Can't find a Realtor in California that will go the distance

I have the same problem. Even my Realtor friends can not and would not do it. They all think I am insane and doing something illegal. It is very frustrating...

Peggy,

I know you have expressed your frustration with RE Agents, but don't just give up. Think if you have Bill O'Rafferty on your team (He works in S. California too (Most difficult investing market!)) how profitable that would be. Just because assignments don't quite work in California doesn't mean you can't make a deal happen. I don't say this to be patronizing, just trying to motivate you to keep your dream alive and never...never...never give up!

Thaks,

Greg Rowe

Elk Grove, CA

CA agents are programmed like robots it seems. I have one agent who will put in the offers, but the last time I mentioned going for the REOs and listings that have been on the market 180+ days that had a price change and lowballing them 25-50% with a minimum of 25 offers (even with Matt's letters), I heard the all too familiar, "I have my reputation to look out for". ULLLGGHGHHHH!! And I thought he was going to be the one because he himself is an investor too. I'm going to be going on my 7th realtor once I find another one.

Right now I'm doing out of state deals and working with FSBOs. The negativity from the realtors here is very disheartening.

I'm so done with California as a whole. I've been here my whole life and i want to leave tomorrow.

How is the out of state deals going for you? And do you have someone your working with? This is the route I want to go, but I'm not sure hot to go about it. Any input from you would be most appreciated.

We were so excited about doing this and doing assignments until we found out that you can't do assignments in California. I'm going to start targeting homes in pre-foreclosue out of the state. I'm going to send out letters to the home owners introducing ourselves without mentioning the dreaded word foreclosure. I made a really nice postcard that says "we buy houses, no matter what the condition, and it has our website and 800 number on it. It has to be better than trying to work with california realtors.

Thanks again for the reply.

Peggy

Technically, you can do assignments here in CA, but its much easier to do working with FSBOs, and if you want to 'assign' REOs here, you can do it with a double close or a trust. But, you know how it is here, nothing is easy!

My house in GA was supposed to close at the end of the month, but it will be delayed. I haven't heard from the seller in a few days, so waiting to hear on when we can arrange the notary. I have to finalize my documents and have a lawyer read them over; that's another thing that's impossible to find in CA, a GOOD , HONEST (oxymoron) lawyer.

I'm working in other states with other DGers, but we haven't solidified any thing yet. Its a slow process, but we have many leads we're working on.

I've come accross quite a few fsbo properties. If I may ask, how do you contact prospective sellers? Do you send a letter or do yoy call them. Do you buy wholesale? I need to know how to approach since this part is relatively new to me. Also, do you handle these as assignments?

Again, any help would be greatly appreciated.

Peggy

them by phone. Right now, I call any I can find. The majority are flip flopped, and require a short sale situation, but the best thing to do is just get out there and start calling. My first call was so awkward and I felt I did horrible. My second wasn't so great, but after a while of doing it, its not so bad at all!

I research the address with Proptrend and check it out on TotalView first to have some info on it and rough (very rough, as total view's FMV also is not that accurate for many areas I look in). I then ask them to tell me about the house, if they are the owner, if anyone else is on the title to the property, why they are selling, how much cash they need, how much they're selling for, if they have a loan. I keep it pretty basic to begin with. If they open up and seem open to more interrogation, I'll ask them if they're behind in payments, if they'd be open to creative financing or lease option. I have all the questions in front of me in a form I made (I added to what the success academy gives you) and make sure to cover all the ground I need to.

You just have to get out there and call, because it will seem hard at first. I tried to contact Bill, I didn't get a reply here, but I'm going to call him up and find his phone number. I need a REAL realtor! LOL And, I'm in So. Cal, this market is full of opportunities, but it is a TOUGH place to be an investor, that's for sure. For some reason, realtors in general seem to think the banks should get FMV for the homes, despite all the risk involved with REOS and the rehab required on many of them. Hmmpphhh!!

That is exactly why I work without realtors. They seem to want to create these new laws like "assignments are illegal in California" BUT they can NEVER show you the law saying they are illegal...because they are not.

Assignments are done everyday for hundreds of years. Any contract is assignable unless it is in the LANGUAGE of the contract that it is not acceptable.

Most realtors are so ingorant of the assignment law and it scares them to know there is something concering real estate that they don't have a clue about...so the easiest thing for them to say is that it is illegal.

