mom's agent on to my team but he just doesn't get it. I've explained it all to him and since I know enough of how to make his job less work for him, I thought I could get a friendly face on board. I couldn't. Oh well Time to move on to the next one.

What we need to remember is that agents go through a training that may or may not include working with investors. As such, a new, fresh faced agent may be able to be swayed to "thinking a little different" when an established agent may be ( and usually are) set in an old way of doing things. It's up to us as investors to convince the agent that our way is the best way for them to make money in the current market conditions even tho their training may say differently. Your method of including the agent into the thought process of the offer sounds like just the ticket to getting one to be more open to working with us long term. They can feel more like a team member and not just "an agent." Once again, this is a people business.

Something to keep in mind, agents are trained in the work now, money later mindset. Rewarding them with small tokens along the way, even on unsuccessful deals, may go miles in your favor towards them doing even more work for you to help both you and themselves succeed. It doesn't even need to be a big token. A surprise cup of coffee and a doughnut ( where did I hear that? lol) can do wonders. Just something to keep in mind.

Thanks for this thread,

Andy

This is a great thread. I especially like how you are doing your numbers out loud as you go thru so that when you come up with your low offer, they understand where it is coming from.

Karen

This is a golden nugget by sure and its contributions like this that makes our DG family stand apart from the rest.....

I agree. This is a great thread. I really appreciate it. Thank you.

Be your very best always-Judy Williamson

What you focus on is where your energy goes-Kristin

With gratitude,
Patrick

I was surprised to see you post on this subject of finding realtors to work with. I think because you are a rock star student investor of Deans. I am glad to see it though because it is not so easy to find that just right agent to work with and it can be very discouraging to say the least. I just have to keep at it and ask the ?s and make careful presentations. It is definitely people skills and kn owing your audience in who we are speaking to. Thanks for making the post.

Great thread indeed - I haven't had luck with finding a good agent. Even the young, new ambitious ones were being coached "behind the scenes" by their brokers who usually are very set in their ways. Doesn't mean they're not out there. Just moved to a different state, so hopefully I will have more luck here in Oregon.
Thanks,

Pat Visser

I wish I could give you a 'thumbs up' like on FB

I have an awesome 'experienced' agent who initially suggested that I offer more than what I was submitting, but ever since my first (low) offer got accepted, she not only gladly puts in my offers, she actually sometimes suggests that I offer less!

I've built a good rapport with her over last three years, sent her flowers, chocolates... it's worked beautifully!

In the beginning, when I was having troubles with offers being accepted.... I would refer my bank clients to my realtor so that he at least didn't feel like he was working for nothing. I also explained my calculations and why my offers we're what they were. After about 4 closing that I referred to him, he didn't ask anymore questions and now does whatever I ask.

I agree realtors and investors can be the greatest team, if they find ways to work together as a team & not step on anyones toes. It's true that if people like you, they'll WANT to work worth you. But, not all investor friendly agents are who they say they are, or may not appear to be, including assiatant brokers & brokers if you're lucky to stuble on 1. The last assisnt broker I tried to work with from a remax office here in AZ sounded good on the phone & sent me a cash sold list which was great. I thanked her in an email after looking at the list & tried to call her a few times, only to get the run-a-round. I feel bad for peofessionals who treat people like that. I utilize the power of their assistants 98% of the time & have my agents make the offers. I use the power of email, too. If they respond to txts like our agent in KY, that's awesome. I try to make things easier for them, bc, they work hard as it is.

With that being said, I think if it works to talk with a newer agent & get them on board, go I for it.

I will definitely put this to work right away.I have been having trouble finding an agent.I really need one to give me, comparables and listings. but I will continue using matts strategies as well.

This is great stuff, Gena! Thank you.

Hey Andrea & co. like this thread, we def have to sweat to find the right agent I have to look for another one myself so now am going to really screen & pick the best agent & have a couple backups just in case & sell myself to these agents as in tell them if they work with me they wont have to work with anyone else because they will have so much business from me(they will love that because they are always looking for that next client because they have to continually be getting business)

That is what Matt did & I am going to do it too, kiss a bunch of frogs until we find the prince.

This is a great thread because the common theme is that REI is a people business as has been mentioned before on this site. Teamwork from one of your most important team members. I like the walk-through out loud comments that makes the agent understand that the numbers are are real and not pulled out of the court jester's hat (See, no frogs here?). Thank you. Thank you. I love this discussion.

Be your very best always-Judy Williamson

What you focus on is where your energy goes-Kristin

With gratitude,
Patrick

Hey DG Fam
Loving the comments on this thread. It's so right on that this is a people business. Networking, relationship building, marketing. Just human beings talking to human beings, right?! Now back to the frogs. Sometimes they pretend to be a prince for a while, but wear out quickly and turn into a frog - sorta the reverse of the fairytale. We had a new agent here in in Seattle who seemed all gung ho on batch one of offers. By batch two, we had clearly become second priority and she was slow. Batch three? Well, it simply never happened! So, listen, us "rock stars" (ha! Tongue in cheek) have exactly the same struggles everyone else does - we just keep on rockin - that's called perseverance - no matter what!

I've also heard it before where in dating, "Sometimes, you've gotta kiss a few frogs to find the prince or princess." Is the same way in REI.