I assigned a deal last year for my district attorney. If it were illegal would the district attorney let me assign his property? I would say not.
Tell your know it all realtors they need to read up on the law and learn to think out of the box. Maybe they could greatly expand their knowledge and client base...and sales!

Psssooootttt on California know it all realtors!

Work with FSBO's. That is the very best way to go.

Hello and thank you for the input. I know what your saying, and I also know it's the banks discretion on assignments, so I say take a hike to the realtors and the banks who won't work with us, and my new path is fsbo's. I've already been working on equity rich properties and I'm going to start calling tomorrow. I know their is a script from Dean I can follow, I just need to find it.

I appreciate all the great input I've received today, and were nubies, but I am a very good listener, so I appreciate your comments and everyone else who has responded. I'm also calling the success academy for some answers, and they have also been great.

Thanks again.

Peggy

Peggy . It isn't just California . Before I signed up I had a few real-altors that were willing to work with me . Knowing I'd need them in this part of the country as they'd be the main source of information and help . (The nearest officially REI club is about 450 miles away and any unofficial/informal ones I found were 150 plus miles away . Contractors , rehabers , etc. groups and meetings are a kept secret , so far .) Anyway , after the convention this fall they renigged and so did the buyers . OOPS ! That threw a money wrench in my plans . Did a cross sections inquiry of the country on the net , found the same answer . 25 of these polite necessary robots said , in short , what your doing is illegal . The 26th wasn't polite , wanted to turn me in ! LOL , BUT NOT . Told him I hadn't done any yet was just asking questions , he backed off . So maybe FSBOs the answer . Sistreat , correct me if I'm wrong . FSBOs require you to be more on your toes , self research , more running , sort of a new way of closing etc even though you are trying to do the same thing as she was ? Onward find a new angle !

Hi
I am a new RE investor in California and my spirits are still high after reading 2 of Dean's books. I am digesting, implementing and getting my team together.
If any of you have had more success in the last few months, please add a post here.
Thanks
And make it a Great Day,
Lucia

wow this is some good stuff about realtors and how they are someone on here said that even there friends that are realtors wouldnt do it i guess it is implanted in the brains to say that assignments are illegal thats a bummer to us investors here in california.

Working directly with the homeowner is easier than making offers through a realtor and the contracts are way more simple! Assigning the contract you get with a homeowner is no hassle at all!

However that is putting the cart before the horse!! If you don't know how to determine what a property will actually quick SELL for in today's market, what the remodel costs are and back it up with facts when you present your deal to the person you are assigning the contract to you are wasting your time.

Alot of people tick off their realtors by making offers on properties that WILL NOT go to an investor. Making a lowball offer on a move in ready house usually does not work. We investors need to offer on properties that the owner/occupant buyer does not want, not until we buy it cheap and fix it up that is!

People that are successful making multiple offers know which properties to offer on. They do not just shotgun 25 offers and get 1. They offer on the most likely to work for an investor 25!! They also present themselves as professionals with the actions, knowledge and offers to back that up. Realtors have better things to do than make 25 stupid offers with no hopes of making a commission for people that have no clue nor do they have the ability to close. This is where new investors need to concentrate their efforts. Learning how to FIND and properly evaluate properties, make offers and flip them to the buyers list they are constantly building.

One other tip. NETWORK with live people face to face wherever investors gather.

Profitable Investing to All!!

Michael Mangham
MD Home Acquisitions LLC

Have you taken the advice of Matt Larson ? He reccommends you contact either Re-Max or Keller Williams Realtors.
Those two companies train their agents to work in the areas of creative financing.
But before you talk directly to an agent, you may want to call and talk to the receptionist first.
If ? They have anyone in their office who might be willing to work the kind of deals you want to concentrate on, the recetionist would know what agent to direct you to, if any.
And if there are no agents that fit your criteria at that particular location? Than move on to the next phone listing and keep trying until you do find what your looking for.
I hope that helps. " Good Luck."

Hello Peggy:
It was also my understading that an assignment is between a would be buyer and a F,S,B,O. Banks will not deal with anyone they cannot qualify. It seems to me you are concentrating most of your efforts in all the wrong areas.
And Yes, by all means, look for buyers outside your area. Your first order of business should be, to compile your list of buyers.
Once you have your buyers list in tact, and you know what type of properties they're looking for. Find yourself a For Sale By Owner and lock up a deal in writing with them, then try to match a buyer with the seller.

( Avoid Banks all together.)

A good Real Estate Attorney would be worth your weight in gold. If you dont have one, then I would highly suggest you start by finding an attorney in your area who could help decipher for you what you can and cannot legally do in your area.
I personlly believe that out of state buyers are the people you would want to deal with the most.

I hope this helps you Peggy..." Good luck."

Elix,

I hope people really read my post and your post and really think about what has been stated there. If they would only take it in and work on learning which properties to offer on and why, along with how to get the property under contract and execute one of their exit strategies, they would be far better off than blaming realtors!! As soon as they open their mouths realtors know it is a waste of their time. That is the problem, the lack of knowledge and confidence. What to offer on and how to present the offer needs to come first.

Think about it, it is not easy to get to this point, its a lot easier to whine about mean ole realtors. I am not a realtor and they can be a pain but usually our agony is self inflicted!

Michael Mangham
MD Home Acquisitions LLC

Just got both books 3 weeks ago and applying what makes sense to me so far. I am in Palmdale, and looking for any DG REI groups out here in the Antelope Valley. I am driven to make my first deal and am learning so much from your replies to each other. How are the lease options to buy technique working out here in SoCal. That is my focus because it seems the easiest for me. Targeting FSBO's, but need to find good agent or realtor for my team. No luck so far.

Actually your time would be better spent doing the FSBO's first, get some deals under your belt and then look for an agent.

A competent agent will take the time to work with you if they know you know what you're doing. If you say "yes I just closed a few deals, the last one on 157th st last week" they'll look at you as not a time waster.

Go that route also because less time haggling and its yours

Hi Kalanieta,

There is a post on here by Ranger16 and a way he has of doing lease options. Because CA was one of the highest in appreciating values during the boom, it is also the hardest hit with the crash of values, so MANY of them are flip flopped. Ranger has a GREAT strategy using LO to tackle these head on. As for REI groups, sign up on MEETUP.com, you will find a plethora of REI groups here in CA! THey're EVERYWHERE!

That makes sense, will stick to FSBO's initially.

Thank you.

I will pursue your recommendations. Makes life easier to get advise from you more experienced investors. Thanks again, and good luck with your ventures.

Send me a PM if your interested in Wholesaling, I can help you with it & provide cash buyers in your area to close right away.......

Everyone Can Make A Difference!
John A

I stopped using real estate agents in 1986 when one stole a $12.6 million office complex from me. I had found a complex in Columbus, Ohio that was being sold for $12.6 million and had $10.6 million assumable IRDB financing; the seller was also willing to finance $1.75 million for 3 years so all I had to do was come up with a cool $250,000 plus closing costs and the deal as mine. It appears the listing agent didn't understand that IRDB were assumable and he never thought about asking the seller to provide some financing. Once he found out how I had structured the deal, the real estate agent convince the seller that he could do the same thing and use his commission to reduce the downpayment.
It was a monumental learning experience for me and I never regret not using one since that day on. It really does make you better at deals and you have to learn a whole lot more to fully understand the makeup of each transaction. FSBOs are the way to go as you can control the situation.

PS - The guy that stole my (intended) complex resold it 3 years later for $15.7 million cash to a Chicago insurance pension fund. You win some and you lose some. LOL

I've been through aleast 12 Realtors in the past 2 yrs. You just keep going until you find the pitbull who is hungry enough. He has been with me for 6 months now & we have a system of viewing 10 properties together once a week & he set me up with an offer system where we scanned in my signature & we never have to meet to sign documents. I just change the Date, Price, Address, & EMD then send it off to him.
Also, I know a lot of you are saying to go the FSBO route, but in San Diego, I haven't seen a FSBO in a long time, & when I do, they are so far unrealistic with there price, it's crazy. Or last year when I was going after the few that were out there, they ended up getting there asking price because our market is hot.
NOTE: That's just been my experience & if you can find them, I agree, it is the better route.
Also in SD, It's now December 2010 & Investors are still paying 75%-80% of ARV, minus repairs all day long, So it has been very tight for REO wholesalers this past year & I've seen many Investors get burned out.

If you are not comfortable speaking with sellers directly, you can choose to send out emails to sellers. You can go to Craigslist and Backpage to find some sellers that are interested in doing whatever it takes to get rid of the house.